Alexander Rose

This Practice Note examines the enforcement regime created by the Subsidy Control Act 2022 (SCA 2022), focussing on two key aspects:•the process under which certain subsidies are required to be referred to the Subsidy Advice Unit (SAU) within the Competition and Markets Authority (CMA), and•the process by which interested parties may seek review of decisions to award financial assistance in the Competition Appeal Tribunal (CAT)Subsidy control is a ‘challenge regime’ under which the compliance of decisions made by public authorities to award financial assistance may be the subject of claims for review brought by ‘interested parties’ (as defined under SCA 2022, s 70, see below). In most cases, actions will be brought by commercial competitors, but they may also be brought by the Secretary of State.Following Brexit, a political decision was made that SCA 2022 regime would not establish an equivalent body to the European Commission in EU State aid law (which has the power to investigate compliance

This Practice Note is a ‘how to’ guide setting out the types of measure caught by the Subsidy Control Act 2022 (SCA 2022). It is designed to provide practical guidance for public authorities considering making awards under the subsidy control regime. It sets out the step-by-step test for assessing the presence of subsidy and highlights the key similarities and differences between the tests for subsidies and State aid. For background reading, see Practice Note: Subsidy control.Definition of subsidyNot all public funded measures are within scope of SCA 2022. The majority of the UK’s public funding—for example the commitment of government funds to support the day-to-day running of primary schools, the building and maintenance of public roads and the delivery of NHS services—can all be expected to fall outside the definition of subsidy, as it has always done in previous regimes.It is only where the benefit to a particular party meets all the criteria within the ‘subsidy’ definition

This how to guide focuses upon the process public authorities need to follow in order to make a lawful subsidy award under the Subsidy Control Act 2022 (SCA 2022). It assumes that the public authority has already identified the beneficiaries of a measure and assessed the presence of subsidy in regard to each. For background reading, see Practice Notes: Subsidy control and How to identify subsidies regulated by the Subsidy Control Act 2022.Value of the subsidyThe choice of route to award a subsidy is likely to be shaped by the value and characteristics of the proposed award. The Subsidy Control (Gross Cash Amount and Gross Cash Equivalent) Regulations 2022, SI 2022/1186 set out how public authorities should value subsidies.For a subsidy given as a grant, the subsidy value will be the grant sum. Where a subsidy is given by any other means (other than as a tax deduction), the gross cash equivalent value will be the difference

This Practice Note provides an overview of the UK’s statutory Subsidy Control regime, which came into force on 4 January 2023. It is designed to provide guidance on the main areas of the new Subsidy Control regime for public authorities, applicants for public funds and organisations acting on their behalf.