Scottish Government makes £1.18bn post-Brexit funding demand to Rishi Sunak

The Scottish Government have issued a demand for more funding from the UK Government following the announcement of a £400m post-Brexit support package for Northern Ireland.
Chancellor of the Exchequer Rishi Sunak has been asked to provide additional to the Scottish GovernmentChancellor of the Exchequer Rishi Sunak has been asked to provide additional to the Scottish Government
Chancellor of the Exchequer Rishi Sunak has been asked to provide additional to the Scottish Government

Finance minister Kate Forbes claimed that “well-establishing funding arrangements” would mean Scotland should have received £1.18 billion due to the additional funding.

The UK Government announced the £400m fund as the likelihood of a potential no deal Brexit grow larger by the day.

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Both the UK and the EU have said it is more likely than not the UK will crash out of the trading bloc without a deal on December 31.

In a letter to Rishi Sunak, Ms Forbes states: “This issue is particularly urgent in light of the Prime Minister’s statement that there was a strong possibility of no deal with the EU

"I have set out in the past that I don’t object to additional funding being provided to Northern Ireland as long as there is a proportionate, fair and equitable level of funds being made available to other devolved administrations.

"If well-established funding arrangements were followed in respect of the additional money made available to Northern Ireland, Scotland would expect to receive £1.18 billion of funding.”

Calling for a “fair share of post transition support”, Ms Forbes calls for an announcement of funding for Scotland as “a matter of urgency” to allow Brexit mitigations to be put in place.

She writes: “Scotland, like Northern Ireland, voted to remain in the European Union and while I do not begrudge Northern Ireland additional funding considering the highly damaging impacts that will be felt following the end of EU Exit transition, Scotland also anticipates very significant additional costs, more so if no deal is reached.

"Managing these costs has been made particularly difficult in light of the exceptional challenges posed by the coronavirus pandemic.”

Announcing the funding for Northern Ireland, chief secretary to the treasury Stephen Barclay said: “This significant funding further reinforces the strength of UK action to support Northern Ireland.

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"It builds on £900 million allocated at the Spending Review through the Barnett formula, which can be used to grow the economy, improve public services and support people and business across Northern Ireland.

"Protecting jobs and livelihoods in Northern Ireland remains a priority for the UK Government.”

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