Feb 20, 2018 - Lancaster University Management School Redevelopment. 31/05/2017. Department for BEIS. Multiple Suppliers
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Analysis of EU-Funded Awards Based on data from January 2015 – February 2018 Data as at: 09 February 2018
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Gus Tugendhat
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Key Points • EU programmes* are a significant source of funding for UK public sector contracts: £1.3B of awards (exc. frameworks) have been issued since the Brexit referendum with full or partial EU funding • The Education & Skills Funding Agency (ESFA) is particularly dependent on the EU, with 76% of the ESFA’s total award value since January 2015 at least partly backed by EU programmes • £433M worth of EU-backed awards are due to expire before Britain departs from the EU in March 2019. It is not clear what will happen to these projects when the current awards expire *The key programmes are the European Agricultural Guarantee Fund (EAGF), European Structural and Investment Fund (ESIF), European Regional Development Fund (ERDF) and European Social Fund (ESF) 3
Since January 2015, at least £1.6B of awards (excluding frameworks) have been issued with funding from EU programmes. £1.3B of this was awarded after the Brexit referendum, mostly in Q4 2016
EU Programme Funding: Award Value by Quarter 2015
2016
2017
Spike driven by: One award worth £298M issued by Aberdeen Harbour 104 separate awards worth £260M from Education & Skills Funding Agency
£692M
£700M
2018
£600M
Award Value
£500M
£400M
£300M
£200M £135M
£128M
£118M
£111M
£113M
£100M £53M
£41M
£71M
£66M
£55M
£19M
£13M £0M Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Brexit referendum (23rd June 2016) 4
EU funding is dispersed across a large number of small awards: 1,068 awards with EU funding have been issued since January 2015. The average EU-backed award was therefore worth £1.5M
EU Programme Funding: Award Value and Volume (Since Jan 2015) £1,616M £0.0B
£0.5B
£1.0B Award Value
£1.5B
1,068 0
200
400
600
800
1000
1200
Award Volume
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The Education and Skills Funding Agency (ESFA) has issued £425M worth of awards with EU funding since January 2015. This is more than any other buyer and accounts for 76% of ESFA’s total award value over the period, reflecting the importance of EU investment in employment & skills
EU Programme Funding: Top 10 Buyers (Since Jan 2015) £425M
Education and Skills Funding Agency
76%
£298M
Aberdeen Harbour Limited £115M
Ministry of Justice
£100M
Department for Work & Pensions Lancaster University
£60M
Welsh Government - Finance & Corporate Services
£57M
Scottish Government
£37M
Cornwall Council
£35M
24% 100%
6%
94%
7%
93% 82%
18%
72% 6%
28% 94%
16%
84%
Department for BEIS
£31M
8%
92%
North Yorkshire County Council
£30M
9%
91%
£0M £100M
£200M
£300M
£400M £500M 0%
Award Value (EU Funding)
20%
40%
60%
80%
100%
% of Total Award Value
Award Value (Other) Award Value (EU Funding)
Education and Skills Funding Agency includes its predecessors, the Education Funding Agency and the Skills Funding Agency
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The largest award with EU funding issued since January 2015 was the Aberdeen Harbour Expansion Project. Two of the top awards were issued by the Welsh Government – notable given the region’s strong vote in favour of Brexit
EU Programme Funding: Top 10 Awards (Since Jan 2015) Contracting Authority
Supplier
Contract Title
Date Awarded
Aberdeen Harbour Limited
Dragados UK
Aberdeen Harbour Expansion Project — Nigg Bay.
19/12/2016
Welsh Government - Finance & Multiple Suppliers Corporate Services
Business Wales — Entrepreneurship and SME Support Service.
20/10/2015
North Yorkshire County Council
British Telecom
Superfast Broadband North Yorkshire Phase 3
12/12/2017
£30M
Lancaster University
Royal BAM Group
Lancaster University Management School Redevelopment
31/05/2017
£30M
Department for BEIS
Multiple Suppliers
UK SBS PR140018 Procurement of Contractor(s) to Deliver UK Trade and Investment (UKTI) International Trade Services to businesses in the English Regions.
01/05/2015
£30M
Lancaster University
Royal BAM Group
Health Innovation Campus Phase 1 Principal Contractor
16/10/2017
£30M
Somerset County Council
Multiple Suppliers
CP1194-15 Connecting Devon and Somerset — Superfast Extension Programme Phase 2.
24/04/2017
£29M
Aberystwyth Innovation and Enterprise Campus
Willmott Dixon
Principal Contractor for AIEC Project.
03/01/2017
£28M
London Borough of Ealing
Shaw Trust
West London work and health programme
13/11/2017
£27M
Provision of Fund Management Services to the Wales Business Fund.
16/08/2016
£24M
National Procurement Service Finance Wales - Wales Investments Limited
£298M
£51M
£0M £50M
FW refers to framework.
£100M
£150M
£200M
£250M £300M
Award Value
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£433M of awards with funding from EU programmes are due to expire before Britain departs the EU – the vast majority of this in the next 4 months. The government has guaranteed funding for projects continuing after Brexit1, but it is not clear what will happen with contracts expiring before Brexit
EU Programme Funding - Award Expiry Schedule 2018
2019
2020
2021
£393M
£400M
Award Value
£300M
£200M
£116M £100M £47M £24M
£22M £11M £0M
£1M Q1
Q2
Q3
£5M Q4
£1M Q1
Q2
Q3
UK due to leave EU (29th March 2019)
£4M
£10M
Q4
Q1
£32M £2M
Q2
Q3
Q4
Q1
£0M
£0M
£6M
Q2
Q3
Q4
1 Source: “The United Kingdom’s exit from, and new partnership with, the European Union” (February 2017)
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Employment and education firms dominate the list of top suppliers on awards with EU funding. Six of the top 10 won more than 90% of their award value (exc. frameworks) from EU-backed contracts, leaving them highly exposed if alternative sources of funding are not found
EU Programme Funding: Top 10 Suppliers (Since Jan 2015) £298M
Dragados UK
Construction
Reed
Employment
British Telecom
Telecoms
Royal BAM Group
Construction
£60M
Shaw Trust
Employment
£58M
Learndirect
Education
£50M
APM UK
Employment
£49M
Business In Focus
Business Services
£44M
Ixion Holdings
Employment
£42M
Calderdale College
Education
100%
£76M £65M
29%
71%
6%
94% 25%
75%
37%
63% 90% 97% 100% 92%
£35M £0M £50M
10%
8%
100% £100M £150M £200M £250M £300M Award Value (EU Funding)
0%
20%
40%
60%
80%
100%
% of Total Award Value
Award Value (Other) Award Value (EU Funding)
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