Foreign Secretary Philip Hammond has refused to guarantee that more than £100million in EU funding to the Highlands will be safeguarded after “Brexit”.
The Conservative minister said the cash would be subject to “negotiations” when he was challenged by Inverness MP Drew Hendry in Westminster yesterday.
Hundreds of projects across the Highlands benefit from EU structural money, including the European Regional Development Fund (ERDF), which is invested in small business projects and research, and the European Social Fund (ESF), which helps poorer people.
More than £150million was earmarked for the Highlands in the last spending round from those two funds alone, but the future of the cash has been thrown into doubt since the vote for Britain to quit the UK.
In the Commons yesterday, Mr Hendry said: “The Highlands and islands currently benefit from 192million Euros in transition funding.
“Can the government minister guarantee, that given the incoming prime minister’s haste to get on with Brexit, that the UK government will guarantee that funding for the Highlands and islands?”
Mr Hammond responded: “Britain is of course a significant net contributor to the European Union, but within that significant net contribution there are a significant number of flows to particular regions, particular areas, particular projects, particular bodies within the United Kingdom.
“One of the issues that we will have to address is how the recipient of those flows of funds from Brussels are to be protected in the future. And that will be one of the important parts of negotiations.”
Highlands and Islands Enterprise (HIE) budgets to receive about £5million in EU cash every year, while the University of the Highlands and Islands (UHI), transport partnership Hitrans and Highland Council also receive significant funding.
An HIE spokesman said:”The projects we are delivering now are not at risk. What happens beyond 2018 is still to be determined.”
Speaking after quizzing Mr Hammond last night, Mr Hendry said: “There we have it, once again, no answer, no plan and absolutely no guarantee for the communities across the Highlands and islands on this vital European funding.
“This money has a real impact, making a difference to our people, shops and businesses and helping to underpin some of our most fragile communities.”
