Subsidy Control Act 2022

The operative provisions of the Subsidy Control Act 2022 came into force on 4 January 2023. We have prepared this guide to help public authorities navigate the new regime.

Have you ever been introduced to someone and had the feeling that you’ve met them before? Maybe in another context, but there’s something familiar about them. Many public authorities will be feeling that way about the Subsidy Control Act 2022 and its associated guidance. If you were used to state aid, and you had got to know the TCA, then much of the Act and its guidance will bring a slight sense of déjà vu.

While much of the language is new, and the references are different, the Subsidy Control Act is not worlds apart from the systems that went before it. The subsidy control principles are lifted straight from the TCA, concepts such as “minimal financial assistance” (formerly de minimis) and “enterprises” (formerly undertakings) are not new and many concepts - such as schemes, a transparency database, rescuing and restructuring - are still present.

There is, however, a danger that comes with overfamiliarity. The Subsidy Control Act differs from state aid in important ways, and public authorities will not want to be complacent or to assume that carrying on as before will be fine. Subsidy assessments, voluntary and mandatory referrals to the CMA, reviews by the Competition Appeal Tribunal, the energy and environment principles, and rules around relocations within the UK are all areas where an introduction may need to be made.

The new subsidy control regime under the Act is now in force. This guidance seeks to set out the key elements of the Act and the associated guidance for public authorities. If you have any questions, we would be delighted to hear from you.