UK TO COVER LOST EU BUSINESS GRANTS

BUSINESSES, universities and local organisations have been guaranteed funding security to the end of the transition period with the EU amid fears they would lose grants.

The move by the Treasury means that plans costed until the end of 2020 – the close of the current EU budget period – can still go ahead.

Grants which would have come from the EU will be provided for by the Exchequer after Brussels payments end in March.

The guarantee announced today will reflect this by underwriting the UK’s full allocation for structural and investment-fund projects, such as that secured through the European Regional Development Fund.

In addition, the Treasury will also guarantee funding for organisations which successfully bid directly to the European Commission through projects such as Horizon 2020, the largest EU programme for university research and innovation.

Chancellor Philip Hammond said: “We continue to make positive steps towards getting the best possible deal with the EU – one that works for the whole of the UK. The guarantee we are making today, however, means that, even in the unlikely event of a no-deal, our businesses, universities and local authorities can be confident that they will continue to receive the funding they successfully bid for from any EU programme.”

The Government had already committed to protect projects until exit day. This new guarantee runs until the end of 2020 and over a project’s lifetime.