The UK wants to introduce a more flexible system of subsidy rules than there was when it was a member of the European Union, Kwasi Kwarteng, Minister of Affairs, said on Wednesday.
After leaving the EU in full in January, the United Kingdom is reforming its economy and fighting hard in negotiations with Brussels for the right to establish its own state aid rules – albeit with agreed restrictions. Investors while staying under the terms of the EU exit agreement and avoiding a return to the 1970s policy to support ill-requited industries.
“We want to use our newfound freedoms to drive the UK to the forefront of innovation and create jobs for the future, while also making the UK the best place to start and grow a business,” he said.
In a statement, he stated the government had launched an initial public consultation on the scheme, the first phase in a method that will eventually lead to legislation.
The EU exit agreement sets out principles that the new subsidy regime must comply with – part of the EU’s efforts to ensure that Brexit does not create a strong subsidized competitor on its doorstep.
The UK has been critical of states such as China, which heavily subsidizes state-owned businesses that misconstrue international trade. However, it demonstrates that a more resilient and less bureaucratic administration than the EU will allow it to promote growth industries, small businesses, and research and development.
Kwarteng’s department said the new system would distribute the control of subsidies to local public authorities and semi-autonomous areas of Wales, Scotland, and Northern Ireland, but those enterprises would not allow one region or nation against another.