The government’s guarantee for EU-funded programmes if there’s no Brexit deal

August 12, 2019 8:23 am

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How UK organisations such as charities, businesses and universities who receive EU funding would be affected if the UK leaves the EU with ‘no deal’.

In the event that the UK leaves the EU without a deal, the UK will leave the EU Budget in October 2019 meaning UK organisations would no longer receive future funding for projects under EU programmes, such as the European Regional Development Fund and Horizon 2020, without further action.

However, the Chancellor announced in August and October 2016 that the government will guarantee EU projects agreed before we leave the EU, to provide more certainty for UK organisations over the course of Brexit.

In July 2018, the Chief Secretary laid a Written Ministerial Statement (HCWS926) extending this guarantee to provide further stability for UK organisations in a ‘no-deal’ scenario. The guarantee now covers the following:

the full Multiannual Financial Framework 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

As part of a ‘final set’ of ‘no deal’ contingency measures published on 30 January 2019, the European Commission has also proposed a draft regulation that would allow the UK to continue participating in EU programmes, in 2019 in return for continuing to contribute to the 2019 budget. The government is currently analysing this proposal.  For further details click here