Subsidy support for UK firms as local authorities secure “newfound freedoms” post-Brexit

The government has announced a new support system for UK businesses following the country’s exit from the EU.

Business Secretary Kwasi Kwarteng has unveiled a new nationwide system aiming to provide more flexible and tailored financial support to businesses.

The new subsidy control initiative will be the long-term replacement for the EU’s state aid system, and will enable local authorities and devolved administrations to decide if they can issue taxpayer subsidies.

Previously, public authorities had to follow a detailed set of EU controls – and may have needed prior approval from the European Commission before providing funds to viable businesses or pursuing key domestic policy objectives.

Business Secretary Kwasi Kwarteng commented: “This is a significant milestone on our historic journey as an independent, sovereign nation.

“Our new, more flexible system will empower public authorities and devolved administrations, and ensure fair competition for businesses across the UK.

“Now we have taken back control of our money and laws from the EU, we want to use our newfound freedoms to propel the UK to the forefront of innovation and help create the jobs of the future, while also making the UK the best place to start and grow a business.

“With a modern, tailored approach to supporting businesses, we will also be able to press ahead with our long-term ambitions to tackle climate change and to level up opportunity as we build back better from the pandemic.”