London (PA Media/dpa) – New state aid rules for British companies that ministers pledge will make a more «simple» and «nimble» post-Brexit system for subsidies are to be unveiled on Wednesday.
The plans for the UK outside the European Union will be detailed when the Subsidy Control Bill is introduced to Parliament on Wednesday.
State aid was a major point of contention during Brexit negotiations and any move too far from Brussels’ standards could provoke retribution.
The Government said the new system will «start from the basis that subsidies are permitted if they follow UK-wide principles – delivering good value for the British taxpayer while being awarded in a timely and effective way».
Business Secretary Kwasi Kwarteng said the system would be «more agile and flexible» without a return to the «1970s approach of the government trying to run the economy, picking winners or bailing out unsustainable companies».
Paul Scully, the business minister, added: «The UK’s new bespoke subsidy system will be simple, nimble, and based on common-sense principles – free from excessive red tape.»
The new regime will come into effect next year if approved by Parliament. The UK Government said the system would leave devolved governments «empowered for the first time to decide if they can issue subsidies by following a set of UK-wide principles».
But allegations of a power grab from Westminster could be reignited from administrations in Wales, Scotland and Northern Ireland.
Ministers said the new system will prevalent the awarding of subsidies that will displace jobs from one area of the UK to another to prevent «subsidy races» between authorities seeking to attract the same business.
The UK’s courts and tribunal system will be tasked with enforcing the rules. Any clashes between the UK and the EU will be overseen by an independent arbitration panel as agreed during trade deal negotiations.
