THE chief executive of Herefordshire Council sought to calm fears relating to the provision of a loan to the county's new university following the UK's decision to leave the European Union.

Councillors were asked to approve a proposal for the provision of £300,000 in the form of a loan to be made in the current year’s capital programme to support the development of the New Model in Technology and Engineering (NMITE).

The funding, the council heard, was to enable the university to cover the cost of producing a Green Book business case, required by government.

Councillor Tony Johnson said: "The university will make an application to the government for a loan of about £18million. Various members of the government who are no longer in their positions have indicated their support and the process requires a proper business case – Green Book – in support of the loan."

Councillor Terry James highlighted concerns existing universities had in relation to uncertainty and funding following the Brexit decision.

But Alistair Neill, the council's chief executive, said the decision would have less of an impact on NMITE.

"Firstly the various students who will be targeted to come to this university would not be from overseas – all would be British and the rationale underpins the project which is about British engineering, British technical skills for British jobs which is why the government is so interested.

"A significant number of Russell Group universities are very significantly exposed to European Search Funding which puts new levels of pressure on them. That doesn't apply to NMITE in anything like the same way."

He said he had asked whether the load could be reclaimed from the government but that would not be addressed until the council had decided to lend the money.

"If government lent the money and said the council could not have the money back we would then look to the university to repay. They understand this is a loan, not a gift," he said.

Conceding there was an element of risk to the loan, he added that the project had reached a 'critical stage' and needed the money to be able to present its case to the government.

The proposal was approved.