On 9 September 2020, the UK Government said that it will follow the World Trade Organsiation (WTO) subsidy rules in the first instance following the end of the Brexit transition period. The transition period ends on 31 January 2020.
The WTO rules, which apply to goods and not services, ban subsidies that are dependent on either how much a company exports, or the use of domestic goods over imports. For all other subsidies, they provide a mechanism to resolve disputes between countries. The Government has said that guidance will be published before the end of the year.
However, the Government has said it will consult ‘in the coming months’ on UK’s subsidy regime for companies before finalising any regime which will supersede the interim WTO rules.
Business Secretary, Alok Sharma said: ‘We want a competitive, dynamic market economy in which we can back British industries to create more jobs in this country, while also making the UK the best possible place to start and grow a business.’
A Government press release on the announcement can be found here.