The British government will cover the costs of lost European Union (EU) funding for universities, farmers, small businesses and infrastructure projects after Brexit, the Chancellor has said.

Philip Hammond promised that projects currently receiving EU money will have that funding guaranteed by the British government after the UK has quit.

One of the big claims made by the ‘Remain’ campaign during the referendum was that Britain would lose significant amounts of funding if it left the European Union. Several government ministers threatened that funding would suddenly be withdrawn if Britain left the EU.

Now, the Times reports that new Chancellor has moved to make sure that will not be the case.

“The UK will continue to have the all of the rights, obligations and benefits that membership brings, including receiving European funding, up until the point we leave the EU,” Mr Hammond said.

“We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive.

“That’s why I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding (from the EU) granted before we leave will be guaranteed by the Treasury after we leave.”

In particular, he pledged that farmers would still receive payments currently made under the controversial Common Agricultural Policy, adding: “The Government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, who play a vital role in our country.”

“We are determined to ensure people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities,” he said.

Mr Hammond is expected to make a financial statement in either November or December in which he will make the guarantee, using money that Britain would have paid in EU membership fees.

His comments come as Britain begins to get to grips with the challenges of leaving the EU.

Earlier this week, Breitbart London reported how some EU states want Britain to keep unlimited immigration after Brexit, despite government ministers promising this would not happen.

Prime Minister Theresa May had previously stated: “There was a very clear message from the British people in the Brexit vote that they did not want free movement to continue as it had done previously.”