THE FATE OF EU-FUNDED PROJECTS AND ITS EFFECT ON CHARITY SERVICES
- 30 Jan
A white paper will be published, which will enable charities to engage in debate and bring up issues important to their beneficiaries.
In March 2016, forecasts of growth were low and the government's own estimates put the Treasury's coffers £122bn poorer by 2020.
The supreme court has also determined that MPs must approve the triggering article 50, which means legislation, will be needed.
This may mean that services will be cut, hitting the poorest and hence, more pressure on charity services.
According to the Guardian, the fate of EU-funded projects is a major concern for charities due to the following:
- Chancellor Philip Hammond's pledge to underwrite these projects which are signed-off before Britain leaves the EU was not backed up by any legislation
- Despite his assurances, funding directly administered by EU Institutions could be most under threat after Brexit happens because the UK government has not been involved in the management and distribution of funds
- Prior research by DSC shows that £189.9m was paid directly to UK charities by the European commission and the government has made it clear that it will only honour/replace EU funding for projects that are judged to be "good value for money" and "in line with domestic strategic priorities"
- Charities may find it difficult to convince the government of their needs due to the point above
- Therefore, the greatest challenge for the sector in the next phase may not be what happens to the money but the complex policy shifts
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