European Regional Development Funding (ERDF) in a 'no deal' Brexit
Updated 25 March 2019
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This publication is available at https://www.gov.uk/government/publications/european-regional-development-funding-if-theres-no-brexit-deal/european-regional-development-funding-if-theres-no-brexit-deal
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This page tells you what to do if the UK leaves the EU without a deal. It will be updated if anything changes, including if a deal is agreed.
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This guidance provides information for businesses and citizens who:
- want to apply for funding from ERDF
- already receive funding from ERDF
What the UK government guarantee covers
Leaving the EU with a deal remains the government’s top priority. Under the Withdrawal Agreement, the UK would continue to participate in the programmes financed by the current EU Budget until their closure. This means that all ERDF programmes would be fully funded under the current 2014-2020 Multiannual Financial Framework.
The government has been clear that if the UK left the EU without a deal, the UK has obligations to the EU, and the EU has obligations to the UK, that will survive the UK’s withdrawal – and that these would need to be resolved.
If the UK is unable to access EU funding as a result of leaving the EU without a deal, the Chancellor announced in August and October 2016 that the government would guarantee certain EU projects agreed before we leave the EU in order to provide more certainty for UK organisations over the course of Brexit. This guarantee included all ERDF projects.
In July 2018 the the government extended the guarantee so that it would cover all projects that would have been funded by the EU under the 2014-2020 programme period, including all ERDF projects. The extension means that the Ministry of Housing, Communities and Local Government, the devolved administrations, and HM Government of Gibraltar, will continue to sign new ERDF projects after Brexit until programme closure.
The guarantee provides additional certainty to communities, businesses and local partners, guaranteeing investment in growth up to the end of the current ERDF programme period, in the event that the UK leaves the EU without a deal.
Beneficiaries and organisations should continue applying for and delivering funding under current arrangements, with confidence that the funding guarantee applies if there is no negotiated agreement between the UK and the EU.
How the guarantee will work
In the event the UK leaves the EU without a deal, ERDF managing authorities in the UK would continue their current roles. Projects delivered through the guarantee would be managed largely following existing processes, including appropriate audit, monitoring and evaluation arrangements that ensure that spending delivers good value for money and fits domestic strategic priorities. Recipients of funding would be notified of any changes by the appropriate managing authority.
Further information on arrangements in England, the devolved administrations and Gibraltar will be made available by the managing authorities listed below. We are working with the devolved administrations on further updates to communications and will continue to do so as plans develop.
Actions for UK organisations in approved projects and applicants for funding
The government’s guarantee ensures certainty of funding before and after the UK has left the EU.
UK organisations in approved projects should continue delivering activity as contracted and carry on making claims for payment promptly.
Applicants seeking funding for new projects should respond to information provided by the appropriate managing authority.
More information
These are:
- Ministry of Housing, Communities and Local Government in England
- devolved administrations in Scotland, Wales and Northern Ireland
- HM Government of Gibraltar
Funding is currently distributed through grants and contracts on a competitive basis, and through a range of Financial Instruments. More information can be found on the pages of the managing authorities listed above, including supplementary guidance where relevant.
For all enquiries, please contact enquiries@beis.gov.uk.