THE PURPOSE OF THIS MEMO
In this short update, we set out our predictions for how we anticipate each aspect of the UK's £350bn package will be dealt with from a State Aid perspective. We hope this will help clients forecast the restrictions which might apply to each of the measures.
State support needs to be in line with EU State aid rules. Some aspects of the UK's £350bn support package seem to be designed as "no-aid" or to fall within existing safe harbours, subject to some exceptions (such as the business rates holiday, which we understand has been notified).
The European Commission's (Commission's) Temporary Framework, announced on Friday, effectively provides a new safe harbour (with an expedited notification process). We expect the UK will now seek to take advantage of that greater flexibility for some aspects of the package, shortly.
Additional UK measures are being announced on a daily basis – we will keep this note updated regularly.