The government has committed to continuing control of anti-competitive subsidies regardless of the nature of its future relationship with the EU in a technical notice, published as part of a series highlighting the implications of a 'no deal' Brexit for businesses and consumers. The new regime would be enforced and supervised by the Competition and Markets Authority (CMA) across the whole of the UK.
"The UK strongly supports a rigorous state aid system – this is good for taxpayers, consumers, and for businesses," the government said in the notice.
The government intends to produce secondary legislation in the autumn which will replicate the existing EU state aid rules, using its powers under the European Union (Withdrawal) Act. Existing block exemptions, such as those applicable to agriculture and fisheries, will be retained under the new framework.
The CMA will then produce guidance in early 2019 explaining in more detail how it will operate its new regulatory function and enforce the rules. The CMA's role will include receiving state aid notifications from UK public authorities; granting state aid approvals; and hearing complaints from businesses about unlawful aid or the misuse of aid.
The new regime will apply to all businesses with operations in the UK, regardless of where they are based.
The government had previously committed to making no fundamental changes to its competition law framework once the UK leaves the EU. Retaining the current regime will "provide the necessary degree of certainty and continuity for businesses, consumers and enforcement bodies", it said.
EU and competition law expert Guy Lougher of Pinsent Masons, the law firm behind Out-Law.com, said that the technical notice contained little detail beyond that already announced. However, he noted that the plans potentially "put the CMA in a difficult position", as it would be required to regulate state aid granted by public bodies including the devolved administrations.
"This may lead to it getting dragged into the realms of politics, which you would have thought might be unattractive for the CMA," he said.
The government said that it would "continue to work with the devolved administrations to ensure the new state aid regime works for the whole of the UK".