Subsidy Control

July 1st, 2021

Subsidy Control replaced State Aid six months ago. A Subsidy Control Bill has now been published.

Part 1 of the Bill sets out the key definitions.

Part 2 sets out the principles that underpin the newish regime. There are 7 main principles. In addition, there are 9 energy and environmental principles.

A duty is placed on a public authority to consider the principles when making a decision whether to give a subsidy or adopt a subsidy scheme. Authorities must consider the energy and environment principles as well as the general subsidy control principles. Actions must be consistent with all these principles. Further, the SoS is empowered to give Guidance.

Part 3 of the Bill sets out the types of subsidy that are exempt from the subsidy control requirements, or the requirements apart from transparency. This very much focuses on natural disasters and other emergencies, and national security.

Part 4 provides for the functions of the CMA. Part 5 relates to enforcement.

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