UK TO CAPITALISE ON INDEPENDENCE
New Government State Aid for the UK in Post Brexit Era
The UK Government acted today by sending Parliament a new Subsidy Control Bill based on the recent consultation period. The bill is designed to take advantage of its independence as a trading nation post Brexit by supporting UK jobs and businesses.
The U.K. Business Secretary, Kwasi Kwarteng states, “Today we’re seizing the opportunities of being an independent trading nation to back new and emerging British industries, create more jobs and make the U.K. the best possible place to start and grow a business.”
Little detail has been provided, but we expect:
The new regime to be a clear departure from the previous EU State Aid controls.
Be fully aligned with the Governments “levelling up” agenda.
Local authorities to be allowed a degree of autonomy on granting subsidies if they deliver “good value” to the UK taxpayer and aren’t poaching jobs from another devolved region.
As per usual, the devil will be in the details. Questions that remain open are:
What money is available to support the regime and where is it coming from?
How will they police what is “good value?”
How do they propose (as they have suggested) to reduce “red tape?”
Hickey and Associates will provide updates as they become available.