The Chancellor Philip Hammond has confirmed that key projects supporting economic development across the UK will be given the green light, ending uncertainty over their future following the UK’s decision to leave the EU. This will also cover critical Horizon 2020 funding under the EU framework programme for research and innovation.

The government has confirmed that EU funding for for the following projects will be maintained, including:

• all structural and investment fund projects, including agri-environment schemes, signed before the Autumn Statement 2015 will be fully funded, even when these projects continue beyond the UK’s departure from the EU;
• the Treasury will also put in place arrangements for assessing whether to guarantee funding for specific structural and investment fund projects that might be signed after the Autumn Statement, but while we remain a member of the EU. Further details will be provided ahead of the Autumn Statement this November; and
• where UK organisations bid directly to the European Commission on a competitive basis for EU funding projects while the UK is still a member of the EU, for example universities participating in Horizon 2020, the Treasury will underwrite the payments of such awards, even when specific projects continue beyond the UK’s departure from the EU.

The announcement means that British businesses and universities should continue to bid for competitive EU funds while the UK remains a member of the EU.

On agriculture, Hammond also guaranteed that the current level of agricultural funding under CAP Pillar 1 will be upheld until 2020, as part of the transition to new domestic arrangements.

Chief secretary to the Treasury, David Gauke, has also written to each devolved administration to confirm the same level of assurances offered to UK government departments in relation to programmes they administer but for which they are expected to rely on EU funding.

The Treasury will work closely with the devolved administrations on subsequent funding arrangements to allow them to prioritise projects within their devolved responsibilities.

Hammond said: ‘The UK will continue to have all of the rights, obligations and benefits that membership brings, including receiving European funding, up until the point we leave the EU.

‘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.

‘Structural and investment funds projects signed before the Autumn Statement [2015] and Horizon research funding granted before we leave the EU will be guaranteed by the Treasury after we leave.

‘The government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, which play a vital role in our country.

‘We are determined to ensure that people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities.’

On Horizon 2020, Business and Energy Secretary, Greg Clark said: ’The government’s commitment to our world-leading science and research base remains steadfast. By underwriting the significant Horizon 2020 grants we are showing the extent of our commitment, standing squarely behind our researchers and scientists as they continue working with their European partners to develop new technologies, discover life-saving medicines and pioneer every day innovations.’