HM Government's guarantee:Written statement - HLWS897

WS
Treasury
Made on: 24 July 2018
Made by: Lord Bates (Lords Spokesperson)
Lords

HM Government's guarantee

My right honourable friend the Chief Secretary to the Treasury (Elizabeth Truss) has today made the following Written Ministerial Statement.

In 2016, the government guaranteed funding for UK organisations in receipts of EU funds where projects are agreed before the day the UK leaves the EU. The guarantee is designed to apply in the event that the EU does not meet its financial obligations after EU Exit and provide assurance to current UK participants in EU programmes or those considering bids for EU funds prior to exit.

The government is continuing to work towards a deal with the EU and under the terms of the implementation period the UK will continue to participate in the programmes financed by the current EU Budget until their closure. As a consequence, the Treasury is extending the government’s guarantee of EU funding to underwrite the UK’s allocation for structural and investment fund projects under this EU Budget period to 2020. The Treasury is also guaranteeing funding in event of a no deal for UK organisations which bid directly to the European Commission so that they can continue competing for, and securing, funding until the end of 2020. This 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 December 2020. In addition to this guarantee, the government will establish a UK Shared Prosperity Fund. The fund will tackle inequalities between communities by raising productivity, especially in those parts of our country whose economies are furthest behind. A departmental Minute providing full details of the liabilities associated with this announcement has been laid in the House of Commons.

This statement has also been made in the House of Commons: HCWS926

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