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Funding from EU programmes guaranteed until the end of 2020

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Funding from EU programmes guaranteed until the end of 2020

Businesses, universities and local organisations were assured today (24 July 2018) that any funding they secure through EU programmes, from now until the end of 2020, will be guaranteed by the UK government even in a no deal scenario.

The implementation period agreed in March would see the UK continue to participate in all EU programmes until the end of 2020 – providing certainty for British organisations and their European counterparts.

The guarantee announced today (24 July 2018) will reflect this by underwriting the UK’s full allocation for structural and investment fund projects, such as funding secured through the European Regional Development Fund, until the end of 2020.

In addition, the Treasury will also guarantee funding for UK organisations which successfully bid directly to the European Commission – through projects like Horizon 2020 – until the end of this EU budget period if no deal is agreed.

This will give potential applicants continued confidence to bid for funding whatever the outcome of the negotiations, and ensure that UK organisations continue to benefit from funding post-Exit.

The Chancellor of the Exchequer, 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.

In 2016 the government committed to protect projects that were successful in securing EU funding before exit day. This new guarantee means that successful bids for EU funding until the end of 2020 will receive their full financial allocation and will continue to receive funding over a project’s lifetime.

Open letter to business on the Implementation Period

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David Davis, Secretary of State for Exiting the EU, Chancellor Philip Hammond, and Greg Clark, Business Secretary have written to businesses setting out the UK’s ambitions for an implementation period following Brexit.

In the joint letter, the three Cabinet Ministers outline the Government’s commitment to providing businesses with the certainty and clarity they need to plan ahead.

Dear business leaders,

The Government is determined to support businesses and the economy, and is committed to implementing the Government’s Industrial Strategy, building a Britain fit for the future. As this new year gets underway, we are also conscious that many businesses are examining the implications of our withdrawal from the EU for themselves and their supply chains. Businesses have been clear that they need time to adjust to the terms of our new relationship with the EU – and are therefore following closely negotiations on the Government’s proposal for a time-limited implementation period.

The purpose of such a period is to give people, businesses, and public services in the UK and across the EU the time they need to put in place the new arrangements that will be required to adjust to our future partnership. This is why, during the implementation period, we are clear that the UK’s and the EU’s access to one another’s markets should continue on current terms, meaning there will only be one set of changes at the end of the implementation period, as we move into our future partnership. The period’s duration will be strictly time-limited, and should be determined simply by how long it will take to make these changes – as the Prime Minister has previously set out, this will be around two years.

We know this proposal has been warmly welcomed by businesses up and down the country, and in the EU, promising the certainty and clarity needed to plan ahead. We are therefore pleased that at the December European Council, EU leaders endorsed this proposal, and agreed guidelines that will enable our teams to discuss and confirm at pace the detailed arrangements, giving them legal form in the Withdrawal Agreement.

A Deep and Special Partnership (Germany)

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A deep and special partnership is a joint article by Philip Hammond and David Davis that appeared in Frankfurter Allgemeine Zeitung on 10 January 2018.

Today (10 January 2018) we’re both in Germany to highlight the important relationship that exists between our countries.

It’s a relationship built on shared interests and shared values, that has helped both our nations prosper and grow.

And while the UK will leave the EU next year, we can still look to the future with a shared vision — one that sees Germany, Britain and the EU continue to thrive, and our relationship remain strong and close.

Trade between the UK and EU 27 is worth €750 billion a year — and a quarter of EU exports to Britain, worth €113 billion, come from Germany, more than any other EU country.

Of course we understand that Germany and other EU countries want to protect the integrity of the single market, and that without all the obligations of EU membership third countries cannot have all the benefits.

Those priorities are not inconsistent with ours — a deep and special partnership with our closest trading partners and allies.

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