A new business subsidies regulation system will soon go live from 4th January 2023, after an announcement from Business Minister Dean Russell. This will provide a major boost for businesses and further impetus behind the Government’s plans to supercharge economic growth.
Under the new rules outlined, the developed administrations and local authorities will be able to deliver subsidies that are tailored to local needs, afforded flexibility from the new regime that will ensure the support is fast tracked to where it is needed most.
Public authorities will now be able to support viable businesses across their region with efficiency and simplicity, delivering strong value on the British taxpayer’s contribution whilst also ensuring Britain’s businesses can help deliver economic growth. This marks a significant step away from the prescriptive EU aid regime, removing the potential stymies that elected governments in Belfast, Cardiff and Edinburgh from delivering funds to businesses that need it.
Business Minister Dean Russell said:
“Our subsidy control regime is built to meet the needs of modern Britain, freeing UK authorities from the restrictive shackles of European bureaucracy and long-winded approval processes.
“Our new rules are robust yet flexible, empowering public authorities to deliver money quickly, fairly and simply, to businesses that need it the most.”
All subsidies, except for those under a specific ‘Block Exemption Regulation’, under the EU system are required to undergo a lengthy bureaucratic process of being notified to and approved by the European Commission in advance. This causes serious delays to vital funds reaching the practical businesses in an appropriate time frame. The innovative new system comes with extensive consultation on the proposed approach, gathering key views from stakeholders across the UK to ensure it operates for maximised support.
These new rules will be integral to aiding the Government bolster plans to support a free market economy, through banning the unlimited government guarantees to businesses and subsidies granted to ‘ailing or insolvent’ enterprises where there is no credible restructuring plan.
The UK’s new regime will also contribute to meeting the UK’s international commitments on subsidy control, including its international commitments at the World Trade Organization (WTO) and in Free Trade Agreements.
BEIS is holding a series of events for public authorities to explain the key features and principles of the new regime. In-person events are being held in Belfast, Cardiff, Glasgow and Manchester and multiple online events are taking place.
