The Local Government Association (LGA) has claimed that the government’s pledge to replace EU funding has fallen short of the full figure.
The news comes after, Chancellor Philip Hammond announced that the Treasury would cover the costs of projects that were originally funded for by the EU, on the condition the agreements were reached before the Autumn Statement.
Hammond said: “We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive.
“That is why I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding granted before we leave the EU will be guaranteed by the Treasury after we leave.”
Lord Porter, chairman of the LGA, argued: “As welcome as this commitment is, it falls well short of the full guarantee we are urging the government to make. Local areas need certainty around the future of all of the £5.3 billion in EU regeneration funding promised to them by 2020.
“The continued uncertainty risks damaging local regeneration plans and stalling flagship infrastructure projects, employment and skills schemes and local growth.”
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