Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps the Government is taking to ensure that European Investment Bank funds are made available as soon as possible for disbursal to businesses in the North East through the North East Fund.

Following the UK’s decision to leave the EU, new project approvals have been experiencing some delays due to the European Investment Bank (EIB) carrying out additional due diligence. The Bank is seeking to protect itself against changes to its operating conditions which could come about as a result of a change of status when we leave the EU.

The Government has been clear that UK rights and responsibilities should continue to be respected while we are in the EU, consistent with the EU’s own negotiating guidelines. This means that EU finance, including from the EIB Group, must remain available to UK borrowers.

On the North East Fund, specifically, HM Treasury officials have been working closely with the EIB to ensure that their application is urgently moved forward. Recently, progress has been made and we understand that the EIB will now progress the North East Fund’s application in line with EIB procedure.