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A group of MSPs have warned that the UK government’s plans to replace EU grants could “infringe on the rules of devolution”.

The Scottish Government’s Economy and Fair Work Committee has published a report setting out its concerns over the Subsidy Control Bill.

The bill sets out how governments and local authorities should decide whether to award grants.

However, MSPs on the committee argued that the bill lacks detail and has not been properly reviewed by Holyrood.

The report says the bill could lead to UK ministers intervening inappropriately.

Chair Claire Baker said: “Our committee is deeply concerned about a number of aspects of this bill and its potential implications.

“The complete absence of details on the operation of this new subsidy control regime is not acceptable.

“In its current form, this new regime could see UK ministers go through the devolution settlement and intervene in devolved areas without consultation or knowledge of local circumstances.

“We find it totally unsatisfactory that this Bill allows the UK Government and UK Ministers to legislate in a way that will directly impact devolved areas of our economy, while circumventing the scrutiny of the Scottish Parliament or Scottish Ministers. “

She continued: “But our concerns don’t stop at the impact on decentralized issues.

“We have heard evidence that the proposed subsidy program could create an imbalance between communities at the local or regional level, who may not have the means or the capacity to compete for subsidies with large companies and organisations, and this will be the case across the UK.

“This may mean it unfairly disadvantages smaller organizations and community groups who previously had access to EU support funds.”