The HM Treasury Guarantee and European Territorial Cooperation Programmes

HM Treasury Statement

In August, the Chancellor of the Exchequer guaranteed funds for European Structural and Investment Fund projects signed up until the Autumn Statement, even where these projects continued after the UK has left the EU.

On 3 October 2016, the Chancellor of the Exchequer extended this EU funding guarantee.  The second statement goes further: if a project is contracted whilst the UK remains in the EU, project partners from the UK will have their full funding guaranteed subject to being in line with domestic strategic priorities and offering good value for money. The Scottish Government will determine the conditions for assessing Scottish partner contributions to ETC projects in line with devolved responsibilities.

Scottish Finance Secretary, Derek Mackay, has since affirmed this by announcing that he will be passing on, in full, the EU funding guarantees that have been offered by the UK Government and given assurances that the Scottish Government are working as closely as possible with the UK Government, and the Devolved Administrations in Wales and Northern Ireland, to get clarity on longer term funding arrangements beyond the point the UK leaves the EU. 

The European Structural and Investment Funds subject to HM Treasury’s assurances include:

• European Regional Development Fund – including European Territorial Cooperation
• European Social Fund
• European Agricultural Fund for Rural Development – CAP Pillar 2
• European Maritime and Fisheries Fund

What these statements mean for UK project applicants within the European Territorial Cooperation  (ETC) programmes

• While the UK remains a member of the EU, UK organisations are entitled to apply for ETC funds
• If an ETC project is contracted whilst the UK remains in the EU, UK project partners will have their funding guaranteed in full
• It gives reassurance of the commitment and participation of UK partners to the other member states involved in ETC programmes

Therefore, European Territorial Cooperation programmes remain open for business to Scottish partner organisations

Current commitment to Programmes

The UK Government is continuing to deliver the ETC programmes under the current arrangements. A team of UK contact points is in place and working to stimulate interest and support project applications and partner searches:  

Interreg VA Ireland, Northern Ireland and Western Scotland Cross Border Programme

Please note that this programme is now fully committed and there will be no further calls for applications.   

Scotland Europa

Scotland Europa will continue to support Members and Scottish stakeholders to maximise opportunities afforded through Scottish participation in the ETC programmes by working collaboratively with UK Contact Points and continuing our programme of awareness-raising and applicant workshops to support a Scottish pipeline, in preparation for future call deadlines.

Scotland Europa is liaising closely with the Scottish Government Territorial Programmes Team who in turn liaise regularly with the UK Government on matters relating to ETC.

Stakeholder Questions

There will remain outstanding questions on the practicalities of ETC programme implementation up to and beyond the time that the UK leaves the EU. The UK Government is working with the Scottish Government and the other Devolved Administrations to provide answers to business-as-usual, operational questions which ETC stakeholders may have. 

If you have any questions that you would like to raise, please contact Fiona Watson at Scotland Europa in the first instance.