The Mayor of London has called on the Government to say how it will replace vital funding that benefits the capital that will be lost once the United Kingdom leaves the European Union.
Organisations now have a final chance to apply for a share of £22m from the European Regional Development Fund (ERDF) – but once Brexit takes place, these funds will no-longer be available.
The ERDF helps to stimulate economic development and growth by supporting innovative jobs and growth projects targeted at small businesses. It is also used to find environmental projects that benefit the capital, including schemes that encourage low-carbon technology.
As well as calling on ministers to replace these ERDF funds, Sadiq Khan also wants to ensure that the capital continues to have control over how they are spent and that the government does not take over responsibility and centralise the money.
So far, 33 projects in London are benefitting from more than £50m of ERDF funding, received since 2016 – helping to grow small businesses, improve the environment, create jobs and deliver economic prosperity for the whole country. Seven further projects worth £12m are in contract negotiations. A further £75m will be invested in loans to entrepreneurs and to make London’s businesses more energy efficient.
Examples of projects that have benefitted from ERDF include a scheme run by Brunel University that connects small businesses to university researchers so that they can design, develop and test new product.
The Mayor of London, Sadiq Khan, said: “London has benefitted enormously over recent years through European funding streams such as this and I have vowed to do all I can to protect our great city from the impact of Brexit.
“While we need the Government to secure a sensible Brexit that protects jobs and growth, we also need a commitment that they will replace these vital funds.
“One of the reasons that this fund has been so successful is because we are able to distribute money where it is most needed. It is vital that this must not be a power grab for Whitehall and the capital remains in control of the replacement funds.”
Up to £22m of ERDF is now available – if sufficient high-quality applications are received, this will be the final tranche of funding before the United Kingdom leaves the European Union next year.