THE British Business Bank (BBB) has stepped in to financially assist a new technology fund after the European Union’s investment agency, the European Investment Fund (EIF), announced it will not be supporting it following the Brexit vote. This is in spite of the fact that the UK is still contributing fully to the EU budget.
Many tech companies’ requests for funds were frozen alongside this year following the triggering of Article 50. The EIF is majority owned by the European Investment Bank and is a huge source of funds for British venture capitalists.
The BBB has contributed £36million of the £60m fund and following Brexit is expected to be a main player in investing in UK tech.
A Treasury spokesman said : “We are clear that UK companies should be able to access EIB funding on equal terms as other member states while the UK remains a member of the EU.
“While we work to make sure this happens, we have taken action to support business investment by authorising the British Business Bank to increase its support for venture capital funds and have offered construction guarantees on infrastructure projects.”
It is outrageous that we are still paying full contributions into the EU’s budget (to which we are a net contributor, don’t forget), but they have already started denying the UK access to funds like these. What makes this worse is that it was recently revealed that the EU investment bank will owe Britain money for 35 years after Brexit. The institution’s chief Alexander Stubb said Britain would not get its £3.1 billion, 16 per cent stake back in full until 2054.
The solution is simple – get out of all the EU’s institutions as the people voted for that. Then start negotiating. Stop funding the EU now, as that is what we voted for.