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Brexit and Its Impact on the Voluntary Sector: Funding, Social Cohesion, Regulatory Changes

This article discusses the implications of Brexit on the voluntary sector, focusing on funding, social impact, and regulatory changes. It outlines the current status of EU funds, the potential social impact of Brexit, and regulatory challenges that may arise. It also offers suggestions for organizations to consider regarding funding sources and partnerships in light of Brexit uncertainties.

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Brexit and Its Impact on the Voluntary Sector: Funding, Social Cohesion, Regulatory Changes

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  1. Brexit and It’s Implications for the Voluntary SectorJohn Hacking - Network for Europe

  2. Background to Brexit In case you have been living in a cave. On Mars! • June 23rd 2016 Referendum on UK Membership of the European Union • Question? “Should the United Kingdom remain a member of the European Union or leave the European Union?”

  3. The Result Remain: 16,141,241 (48.1%) Leave: 17,410,742 (51.9%) Total Electorate: 46,500,001 Turnout: 72.2%

  4. What’s Happened So Far? - Article 50 triggered end of March 17. - This gives UK 2 years to negotiate a deal to leave. • Negotiations started for real this week. • Date of exit set for March 31st 2019

  5. What Could The Implications Cover? Write down 2 things you think might impact the voluntary sector as a result of Brexit.

  6. FUNDING • SOCIAL IMPACT • REGULATORY CHANGE • WHAT MIGHT BREXIT MEAN FOR YOUR ORGANISATION?

  7. 1. Funding - The majority of EU structural funding that the UK receives is through ERDF and ESF. - A total of £8.4bn was awarded to the UK for the period 2014-20. - The North West received c.£1bn of that.

  8. Current EU Funds 2014 - 20 - (1) All structural and investment fund projects signed before the Autumn Statement in Nov 2016 will be fully funded, even when these projects continue beyond the UK’s departure from the EU (March 2019) - (2) Funding for specific structural and investment fund projects that are signed after the Autumn Statement, but while we remain a member of the EU, is guaranteed provided that: the projects are good value for money, and are in line with domestic strategic priorities.

  9. What comes after ESIF? Current policy position: - The Conservative Manifesto promised a UK Shared Prosperity Fund (UK SPF) • It will be designed to reduce inequalities between communities delivering “sustainable, inclusive growth”. - The UK SPF will “balance local/national decision making” and “take place within the current decentralisation agenda and with respect to recent devolution deals”.

  10. The UK SPF will continue the ESIF focus of ‘reducing inequalties both between regions and communities” • Of the 13 Transition Regions in the current ESIF Programme 9 are in the North (NW,NE,Y&H) • UK Govt is currently beginning a process of consultation on this which may lead to a Green Paper in the new year. • VCSE Brexit Project in The North • www.crowdfunder.co.uk/vcse-brexit-project

  11. 2. Social Impact - By large majorities, voters who saw multiculturalism, action on the environment, globalisation and immigration as positive voted to remain in the EU • Those who saw them as negative voted by even larger majorities to leave. • The potential for conflict and issues around social cohesion are obvious.

  12. A wave of hate crime and racial abuse reported since the EU referendum. • The sector that has a large stake in Social Cohesion work is obviously the VCS. Question – Is this your experience?

  13. 3.Regulatory Change - EU laws that form part of UK domestic legislation fall in the categories of either regulations or directives. - Before the UK formally exits the EU, detailed analysis of EU - regulations will be needed. • If they are to be retained, they will need to be adapted to reflect the fact that the UK is no longer a member of the EU. • GREAT BRITISH REPEAL BILL - On the day of Brexit, EU laws will be enshrined in British law but the British government can then change, amend or get rid of unwanted laws.

  14. SECTOR-SPECIFIC REGULATORY ISSUES A number of areas in which the Voluntary Sector operates are heavily influenced by EU legislation. Environment. Fear of a potential weakening of environmental protection and conservation measures that are currently embedded within EU legislation (eg the Habitat Directives and Environmental Impact Assessments) Refugee and asylum rights. Concerns that the UK will regress from the standards it has previously applied as a result of EU directives it has opted into (in particular Qualification Directive, Reception Conditions Directive, Dublin Regulation).

  15. Women’s rights and domestic abuse. Key concern of protecting the rights of victims of crime and survivors of domestic abuse when they travel and move within Europe. Others VAT (Costs) Procurement Policy (Contract Management) Data Protection (Management) Status of EU nationals in UK (Workforce)

  16. 4. What Might Brexit Mean for Your Organisation? Regardless of how the Brexit process develops, here are some suggested questions charities may want to ask yourself: • Do you have funding provided directly from the EU? • What are you doing to find out abour replacement funding? • Is your activity connected to work being carried out in the EU?

  17. - Do you work in partnership with European based organisations? - Do you carry out projects in Europe? - Do you employ non-UK EU nationals?

  18. Further Questions?? Please send them to : The Rt Hon David Davis c/o The Govt London Or: John.hacking@networkforeurope.eu

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