Brexit: Policies to aid Britain unveiled as it quits EU

Britain’s chancellor of the exchequer Philip Hammond has unveiled a set of policies designed to shore up Britain’s economy during a period of “turbulence” as a result of Brexit.

Speaking to the Conservative conference in Birmingham, Mr Hammond offered a new guarantee to continue payments of any multi-year EU grants secured by British businesses and organisations before withdrawal — probably March 2019.

He also announced £220m (€252m) of funding for the tech sector to support efforts to transform biomedical and computer innovations into marketable products.

Mr Hammond warned that the UK economy faces a “rollercoaster” ride over the coming two years as the UK negotiates a new relationship with its EU partners.

However, he said he was ready to take “whatever steps are necessary to protect this economy from turbulence”.

He hinted that this could include tax cuts to stimulate economic activity, telling delegates that “fiscal policy may also have a role to play” alongside interest rate reductions to boost confidence.

Mr Hammond said action was needed to boost productivity, invest in infrastructure, and tackle the “dangerous” gap between London and the “left behind” regions of the UK, in order to ensure that withdrawal from the EU is not “the end of an era”, but “the beginning of a new age” for Britain.

Mr Hammond’s announcement extends for a further two years or more an earlier promise that the treasury would guarantee funding for EU-backed deals signed by universities and businesses before next month’s autumn statement. The treasury said the promise would apply to all structural and investment funds, including agri-environment schemes, so long as they provide “strong” value for money and are in line with domestic strategic priorities.

The pledge is intended to give hundreds of businesses and universities the confidence to continue bidding for competitive EU funds while the UK remains a member.

Mr Hammond said: “I can offer some additional certainty to British businesses and other organisations bidding to receive EU funding while we’re still a member.

“I’ve already guaranteed the funding for projects signed prior to this year’s autumn statement.

“Today, I can go further. The treasury will offer a guarantee to bidders whose projects meet UK priorities and value for money criteria, that if they secure multi-year EU funding before we exit, we will guarantee those payments after Britain has left the EU.”

Mr Hammond’s speech confirmed that he has torn up predecessor George Osborne’s plan to get Britain’s finances into surplus by 2019/20.

Sources close to the chancellor said his speech reflected his conviction that, while the June 23 referendum was a vote to take back sovereignty, it was not a vote to sink the economy. While respecting the mandate for EU withdrawal handed down by voters, he wanted to ensure that it was done in a way which delivered long-term, sustainable growth.

Mr Hammond said this would require action to ensure the economy remains “outward-looking, dynamic (and) competitive” and that the UK is able to continue attract the best workers.