Government ‘Guarantee’ post-EU funds after Brexit occurs

SOURCE: BBC

It has been announced today that EU funding, which the UK receives as a member that will consequently be lost after Brexit occurs, given to organisations involving farming, scientists and others, will be replaced by the Treasury, Chancellor Philip Hammond has said.

Brexit could cost up to £6bn a year in losses of funding, but the Treasury will guarantee to back EU-funded projects signed before this year’s Autumn Statement.

The BBC have stated that agricultural funding which is now provided by the EU will also continue until 2020.

However, critics said the guarantee does not go far enough and there was ‘continued uncertainty’.

Voters ultimately backed to leave the EU in the 23 June referendum by 3.8%, but Prime Minister Theresa May has indicated the UK government will not trigger Article 50, which would begin a two-year process to leave, during 2016.

Furthermore, Mr Hammond has said “EU structural and investment fund projects signed before the Autumn Statement later this year, and Horizon research funding granted before leaving the EU, will be guaranteed by the Treasury after the UK leaves.”

The BBC have also said ‘the EU’s 80bn euro (£69bn) Horizon 2020 programme awards funding for research and innovation and is open to UK institutions while the country remains a member.’

The chancellor responded to critics by saying the government was “determined to ensure that people have stability and certainty in the period leading up to our departure from the EU”.

The Treasury said it would assess whether to guarantee funding for certain other projects “that might be signed after the Autumn Statement, but while we remain a member of the EU”.

Currently, farmers receive subsidies and other payments under the EU’s Common Agricultural Policy (CAP).

It’s said that they get about £3bn a year in subsidies, with the biggest farmers pocketing cheques of £1m. The grants are given for owning land and also taking care of wildlife.

The National Farmers’ Union (NFU) said the Treasury’s announcement was “positive” for farming.

Other examples of projects that have received, or are due to receive regional development fund money, include:

  • £5m for the Graphene Engineering Innovation Centre at the University of Manchester
  • £9m for the manufacturing growth programme to support areas in the Midlands, Yorkshire and the Humber and the East of England
  • £3m for a new life sciences incubation and innovation centre at Porton Down in Wiltshire

(BBC 2016)

Reportedly, the UK currently pays money into the EU budget, which will stop once it formally leaves.

In 2015 the UK Government paid in £13bn; EU spending on the UK was £4.5bn, meaning the UK’s net contribution was estimated at about £8.5bn, or £161m a week.

The UK private sector receives a further £1-1.5bn annually in EU funding.

What do you make of the Governments post-EU promisees?

Is the affordable for the UK to do? Will this mean Taxation and further Austerity cuts? Are these promises realistic?

Comment below your views on the post-EU funding plans

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G20 announce that Global Economic Risks have ‘heightened’ due to Brexit

SOURCE: BBC

After the UK’s vote to leave the European Union, risks to the world economy have heightened, according to the global finance chiefs at the end of the G20 summit in China.

The outcome of last month’s EU referendum ‘adds to the uncertainty’ for the global economy, the group of the world’s 20 largest economies further said.

“In the future, we hope to see the UK as a close partner of the EU,” the G20 collectively said.

The UK Chancellor of the Exchequer Philip Hammond revealed the subject had come up ‘a great deal’ at the two-day talks.

“The reality is there will be a measure of uncertainty continuing right up to the conclusion of our negotiations with the EU,” Philip Hammond told reporters.

Following the meeting in the Chinese city of Chengdu, the G20 group said it was well placed to actively cope with the potential economic and financial impact from the Brexit vote.

However, despite the threats the G20 agreed that despite the Brexit vote, the global economy ‘would improve in 2016 and 2017’, Mr Weidmann (the president of Germany’s central bank) said.

Separately, G20 policymakers said they recognised that excess steel supply was a global issue.

The excess capacity of steel has had a negative impact on trade and workers and requires a collective response, they said.

It was also announced that Britain’s decision to leave the EU has led to a ‘dramatic deterioration’ in economic activity, not seen since the aftermath of the financial crisis.

