101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 105 Project Funding: Horizon 2020 Purpose This notice provides information on the Horizon 2020 underwrite guarantee, the extension to the guarantee and how our plans to support UK research and innovation will work in practice. It is aimed at UK organisations, such as universities and businesses, who are in receipt of Horizon 2020 funding or who are bidding for such funding. It will also be of interest to EU organisations who work with UK participants on Horizon 2020 projects. Before 29 March 2019 Horizon 2020 is an EU Research and Innovation programme which provides about €80 billion of funding available over 7 years (2014 to 2020); the UK has secured €4.6 billion of funding to date (14.3% of the total). The UK is currently a net contributor to the EU budget. Horizon 2020 couples research and innovation, focusing on excellent science, industrial leadership and tackling societal challenges. The UK and EU’s intention is that the eligibility of UK researchers and businesses to participate in Horizon 2020 will remain unchanged for the remaining duration of the programme. This has been agreed as part of the Financial Settlement which was signed-off by both UK and European Commission negotiators in a draft Withdrawal Agreement and welcomed by the other 27 EU countries at March European Council. After 29 March 2019 if there’s ‘no deal’ In the unlikely event of a ‘no deal’ scenario, the UK’s departure from the EU would mean UK organisations may be unable to access funding for Horizon 2020 projects after exit day. However, the Chancellor announced i n August an d October 2 016 that the government will guarantee funding for competitively bid for EU projects submitted before we leave the EU, including Horizon 2020 projects. This guarantee will cover all successful bids submitted by UK participants before the UK exits the EU, for the full duration of the projects. The guarantee does not cover funding for organisations from other countries who are in consortia with UK participants – only the funding for UK participants is in scope. We are aware of some cases where UK participants lead a consortium and are responsible for distributing funding to the other participants; the UK government is seeking to discuss how this could best be addressed in a ‘no deal’ scenario with the European Commission. These discussions would also need to include consideration of projects where the UK’s change in status from member state to third country could lead to concerns about ongoing compliance with Horizon 2020 rules (for example, where a consortium no longer meets the threshold for member state and/or associated country participants). In July 2018, the Chief Secretary laid a written ministerial statement (HCWS926) extending this guarantee t o provide further stability for UK organisations in a ‘no deal’ scenario. The guarantee now additionally covers funding for successful bids where UK organisations are able to participate as a third country in competitive EU grant programmes. This extension runs from exit day until the end of 2020. In the unlikely event of a ‘no deal’ scenario, we therefore intend that UK researchers and businesses would be able to apply to and participate in all those Horizon 2020 calls open to third country participants from the date of exit, with funding provided via the extended guarantee. Third country participation is a well-established part of Horizon 2020 - entities from third countries currently participate in and lead consortia in a wide range of collaborative programmes. The government is seeking discussions with the European Commission to agree the details of our continued participation as a third country. Third country participation does not extend to some Horizon 2020 calls; these include European Research Council (ERC) grants, some Marie Sklodowska-Curie Actions (MSCA) and the SME instrument. The government is considering what other measures may be necessary to support UK research and innovation in the event that the guarantee and the extension are required. Looking beyond 2020, the UK remains committed to ongoing collaboration in research and innovation and wants to work with the EU on a mutually beneficial outcome.  The government set out its plan for th e future relationship between the UK and the EU in its White Paper , which includes the proposal to form a cooperative accord with the EU on science and innovation. At the same time, the government is signalling our commitment to the future of our country and the world through our goal to increase UK research and development spending to 2.4% of GDP by 2027. The government is also working in partnership with UK Research and Innovation to develop a new International Research and Innovation Strategy. The Strategy will further set out our desire to build on the UK’s long tradition of international collaborations in research and innovation across all fields and our openness to international talent.