University chief calls for Brexit cash answers

Prof Peter Slee described the future of EU funding following the Brexit vote was a “critical question” facing the North of England.

The North of England receives around £400m a year in so-called ‘structural funds’ from the EU designed to help boost local economic growth.

Speaking at the UK Northern Powerhouse conference in Manchester, Prof Slee questioned how the North will replace its longstanding income from the EU through measures such as the European Regional Development (ERDF)) Fund and European Social Fund (ESF).

He said:”It is a very critical question. As we begin to see what Brexit really means, will the UK Government be able to replace this level of investment?

“Will that commitment be shown the Northern Powerhouse?”

During the referendum campaign, senior Leave supporters including Foreign Secretary Boris Johnson and Transport Secretary Chris Grayling signed a letter promising regions such as Yorkshire would not lose out financially from leaving the EU.

Since the vote, the Government has made some limited commitments to honouring EU funding agreements but there is no long term plan for replacing the funding stream.

It also emerged recently the Treasury has imposed extra rules governing which projects will have their EU funding underwritten.

The decision to leave the EU has sparked calls from councils to be given a share of the money no longer going to Brussels rather than it remaining underTreasury control.

But Manchester City Council chief executive Sir Howard Bernstein told the conference he was sceptical that significant sums of UK Government money would be freed up by Brexit.

He said: “One of the biggest single unknowns around what Brexit will mean is how much the Government will have to pay in to get out.

“All sorts of numbers I have seen projected would absolutely dwarf what we currently receive in the context of ERDF.”

Sir Howard said the “jury’s out” on whether Britain will secure a net benefit in budget terms from leaving the EU.