Britain Pushes to Attract More Investors with Revamped Subsidy System
As a new post-Brexit economy emerges, the UK seeks to create a new subsidy system that is more flexible than what was previously arranged with the EU. This was announced by Kwasi Kwarteng, UK Business Minister, who also added that the new rules should make the UK highly attractive to investors.
With the UK having formally left the EU in January, progress is being made to rebuild the economy and trade deals. Negotiations with Brussels are currently underway to clear up all the new rules and restrictions. The idea is to remain within the terms of the EU exit agreement to avoid a repeat of 1970’s policies that supported unprofitable industries. Kwarteng also added that the UK planned to utilize its newfound “freedom” to promote innovation and create more jobs, while making the UK a very appropriate place to start new businesses. The EU exit agreement has principles that the new subsidy scheme is obligated to follow to ensure Brexit wouldn’t create unbalanced competition.
The government has presented a public consultation on the new scheme, which is the first step towards legislation. The business minister also said that this new system would transfer subsidy control to local authorities and semi-autonomous UK regions, but prevent firms from pitting one region or another against the others.
Nevertheless, The UK affirms that a more flexible and efficient regime, better that the one promoted by the EU, would allow small businesses and industries to grow more. The government has stated that the full transition to this new scheme should take around 7 years.