Hopes of recovering Scotland’s £160m share of so-called ‘‘convergence’’ funds have evaporated as Defra Secretary Michael Gove told MSPs that it would be unfair to undo previous funding allocations.

“One thing that I can’t do is to claw back money that has been spent; money that has been in budgets, that has already been allocated,” Gove told MSPs during a joint hearing of the rural economy and connectivity, and environment, climate change and land reform committees, on Wednesday to discuss Brexit implications for Scotland.

He did pledge, however, to review funding allocations across the UK to take account of the prevalence of Scotland’s less favoured areas.

Convergence compensates for the UK’s payment rates/ha being less than 90% of the EU average. Scottish farmers receive around €130/ha, whereas the UK average exceeds €196/ha.

It was understood that Northern Irish peer Lord Bew had been appointed to lead a review on convergence rates but Gove did not confirm that this was the case. He also implied that the Scottish Government were complicit with Scotland’s low allocation, saying: “We have to respect the fact that decisions were made by the coalition government which, with respect, the devolved administration has given effect to.”

Fergus Ewing, cabinet secretary for rural economy and connectivity, has in the past described Scotland’s convergence shortfall as “the great rural robbery”.

Gove pressure on Ewing to present Scottish Agriculture Bill

The Scottish Government should bring forward its own agriculture bill to coincide with the passage of the UK agriculture bill, Gove also suggested during his hearing with MSPs this week. A Scottish bill would explain “how direct payments and some of the criteria associated with it should be policed”, Gove suggested.

The Defra Secretary added that it would help cabinet secretary, Fergus Ewing remove “onerous EU bureaucracy”.

The UK Government is due to introduce its agriculture bill before the House of Commons rises for summer recess at the end of July.

He also reiterated that all farm payments were guaranteed in cash terms up until 2022 and that there is “overlap” between the UK and Scottish Governments’ position that they will continue to pay area-based payments for “a number of years” after 2022, although the Scottish Government may cap some of them.