A funding award of £15,000 to the band was blocked by former Business Secretary Kemi Badenoch.
Belfast rap group Kneecap has won its discrimination case against the UK government after a minister withdrew an arts grant.
A spokesperson for the department said the decision was made not to continue contesting the band's challenge as "we do not believe it is in the public interest". They added that the music industry is "the heart and soul of the economy" and that the government is "committed to helping acts continue to thrive and break into new markets".Kneecap originally applied for a grant allocated to support UK-registered artists in global markets in December 2023.
At the time, then-UK Business Secretary Kemi Badenoch's spokesperson said they did not want to hand taxpayers' money "to people that oppose the United Kingdom itself".
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