Nicola Sturgeon has blasted reported UK Government plans to hold on to a key economic lever after the Brexit transition period.
It has been claimed Prime Minister Boris Johnson will not devolve control over ‘state aid’, which allows Governments to subsidise companies.
The First Minister tweeted this morning: “This would be a full scale assault on devolution - a blatant move to erode the powers of the Scottish Parliament in key areas. If the Tories want to further boost support for independence, this is the way to do it.”
As a result of Brexit, some of the powers that rested with the European Union will become a matter for Holyrood.
Johnson’s administration has said that other responsibilities will sit at Westminster - much to the fury of the SNP Government.
The Financial Times has reported that one of these powers is state aid, which UK Ministers want to regulate on a UK-wide basis.
The newspaper claimed the proposal would give MPs statutory powers in this area and would be set out in a bill this autumn.
It was reported the provisions would lay the legal foundations for a new “internal market” inside the UK.
However, the revelation has stirred up accusations of a so-called power grab by the Tory Government.
Michael Russell, Scotland’s constitutional affairs secretary, was quoted saying had been told “absolutely nothing” about the UK government’s intentions for the bill.
The Prime Minister has previously said the freedom to subsidise companies is one of the “benefits which will directly result from leaving the EU”.
However, a UK Government spokesperson said:
“As we have previously set out, the Government considers the regulation of state aid to be a reserved matter. Indeed, it is currently an EU matter and has never sat with the Devolved Administrations. Further details on our approach to the application of subsidy control after the end of the transition period will be set out in the coming weeks.
“We are keen to work with the Devolved Administrations to seek to agree a modern system for supporting British business in a way that benefits all within the UK.”
