The Welsh Government’s scope to attract jobs and investment from other parts of the UK and internationally will be curtailed under new post EU state aid rule legislation.
The UK Government said its Subsidy Control Bill, currently going through parliament, is designed to effectively prevent the poaching of business and investment from one part of the UK to another - although it is not intended to capture subsidies that may substantially improve the attractiveness of investment in a specific area and thereby have an indirect effect of recipients relocating.
As well as impacting Wales, it could equally apply to say a local authority in the north-east of England seeking to use subsidies to attract say a manufacturing firm from Kent.
