Brexit: The Erasmus and Horizon Programmes (European Union Committee Report)

Viscount Younger of Leckie Excerpts

Monday 1st April 2019 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, I am very grateful to the noble Lord, Lord Jay of Ewelme, for securing this debate and I thank the Home Affairs Sub-Committee, of which he is chair, for taking the time to consider the future of the Erasmus+ and Horizon 2020 programmes after Brexit. This has been valuable work which I know is informing the Government’s thinking on these topics. I want to make a few opening remarks because there have been, in my view, some excellent speeches this afternoon from many distinguished Peers with backgrounds ranging from education and higher education to the Diplomatic Service. My message, as I start out, is that these two programmes are very important: I agree with so many of the comments made on this point and shall say more about it later. I reassure the noble Lord, Lord Best, and the noble Baroness, Lady Garden, among others, that the sub-committee’s report will not go unnoticed.

Next, I welcome the noble Lord, Lord Bassam, to the Front Bench. I note that he has morphed from shadow Chief Whip to this position and I have no idea whether it is permanent or temporary. I hope it is permanent and he is very welcome. This debate, as is probably the case for all debates here in the Lords, has seen an enormous number of questions raised on these important subjects. Many of the questions directed to me include a focus on the dates and the guarantees we have given, and perhaps suggestions that we should extend these guarantees. The noble Baroness, Lady Garden, anticipated that I might say this, but I hope that the House will not expect me to give any guarantees this afternoon. However, one thing is certain: I will take all views back to the department. I hope, at least, that I can give some assurances that will help the House.

The Government will publish a formal response to the Committee’s report shortly. However, to follow a point raised by the noble Baroness, Lady Smith of Newnham, I will set out the work the Government are doing to ensure that opportunities for our researchers, businesses and students are protected and enriched in all scenarios. I start by saying—with a touch of understatement, perhaps—that we do not know what the coming days will bring, but the UK remains open for business and, importantly, open to ideas and exchanges with the EU and globally, and to the people who provide them. In the context of the UK’s impending departure from the EU, it is imperative that we consider how the UK can maintain close ties with our European partners, particularly in education, science and research.

As the report noted, the Erasmus+ and Horizon 2020 programmes have provided so many people in the UK with the opportunity to move across the EU: to learn, work and carry out research and innovation. UK businesses and researchers have driven forward a wide range of inspiring Horizon 2020 projects. As of the end of September 2018, the UK had more than 10,000 participations in the programme. In response to a question raised by the noble Baroness, Lady Smith of Newnham, and the noble Lord, Lord Krebs, who raised an interesting point about EU scientists leaving the UK and the fact that science is losing out, I have absolutely taken note of what both Peers said. We currently expect that, at the point of exiting the EU, the UK will have more than 10,000 live participations in Horizon 2020. I have to inject a little caution because the latest data, released in September 2018, does not suggest that the UK is routinely locked out of consortia, but I recognise that both the noble Baroness and the noble Lord are making points about what they say is happening on the ground. These projects range from increasing our understanding of how green roofs are used to tackle climate change to helping authorities better protect trafficked persons.

The Government recognise the important role that both schemes have played in the UK and remain committed to supporting collaboration with our neighbours in the EU and beyond. I will focus on Erasmus+ first. The noble Lords, Lord Jay and Lord Bassam, would put this more eloquently than me, but the Erasmus+ programme offers young people the opportunity not only to gain international experience but to boost their employability, as the noble Baroness, Lady Coussins, said. It provides opportunities for teaching and training, and supports innovation and the sharing of best practice.

The noble Baroness, Lady Janke, asked me to clarify the terms of payment for the underwrite guarantee. UKRI will use existing payment systems to ensure continuity for UK beneficiaries. In a no-deal scenario, UKRI will contact UK beneficiaries who have registered on the portal with further information on how the guarantee will operate in practice. While the UK benefits from sending our own young people on outgoing mobilities, the UK hosts around twice as many incoming Erasmus+ mobilities as it sends out. As the noble Lord, Lord Best, and others have said, it is interesting to note that the UK’s notional contribution to the Erasmus+ budget currently exceeds its share of receipts.

