Subsidy control: guidance

The Subsidy Control Act 2022

The EU State aid regime was effectively revoked from UK law from 1 January 2021, with the UK and European Union agreeing to terms on a Trade and Co-operation Agreement (TCA) which formed the basis for an interim Subsidy Control regime. The interim regime was in effect from 1 January 2021 until 3 January 2023. 

The UK Government Department for Business, Energy and Industrial Strategy (now Department for Business and Trade) 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 Strategy (now Department for Business and Trade) confirmed that the new permanent UK Subsidy Control regime would commence 4 January 2023.

Following announcement of the permanent regime commencement date, the UK Government 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 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.