What UK Subsidy Control Act 2022 - Seven Principles and CMA Subsidy Advice Unit requires
The Subsidy Control Act 2022 (2022 chapter 23) establishes the United Kingdom's post-Brexit domestic subsidy control regime, replacing the application of EU State aid rules with a UK-specific framework anchored on seven subsidy control principles set out in Schedule 1 to the Act. The seven principles require every subsidy to pursue a specific policy objective addressing a market failure or equity rationale (Principle A), to be proportionate to and necessary for that objective (Principle B), to be designed to bring about a change of economic behaviour by the beneficiary (Principle C), to avoid covering costs the beneficiary would have funded absent the subsidy (Principle D), to be the least distortive means of achieving the policy objective (Principle E), to minimise negative effects on competition and investment within the United Kingdom (Principle F), and to ensure that beneficial effects outweigh negative effects on competition, investment, and international trade (Principle G). The Act is organised into 6 parts and 92 sections, with Part 1 defining key terms, Part 2 imposing the subsidy control requirements on public authorities, Part 3 setting out exemptions, Part 4 establishing the Subsidy Advice Unit at the Competition and Markets Authority for referrals on subsidies of interest and subsidies of particular interest, Part 5 prescribing enforcement through the Competition Appeal Tribunal, and Part 6 covering subsidy schemes and miscellaneous provisions. Public authorities (including ministers, devolved administrations, local councils, and other bodies exercising functions of a public nature) must assess each subsidy or subsidy scheme against the seven principles, ensure compatibility with the energy and environment additional principles where applicable, and upload the award to the public subsidy database within the statutory transparency window. AI procurement, R&D grant, regional levelling-up funding, and net-zero support measures all fall within scope and require a documented Schedule 1 assessment.
Pillar: Competition & Antitrust · Authority: United Kingdom Parliament (legislation.gov.uk) · Version: 1.0.0 · Last updated:
Primary source: https://www.legislation.gov.uk/ukpga/2022/23/contents
SHA-256 integrity: 48d276e9b37779071e0532ca7f99bff80cbbd3075b0e18cf635922d7a7bba9ff
Primary Citations — 8 traced to source
- Subsidy Control Act 2022 (2022 c. 23) https://www.legislation.gov.uk/ukpga/2022/23/contents
- Schedule 1 Subsidy Control Principles https://www.legislation.gov.uk/ukpga/2022/23/schedule/1
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