UK seeks consultations on new post-Brexit subsidies system

Bloomberg

The UK is launching a consultation on its post-Brexit subsidies system, which the government has hailed as a “significant milestone” in the country’s future outside the European Union (EU).
The new UK-wide “subsidy control system” will replace the EU’s state aid regime, which was a major stumbling block in Brexit talks last year.
Prime Minister Boris Johnson’s government believes the system will allow the UK to be “more dynamic” in providing financial aid to businesses, and better support start-ups, small firms and new industries.
The UK’s business department will seek views from companies and public authorities on the responsibilities of the independent body that will oversee subsidies, including whether it should have powers in enforcing the rules.
Business Secretary Kwasi Kwarteng said in a statement: “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.”
The new system will ensure the UK honors its international obligations under World Trade Organisation rules, the UK-EU Trade and Cooperation Agreement and other free trade agreements, a business department spokesman said, and will not be about “bailing out unsustainable companies”.
The consultation will run for a minimum of eight weeks.