The Herald reports that the UK Government has been told by the union that British businesses are not eligible for the scheme in a move which Falkirk East MSP Michelle Thomson has said puts Scotland at risk of falling behind in creating jobs and developing its energy infrastructure.

On the verge of the Brexit referendum’s 10th anniversary, the Prime Minister is now being urged to consider negotiating with the EU for access to the funds and closer ties.

The call has been made by the SNP after new data has shown that in the past two months Scotland has missed out on applying for a share of up to £15.2bn worth of funding for energy and biotech programmes.

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A range of different European funding schemes allow businesses in the EU27 to bid for billions of pounds worth of projects to support decarbonisation technologies, new energy systems, production of low-carbon hydrogen fuels, energy infrastructure and the mobilisation of the biotech sector.

Last month, the EU stated it were open to a more open economic relationship with the UK, including the possibility of a customs union, but such a move was ruled out by the UK Government.

Michelle Thomson, who’s constituency covers the Grangemouth industrial complex, told The Herald: “Every day that goes by, Scottish businesses are left at a competitive disadvantage compared to our EU neighbours – part of that is down to the fact we are missing out on funding opportunities.

“Scotland is the energy capital of Europe and has a high-quality biotech sector – access to this EU funding could do absolute wonders for our industries.

“It is time for the UK Labour government to shed their ideological economic incompetence and work with the Scottish Government to build closer ties to the EU and gain access to these vital funds again

SNP MSP Michelle Thomson has called on the UK Government to negotiate closer ties with the EU (Image: PA Agency)

The energy and bio-tech development funds are available to nations which are in the EU, as they have contributed to financing the streams. However, the UK has been able to negotiate arrangements to access other EU funding streams.

The former Conservative government rejoined the EU’s flagship Horizon scientific research scheme enabling UK-based scientists and institutions to apply for money from the £81bn fund.

Since Britain confirmed its association with Horizon in January last year, the UK Government has been providing support to help UK researchers and businesses secure funding from the £80bn scheme.

The Prime Minister has previously ruled out rejoining the EU or the customs union though is in favour of closer ties with the EU.

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Chancellor Rachel Reeves said on Wednesday that closer integration with the EU is the “biggest prize” for Britain arguing that more alignment with the bloc “is a political argument Labour can win” and would help boost trade and make things easier for businesses and cheaper for consumers.

Speaking at the London School of Economics, Ms Reeves said: “The biggest prize is clearly with the EU. The truth is, economic gravity is reality. Almost half of our trade is with the European Union. We trade almost as much with the EU as the whole of the rest of the world combined.

“There are three big trading blocs in the world — there’s the US, there’s China and there is Europe. We want to make Europe as strong as possible, and that means not putting up the drawbridge.”

A UK Government spokeswoman told The Herald: “We are focused on delivering deals that could add up to £9 billion a year to the UK economy, supporting producers and businesses, backing jobs, and putting more money in people’s pockets across the entire country.

“Our new strategic partnership with the EU is in our national interest. It’s good for bills, good for our borders, and good for jobs, without compromising on our red lines—no return to the customs union, no return to freedom of movement, and no re-joining the single market.”