Gove will pay out 'billions' to farmers in 'no deal' scenario, Scottish govt vows

First Minister Nicola Sturgeon with Rural Economy Secretary Fergus Ewing (Photo: Andrew Maccoll/Shutterstock)
First Minister Nicola Sturgeon with Rural Economy Secretary Fergus Ewing (Photo: Andrew Maccoll/Shutterstock)

The UK government will have to pay out billions of pounds to farmers if the UK leaves the EU with 'no deal', the Scottish government has warned.

Scotland's Rural Economy Secretary, Fergus Ewing said the UK government will be liable for covering costs in the event of leaving the EU on WTO terms.

He said Defra Secretary Michael Gove is “responsible” for covering the costs, which could end up in the “billions”.

The warning comes as MPs prepare to vote in the House of Commons on Tuesday (15 January) on Prime Minister Theresa May's Brexit deal.

The PM appears to be on course for a crushing defeat in the vote, making a 'no deal' Brexit a possible outcome.

Mr Ewing said: “We will absolutely continue to champion the case for farmers and if there are costs to farmers resultant from a no-deal then Mr Gove is responsible for them. He has said so himself.

“It’s going to be billions. I would far rather eliminate a catastrophic no-deal than deal with it after it’s happened.”

“We have made it absolutely clear, and I will make it clear to Michael Gove when I meet him today, that the additional costs that arise are the responsibility of the UK Government,” he said.

The Scottish government has also sent a letter to MPs setting out steps it believes must be taken to protect both Scotland and the UK from the UK government's Brexit deal and a no deal outcome.

The letter, written by Constitutional Relations Secretary Michael Russel, calls for MPs to support a new referendum on EU membership in a 'crucial week for the future of Scotland.'

Mr Russell said: “This will be a crucial week for the future of Scotland but I urge MPs not to think just of the days to come but of the generations to come.

“The UK government's Brexit deal will take Scotland out of the EU against our will. It will make us poorer, diminish our rights and damage opportunities for future generations.”

A report by the Agriculture and Horticulture Development Board (AHDB) which looks at the effect of leaving the EU highlights how Scotland could feel the effects of withdrawal from the Common Agricultural Policy (CAP) more than other parts of the UK.

"EU funds are proportionately more important to Scotland than the rest of the UK," the report says.

"The largest part of Scotland’s pre- allocated EU funds come from CAP Pillar I with support to farmers’ incomes provided in the form of direct payments and market-support measures."