William Eichler 15 August 2016

Treasury’s commitment to replace EU funding ‘falls short’, councils warn

Whitehall’s promise to honour EU funding commitments in the event of a Brexit ‘falls well short’, council chiefs say.

Chancellor Philip Hammond announced at the weekend the Treasury would cover all structural and investment fund projects paid for by the EU on the condition the agreements were reached before the Autumn Statement.

However, the Local Government Association (LGA) said the Government’s promise ‘falls well short of the full guarantee we are urging the Government to make.’

Speaking on Saturday, the Chancellor said: ‘We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive.

‘That is why I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding granted before we leave the EU will be guaranteed by the Treasury after we leave.’

Lord Porter, chairman of the LGA, welcomed the Government’s commitment but warned it was not enough.

‘As welcome as this commitment is, it falls well short of the full guarantee we are urging the Government to make,’ he said.

‘Local areas need certainty around the future of all of the £5.3bn in EU regeneration funding promised to them by 2020.

‘The continued uncertainty risks damaging local regeneration plans and stalling flagship infrastructure projects, employment and skills schemes and local growth.’

The majority of EU funding agreements are tied up in proposals which are yet to receive government approval, Lord Porter said.

He urged Whitehall to approve these and ensure local areas ‘receive every penny of EU funding they are expecting by the end of the decade’.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner