Summary: The Chancellor has guaranteed £4.3 billion of funding for certain EU programmes in the event of no deal.
- In the event that the UK leaves the EU without a deal, the UK will leave the EU Budget and certain organisations could stop receiving funding for projects from EU programmes.
- To prevent this, the Chancellor has announced the Government will guarantee funding, estimated at £4.3 billion in 2019-20, to organisations with grants from certain EU programmes if the UK leaves without a deal.
- The guarantee provides assurance to UK organisations that currently receive EU funding, such as charities, businesses and universities. The guarantee would only be activated in the event of a No Deal Brexit and is another important step in giving certainty to UK citizens and organisations across the UK as a whole.
- In the event that the UK leaves the EU without a deal, 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.
- The Government is guaranteeing funding for EU programmes in the event of no deal – estimated at £4.3 billion in 2019-20, totalling £16.6 billion up to 2029. This guarantee ensures that UK organisations, such as 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.
- We have already made commitments to replace certain EU programmes domestically after Brexit. as the UK begins the process of designing its own, better tailored funding programmes outside the EU. We are setting up a UK Shared Prosperity Fund to reduce inequalities between communities across our four nations, and have committed to maintain farm support until the end of this Parliament.
Q: What does the guarantee cover?
The guarantee covers the following:
• the full Multi-annual Financial Framework (EU budget) 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; and
• the current level of agricultural funding under CAP Pillar 1 until 2020.