The noble Baroness, Lady Garden, and, particularly, the noble Baroness, Lady Coussins, raised the question of modern foreign languages—the importance of Erasmus+ for languages and the supply chain for teachers. I agree with them that the benefits for those who endeavour to learn new languages and study abroad can be huge. Languages provide an insight into other cultures and can open the door to travel and employment opportunities. They can also broaden pupils’ horizons, helping them flourish in new environments.

I assure the House that Erasmus+ is not the only way students can travel abroad. Our world-leading higher education providers have a strong track record of partnering with overseas institutions, and UUK evidence suggests that around half of mobilities already take place outside Erasmus+. The Government know that employers value languages too, as they are increasingly important to make sure we can compete in the global marketplace. I hope the noble Baroness, Lady Massey, might agree that it is clear that other EU countries strongly value and are benefiting from the UK’s participation in Erasmus+.

I will now move on to Horizon 2020. As others have said, this is the biggest EU research and innovation programme ever, with nearly €80 billion of funding available over seven years—that is, between 2014 and 2020. It promises more breakthroughs, discoveries and world firsts by supporting great ideas at all stages from the lab to the market. The UK is one of the most attractive collaborators for research and innovation, and a key player in Horizon 2020. I have already mentioned our high number of participations, which is second only to Germany. We are also a partner of choice across Europe; every member state places the UK as one of the top five countries they collaborate with under the programme.

I will now touch on the impact of Brexit on these two important programmes an issue which so many Peers have raised this afternoon. As the committee’s report notes, and as the noble Lord, Lord Jay, has said, passing the withdrawal agreement would ensure that UK participation in Erasmus+ and Horizon 2020 would remain largely unchanged until the end of 2020. Despite the challenges that we continue to face, it remains the Government’s priority to secure a negotiated deal. The noble Lord, Lord Ricketts, asked what Her Majesty’s Government would do to allay the funding gap for the Horizon programme even within the terms of the withdrawal agreement. The EU programme for research and innovation is a competitive bid programme —only the most excellent bids are funded. Under the terms of the withdrawal agreement, UK bids would continue to be measured against the same criteria as bids from other EU member states, which should avoid any fall in funding.

However, the Government are preparing for every eventuality, and in the event of no deal the Government will underwrite funding for successful bids submitted to Erasmus+ and Horizon 2020 before the end of 2020. For the avoidance of doubt, this guarantee would apply for the lifetime of projects. This sizeable funding pledge will be not part of, but additional to, funding already committed in existing departmental budgets. The noble Lord, Lord Jay, asked whether the Government can confirm that they will spend the money required in the EU’s regulation for a no-deal guarantee. I reassure him that the Government have been clear that, if the UK leaves the EU without a deal, the UK has obligations to the EU—and the EU obligations to the UK—that will survive Brexit. These would need to be negotiated.

As your Lordships will know, UK Research and Innovation is the Government’s delivery partner for Horizon 2020. Since last year, BEIS and UKRI have worked tirelessly to put the necessary systems in place to deliver this guarantee if required. In this scenario, all beneficiaries registered on the UKRI portal will receive detailed information about the next steps they need to take.

The noble Baroness, Lady Warwick, asked a number of questions—I think there were four, if not more—and I will try to answer them all. She asked about the terms of the underwrite guarantee funding. It will be paid to UK beneficiaries in pounds sterling. UKRI has confirmed that existing systems will be used to give continuity for UK grant holders.

The report also makes clear the importance of confirming no-deal domestic funding streams for key sources of UK Horizon 2020 funding, including the European Research Council. The Government have worked closely with UKRI and a wide range of stakeholders on no-deal planning for the Horizon 2020 programme. However, it is appropriate that noble Lords are asking about this, and I can assure them that further updates will be provided to the research community in due course. In January, the Government published a technical notice on Erasmus+ which provided guidance to organisations and participants on the UK’s anticipated participation in the current Erasmus+ programme in the event of no deal.

The report has pointed towards the benefits of continuing to contribute towards Erasmus+, and it is right to look ahead. Indeed, the UK is very interested in exploring future participation in the Erasmus+ successor scheme for the period 2021 to 2027. I understand that the successor scheme will include increased school exchange opportunities and a greater emphasis on widening participation. The Government have welcomed proposals on this and will continue to participate in discussions while we remain in the EU.

