Jarvis welcomes concession on EU cash

Mr Hammond told MPs Britain would have to make “separate similar arrangements” if it is agreed this country will no longer benefit from EU funding as part of the Brexit deal with Brussels.

Yorkshire receives around £100m a year in EU funding designed to help the region’s economy grow faster through better skills, infrastructure and research.

Ahead of last year’s EU referendum, the Vote Leave campaign promised areas such as Yorkshire would not lose out financially as a consequence of Brexit.

Since the referendum the Government has offered limited guarantees on the future of projects currently receiving EU money but also imposed new conditions.

Barnsley Central MP Dan Jarvis, who has been pressing the Government to go further, said: “I welcome the Chancellor confirming that arrangements will be put in place to deliver equivalent funding to Yorkshire once we have left the EU.

“This was promised during the referendum and it must be honoured by the Government. I will be writing to the Chancellor to confirm the precise mechanisms for making this happen.

“Next week’s budget is a good opportunity to bring further clarity on how this vital funding worth over £100 million a year to Yorkshire can continue.”