The UK has yet to apply to Brussels for the approval required for more than £310bn of promised state support for banks and business – in spite of ministers stressing the urgency of the initiatives, says the Financial Times.
Businesses warned yesterday that the delays and uncertainty surrounding the Treasury and Department for Business support packages were exacerbating the effects of the recession.
Jobs could be lost unnecessarily because of the lack of clarity surrounding the government’s proposals, the leading employers’ organisation suggested.
Government packages unveiled last month that support the car industry, lend to business and extend a lifeline to banks cannot be fully implemented without state aid approval for at least some of the elements.
But the government has yet to submit the notification to the European Commission needed to start the formal approval process for any of the schemes announced recently that need state aid clearance.