Out-Law / Your Daily Need-To-Know

BREXIT: Project funding guarantees extended to date UK leaves EU

10 Oct 2016, 3:26 pm

'Good value' projects which are successfully awarded EU funding will have those funds guaranteed by the UK government beyond the date that the UK leaves the EU, the chancellor has announced.

The government previously announced that it would guarantee awards made under certain EU funding streams beyond the date of 'Brexit', provided that these awards were made before the Autumn Statement in November.

Funding after the UK leaves the EU will be awarded by individual government departments from their own budgets, in line with the wider rules on public spending. Funding commitments will be honoured provided that the projects are good value for money and "in line with domestic strategic priorities", according to a statement from the Treasury.

"As a result, British businesses, farmers and other organisations will have additional certainty over future funding and should continue to apply for EU funding while the UK remains a member of the EU," the Treasury said.

The same funding commitments will be extended to the devolved administrations, according to the Treasury.

Prime minister Theresa May intends to begin the two-year 'Brexit' process by the end of March 2017, meaning that the UK is likely to leave the EU by April 2019.

The commitments cover the four main competitive EU structural and investment funding streams: the European Agricultural Fund for Rural Development (CAP Pillar 2); the European Social Fund; the European Maritime and Fisheries Fund; and the European Regional Development Fund including European Territorial Cooperation.

The government also previously committed to honour funding awarded to universities under Horizon 2020, the EU's €80 billion research and innovation programme, before the UK leaves the EU even where the particular project concludes after the date of Brexit.

Speaking at the Conservative Party conference, chancellor of the exchequer Philip Hammond said that the government had abandoned its previous commitment to a budgetary surplus by the end of this parliament, given the economic uncertainty introduced by the UK's vote to leave the EU.

He will publish a plan to "deliver long-term fiscal sustainability, while responding to the consequences of short-term uncertainty and recognising the need for investment to build an economy that works for everyone" as part of next month's Autumn Statement, he said.