About the Inquiry
The process of Brexit results in powers which are currently being exercised at EU level being returned to the UK. To date, parliamentary scrutiny of this process has tended to focus on the territorial re-distribution of EU competences. However, the approach which may be taken to allocate resources to support the distribution of competences returning from the EU has been the subject of more limited consideration. The Committee highlighted this issue in its Interim Report on the ‘European Union (Withdrawal) Bill’ and noted that—
"further consideration is required in relation to the funding of devolved competences which are currently funded at an EU level. The UK’s net contribution to the EU will revert to the UK Government. There are a number of options available as to how this funding will then be distributed across the UK and the Committee intends to consider this further including how the funding of obligations and commitments arising from common frameworks should be agreed".
Accordingly, it remains unclear what mechanisms will be used to fund competences returning from the EU. In addition, Scotland receives monies from a range of EU funds with the Common Agricultural Policy (CAP) and the Structural Funds being the principal sources of funding. During the 2014-2020 EU budget period, Scotland will receive €4.6bn to implement CAP and €941m in Structural Fund support. The UK Government has agreed to match CAP payments until 2020 while the agreement between the EU and the UK Government at Stage One of the Brexit negotiations provides for the ‘continued participation’ in current EU funding streams to the end of the 2020 budgetary period. In a post-Brexit environment, the extent to which the UK would continue to participate in EU funding streams or what would replace such funding streams remains to be agreed.
The Committee intends to take evidence on the public finance issues raised by Brexit in the period between April to June. In order to inform the Committee’s evidence taking, the Committee sought views on the public finances issues raised for the devolution settlement arising from the Brexit process.
The Committee received 10 submissions in response to the call for evidence. These are collated in the PDF below:
A number of submissions were received after the deadline:
The Committee took evidence on the funding of EU competences in a round table format on 13 June 2018. The meeting papers and official report are available via the following links: