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EXCLUSIVE Government redirecting EU millions to 'top up' Scottish economy, claims MP
MILLIONS of pounds of EU regeneration cash are being diverted from struggling areas of England to "top up" the Scottish economy ahead of this year's independence vote, a senior MP has claimed.
By: Owen Bennett - Political Reporter
Published: Mon, February 24, 2014

Millions of pounds is being diverted from England to Scotland claims John Healey MP ]

The government has protected Scotland - in the year they vote on independence - Northern Ireland and Wales against more than a five per cent cut.

Press release from John Healey MP

John Healey, a former Labour minister, believes vast sums of EU money which should have gone to areas such as Sheffield and Liverpool has instead gone north of the border.

Whitehall figures show that �656milllion from the European Regional Development Fund and the European Social Fund in Brussels are being sent on the orders of the UK government to Scotland over the next six years.

The Government admits this is �188million more than would have been the case under the EU�s own formula.

The Highland and Island area of Scotland, which lies in Chief Secretary to the Treasury Danny Alexander's constituency, will receive �612 per head in the period - more than six times greater than the �97 per head allocated to Sheffield.

Even Chancellor George Osborne's wealthy constituency in Cheshire, with �130 a head, is getting more than Sheffield, Mr Healey points out.

The decision of how to allocate money from Brussels is taken by the UK Government.

Earlier this month the High Court ruled ministers had acted unlawfully when cutting funding to some areas so dramatically.

A press release from Mr Healey's office said: "The government has protected Scotland - in the year they vote on independence - Northern Ireland and Wales against more than a five per cent cut."

Mr Healey, MP for the South Yorkshire constituency of Wentworth and Dearne, is due to raise the matter in a debate in Parliament tomorrow.

However, today, SNP president Ian Hudghton angrily hit back at Mr Healey, accusing him of being part of a Labour plot to "take money" from vital projects in Scotland.

But Mr Healey was adamant, saying: "South Yorkshire and Merseyside are facing cuts massively deeper than in any other area in the UK.

"It is an outrage that areas in the UK with more wealth, jobs, business and prosperity are getting more European funding.

"A major factor in the unfair distribution is the Government�s plan to direct top up funds from South Yorkshire and Merseyside in order to support Scotland, Wales and Northern Ireland.

"Ministers are ripping funds away from our areas to give special protection to Scotland, where the GDP is higher.

"I am not asking for South Yorkshire to get special treatment, just the same treatment as Scotland, Wales and Northern Ireland, and certainly not to be singled out for such special and swingeing cutbacks."

Business Secretary Vince Cable announced the spending allocation last year, and was immediately criticised for dramatically cutting the funding for areas in England while ensuring Scotland, Wales and Northern Ireland suffered no more than a five per cent cut.

Liverpool City Region and Sheffield City Region joined forces to take legal action against ministers, saying according to the EU's allocation framework their areas should have got more money.

Liverpool's share of the funding should have been �289million, much higher than the �183million it was given.

Sheffield's �167million represents a 61 per cent cut on the previous funding round.

Speaking after the verdict on February 7, Liverpool mayor Joe Anderson said: "The bottom line is that the Government took �275 million of funding allocated to English regions such as Liverpool and gave it instead to Scotland and Northern Ireland.

"They had claimed this was to protect them from being disproportionately affected by funding changes, yet in percentage terms we have lost twice as much as they stood to lose.

"I have described it previously as Robin Hood in reverse - taking from the poor to give to the rich."

Mr Hudghton said: "It is extraordinary that senior elected Labour figures at Westminster, in the European Parliament, and in local government, are trying to take money for vital projects away from Scotland. I will be writing to the Labour leader in Scotland, Johann Lamont, calling on her to repudiate these activities by her Labour colleagues and demand that they stop it.

�The reality is that Scotland gets far fewer resources than we would as an independent EU member state. For example, as a result of the Westminster Government�s negotiations, Scottish farmers receive the lowest per hectare CAP payments in Europe � as an independent country Scotland would benefit from an extra �1bn of support until 2020.

�Only independence offers Scotland the chance to get a better deal in Europe. With the Tories intent on holding a referendum which could rip the UK out of Europe, a Yes vote in September will secure our place within the EU and give Scotland a seat at the top table.�

A spokesman for the Department of Business said the funding decision was "was unrelated to the forthcoming referendum on Scottish independence