How will Brexit impact Grants for UK Businesses?

On the 31st of December 2020, the transition period came to an end and with it came the loss of billions in EU funding for the UK. Here we take you through the latest information available about the impact of withdrawing EU funding from the UK.

1. How much funding did the UK receive from the EU?

The funding figures above include money credited back to the UK for the Agricultural Guarantee Fund and the Structural funds.

2. What was the last date to apply for EU funds?

EU funding programmes remained open to UK businesses until the end of the transition period on 31 December 2020. Any funding already agreed before the end of the transition period will be paid, even funding due to be received after 31 December 2020.

3. Are any EU funds still available to the UK?

Not all EU funding programmes exclude the UK, in the EU’s next spending framework for 2021-2027 the UK will take part in the Peace Plus programme and it also intends to continue participating in three more programmes:

Horizon Europe

The UK will participate with “associate” country status in Horizon Europe, the EU research and innovation programme that will run from 2021 to 2027. The UK will join 16 other non-EU countries participating in the programme that allows researchers to apply for and receive funding on equivalent terms to EU researchers.

Euratom

The UK intends to continue participating in the Euratom programme under the next EU spending framework. Euratom is a complementary research programme for nuclear research and training.

Copernicus

The UK has an agreement in principle for the UK to continue to participate in the Copernicus satellite program.

4. Do State aid rules still apply?

State aid rules no longer apply to the UK but there are subsidy control provisions within the Trade Cooperation Agreement between the UK and the EU that came into force on 1 January 2021.

The Trade Cooperation Agreement allows for a higher De Minimis Aid exemption threshold, increasing from €200,000 over a three-year period under previous State aid rules to approximately €380,000 over a three-year period.

5. What is going to replace EU funding?

EU Structural Funds

The UK Shared Prosperity Fund (UKSPF) has been announced as the replacement to EU structural funds. The value of the UKSPF is expected to reach around £1.5bn a year on average, the chancellor Rishi Sunak announced in November 2020.

Agricultural payments

Payments under the EU’s Common Agricultural Policy stopped to British farmers when it left the EU. The UK government has guaranteed to keep the support paid to farmers at the same level until 2025.

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