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I think that that is an important caveat. In effect, you are saying that you will look on an individual, project-by-project basis to see whether an increase is justified in certain circumstances.

We are now at the end of February and the fund is going to start from April, but the Scottish Government still says that there has been no consultation or meaningful engagement. That is echoed by other devolved Administrations. Why would they be saying that? If there is going to be constructive engagement, why has it been left so late—to the 12th hour, if you like?

Again, I find your answer very positive, but my concern is that, up to today, with the UK shared prosperity fund about to launch in a matter of weeks, those organisations have not been kept up to date. Obviously, they have to be able to fund projects and they worry that there will be gaps and breaks in funding. Can you assure us that that will not happen?

A local authority chief executive brought a question to me. He is keen to know how you anticipate levelling up will influence other local authority investment decisions, outwith the levelling up funds and the UK shared prosperity fund.

Concerns have been expressed that, unless levelling up becomes a cross-cutting policy, regional inequality will not be addressed. If two or three UK sites are deemed suitable for a specific type of investment—I was going to give an example, but I will not mention it just now unless you specifically ask me to—what weighting will levelling up carry? For example, will a priority 1 area always be approved over a priority 2 area? In the first disbursement of levelling up funds, five of the eight projects were in priority 1 areas and three were not. How will we ensure that the money goes to where it is most needed?

If only you were a Highlands and Islands MSP, Ross, that would have been a great victory for you.

Okay. In today’s discussions, you have touched on things such as education, ferries and local government, all of which are devolved. As you will know, education, along with the legal system, was part of the Act of Union 1707, which preserved Scotland’s unique education system. However, we know that, for example, a £559 million adult numeracy fund will be managed by the Department for Education across the United Kingdom. Is that a first since 1707? Maybe I am just not aware of it, but my understanding was that, on such matters, you might allocate funding to Scotland, but the decision would be made here in Scotland.

It is about the funding being managed by the UK Government, not the funding being allocated.

Thank you very much for that. That is very positive.

We have 30 seconds of our 90 minutes left. As I said I would a minute or two ago, secretary of state, I will allow you to make any further points that you wish to make before we conclude the meeting.

Good afternoon and welcome to the seventh meeting in 2022 of the Finance and Public Administration Committee. We have one item on today’s agenda, which is to take evidence on the replacement of European Union structural funds and levelling up from the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations, the Rt Hon Michael Gove MP. We have up to 90 minutes for the session.

I warmly welcome the secretary of state to the committee. Good afternoon, Mr Gove. I understand that you do not wish to make any opening remarks, so we will move straight to questions, if that is okay with you.

Basically, you are suggesting that there will not be any gap in funding. Is that correct?