Chancellor Philip Hammond promises EU funding guarantee for farmers, scientists and other EU-funded projects, in a move that could cost the treasury up to £6bn a year.
Key EU projects that support economic development across the UK will be given the green light, a welcome move that ends months of uncertainty, following the UK’s decision to leave the European Union.
Assurances set out by the Treasury include:
- EU structural and investment fund projects signed before the Autumn Statement later this year, and Horizon research funding granted before leaving the EU, will be guaranteed by the Treasury after the UK leaves.
- Arrangements for assessing whether to guarantee funding for specific structural and investment fund projects that might be signed after the Autumn Statement, but while we remain a member of the EU. Further details will be provided ahead of the Autumn Statement;
- Where UK organisations bid directly to the European Commission on a competitive basis for EU funding projects while we are still a member of the EU, for example universities participating the EU’s 80bn euro (£69bn) Horizon 2020 programme which awards funding for research and innovation, the Treasury will underwrite the payments of such awards, even when specific projects continue beyond the UK’s departure from the EU.
The assurances mean that British businesses and universities can continue to bid for competitive EU funds while the UK remains a member of the EU as they will have certainty over future funding.
In addition, in a new boost to the UK’s agricultural sector, Mr Hammond also guaranteed that the current level of agricultural funding under CAP Pillar 1 will be upheld until 2020, as part of the transition to new domestic arrangements. The Country Land and Business Association (CLA), which represents more than 32,000 farmers, landowners and other rural businesses, said the move was “vitally important” but called for a “world-leading” domestic funding policy to be drawn up and ready for 2021.
The Treasury will work closely with the devolved administrations on subsequent funding arrangements to allow them to prioritise projects within their devolved responsibilities.
Chancellor of the Exchequer, Philip Hammond said:
“The UK will continue to have all of the rights, obligations and benefits that membership brings, including receiving European funding, up until the point we leave the EU.
We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive.
That is why I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding granted before we leave the EU, will be guaranteed by the Treasury after we leave. The government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, which play a vital role in our country.
We are determined to ensure that people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities.”
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