On Wednesday 3 February 2021, the Business Secretary, Kwasi Kwarteng MP, set out plans for a new UK-wide system for providing more flexible and tailored financial support to UK businesses.
TIGA welcomes the Government’s consultation on the new subsidy control system which aims to provide more flexible and tailored financial support to businesses in the UK.
The Government has stated that the new system will be a departure from the ‘bureaucratic’ EU state aid regime. The Government claims that, by being more agile and flexible, the new system will better support start-ups, new industries and small businesses.
Under the proposed system, local authorities and public administrations will be allowed to decide if they can issue taxpayer subsidies by following a set of UK-wide principles.
According to the Business Secretary, the UK-wide subsidy control regime will ensure that competition is not distorted within the UK’s internal market.
Business Secretary Kwasi Kwarteng said:
‘This is a significant milestone on our historic journey as an independent, sovereign nation.
‘Our new, more flexible system will empower public authorities and devolved administrations, and ensure fair competition for businesses across the UK.
‘Now we have taken back control of our money and laws from the EU, we want to use our newfound freedoms to propel the UK to the forefront of innovation and help create the jobs of the future, while also making the UK the best place to start and grow a business.’
In June 2020, TIGA pubsished a report which set out 8 key priorities for the video games industry in a new trade deal, following the UK’s departure from the European Union. In December 2020/January 2021, TIGA measured the trade deal against these 8 key areas.
In the initial report, TIGA called for future UK state aid policy to permit:
- The maintenance and potential enhancement of VGTR.
- The introduction of a VGIF, the continuation of schemes such as the UK Games Fund.
- The operation of Coronavirus inspired support measures such as the Bounce Back Loans scheme.
- Government schemes to encourage investment in training.
TIGA has also previously advocated greater Government investment in R&D, education and infrastructure. TIGA will set out these points in its response to this consultation.
Measured against its 8 priorities for the video games industry, TIGA’s review of the UK-EU Trade Deal can be found here.
The consultation will seek views from businesses and public authorities on several areas. The consultation will close on 31 March 2021.