finance news

The government of United Kingdom introduces new Subsidy Control Bill

The government of United Kingdom introduces new Subsidy Control Bill
The government of United Kingdom introduces new Subsidy Control Bill

The government of the United Kingdom has reportedly announced new legislation to replace regulations of the European Union on taxpayer-funded bailouts and corporate support, launching a subsidy system that the government claims would help support UK jobs and the economy.

The Subsidy Control Bill, which was introduced to Parliament on 30th of June 2021, seizes the growth possibilities that have arisen as a result of Brexit. It will establish a new structure for subsidies that can support major domestic priorities, including empowering economic growth across the United Kingdom and driving country's green industrial revolution.

The government stated that, as ministers push to lay out the benefits of Brexit, the new rules would provide companies with faster and easier support, while also helping in the leveling up of the lopsided regional economy of Great Britain and increasing investment in green industries.

Subsidies will be allowed under the new UK system if they satisfy UK-wide standards, such as providing excellent value for the British taxpayer while being given in a timely and effective manner. These principles will help public bodies in offering subsidies where they are required without having to deal with unnecessary red tape.

The system will not revert to the disastrous 1970s model of the government running the economy, bailing out unprofitable businesses or picking winners.

The new system, according to business secretary Kwasi Kwarteng, is a clear divergence from the EU state assistance framework, and will retain the UK's free market, competitive economy, which has been integral for the nation’s prosperity and economic success over the past decades.

Kwarteng further added that with this bill, the UK is seizing the opportunities that have come with being an independently trading country. Supporting emerging and new British industries, generating more employment and making the union the best place possible to begin and expand a business.

This new system will be more adaptable and flexible. Every subsidy must provide significant advantages to local communities while also ensuring excellent value for money to British taxpayers.

Source credit: https://www.gov.uk/government/news/new-subsidy-system-to-support-uk-jobs-and-businesses-boost-the-economy-and-strengthen-the-union

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Sunil Jha

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