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SCOTTISH FUNDING: TREASURY CREAMING OFF CHARGE REPLY

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Scottish finance minister Jack McConnell and Fife Council leader Christine May have given evidence to the European ...
Scottish finance minister Jack McConnell and Fife Council leader Christine May have given evidence to the European committee of the Scottish Parliament following allegations that funding destined for Scotland is being creamed off by the Treasury.

Critics claim block grants from Europe are not being adjusted in line with existing expenditure, with Scotland losing out.

But allegations stem from a misunderstanding about the EU funding process, according to Ms May. 'Scottish Nationalists are calling for a separate ring-fenced budget,' she claimed.

Mr McConnell denied Labour was mishandling structural funding. He explained how the 'additionality' funding process is handled by the Scottish Executive. Structural funding must be additional to planned spending and go on additional projects so the government can not use it as a substitute for routine public spending.
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