Subsidy control: designing a new approach for the UK
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Detail of outcome
The UK has left the European Union and we are no longer bound by the EU’s prescriptive and bureaucratic State aid rules (subject to the State aid provisions under the terms of Article 10 of the Northern Ireland Protocol).
The government is bringing forward legislation for a new, tailored UK-wide subsidy control framework. This will reflect our strategic interests, strengthen our Union, and help to drive economic growth and prosperity across the whole of the UK as we build back better from the pandemic.
Detail of feedback received
Overall, the consultation received 234 responses.
Respondents represented a broad range of stakeholders from across the UK, including:
- business representative organisations and trade industry groups
- private individuals
- local government
- the devolved administrations
All responses to this public consultation have been recorded and the government has analysed the common themes that emerged to obtain an indication of the most frequently expressed points of view. This document includes a summary of responses received based on this analysis.
To ensure that this system works for all parts of the UK, the government has worked closely with the devolved administrations throughout this process. In line with our statutory duty under section 53 of the UK Internal Market Act 2020, the government shared the draft response to the subsidy control consultation with the devolved administrations and invited them to make representations.
Following the end of the transition period on 31 December 2020, the UK has the freedom to design a new domestic subsidy control regime that reflects our strategic interests and particular national circumstances.
The government aims to deliver a regime that:
- facilitates strategic interventions to support government priorities, including supporting the economy’s recovery from COVID-19
- takes account of the economic needs of the UK’s individual nations and strengthens the economic bonds of our Union
- protects the UK’s competitive and dynamic market economy
- ensures that subsidies in the UK are given in line with our international commitments including those in the UK-EU Trade and Cooperation Agreement (TCA)
This consultation invites views on the best way to design a bespoke approach to subsidy control. The government is seeking thoughts on any additions to the principles underpinning the regime, as well as any subsidies which should be excluded from the commitments to these principles. We are also asking for views on how to best manage the most distortive kinds of subsidies, in addition to opinions on the role and powers of the independent body that will oversee the regime.
Subject to stakeholder views, and any evidence received as part of this consultation, the government will bring forward primary legislation to establish in domestic law a subsidy control system that works for the entirety of the UK.
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Last updated 30 June 2021 + show all updates
Government response published.
Consultation impact assessment added.