Millions of pounds intended to help Scotland prepare for no-deal Brexit ‘mis-spent’

Millions of pounds intended to help Scotland prepare for a no-deal Brexit has been spent as part of the normal Scottish Government budget, Scottish Labour has claimed.

By The Newsroom Wednesday, 3rd July 2019, 7:55 am

MSP Jackie Baillie said that of the £37.3 million the Scottish Government received as part of the UK’s Brexit preparation fund, £10m has gone on departmental budgets.

Money received through Barnett formula consequentials is not ring-fenced, but traditionally is spent on the area for which it was received.

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However, in a parliamentary answer to Ms Baillie, SNP finance secretary Derek Mackay said £10m of the Brexit fund had been spent across a variety of government departments – with the largest share, £4m, going to the environment, climate change and land reform budget.

Derek Mackay under fire over mis-spent Brexit cash. Picture: PA

The row comes just weeks after the independent Scottish Fiscal Commission warned that the Scottish Government was facing a £1billion black hole.

Ms Baillie said: “The SNP’s decision to blow £10m of no-deal Brexit funding has left Scottish businesses, and the jobs they support, at risk.

“Derek Mackay is doubling down on the Tories’ economic incompetence with this decision. A no-deal Brexit will never be a credible option, but neither is blowing preparation funding which could shield Scottish businesses from the worst excesses of a new Tory prime minister.

“Derek Mackay and the SNP should come clean over why they have misused this funding and what they intend to do to ensure Scottish jobs are not put at risk from their actions.”