B370 - Economic Stabilisation (Brexit) Bill

A01

My Lords, there have voted Content: 3

Not Content: 14

Did Not Vote: 6

Turnout: 74%

The Not Contents have it.

Economic Stabilisation (Brexit) Bill 2016

An Act to maintain funding levels upon the United Kingdom’s exit from the European Union; to establish an EU Exit Transitional Adjustment Fund, and to raise funding for the diplomatic service during the transitional period.

BE IT ENACTED by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Section 1: Definitions

1. All references to immediate spending, or where a year is not stated, should be considered amendments to fiscal year 2016-17 funding as outlined in the Finance Act 2016.
2. All references to spending with a year stipulated should be considered amendments to that year’s funding as outlined in the Finance Act 2016.

Section 2: Maintenance of EU structural, agricultural and academic funding through 2021 and underwriting of projects funded while we remain a member.

1. The Exchequer shall match the level of EU structural funding paid to deprived regions in the UK for 2016-17 through all years covered by the Finance Act 2016 in which the UK is not a member of the EU. The funding will rise according to inflation or growth, whichever is higher.
2. The current level of agricultural funding guaranteed under the EU CAP Pillar 1 will be guaranteed through all years covered by the Finance Act 2016 in which the UK is not a member of the EU. The funding will rise according to inflation or growth, whichever is higher.
3. All structural and investment fund projects, including agri-environment schemes, signed while the United Kingdom remains a member of the European Union will be fully funded, receiving funding from HM Treasury when these projects continue beyond the UK’s departure.
4. The Exchequer shall match the level of EU academic and research funding paid to universities and organisations for 2016-17 through all years covered by the Finance Act 2016 in which the UK is not a member of the EU. The funding will rise according to inflation or growth, whichever is higher.
5. Where UK organisations bid directly to the European Commission on a competitive basis for EU funding projects while we are still a member of the EU ( for example universities participating in Horizon 2020) the Treasury will underwrite the payments of such awards, even when specific projects continue beyond the UK’s departure from the EU.
6. This section is estimated to cost £8.7 billion per year (adjusted for inflation) through fiscal years 2018-19, 2019-20 and 2020-21. The UK currently pays £14.4 billion per year into the EU budget after the rebate, and these funds will be covered out of this sum.
   

Section 3: Fiscal stimulus (Exit Transitional Adjustment Fund)

1. An EU Exit Transitional Adjustment Fund (ETAF) will be established under the Department of Business, Innovation and Skills and will receive an immediate one-off capitalisation of £20 billion in funding from HM Treasury.
2. The ETAF will receive a further £5 billion in new funding from HM Treasury in fiscal year 2017-18
3. The ETAF will receive a further £10 billion in new funding from HM Treasury in fiscal year 2018-19.
4. The ETAF shall receive no further funds in fiscal year 2019-20.
5. The ETAF will be tasked with providing grants and loans to businesses, non-profit organisations, projects and startups which are affected by the UK’s withdrawal from the European Union to assist them during the transitional period.
6. ETAF funds may not be used for any long-term subsidisation of businesses, and shall be exclusively for allowing new or existing firms to either adjust to any economic shocks or to undertake new capital-intensive projects.
7. Public sector departments and bodies may also bid for ETAF funding for projects they wish to conduct in the public interest.
8. The ETAF shall take account of the environmental impact of all projects funded and favour those projects oriented towards sustainable future growth.
9. The ETAF shall have paid out all funds and be wound up before January 1, 2020.
10. Loan obligations owned by the ETAF on January 1, 2020 will be transferred to HM Treasury.

Section 4: Diplomatic Funding

1. The Foreign and Commonwealth Office shall receive an additional £1 billion, adjusted for inflation, for fiscal years 2016-17, 2017-18 and 2018-19 for the purposes of enhancing the diplomatic service during this period.

Section 5: Enactment, extent and short title

1. This bill shall come into force upon receiving Royal Assent.
2. This bill shall extend to the United Kingdom of Great Britain and Northern Ireland.
3. This bill may be cited as the Economic Stabilisation (Brexit) Bill 2016.

Submitted by /u/colossalteuthid, the Chancellor of the Exchequer, on behalf of the 11th Government.

This reading will end on 13 December 2016.