New UK legislation to give govt freedom to support business
June 30, 2021, 4:57 am

New UK legislation to give govt freedom to support business

According to BBC, the government has announced new legislation to allow central and local governments greater freedom to support business.

The Subsidy Control Bill will replace EU-wide state aid rules.

Those rules require member states to seek approval for government assistance to firms.

Government ministers insist the new regime will allow timely and targeted assistance to companies without bureaucratic delays.

The wording of the bill will be closely studied by the European Commission, which has long expressed concern the UK may distort competition by failing to ensure UK and EU forms operate on a so-called "level playing field".

According to Business Secretary Kwasi Kwarteng, "Today we're seizing the opportunities of being an independent trading nation to back new and emerging British industries, create more jobs and make the UK the best possible place to start and grow a business.

"We want to use our newfound freedoms as an independent, sovereign country to empower public authorities across the UK to deliver financial support - without facing burdensome red tape."

The BBC reported, citing Government officials as saying that it was "the most important bit of post-Brexit legislation yet".

Competition lawyers agree it's important, but warn it may also prove controversial.

The EU will be watching carefully to see if UK government support breaches commitments in the Brexit trade deal to maintain a level playing field - perhaps the EU's biggest concern in the Brexit negotiations.

The UK government says it will judge cases for support on whether they deliver good value for money and help hit targets such as "levelling up" and decarbonising the economy.

It is not "carte blanche". The UK will still be subject to World Trade Organisation rules and any decisions made can be contested in law courts.

There will also be safeguards to ensure that devolved government departments and local authorities do not engage in bidding wars of support that could cause a relocation of businesses and jobs from one part of the UK to another.

A new unit to issue advice on the operating of the new regime will be set up within the existing Competition and Markets Authority - but the CMA will have no powers to prohibit the granting of support.

The government was keen to stress that this would not "signal a return to the failed 1970s approach of government picking winners or bailing out unsustainable companies".

The UK has historically extended far less government support to private business than its EU counterparts in France and Germany and officials have historically said they do not expect the overall level of state aid to increase significantly.

What this new bill will do, they say, is to allow the government to be more agile, targeted and timely in its interventions.

This new bill is also a reminder, if one were needed, that this is a Conservative government that is prepared to take a much more muscular role in the grass roots functioning of business and the economy.

When asked what the UK government can do now that it couldn't do before, the government will point to this new regime as a key post-Brexit freedom. It could also prove a key source of future trade disputes. freedom

levant

Source: BBC

Image source: Reuters-BBC

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.