THE UK has put forward a new legislation to give greater freedom to the government and councils in supporting businesses post Brexit.
The Subsidy Control Bill, introduced in the parliament on Wednesday (30), will replace EU state aid rules, which require member states to take approval for government assistance to firms.
Business secretary Kwasi Kwarteng said the government was using its "newfound freedoms" post Brexit to "empower public authorities across the UK to deliver financial support - without facing burdensome red tape".
"We're seizing the opportunities of being an independent trading nation to back new and emerging British industries, create more jobs and make the UK the best possible place to start and grow a business," he said.
The new bill would allow the government to be more agile, targeted and timely in its interventions with businesses.
The government said it will judge cases for support on whether they deliver good value for money and help achieving targets such as "levelling up" and decarbonising the economy.
A new system could be a "useful tool to meet the government's ambitions for the economy", said Matthew Fell, chief UK policy director for the Confederation of British Industry.
He said EU state aid rules were "too often proved prohibitive and bureaucratic".
"Smart decision-making that ensures value to the public purse, respects the level playing field agreement with the EU and supports economic growth in all parts of the UK, can only be a good thing,” he added.
Meanwhile, competition lawyers warned the new rules may prove controversial.
The bill is set to be closely studied by the European Commission, which has expressed concerns that the UK may distort competition by failing to ensure UK and EU firms operate on a "level playing field".
