Small Businesses: EU Grants and Loans

(asked on 15th July 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to bring forward changes to the Undertaking in Difficulty rules.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 20th July 2020

Although the UK has left the EU, under the terms of the Withdrawal Agreement the EU State aid rules continue to apply in the UK until the end of the Transition Period. The rules are an exclusive competence of the European Commission and it is not within the power of the United Kingdom or any EU Member State to unilaterally vary or suspend them.

The Government has announced that following the end of the Transition Period, a new domestic subsidy control regime will replace the EU State aid rules. The treatment of firms in difficulty will be considered as part of the work to develop the new regime, which will also take into account, amongst other factors, the arrangements agreed under the Northern Ireland Protocol. Announcements on the new regime will be made in due course.

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