LESS than 2% of the UK Government's £20 million Brexit support fund has been paid to Scottish businesses, new figures reveal.

The Tories have paid out just a third of the money set aside to help small or medium-sized enterprises (SMEs) cope with the increased bureaucracy and costs resulting from the UK’s withdrawal from the European Union.

The SME Brexit Support Fund allocated £20m to assist the UK's 600,000 exporting SMEs.

The scheme drew criticism at launch for providing an average of just £30 to £40 per qualifying business, at a time when the Government announced their intention to spend £200m on a new trade yacht.

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In June it was reported that the government originally had a target to provide grants to 10,000 businesses.

Applications for the scheme closed at the end of June with only 4376 grants awarded from 5414 applications totalling £6.8million, just over a third of the total amount set aside.

Regional inequity is also a factor, with businesses in England having been offered £5,862,213 compared to £387,387 in Scotland representing less than 2% of the overall fund.

Meanwhile, £196,546 was awarded to businesses in Wales and £360,174 to businesses in Northern Ireland.

In May, the Federation of Small Businesses among others warned the cross-party UK Trade and Business Commission that businesses, already burdened by increased admin, were being deterred from the scheme by the complex application process and the limited support on offer.

The British Chambers of Commerce also suggested that the maximum grant available should be increased.

SNP MP Dr Philippa Whitford, who sits on the UK Trade and Business Commission, said: “With the government planning to pay 500 times more for a Royal yacht, that is meant to stimulate trade, it is inexcusable that they are only offering such measly support for Scottish businesses which are struggling because of the UK Government’s half-baked trade deal with the EU.

“The application system is too complex for such small grants so the Government should hold another round of bidding with a simplified application process and more substantial grants.”

Naomi Smith, chief executive of internationalist campaign group Best for Britain which is the secretariat for the UK Trade and Business Commission said: "After a rushed deal with the EU, which had scant parliamentary oversight, SMEs are facing crippling costs, burdensome bureaucracy, and disrupted supply lines.

"Without real action by the Government, small businesses risk falling through the holes in this deal and into the abyss, taking British jobs with them."

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A Government spokesperson said: “Our SME Brexit Support Fund has provided grants of up to £2000 to more than 4000 small and medium-sized businesses so far.

“HMRC and PwC worked extensively to encourage SMEs across the UK to complete applications, including by working with representative bodies such as the Federation of Small Businesses and the British Chambers of Commerce to advertise the fund with their members.

“We are in the process of reviewing the scheme and seeing what can be learned for future support offered to traders.

“For those businesses who applied but were not eligible, we are continuing to provide support through regular communication, webinars and guidance on Gov.UK.”