Subsidy control: guidance

Guidance to help public sector bodies to understand and comply with subsidy control.

Subsidy Control Act

The UK Government Department for Business, Energy and Industrial Strategy launched a consultation on a new permanent domestic subsidy control regime on 3 February 2021 which closed 31 March 2021. The UKG Response was published 30 June 2021.

This led onto the introduction of the UK Government Subsidy Control Bill to Parliament on 30 June 2021, which received Royal Assent on 28 April 2022 and is now the UK Subsidy Control Act 2022.

The UK Government Department for Business, Energy and Industrial Strategy has confirmed that the new permanent UK Subsidy Control regime will commence 4 January 2023.

Following announcement of the permanent regime commencement date, the UK Government has published UK Subsidy Control statutory guidance, a quick guide on key requirements for public authorities and a subsidy control principles assessment template, with the aim to provide public authorities an opportunity to familiarise themselves with requirements set out in the Act ahead of commencement.

To further complement the above publications, the Competition and Markets Authority has published guidance on the operation of the subsidy control functions of the Subsidy Advice Unit.

The UK Government asked for consent of devolved administrations for the UK Government Subsidy Control Bill to proceed. A Legislative Consent memorandum was lodged by Scottish Government with the Scottish Parliament’s Economy and Fair Work Committee, leading to a Legislative Consent Motion being debated in the chamber on 15 March 2022. The Scottish Parliament wrote to UK Government on 1 April 2022 to notify that consent was not given to the Subsidy Control Bill.

Scottish Government Ministers have stated that their position is to continue to align with EU State Aid Regulations where possible.


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