Spring Statement “offers no clarity” on £250m EU funding for charities
Howard Lake | 15 March 2018 | News
The Chancellor’s Spring Statement this week made no reference to the future of £250m in EU funding for UK charities, according to the Directory of Social Change.
With the UK due to leave the European Union in a year’s time, there is no clarity yet on at least £258.4m in EU funds that UK charities stand to lose.
The Chancellor’s Spring Statement was not expected to offer much detail or new policy: that is now reserved for the Budget in the Autumn. Nevertheless the DSC described it as “another missed opportunity” to clarify the EU funding issue.
The DSC recently published a report on the EU funds (What does Brexit mean for UK charities’ European Union funding?), noting that “beneficiaries of hundreds of charities working in particular sub-sectors like overseas aid, research and conservation will likely be hardest hit, unless the UK government acts swiftly to replace these funds.”
Trustees of charities affected face a financial and strategic planning challenge, given that they can not be sure whether these substantial funds will be made available after 29 March 2019.
EU funding for charities after Brexit
When the UK leaves the EU, it will lose access to the EU’s institutional funding streams, mainly the European Structural and Investment Funds.
In the event of a ‘no deal’ or ‘hard’ Brexit, with no transition phase, charities could find their funds cut off at a stroke.
Yet the charity sector is not among the 58 sectors of the UK economy that have been consulted on the potential impact of Brexit.
The DSC describes the government’s statements about the future of EU funds as “only vague and piecemeal statements”.
The Government has promised to use EU funds that come back to the UK after Brexit to create a ‘Shared Prosperity Fund’. DSC is concerned that no further information or evidence of action on this is apparent. For example, there is no information on the priorities of such a fund, which causes it would support, and how it would function.
DSC’s Director of Policy and Research Jay Kennedy said: “It’s potentially just a year until the UK is out of the EU but government has missed yet another opportunity to clarify the future of EU funding. Charities are being left in limbo, not knowing the future of current funding and needing to find alternatives which are thin on the ground. The threat of disruption to vital services for people grows day by day.”
Is lack of clarity over EU funding putting charities on a cliff edge?
What to do?
The Directory of Social Change is urging the government to give clarity to charity trustees to help them plan effectively.
Specifically it is calling on the government to:
Advertisement
- Clarify the level of funding for charities that will be maintained throughout the Brexit process, including a clear and detailed definition of the conditions under which present EU funding will be guaranteed.
- Provide a credible commitment on how EU funding will be replaced in full after the UK’s departure from the EU, and a clear timetable for this.
- Start consulting with the charity sector and the wider social sector in developing the potential UK Shared Prosperity Fund now. This includes the strategic purpose, aims and priorities; how will it be administered; and how it will support critical social causes.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.