The change means more than £100m will be spent by the UK government on projects normally devolved to Holyrood.
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This updated article gets better, the SNP are terrified of not being able to control the fact that U.K. government will be able to stamp their name on projects and infact will result in direct funding to local authorities undermining their total control but undoubtedly putting money where it is needed and often denied due to their party politics.
I’m sure all that clarity that Ms Forbes ‘requires’ will be that the SNP will no longer be able to claim all the ‘success stories’ and will have to put ‘Part of a U.K. Government Project’ on their fancy blue signs.
‘These were recently passed into law under the Internal Market Act, which was criticised for paving the way to bypass devolved administrations.
The Scotland Secretary, Alister Jack, previously hinted that much of the spending in Scotland could be through local authorities.
Along with city region growth deals, that gives the UK government the opportunity to flag up its commitment to projects of political value to it. However, it also creates a new area for friction with Holyrood, going into the spring election campaign.
The letter from Mr Barclay was in answer to a request from Ms Forbes for a Scottish share of the Covid contingency fund.
Most of the letter, sent on Friday, set out the ways in which the UK government is supporting Scotland directly, in health and economic funding, from furlough payments to shipbuilding contracts.
It said the contingency fund was mainly aimed at testing and vaccination, which are funded from UK central government.
New powers
Mr Barclay wrote to the Scottish finance secretary: "While I recognise the devolved Scottish government has an important role to play, the overwhelming majority of Covid support to businesses and people across the UK is and will continue to be delivered through the UK Treasury.
"It is disappointing that your letter and your public comments generally fail to mention the depth of support that has been available and continues to be provided".
It went on: "The UK Shared Prosperity Fund will help to level up and create opportunity across the UK in places most in need.
It will operate UK-wide, using the new financial assistance powers in the UK Internal Market Act.
"We will ramp up funding so that total domestic UK-wide funding will at least match EU receipts on average reaching around £1.5bn a year.
In a statement, Ms Forbes said the change confirmed what the Scottish government had feared following the UK's exit from the EU.
"We need urgent reassurance that there will be a full replacement of all lost EU funds. Scotland must receive at least £1.283bn for a replacement seven-year programme for 2021-2027.
"It is also vital that control over any new arrangements remains in Scotland. Otherwise this threatens to be a significant power grab over Scotland's powers to target investment and to make decisions based on what's best for the people, businesses and communities of Scotland.
"I urge the Chancellor to provide clarity ahead of the Scottish Budget on 28 January."’