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Treasury pressed to guarantee all funding for EU projects post-Brexit Treasury pressed to guarantee all funding for EU projects post-Brexit
(about 1 hour later)
The Treasury is facing calls to honour Boris Johnson’s promise to guarantee all funding for EU programmes after Brexit until at least 2020, as fresh concerns are raised that billions of pounds of regeneration projects across the UK are at risk.The Treasury is facing calls to honour Boris Johnson’s promise to guarantee all funding for EU programmes after Brexit until at least 2020, as fresh concerns are raised that billions of pounds of regeneration projects across the UK are at risk.
Councils and other bodies only have until the autumn statement to gain Whitehall approval for EU-funded structural and investment projects if they want a guarantee that their funding will continue beyond Brexit until 2020.Councils and other bodies only have until the autumn statement to gain Whitehall approval for EU-funded structural and investment projects if they want a guarantee that their funding will continue beyond Brexit until 2020.
They face a race against the clock to get these signed off, with the bulk of regeneration funding due until 2020 yet to receive formal approval.They face a race against the clock to get these signed off, with the bulk of regeneration funding due until 2020 yet to receive formal approval.
Before the referendum, Johnson and 13 other pro-Brexit Conservative ministers promised that all cash for “universities, scientists, family farmers, regional funds, cultural organisations and others” would continue in the event of a vote to leave.Before the referendum, Johnson and 13 other pro-Brexit Conservative ministers promised that all cash for “universities, scientists, family farmers, regional funds, cultural organisations and others” would continue in the event of a vote to leave.
“If the public votes to leave on 23 June, we will continue to fund EU programmes in the UK until 2020, or up to the date when the EU is due to conclude individual programmes if that is earlier than 2020,” they said.“If the public votes to leave on 23 June, we will continue to fund EU programmes in the UK until 2020, or up to the date when the EU is due to conclude individual programmes if that is earlier than 2020,” they said.
The chancellor, Philip Hammond, has only guaranteed that projects signed off before 23 November will continue to receive cash until 2020, at which point the UK may have been out of the EU for two years. Projects signed off after the autumn statement will only be approved for guarantees on a case by case basis. The chancellor, Philip Hammond, has only guaranteed that projects signed off before 23 November will continue to receive cash until 2020, at which point the UK may have been out of the EU for two years. Projects signed off after the autumn statement will only be approved for guarantees on a case-by-case basis.
Greater Manchester council has said that around 90% of its regional development funding from the EU due between 2014 and 2020 is still not under contract, including projects worth more than £150m.Greater Manchester council has said that around 90% of its regional development funding from the EU due between 2014 and 2020 is still not under contract, including projects worth more than £150m.
Others to sound the alarm about budgetary black holes for major projects include Tees Valley, where only around £27m of £170m in EU funding is under contract. Cornwall’s chamber of commerce has listed nine projects that might have to be scrapped, including road and rail improvements.Others to sound the alarm about budgetary black holes for major projects include Tees Valley, where only around £27m of £170m in EU funding is under contract. Cornwall’s chamber of commerce has listed nine projects that might have to be scrapped, including road and rail improvements.
Figures from the House of Commons library found by the Labour MP Emma Reynolds suggest an estimated £4bn would be due from the EU for structural and investment fund projects in 2019 and 2020.Figures from the House of Commons library found by the Labour MP Emma Reynolds suggest an estimated £4bn would be due from the EU for structural and investment fund projects in 2019 and 2020.
“The government’s policy to guarantee all funding looks nothing of the sort,” she said. “This raises serious questions over funding, which so many regions, universities, infrastructure projects and environmental programmes rely on.“The government’s policy to guarantee all funding looks nothing of the sort,” she said. “This raises serious questions over funding, which so many regions, universities, infrastructure projects and environmental programmes rely on.
“Ministers must urgently clarify whether all funding will be delivered until 2020, whether we are in the EU or not. That is what was promised and that is what must be delivered.”“Ministers must urgently clarify whether all funding will be delivered until 2020, whether we are in the EU or not. That is what was promised and that is what must be delivered.”
Joe Carberry, the co-executive director of the campaign group Open Britain, said: “Yet another key leave promise is in serious danger of unravelling. Those that rely on EU funding should not be hit because of the imposition of an arbitrary deadline.Joe Carberry, the co-executive director of the campaign group Open Britain, said: “Yet another key leave promise is in serious danger of unravelling. Those that rely on EU funding should not be hit because of the imposition of an arbitrary deadline.
“The government should take steps to ensure that nobody misses out on funding they would have previously been eligible for up to 2020. If that means extending the deadline beyond the autumn statement, that is what should be done.”“The government should take steps to ensure that nobody misses out on funding they would have previously been eligible for up to 2020. If that means extending the deadline beyond the autumn statement, that is what should be done.”
At the time of the announcement, Lord Porter, the chairman of the Local Government Association, said the Treasury commitment “falls well short of the full guarantee we are urging the government to make”.At the time of the announcement, Lord Porter, the chairman of the Local Government Association, said the Treasury commitment “falls well short of the full guarantee we are urging the government to make”.
“Local areas need certainty around the future of all of the £5.3bn in EU regeneration funding promised to them by 2020,” he said. “The continued uncertainty risks damaging local regeneration plans and stalling flagship infrastructure projects, employment and skills schemes and local growth. The vast majority of EU regeneration funding remains tied up in thousands of proposals which are yet to receive government approval.”“Local areas need certainty around the future of all of the £5.3bn in EU regeneration funding promised to them by 2020,” he said. “The continued uncertainty risks damaging local regeneration plans and stalling flagship infrastructure projects, employment and skills schemes and local growth. The vast majority of EU regeneration funding remains tied up in thousands of proposals which are yet to receive government approval.”
The Department for Communities and Local Government declined to say whether it would expedite applications for EU-funded structural and investment projects in order to meet the 23 November deadline.The Department for Communities and Local Government declined to say whether it would expedite applications for EU-funded structural and investment projects in order to meet the 23 November deadline.
A Treasury spokeswoman highlighted a letter from Hammond that set out the terms of the guarantees, and said that it was “working with departments on future arrangements”.A Treasury spokeswoman highlighted a letter from Hammond that set out the terms of the guarantees, and said that it was “working with departments on future arrangements”.