FE providers will have their funding from the EU guaranteed by the UK government until 2020, even in the event of a “no-deal Brexit”.

The government says this gives potential applicants continued confidence to bid for funding whatever the outcome of the negotiations, and it will ensure that UK organisations continue to benefit from funding post-exit.

The chancellor of the exchequer, Philip Hammond, said any funding secured through EU programmes, from now until the end of 2020, will be guaranteed by the UK government even in the event of a no-deal Brexit.

The UK is set to participate in EU funding programmes, including the European Social Fund, until the end of 2020, after an agreement was reached in March. However, in the event of a “no-deal Brexit” it is unclear if this would continue.

A “no-deal Brexit” means negotiations between the UK government and the EU ending without both sides’s agreeing the UK’s terms of departure, meaning there would be no “transition period” after 29 March 2019.

Colleges reliant on funding

Data from the 2016-17 college accounts showed that colleges received £9,667,026 in “direct European funds” and £31,525,730 in “ESFA EU co-financed income”.

The figures showed that more than a quarter of colleges have some level of dependency on European funding.

The chancellor said the government was continuing to make positive steps towards getting the best possible deal with the EU.

He added: “The guarantee we are making today, however, means that, even in the unlikely event of a no-deal, our businesses, universities and local authorities can be confident that they will continue to receive the funding they successfully bid for from any EU programme.

“In 2016 the government committed to protecting projects that were successful in securing EU funding before exit day. This new guarantee means that successful bids for EU funding until the end of 2020 will receive their full financial allocation and will continue to receive funding over a project’s lifetime.”