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Scotland 'faces EU funding cut', says SNP's Nicola Sturgeon Scotland 'faces EU funding cut', says SNP's Nicola Sturgeon
(35 minutes later)
Scotland is facing a disproportionate cut in European structural funds thought to be worth about a quarter-of-a-billion pounds, SNP ministers said.Scotland is facing a disproportionate cut in European structural funds thought to be worth about a quarter-of-a-billion pounds, SNP ministers said.
Deputy First Minister Nicola Sturgeon said the allocation could be cut by 30% from 2014-20 - five times the reduction for the UK as a whole. Deputy First Minister Nicola Sturgeon said the allocation could be cut by 30% from 2014-20, which was five times the reduction for the UK as a whole.
Her comments came after a budget deal was struck by EU member states, following lengthy talks.Her comments came after a budget deal was struck by EU member states, following lengthy talks.
It represents a 3.3% reduction from the previous seven-year budget. It represented a 3.3% reduction from the previous seven-year budget.
The Scottish government said the deal would cut the UK's allocation of structural funds by about 6%, amounting to 30% in Scotland. The Scottish government said the deal would cut the UK's allocation of structural funds by about 6%, amounting to 30% in Scotland, according to "initial" calculations.
Scots ministers said a new formula for allocating funding was based in population density, meaning areas like the Highlands would be particularly badly hit. Scots ministers said a new formula for allocating funding was based on population density, meaning areas like the Highlands would be particularly badly hit.
Structural funding is seen as vital for supporting projects to boost the region's economy, like green energy and other infrastructure schemes including road improvement.
Ms Sturgeon told the Scottish Parliament that Wales and Northern Ireland also faced cuts, while England's allocation was expected to rise.Ms Sturgeon told the Scottish Parliament that Wales and Northern Ireland also faced cuts, while England's allocation was expected to rise.
She said she was "optimistic" a revised settlement could be reached. She said officials from the UK and devolved governments had agreed to work together to seek an alternative funding formula.
Ms Sturgeon added: "Clearly, I am very concerned by what would be a disproportionate reduction in European structural funding for Scotland.
"The prospects are good and I'm optimistic that we can get to a much better and fairer allocation, but there's work to do to get there."
The budget deal still has to be agreed by the European Parliament.The budget deal still has to be agreed by the European Parliament.
Structural funding aims to reduce gaps in the economies of different European regions.