Data from IHS Markit’s Purchasing Managers’ Index, or PMI, shows a fall to 47.7 in July, the lowest level since April in 2009. A reading below 50 indicates contraction.

What do you make of these announcements by the G20? 

Has the Brexit warnings by the Stronger In campaigners become a fact? Will the economy suffer heavily from a brexit? If so, will it be able to grow again by 2017?

Comment below your views on Brexit’s outcomes and a potential global economy suffering the G20 have announced as a result of brexit

Theresa May’s newly appointed Cabinet

SOURCE: BBC

Theresa May has finalised her cabinet as the new UK Prime Minister, by shuffling, firing and hiring across her whole Cabinet team, including the ‘big’ jobs of Chancellor of the Exchequer, Foreign Secretary and Home Secretary.

Those fired include George Osborne, Michael Gove, John Whittingdale, Nicky Morgan and Oliver Letwin.

With all of the key cabinet appointments now announced, we can see how Prime Minister Theresa May has balanced her cabinet for the brexit negotiations and for the next few years. Here’s the list of the cabinet:

International Trade Secretary – Liam Fox 

Chancellor of the Exchequer – Philip Hammond

Foreign Secretary – Boris Johnson

Home Secretary – Amber Rudd

Defence Secretary – Michael Fallon

Health Secretary – Jeremy Hunt

Secretary of State for Exiting the EU – David Davis

Justice Secretary – Liz Truss

Education Secretary – Justine Greening

Secretary of State for International Trade – Liam Fox

Transport Secretary – Chris Grayling

Chief Whip – Gavin Williamson

Conservative Party chairman – Patrick McLoughlin

Leader of the House of Lords – Baroness Evans

Leader of the House of Commons -David Lidington

Culture Secretary – Karan Brady

International Development -Priti Patel

Communities and Local Government – Sajid Javid

Work and Pensions – Dominic Green

Scottish Secretary – David Mundell

Welsh Secretary – Alan Cairns

Northern Ireland Secretary – James Brokenshire

2nd placed Andrea Leadsman in the tory party race has earned herself the spot as Environment secretary. 

Controversial Jeremy Hunt maintains his spot as the Health Secretary.

Boris Johnson is the new Foreign Secretary which is a surprise to many after his Vote Leave campaigning and claims by people saying he constantly ‘lied’.

Amber Rudd replaces the new Prime Minister Theresa May as Home Secretary.

David Davis has been announced as the first ever ‘Brexit Secretary’ that will help lead the negotiations for the UK exit from the European Union.

Dr Liam Fox also becomes the first ever ‘International Trade Secretary’, so it is clear that it has been a Brexit motivated cabinet shuffle by Theresa May. ‘Brexit is Brexit’ after all.

What do you make of the newly made changes to the Conservative cabinet of UK Governance?

Will these newly appointed Cabinet MP’s get the best ‘Brexit’ outcomes for the UK, in terms of mainly trade? Who else would you have rather seen enter the Cabinet and in what roles? Is the UK now set to negotiate an EU exit?

Comment below your views on the new conservative cabinet and brexit 

EU vote: Where the cabinet and other MPs stand

Source: BBC

Here is an article (highlighted above) to clarify where the leading cabinet ministers and general MP’s stand, either In or Out, regards to the EU Referendum.

Some key In members of the ‘Britain stronger in Europe’ campaign include:

  • Prime Minister David Cameron
  • Chancellor George Osborne
  • Foreign Secretary Philip Hammond
  • Home Secretary Theresa May

Some key Out members of the ‘Vote Leave’ campaign include:

  • Commons Leader Chris Grayling
  • Culture Secretary John Whittingdale
  • Northern Ireland Secretary Theresa Villiers
  • Justice Secretary Michael Gove

What’s YOUR view on the Referendum outcome? 

Simply said, will the UK remain within the EU, or lean towards a life-changing brexit of the EU?

Comment below below your views in the comment section