Posted 11/28/2023, 5:27:33 PM
UK State Aid Spending Surges Post-Brexit, Prompted by Crises and Loosened EU Restrictions
- Post-Brexit Britain has seen a large increase in state aid spending, from 0.35% of GDP in 2015 to 1.13% in 2022
- The covid-19 pandemic prompted bailouts in 2020, but spending remains higher than pre-pandemic levels
- Events like covid-19 and the Ukraine invasion have forced the government's hand on subsidies
- Big subsidy programs include £22bn for a new infrastructure bank and £3bn to bail out an energy company
- Britain's new state aid system is more permissive than the EU's - cash can be clawed back by courts but doesn't require pre-approval