Economics – New Subsidy Control Bill
02 July 2021Within the EU, the UK was subject to standard rules on state subsidies to businesses.
Within the EU, the UK was subject to standard rules on state subsidies to businesses.
Now outside the EU, the UK is free to develop its own subsidy regime although, in practice, this freedom is limited by the need to reach agreement with trading partners – historically, agricultural subsidies in particular have proven difficult to handle in trade talks.
The UK government has now brought forward a new Subsidy Control Bill to regulate use of subsidies in the post-EU period.
The government vision is for a flexible and “lean” subsidy system, which will support broader government policy (eg: development of “green” industry).
Business Secretary Kwasi Kwarteng has emphasised that the subsidy system will not be used to “bail out” non-viable businesses.