Government warned communities need answers on funding shortfall after Brexit
- Credit: PA Archive/PA Images
The government has been warned that communities face a funding shortfall after Brexit as a result of the loss of key EU regional funds.
Labour and the Liberal Democrats warned communities minister Lord Greenhalgh that time was 'running out' for communities that rely on EU cash after it emerged that government plans for a UK-wide fund had been put on hold.
Lib Dem peer Lord Teverson told the minister it was 'urgent' the government establish the fund before the UK leaves the Brexit transition period, especially given the coronavirus pandemic.
You may also want to watch:
'It's a government manifesto commitment to launch this fund... we need this funding to bring up regions post Covid-19.'
- 1 Why don't Brexiteers like to talk about Brexit any more?
- 2 Brexit: British 'expats' in Spain facing deportation over residency
- 3 Michael O'Leary: My hope for the future over Brexit
- 4 Major disaster: How Tories' 1992 victory sowed seeds of Brexit
- 5 Is the Sun setting on Murdoch's global media empire?
- 6 When Eton took on a team of miners at football
- 7 Five years of Brexit summed up by Cold War Steve
- 8 Did Donald Trump really wear his trousers backwards at Republicans' North Carolina rally?
- 9 English to be temporarily replaced by French as EU's 'working language' in 2022
- 10 Priti Patel urged to publish promised assessment on impact of ending freedom of movement
Lord Greenhalgh told peers during a virtual House of Lords sitting that the government had postponed a spending review aimed at pooling money for a new UK-wide prosperity fund because of the coronavirus.
'I can give him the assurance that the amount of funding will be at least, at minimum, the same level as all the European structural funds that it replaces,' he replied.
'I can't say any more about the timing.'
When pressed for a clear time line by Baroness Mallalieu, the Tory minister said his government was working 'as fast as possible'.
EU funding will end at the end of this year. UK communities currently benefit from the European Regional Development Fund (ERDF) and European Social Fund (ESF) which are worth more than €2.1 billion (£1.9 billion).
The ERDF supports research and innovation, small businesses and the creation of a low carbon and energy efficient economy, whereas the ESF focuses on improving employment opportunities and promoting social inclusion.
Lord Greenhalgh also assured peers that recipients of the cash would know where it came from.
'Can he assure us that all projects that are supported by the shared prosperity fund will be appropriately branded to acknowledge the role of the UK government in order to underline the importance of our Union?' Tory peer Lord Caine asked.
'I give him that specific assurance,' Lord Greenhalgh replied.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.