Post-BREXIT ESIF funding update
On 25th October, The Rt Hon Sajid Javid MP, Secretary of State for Communities and Local Government wrote to LEP Chairs confirming that the current funding guarantee for ESIF projects signed up until the Autumn Statement, will extend to all projects signed up to the point at which the UK departs the EU, even when these projects continue after we have left the EU.
In the letter, the Secretary of State went on to outline that for projects signed after the Autumn Statement, funding for projects will be honoured by the Government, if they demonstrate good value for money and are in line with domestic strategic priorities.
He confirmed the Government’s commitment to working with LEPs and other local partners to prepare further calls and new funding agreements to meet these conditions.
On Saturday 13th August the Government released the following position statement as regards the UK’s European Structural Funds Programme post Brexit:
British businesses and universities will have certainty over future funding and should continue to bid for competitive EU funds while the UK remains a member of the EU.
Thousands of British organisations received guarantees over EU funding in a new move by Chancellor Philip Hammond. Key projects supporting economic development across the UK will be given the green light, ending uncertainty over their future following the UK’s decision to leave the European Union.
Assurances set out by the Treasury include:
- all structural and investment fund projects, including agri-environment schemes, signed before the Autumn Statement will be fully funded, even when these projects continue beyond the UK’s departure from the EU
- the Treasury will also put in place 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 in Horizon 2020, the Treasury will underwrite the payments of such awards, even when specific projects continue beyond the UK’s departure from the EU
As a result, British businesses and universities will have certainty over future funding and should continue to bid for competitive EU funds while the UK remains a member of the EU.
And 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 Chief Secretary to the Treasury, David Gauke, has also written to each devolved administration to confirm the same level of assurances offered to UK government departments in relation to programmes they administer but for which they are expected to rely on EU funding. The letter from David Gauke letter available to download below
The Treasury will work closely with the devolved administrations on subsequent funding arrangements to allow them to prioritise projects within their devolved responsibilities.
This is good news for the Leicester & Leicestershire area as the Leicester and Leicestershire Enterprise Partnership (LLEP) has committed nearly £55m of our ESIF Programme to date, which has secured a further £35m of investment for the local economy. Going forward we will continue to track Government policy closely to ensure we can swiftly take advantage of future funding opportunities as and when they unfold.