Government makes funding promise on EU projects

The government has promised to bail out projects funded by European Union structural funding in the event of a no-deal Brexit.
A written parliamentary statement from chief secretary to the Treasury Liz Truss said: “In 2016, the government guaranteed funding for UK organisations in receipt 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 UK participants in EU programmes or those considering bids for EU funds prior to exit.”
Responding to the announcement, Kevin Bentley, chairman of the Local Government Association’s Brexit taskforce, said: “Brexit cannot leave local areas facing huge financial uncertainty as a result of lost regional aid funding.
“This funding has been used by local areas to create jobs, support small and medium enterprises, deliver skills training, and invest in critical transport and digital infrastructure and boost inclusive growth across the country.”
He called on the government to act “immediately” to consult on the detail of the proposed UK Shared Prosperity Fund which is planned to replace structural funding after Brexit.