Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the effect that the loss of investment by the European Investment Fund will have on UK entrepreneurship and innovation.

As part of the ongoing work on the UK’s exit from the EU, the government has been assessing the contribution European Investment Fund (EIF) finance makes to the UK economy. EIF finance supports investment into UK businesses, including entrepreneurial and high-growth businesses. As the Chancellor said in his 2017 Mansion House speech, the EIF has been an important source of funding for growth businesses.

The UK is actively engaging the EU on the relationship after the UK exits the EU. The UK considers that it may prove to be in the mutual interest of all sides for the UK to maintain some form of ongoing relationship with the European Investment Bank Group (including the EIF) after leaving the EU, and we will explore these options with the EU as part of the negotiations. In addition, the UK is seeking a far-reaching science and innovation pact with the EU.

We will keep the financing needs of high growth businesses under continuous review as we leave the EU, and if necessary, we will use the British Business Bank to provide further support.