Post-Brexit subsidy rules unveiled

摘要

New rules on the awarding of subsidies by local authorities to businesses have been unveiled to MPs following Brexit.The Subsidy Control Bill replaces the previous EU rules on subsidies and enables the UK to manage its own subsidy control regime.It said local authorities will be 'empowered for the first time to decide if they can issue subsidies by following UK-wide principles'.As an EU member the UK followed its state aid regime, which governed the awarding of subsidies, such as grants, loans and guarantees.The new UK system will start from the basis that subsidies are permitted if they follow UK-wide principles.However, it will not allow the awarding of subsidies that simply transfer jobs and businesses from one part of the UK to another. It means big firms cannot play off the regions, nations, towns and cities of the UK against each other in a competition to benefit from taxpayer subsidy.