Martin Ford 06 October 2023

Red tape risk to levelling up

Red tape risk to levelling up image
Image: William Barton / Shutterstock.com

New rules around subsidies risk holding back levelling up efforts, according to analysis published today.

The research by the University of East Anglia found the new UK subsidy control system governing how funding is spent by local authorities is ‘considerably more onerous’ than the EU state aid rules it replaced.

Lead researcher Andreas Stephan said: ‘The devolution of spending power could reduce regional inequality if public authorities have the freedom and confidence to award beneficial subsidies that best serve their cities and regions.

‘But this research shows that most authorities will likely struggle to demonstrate they meet the criteria - making it less likely good subsidies will be offered to local businesses.’

To continue reading this article visit The MJ.

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