Brexit: Invest NI to be hit by loss of EU grants
Invest NI - Northern Ireland's economic development agency - is facing a potential funding shortfall due to the loss of EU grants.
By John CampbellBBC News NI Economics & Business Editor A substantial part of its budget was from an EU fund, the ERDF. These funding sources will be sharply reduced as a result of Brexit. Economy Minister Diane Dodds said the new UK Shared Prosperity Fund would provide "significantly less" than the EU schemes. Mrs Dodds, of the DUP, said the Department for the Economy and its arms-length bodies, which include Invest NI, typically got about £100m a year from EU sources. She said there were "informal indications" that the UK Prosperity Fund would provide about £11m. Her most senior official told MLAs that the loss of EU funding was "a profound policy challenge". Mike Brennan said:"I think Invest NI is in the position now where they will have to stop writing new business going forward because they don't have budget cover." Mrs Dodds said Northern Ireland is not in a unique position, with other UK regions looking like they will also have shortfalls after EU funding is withdrawn. She said: "There is currently a lack of agreement on EU replacement funding at a national level." She added that she hoped that the position would be "rectified" but it was currently very serious. Kevin Holland, chief executive of Invest NI, said: "Invest NI is working closely with businesses and continues to support them to set up, to expand and to attract new investors into Northern Ireland. "We are very much open for business and welcome approaches from businesses seeking support. To date there has been no UK level agreement on replacement for the loss of EU funding, one of our funding streams. "Invest NI is closely engaged with the Department for the Economy to find a positive solution to this issue." A spokesperson for the UK government's Ministry of Housing, Communities and Local Government said: "The UK Shared Prosperity Fund will help to level up and create opportunity across the UK for people and places. "Funding for the UKSPF will ramp up so that total domestic UK-wide funding will at least match receipts from EU structural funds, on average reaching about £1.5 billion per year. "We're also providing £220 million of additional funding across the UK over 2021/22 to help local areas prepare for the introduction of the UKSPF."