A PROPOSED new law could risk “excluding” the Scottish Government from decisions about subsidies being given to businesses in Scotland, the SNP have warned – as Plaid Cymru described it as a "power grab".

The Subsidy Control Bill sets out a new set of rules for giving out subsidies following Brexit.

As MPs considered the Bill, SNP shadow economy spokeswoman Kirsty Blackman said: “Given that the devolved administrations have got by law devolved competencies, have got legislation there that is within their competence, it doesn’t make sense that streamlined subsidy schemes should only be able to be made by the secretary of state for the UK Government.”

Moving an amendment calling for devolved governments to share in the new powers, she added: “We are not asking for an overstepping outside the box of what is devolved competencies, we are just asking for parity with the ability for devolved administrations to pay streamlined subsidy schemes.”

The Aberdeen North MP warned that not naming devolved administrations as “interested parties” in the new regime could prevent them from challenging subsidies overseen by the UK Government that have a bad impact in regions under their control.

She said: “I don’t think it is the intention of the Government to exclude the Scottish Government, and the Welsh Government, or the Northern Irish Assembly from making these challenges, but I do think the Bill is written in an unruly enough way, that it potentially accidentally excludes them.”

Blackman also warned that a new database for who received subsidies may not lead to “transparent” record keeping.

She described a planned database of which companies had received subsidies as “rubbish” and added her doubts about making it the responsibility of businesses, rather than the Government or local councils, to keep certain records of the cash awards.

Blackman said: “There is not a requirement on them to be transparent about that record. There’s a requirement on them to keep it, but on them to share that record.”

Plaid Cymru’s Westminster leader Liz Saville Roberts said: “This Bill is an assault on devolution, wilfully ignorant of the needs of the national economies of the UK, or the role of public bodies in advancing them.”

The National: Liz Saville RobertsLiz Saville Roberts

She described it as “yet another power grab that undermines not only devolution but also the levelling up project this Government is allegedly so keen on promoting”.

The MP for Dwyfor Meirionnydd said: “It speaks to an unconstructive disdain for the rights and responsibilities of the devolved nations from this Government.”

She called for “a more co-operative and informed subsidy regime”.

The Government needs a “UK-wide” subsidy regime to prevent “harmful distortions” to competition, a minister said after facing the accusations of taking power over business grants from devolved governments.

Business minister Paul Scully told MPs: “The UK Government has engaged regularly with the devolved administrations in the design of the UK Subsidy Control Bill and we will continue to listen carefully to their views.

“It is important to reiterate that the Subsidy Control Bill is a matter reserved to this Parliament. That is because we need a UK-wide regime to prevent harmful distortions of competition and to facilitate compliance with our international obligations.”

He added: “The Secretary of State will act in the interests of all parts of the UK.”

Scully also gave MPs assurances about the transparency of a planned subsidies database, saying: “I take the issue really seriously and I want to confirm my department is working on a programme of improvement on the subsidy database.”

After Scully finished speaking, MPs voted 292 to 31, majority 261, against an SNP amendment which would have made agricultural subsidies exempt from the new rules in the Bill.