The noble Baronesses, Lady Smith of Newnham and Lady Garden, asked whether the Government would commit to seeking alternatives to Erasmus+ and associate third-country status for Erasmus+. Perhaps in line with what I have just said, the Government are certainly very interested in the emerging proposals for the successor Erasmus+ programme for that 2020 to 2027 period. The details of that are still being discussed by the EU, and the UK will continue to participate in discussions while we remain in the EU. However, we note that the proposals so far contain a number of provisions that the UK can welcome. We will continue to consider the emerging proposals carefully, and whether the UK will participate in the future programme, and on what basis, will be subject to wider negotiations on the UK’s future relationship with the EU.

The report also highlighted the importance of an alternative scheme if participation in Erasmus+ cannot be negotiated. I can assure the House that the Government understand the value that international mobility can bring and are currently driving forward work on domestic alternative options to support it. Again, to reassure the noble Baroness, Lady Garden, the potential benefit of the UK establishing its own international mobility scheme is the ability to tailor the scheme to UK needs and target the funding where it is most needed. Of course, whatever international mobility scheme we are part of in the future, the Government will want to ensure value for money for the taxpayer.

The noble Baroness, Lady Warwick, previously asked me a question—it may have been in an Oral Question the other day—on the funding of domestic alternatives for Erasmus+. I reassure the House that the Government are preparing for every foreseeable scenario. In a no-deal scenario, the Government’s underwrite guarantee will cover the payment of awards to UK beneficiaries for all Erasmus+ bids; that is additional funding, which I may have alluded to earlier.

As regards domestic alternatives, the Government are developing a range of options. But of course they need to balance carefully the support for international mobility and ensuring value for money, as I said earlier.

As the House will know, Horizon Europe is the successor to Horizon 2020, and I will touch upon some of the thoughts set out in the report. Recognising the value brought through international collaboration, the Prime Minister made it clear in her speech at Jodrell Bank last year that the UK would like the option to fully associate to the excellence-based EU science, research and innovation programmes post 2020, including Horizon Europe.

UK officials and Ministers continue to play an active role in the development of the Horizon Europe programme to ensure that it remains in line with the UK’s priorities of excellence, openness to the world and added value. As a potential future associate to the programme, we believe that Horizon Europe should continue to treat associated countries as partners rather than competitors. The benefits that associated countries bring to the programme must be recognised and welcomed.

The noble Baroness, Lady Janke, asked what progress had been made in setting the terms of third-country participation. She may not be surprised when I tell her that negotiations on the Horizon Europe programme, including provisions on third-country participation, are ongoing within the EU institutions. At the moment, it is too early to make an informed decision about our future participation, but we are committed to continuing the strong, positive relationship that we currently have with the EU in science, research and innovation.

My noble friend Lord Cormack asked how the UK will influence research and innovation without a seat at the table, which is a fair question. I reassure him that the UK is a great place to do science. We account for 4.1% of the world’s researchers, 10.7% of all citations, 15.2% of the world’s most cited articles and three of the world’s top 10 universities. We know that collaboration between researchers is key to achieving great science. That is why our plan to ensure that the UK remains a world leader in science and innovation after Brexit focuses on encouraging close relationships with the EU and beyond.

Let me be clear: science, research and innovation really matter. That is why we have committed to considering all options to support UK research and further the Government’s strategic objectives, regardless of whether we choose to associate to Horizon Europe. This is in line with the committee’s recommendation that every effort be made in this respect. That is why the Government have announced the appointment of Professor Sir Adrian Smith, director and chief executive of the Alan Turing Institute, as an independent adviser to the Government on the development of future funding programmes for international collaboration. The terms of reference have been agreed and Sir Adrian has hit the ground running. We look forward to his thoughts and recommendations.

To answer a question from the noble Lord, Lord Jay, about the implications of the Smith review for association to Horizon Europe, Professor Smith’s advice will help set the direction for the implementation of the Government’s ambition to ensure that the UK continues to be a global leader. In the event that the UK does not associate to Horizon Europe, the Government will support measures to enable world-class collaborative research that aligns to UK priorities.

I can also confirm that BEIS is working closely with the national academies and UKRI to develop ambitious and credible alternatives to association to Horizon Europe which could also enable world-class collaborative research. Your Lordships will appreciate that this thinking is still at an early stage and is currently being tested with both devolved Administrations and key stakeholders from the wider research and innovation communities represented by Minister Skidmore’s high-level stakeholder group on EU exit. Your Lordships should be aware that all decisions on future funding for international science collaboration remain subject to the spending review—so are caveated to some extent.

