Andrew Dismore

At today’s London Assembly Plenary concerning the London Economic Action Partnership (LEAP), Labour London Assembly Member for Barnet and Camden Andrew Dismore AM asked the deputy Mayor for Business Rajesh Agrawal what would be the consequences of the loss of European Union Social Fund (ESF) and Regional Development Fund (ERDF) grants, used to create jobs and support business growth in London. (video here)

 

Mr Dismore asked the Mayor:

 

‘London’s European Structural and Investment Funds for skills, employment and enterprise initiatives overseen by LEAP are worth £600 million to London, but are only guaranteed until 2020.

 

‘These EU funds have been used to help for example older unemployed who are likely to struggle to find work; for English language skills  for unemployed and inactive Londoners; to help those with multiple labour market disadvantages including a health condition or disability;  and long term unemployed women from certain BAME communities.

 

‘The Mayor has called on the Government to make an urgent decision on how it will replace this investment. If the Government doesn’t underwrite these funds, how can the LEAP support investment in innovation, businesses, skills and employment and create jobs if, due to Brexit, it does not have funding to allocate after 2020?’

 

Deputy Mayor Rajesh Agrawal said:

 

‘The loss of the funds would create a big gap for us and it’s very difficult frankly to see what we could do. It is important London has access to these funds and we hope for a quick decision or it would let Londoners down. I can’t think how or where we could find the money elsewhere. No access to these funds would be very bad for London.’

 

Mr Dismore also commented on the post Brexit loss of access to EU thematic programmes.

 

In response, Fiona Fletcher Smith, Executive Director for development and enterprise at LEAP said that it was not just a question of funding but also access to the sharing of the network of ideas that this brought which needed to be maintained.

 

After the Plenary session, Mr Dismore said:

 

‘This is yet another ‘known unknown’ consequence of Brexit.

 

‘London’s skills gap is not a secret, and it is right that the Government has agreed to devolve adult skills training to the Mayor.  But this won’t happen until 2019/20 just before the EU money runs out. I hope the Government  doesn’t use smoke and mirrors post Brexit and the consequent loss of EU funding  to starve London of what   we need to ensure Londoners are able to develop their skills and for our young entrepreneurs , especially in high tech, to set up and build their businesses, so that  the capital can continue to thrive.’