- New UK subsidy regime comes fully into force on 4 January
2023
- regime will enable public authorities to deliver subsidies
that are tailored to local needs and to drive economic growth
- new flexible approach to subsidies available due to the
unique opportunity presented by Brexit
The new system to regulate subsidies to business will come into
force from 4 January, Business Minister announced today (Thursday 20
October), providing a big boost for businesses and further
impetus behind the government’s plans to supercharge economic
growth.
Under the new rules, the devolved administrations and local
authorities will be able to deliver subsidies that are tailored
to local needs, with the new regime providing the flexibility
needed to ensure that support quickly gets to where it is most
needed.
Public authorities will be able to support viable businesses
across their region quickly and simply, delivering good value for
the British taxpayer while ensuring Britain’s businesses can help
deliver economic growth.
The introduction of the new rules from January marks a major move
away from the prescriptive EU aid regime that could stymie
elected governments in Belfast, Cardiff and Edinburgh from
delivering funds to businesses that needed it.
Business Minister 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 longwinded 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.
Under the EU system, all subsidies except those under a ‘Block
Exemption Regulation’ had to undergo a lengthy bureaucratic
process of being notified to and approved by the European
Commission in advance, delaying vital funds from reaching viable
businesses in good time.
The implementation of this regime comes after a full, extensive
consultation on the proposed approach, with views gathered from
stakeholders across the UK.
The new rules will help bolster the government’s plans to drive a
vibrant free market economy, by banning unlimited government
guarantees to businesses as well as 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 main features and principles of the new regime.
In-person events are being held in:
Multiple online
events are taking place too.