The noble Baroness, Lady Warwick, asked me to confirm the fee status for EU students beginning courses in 2020. This point has been raised in the House on several occasions. I know that students, staff and providers are concerned about what EU exit means for study and collaboration opportunities. To help give certainty, in July 2018, we announced guarantees on student finance for EU nationals. Those guarantees are not altered if the UK leaves the EU without a deal.

For courses starting in 2020, we understand how important it is that students and institutions have information available for student support before applications for courses are open. Applications for courses starting in the academic year 2020-21 do not open until September 2019. I am sure that the noble Baroness will say that that deadline is coming up quite shortly. The Government are aware of that and will ensure that students and institutions have the information they need well in advance of that date.

The noble Baroness, Lady Smith of Newnham, asked about teaching and stated that fewer students in the UK were starting teacher training, which is an interesting point. In September 2018, we announced a renewed package of generous financial incentives for international teacher training, including tax-free scholarships worth £28,000 and tax-free bursaries worth £26,000 for trainees in modern foreign languages.

The noble Baroness, Lady Brinton, asks what guarantee I can give from the Home Office that there will be free movement for students. The immigration White Paper published in December, which she will know about, sets out the Government’s position on this issue and on a future single immigration system for the UK. The White Paper proposals on post study went further than the MAC recommendations for students, extending post-study work to six months for undergraduate students attending institutions with degree-awarding powers, six months for all master’s students and 12 months for PhD students. There is no limit on the number of students who can come to study in the UK, nor is there any intention to impose one.

[Baroness Brinton]

I apologise if I did not make myself clear, but my question was about people taking part in research projects rather than students and concerns about the immigration White Paper.

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[Viscount Younger of Leckie]

Given the time, I shall write in answer to that question.

[Baroness Warwick of Undercliffe]

Perhaps I, too, might press a point which I raised. I appreciate entirely the helpful comments that the Minister has made about the actions that we will take in the event of a deal, which I shall read carefully. I raised a question about the amounts that would be saved in the event of no deal because we would not be spending them on these two programmes and the reassurance it would give if that money was guaranteed to be reapplied to whatever schemes the Government chose to invest in subsequently.

[Viscount Younger of Leckie]

The noble Baroness would not expect me to be able to give any particular reassurances, but my understanding is that the money would return to the Treasury. Then the question is what the Treasury would do. If I am wrong on that, I shall write, but I think that I should write in any case to provide clarification. That is the normal process.

[Lord Krebs]

I thank the Minister and am sorry to interrupt at this late hour. One of the questions that I ended with was about European Research Council grants being for blue-skies research. Can the Minister comment on the thinking, perhaps in Professor Sir Adrian Smith’s report, about what we would do nationally if we were not part of the ERC and whether it would be clear that any new scheme would be for blue-skies research rather than strategic or applied research?

[Viscount Younger of Leckie]

I am sure that question will somehow get back to Sir Adrian. Again, I will take it away and if there is an answer that I can give to the noble Lord in writing, I most certainly will.

[Lord Bilimoria]

I am extremely sorry and thank the Minister for giving way. I asked quite a few pointed questions and he has not answered any of them. I would be grateful if he could write to me, copy in all Members who have participated and put a copy in the Library of the House.

[Viscount Younger of Leckie]

I said at the beginning that I was not sure that I could answer every single question. I know that the noble Lord, Lord Bilimoria, has taken part in many debates that I have responded to. I apologise to him; my intention is always to answer every question. I know that he feels passionately about the position that he takes, but, given the time, I will certainly write to him.

I hope that I have demonstrated to your Lordships today the work that the Government are doing to ensure that the UK maintains its position as a world leader in education, research and innovation and as a nation that remains open to international mobility. As noble Lords will have noted, on Thursday the Commission announced results of the 2018 ERC advanced grant call. This is great news, as senior researchers based in the UK secured 47 of the 222 grants awarded, reaffirming that the UK research and innovation community maintains its world-leading status despite all the uncertainties. I am pleased to confirm that these grants will be funded through the underwrite guarantees should we leave the EU without a deal. That will ensure that this ground-breaking research can go ahead.

I thank again the noble Lord, Lord Jay, and all noble Lords for taking part in this debate and for some incisive and thoughtful comments.