DON'T lock the Highlands and Islands out of a £4.8 billion post-Brexit investment pot, the UK Government has been urged.

The Scottish Islands Federation (SIF) represents the 93 inhabited islands from Arran to Westray.

It says Westminster plans to replace the EU Structural Funds lost to Brexit is "badly flawed" and has urged ministers to designate all of Scotland's islands as priority areas for investment.

A list of 100 regions was drawn up as part of plans to spend the Levelling Up Fund. Part of the UK Community Renewal Fund, this pilot project was set out for 2021-22 to lay the groundwork for the main UK Shared Prosperity Fund – the replacement for EU Structural Funds.

Until now the Highlands and Islands has been a major beneficiary of the European scheme, which has funded piers, roads and tourism development infrastructure.

The UK Government says it wants to maximise the benefits of leaving the EU by better targeting funding to places in need, including rural areas and coastal communities.

But the Highlands haven't been designated as a priority area and only some islands have. The SIF says that must change in time for the formal roll-out of the UK Shared Prosperity Fund.

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That fund has proven controversial in devolved nations as it allows London to direct financing for local projects without any involvement of devolved governments.

The Scottish Government has said it is "bypassing" the Scottish Parliament on around £400 million of expected consequential funding.

SIF chair Camille Dressler said: "We have serious concerns that the methods used to categorise priority areas for the Levelling up Fund are badly flawed – the absence of Highland, Orkney and Shetland in the list of priority areas is baffling, given the economic and social fragility of these places.

"The irony is that the Highlands & Islands give so much back to the rest of the UK – just think about the fact that most of the renewable energy generated in the UK comes from the Highlands & Islands.

"We also have concerns about local authorities not engaging with community groups about project selection.

"It’s often the areas like islands that need most support that are ignored. We’d like to see much better engagement from both the UK Government and local councils, and plan to carry out a review of how the funds will have been spent for the islands in this round.

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"We seriously hope that the UK Government will listen to all concerns raised and take these on board when launching the UK Shared Prosperity Fund in 2022."

Dressler added: "We all know how important EU Structural funds have been for island communities, whether it is road construction, ferry and tourism infrastructure, local community projects or employability."

In a written statement last month, Scotland Secretary Alister Jack said the Tory administration is "committed to levelling up across the whole of the United Kingdom, to ensure that no community is left behind as we recover from the Covid-19 pandemic".

He stated: "This government will continue to deliver for people and businesses across Scotland, as part of a strong United Kingdom."

The Ministry of Housing, Communities and Local Government commented: "Both the £4.8bn Levelling Up Fund and £220m UK Community Renewal Fund will be open to all areas in Scotland and will play a vital role in helping to support and regenerate communities.

"The published methodologies make clear the metrics used to identify places judged to be most in need and eligible for priority funding."