Exiting the European Union (Structural and Investment Funds) — House of Commons, 2019-02-19
Topic: International Affairs
Richard Harrington (Conservative, Centre-right): Indeed so In a no-deal situation, this instrument will repeal the European regulations concerning the European structural funds, while ensuring that the funds can continue operating domestically. It will also repeal the regulations on the Cohesion Fund, for which we are not eligible The structural funds include the European regional development fund and its cross-border European territorial co-operation component, and the European social fund. The structural funds are shared management funds that support regional investment across the UK, and they are funded via the EU budget, with co-funding provided by project participants. Typical projects include the recently launched advanced engineering research centre in Sheffield, which supports economic development and upskilling in the local economy. Typical cross-border projects under the European territorial co-operation component of the structural funds include the intelligent community energy project on smart energy. Three UK universities and local small businesses are working in collaboration with French research centres and small and medium-sized enterprises to find local solutions to support low-carbon energy systems In a no-deal scenario, the United Kingdom is expected to lose access to European funding. To ensure that this regional funding continues in a no-deal scenario, the Government announced in 2016 that they would guarantee funding for structural funds projects signed before we leave the EU—that was extended last July to cover new projects signed after exit until the end of 2020. That guarantee covers UK beneficiaries and, exceptionally, all beneficiaries of the Peace programme in Ireland and Northern Ireland, and Interreg V-A in Ireland, Northern Ireland and Scotland. This is due to the Government’s continued commitment to support peace and reconciliation in Ireland This statutory instrument facilitates the domestic delivery of structural funds in a no-deal scenario. It repeals the European regulations for these funds, as they would become inoperable retained European law and therefore would not work, because the European regulations create a shared management programme between the EU and a member state. Keeping them would create obligations that the managing authorities of the funds could no longer meet after a no-deal exit The instrument also ensures that for European regional development fund and European social fund projects started before exit, current fund delivery rules would be upheld through existing funding agreements, without keeping redundant EU regulations. The powers to continue paying project beneficiaries in the UK already exist under our domestic law, so the instrument does not make provision for projects started after exit. Managing authorities for the funds will none the less continue to sign new projects under existing domestic powers and using existing delivery systems, with appropriate simplifications. So the main aim is to provide stability for beneficiaries, and the project rules will continue to be enforced through the same funding agreements. Hon. Members should also note that this instrument ensures that structural funds delivery remains a devolved matter.