The Government issued its long awaited statement of EU funding on Saturday 13 August, following the EU referendum in June.
In response, Mayor Joe Anderson, Chair of Liverpool City Region Combined Authority, stated: “Whilst we welcome the statement from the Chancellor, it does not go far enough in giving the assurances that the City Region needs. EU funding remains vital to the continued economic growth and success of the City Region, and we will be seeking further clarification from Government about the future of those funding arrangements. It is important to stress that ESIF funds are allocated to individual LEP areas and that local partners have made plans in good faith, based on these being available until the end of 2020. The very real danger of the current approach is that Core Cities like the Liverpool City Region will lose out in the transitional period until Government determines what new domestic programmes will replace EU funding.”
The City Region was indicatively allocated £193m in 2014 across ERDF, ESF, Rural Growth and the Youth Employment Initiative. A further £1m was allocated to the Mersey Leader Programme.
Liverpool City Region partners are well advanced in developing projects utilising ESIF funding, and have already secured funding of £72m for these. It is now anticipated that a number of additional City Region ERDF and ESF projects, totalling a further £30m, will be issued with their grant funding agreements, prior to the autumn statement, bringing the total to £102m. The Government have stated that these projects will be fully funded for their duration, even if beyond the UK’s departure from the EU. In addition, government has also confirmed that current open calls within the system will be honoured.
It is understood that Liverpool City Region has a comparatively high proportion of its overall allocation legally committed, compared to many other areas across England.
Asif Hamid, Acting Chair of the Liverpool City Region Local Enterprise Partnership and Co Chair of the LCR ESIF Committee, commented: “I am pleased that the statement unlocks funding for a number of important projects that are vital to support the economic regeneration priorities of Liverpool City Region and help deliver our Growth Strategy. Further clarity is needed on future funding and we will be working closely with our Local Authority partners and Government to secure the full funding programme as was originally agreed”.
The Chancellor’s statement only gives partners certainty for ESIF projects signed off prior to the autumn statement. The statement potentially does allow for future projects, provided they align with domestic policy priorities and represent value for money. The City Region urges Government to allow future bidding rounds to ensure that EU funding due to England is accessed and delivered.
It is noted that the Treasury have agreed to underwrite all CAP payments to farmers and for R&D projects till end 2020, but have made no such commitment to the mainstream ESIF funds.
Cllr Phil Davies, Leader of Wirral Council and Co Chair of the LCR ESIF Committee, stated: “Whilst welcoming the green light for important local projects, we are disappointed that government has not be able to give the same guarantee to ESIF funds in the longer term, especially as these resources have been allocated according to local economic development needs and will support the national policy priority of rebalancing the economy. We therefore urge Government to take the same approach to ESIF funds, as it has to CAP and R&D funding, to bring parity in approach to urban and rural areas in the UK’s exit from the EU”.
Liverpool City Region now looks forward to working with Government to deliver vital ESIF funding and developing replacement/successor programmes.