SCOTLAND'S budget could be cut if the UK votes to leave the EU, a leading Brexit campaigner has admitted.
Lord Owen, the former leader of the SDP and Labour foreign secretary, said the Barnett Formula should be scrapped as part of a shake-up of the UK constitution if Britain leaves the EU.
He insisted the move - which would probably see Scotland receive a smaller share of UK resources - would be part of an effort to consolidate the Union.
Speaking at an event organised by the Scottish Parliamentary Journalists' Association, he said a "constitutional initiative to promote the greater unity of the UK will be both logical and appropriate straight after a nationwide vote to leave the EU".
He said scrapping the Barnett Formula would be fairer to Wales, Northern England and London, which he argued should enjoy greater autonomy.
The Barnett Formula, which was originally put in place as a temporary measure, provides a higher level of public spending for Scotland than other parts of the UK.
Leaders of the UK's major political parties pledged to keep the funding regime in place ahead of Scotland's independence referendum.
But Lord Owen said: "A structured conversation as envisaged could explore the methodology for reaching a consensus around the feeling that there must be developed a new needs-based assessment to replace the Barnett Formula."
He claimed Scotland would be handed substantial powers should the UK opt for Brexit in the June referendum, including shifting powers over fishing and agriculture from Brussels to Edinburgh.
Christina McKelvie, the SNP MSP and member of the pro-EU SNP in Europe campaign group, said: "The Leave campaign seem to have taken leave of their senses, threatening systematic cuts to Scotland's budget and a reversal of the gains of devolution in the event of Brexit.
"This sort of rhetoric from a key Vote Leave spokesperson has shown the campaign in its true colours - hostile to the Scottish Parliament and the consensus at Holyrood in favour of remaining within the European Union.
"It's tricky to see how this sort of negativity could possibly be a vote winner. Meanwhile the SNP's campaign will remain focused on the positive case for Scotland and the rest of the UK remaining in the EU."
ends
"The Leave campaign seem to have taken leave of their senses, threatening systematic cuts to Scotland’s budget and a reversal of the gains of devolution in the event of Brexit.
"This sort of rhetoric from a key Vote Leave spokesperson has shown the campaign in its true colours – hostile to the Scottish Parliament and the consensus at Holyrood in favour of remaining within the European Union.
"It’s tricky to see how this sort of negativity could possibly be a vote winner."
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