EU funding for tech projects appears to have been put on hold following the economic uncertainty caused by the Brexit vote and the subsequent change of government in the UK.
The Treasury insists no funding has been stopped though – so what’s going on?
Money ‘on pause’
Around €60 million of European money allocated to UK tech projects will not be divvied out because of the uncertainty surrounding the Brexit vote – meaning hundreds of UK tech companies could miss out on vital funding.
News of the funding freeze was released in an email sent to a large group of stakeholders by Coats to Capital, which allocates European funding around the south-easy of England.
Capital Enterprise, an umbrella group for 600 technology start-ups, is one organisation that had been due to receive £3.7m from the European Regional Development Fund but has now been told the money is ‘on pause’.
And the Greater Cambridge Growth Hub, has also been told no money will be signed off until a decision has been made on how future funds will be allocated.
The money has allegedly been put ‘on pause’ while the impact of the Brexit is assessed.
The Treasury, however, insists this is not the case.
No payments stopped
The Treasury has issued a statement outlining that funding has not been stopped.
A representative said:”The Treasury has not stopped any payments from the European Regional Development Fund and to suggest it has is simply untrue.
“The UK remains a member of the EU, and that means no immediate change to EU programmes.
“We recognise the need to bring any uncertainty to an end as soon as possible, however, and we have been working urgently to understand the future implications to programmes.
“We will make an announcement on EU funding soon.”
Decisions need to be made, and quickly, as an apparent downsizing of the UK tech industry is not what is needed, especially so soon after the so-called ‘jewel in its crown’, ARM Holdings, has been sold to Japanese investors.