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Consultation for proposed subsidy control system released


A consultation on the proposed new subsidy rules has been released with the aim of turbocharging the UK economy. The consultation outlines how the UK plans to instil a new state aid regime following its dramatic exit from the EU.

The proposed subsidy control system will be the long-term replacement from the bureaucratic EU state aid regime and will provide a more flexible and tailored approach. Enhanced powers will be bestowed upon public authorities and devolved administrations in Edinburgh, Cardiff and Belfast, ensuring fair competition for businesses across the UK and protection against wasteful spending.

The newfound freedom from EU law will allow the UK to be more dynamic in providing support to businesses, including in innovative, R&D-focused industries, to encourage job creation and growth across all parts of the UK

Even though the UK has left the EU it is still forced to comply with a series of rules outlined by the bloc as part of the withdrawal agreement.

What are the next steps and what does this mean for innovative businesses? 

The consultation, which is open for 8 weeks, will seek views from businesses and public authorities on a number of key areas.


The complexity and bureaucracy surrounding EU state aid has always been problematic. Brexit has cleared a path for the UK to create a tailored system that will work for UK companies.

Research and development is among the key areas that the government want to support, along with start ups, job creation and new industries, all of which are crucial for economic recovery.

What this actually means for business is still unclear. The weeks following the end of the consultation review will, I am sure, unveil the strategies that will shape the new support mechanism. This will provide businesses with the stability that many so desperately crave.

Matthew Jones

Managing Director, LimestoneGrey

Our friends at Redknight Consultancy, a team of funding experts, also commented: 

While State Aid is a complex area, it is a necessary tool to ensure fair competition. Brexit has presented the UK Government and the devolved administrations with a chance to reflect on the negative aspects of the current system. They have the opportunity to create a new process which better supports start-ups and SMEs with their research and innovation endeavours. 

Dayne Hodgson

Director, Redknight Consultancy

Open consultation: subsidy control, designing a new approach for the UK 


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