Commission approves £50 billion UK 'umbrella' scheme to support the economy in the #Coronavirus outbreak

The European Commission has approved a £50 billion (approximately €57bn) “umbrella” UK scheme to support small and medium-sized enterprises (SMEs) and large corporates in the United Kingdom affected by the coronavirus outbreak.

The scheme was approved under the state aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. Following the approval of two UK state aid schemes to support small and medium-sized enterprises (SMEs) through grants and loan guarantees on 25 March 2020, the UK notified to the Commission a new “umbrella” scheme to support companies affected by the coronavirus outbreak under the amended Temporary Framework.

The measure is a UK-wide National Temporary Framework for state aid, with an estimated budget of £50bn. The measure allows aid to be granted by UK authorities at all levels, including central government, devolved governments, local authorities and other bodies administering schemes involving state resources channelled through their own budgets. The measure is targeted at SMEs and large corporates and applies to the whole territory of the UK.

The Commission found that the UK measure is in line with the conditions set out in the Temporary Framework. The UK will ensure that the rules for cumulation of aid are respected across all measures under the Temporary Framework and across all granting authorities. The Commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of the UK, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU state aid rules.

The full press release is available online.

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