Brexit Could Cost Britain $42 Billion of Direct Funding From EUby
Commons paper highlights EU support for U.K. regions, farming
Government has pledged funds for agriculture and universities
Britain risks losing 40 billion euros ($42 billion) of direct funding from the European Union once it leaves the bloc, according to U.K. parliamentary analysis.
The European Structural and Investment Funds, which help develop the most deprived regions, and the European Agricultural Guarantee Fund that supports the Common Agricultural Policy are set to provide the U.K. with 17.2 billion euros and 22.5 billion euros respectively between 2014 and 2020, a report published by the House of Commons Library shows.
British businesses also benefit from as much as 1.5 billion pounds ($1.8 billion) of research and innovation funding annually, while domestic projects can access money from the European Investment Bank. Britain paid about 13 billion pounds to the EU budget in 2015.
The British government has only guaranteed to cover the shortfall faced by agriculture and universities until 2020. Further pledges could prove tricky as Chancellor of the Exchequer Philip Hammond faces tens of billions of pounds of extra borrowing over the next five years due to Brexit.
Non-EU states, such as Norway, have access to some funding from the EU, though it’s generally predicated on EU budget payments. Such arrangements are likely to form a key part of negotiations once Prime Minister Theresa May triggers formal exit talks by the end of March.