UK GOVERNMENT UNDERWRITES GRANT FUNDING IN BREXIT WHITE PAPER
The “United Kingdom’s exit from and new partnership with the EU” white paper confirms that UK businesses and organisations will continue to be able to apply for and receive grant funding from the EU during the course of Brexit negotiations and beyond. The White Paper, published in February 2017, states that the UK government “recognises the importance to business of having certainty about funding arrangements over the coming years.”.
Since the Brexit vote in June 2016, we have been working with clients to address concerns about the reliability of EU grant funding, particularly in relation to our work on developing successful bids to the Horizon2020 research & innovation fund. We are now able to provide assurance, based on the publication of this white paper, that UK companies and organisations will be prioritised in the Brexit negotiations and that grant funded projects will be underwritten by the UK government.
What happens to EU R&D Grants for UK businesses?
The Horizon2020 programme is a significant, proven, opportunity for our clients – ambitious businesses and entrepreneurs seeking grant funding to cash flow the development of innovative and disruptive ideas.
The Brexit white paper published by UK government in February 2017 it is states “For bids made directly to the Commission by UK organisations (including for Horizon 2020, the EU’s research and innovation programme and in funds for health and education), institutions, universities and businesses should continue to bid for funding. We will work with the Commission to ensure payment when funds are awarded. HM Treasury will underwrite the payment of such awards, even when specific projects continue beyond the UK’s departure from the EU.”
Dates for the H2020 SME Instrument Phase 1 and Phase 2 grant submissions have already been published for 2017 and 2018, with grant funding ranging from €50k for feasibility studies to €2.5m and above for development and testing of prototypes.
What happens to the other EU grant funding?
Assurances over ESIF (European Structural and Investment Funds) and Agricultural Funding were also explicitly stated and underwritten in the White Paper. “All European Structural and Investment Funds (ESIFs) projects signed, or with funding agreements that were in place before the Autumn Statement 2016, will be fully funded, even when these projects continue beyond the UK’s departure from the EU. This includes agri-environment schemes under the Common Agricultural Policy (CAP). For projects signed after the Autumn Statement 2016 and which continue after we have left the EU, HM Treasury will honour funding for projects if they provide strong value for money and are in line with domestic strategic priorities.”
What does this mean for grant funding?
In light of the positive assurances given by the UK government to increase funding for research & innovation in the UK to over £2bn p.a. by 2020, and the continued eligibility of UK business for EU funding to 2019, Brexit now stands as a significant opportunity for all organisations with new ideas, disruptive innovations or high risk developments.
Grant funding plays a critical role in the funding mix and enables innovative organisations to disrupt markets in the UK and abroad. Research & innovation will play a key role in a post-Brexit UK where innovation derived exports underpin the UKs position as a cutting-edge global disruptor. Support will need to continue if the UK (and London in particular) are to resist the overtures of Paris, Berlin and Barcelona. See here for an article on this:
With the publication of the UK Government’s white paper and its assured support the grant ecosystem can be seen to be more stable and assured than ever.
FURTHER INFORMATION ABOUT GRANTS AND THIS ARTICLE
The Government White Paper is here:
Information about the Horizon2020 R&D grants is here:
More blogs from the team at Granted are here: