The Chancellor has today announced a guarantee, which the
Treasury has estimated at £4.3bn in 2019-20, to organisations
that have been granted funding under certain EU programmes, if
the UK leaves without a deal on 31st October.
In the event it is needed, the funding will be allocated to
departments and devolved administrations and amount to £4.3bn in
2019-20, and £16.6bn overall, leading up to 2029.
The guarantee provides assurance to UK organisations that
currently receive EU funding, such as charities, businesses and
universities, as the UK leaves the EU and begins to design its
own, better targeted and more impactful funding programmes.
The announcement today fulfils the Government’s commitment to
reassert control over of British taxpayers’ money and spend it
according to the country’s priorities and needs. The UK is
currently the second biggest net contributor to the EU after
Germany.
Today’s announcement builds on previous assurances given by the
former Chancellor of the Exchequer.
Chancellor of the Exchequer, , said:
“We’re working tirelessly to get a deal with our EU friends and
partners, and our preference remains to leave with a deal, but we
will do everything possible to ensure we are prepared for Brexit
on 31st October, whatever the circumstances. This guarantee for
certain EU-funded programmes is another important step in
providing the certainty to citizens and organisations across the
UK.”
ENDS
Notes to Editors
In the event that the UK leaves the EU without a deal on 31st
October, the UK will leave the EU Budget and the EU may stop
making payments to UK organisations, meaning they would no longer
receive future funding for projects under EU programmes, such as
the European Regional Development Fund and Horizon 2020, without
further action.
This guarantee ensures that UK organisations, including
charities, businesses and universities, will continue to receive
funding over a project’s lifetime if they successfully bid into
EU-funded programmes before the end of 2020.
The covers the following:
· the full Multiannual Financial Framework allocation for
structural and investment funds over the 2014-20 funding period,
with payments to beneficiaries made up to the end of 2023
· the payment of awards where UK organisations successfully bid
directly to the European Commission on a competitive basis while
we remain in the EU, for the lifetime of the project
· the payment of awards under successful bids where UK
organisations are able to participate as a third country in
competitive grant programmes from Exit day until the end of 2020,
for the lifetime of the project
· the current level of agricultural funding under CAP Pillar 1
until 2020
Today’s announcement builds on previous assurances given by the
former Chancellor of the Exchequer. The guarantee will only be
activated in the event of No Deal. Under the guarantee,
programmes will continue to be delivered by individual
departments and Devolved Administrations.
