LGA calls for post-Brexit EIB replacement funding
0Councils need greater clarity on how they will access equivalent lending opportunities currently offered by the European Investment Bank (EIB) following Brexit, according to the Local Government Association. Under the UK/EU draft withdrawal agreement, the UK will no longer be eligible for cash from the EIB from next year.
The LGA called for assurance from central government that it will match the scale of the lending — worth €13.5 bn to the UK in the 18 months up to the Brexit referendum — following the start of the transition period.
Kevin Bentley, chairman of the LGA’s Brexit Taskforce, said: “Losing access to cheap long-term financing from the European Investment Bank that supports vital investment in our communities is one aspect that needs to be addressed.”
He said that major housing and infrastructure projects as well as smaller schemes involving small and medium enterprises had benefited from EIB funding.
The EIB typically offers cheaper long-term finance than is available from many private equivalents and is often willing to invest in slightly higher risk projects than many commercial lenders, the LGA said.
