Subsidy control

The UK subsidy control regime aims to prevent public authorities from conferring financial advantages on organisations engaged in economic activity in a way that distorts competition. The Subsidy Control Act 2022 (SCA 2022) established the UK’s domestic subsidy control regime following the UK’s exit from the EU. Prior to this, the UK was subject to EU State aid regime. For further reading on this regime, see: State aid—overview.

Following the UK’s decision to leave the EU, the UK government negotiated commitments around the award of subsidies as part of the EU-UK Trade Cooperation Agreement (TCA). Between 11 pm 31 December 2020 and the introduction of SCA 2022, the relevant TCA provisions had direct effect upon public authorities by way of section 29 of the European Union (Future Relationships) Act 2020. SCA 2022 received Royal Assent on 28 April 2022, coming into full effect on 4 January 2023.

The SCA 2022