Legislation – Subsidy Control Act 2022

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Introduction

PART 1
Overview and key interpretation

1 Overview and application of Act

2 “Subsidy”

3 Financial assistance which confers an economic advantage

4 Financial assistance which is specific

5 Section 2: modification for air carriers

6 “Public authority”

7 “Enterprise”

8 Persons under common control

9 The subsidy control principles and the energy and environment principles

10 Subsidy schemes and streamlined subsidy schemes

11 Subsidies and schemes of interest or particular interest

PART 2
Subsidy control requirements

CHAPTER 1 Principles

12 Application of the subsidy control principles

13 Application of the energy and environment principles

CHAPTER 2 Prohibitions and other requirements

Introductory

14 Introductory

General prohibitions

15 Unlimited guarantees

16 Export performance

17 Use of domestic goods or services

18 Relocation of activities

Ailing or insolvent enterprises

19 Rescuing

20 Restructuring

21 Restructuring deposit takers or insurance companies

22 Liquidating deposit takers or insurance companies

23 Liquidity provision for deposit takers or insurance companies

24 Meaning of “ailing or insolvent”

25 Meaning of “deposit taker”

26 Meaning of “insurance company”

Other specific prohibitions and requirements

27 Subsidies for insurers that provide export credit insurance

28 Subsidies for air carriers for the operation of routes

29 Services of public economic interest

Subsidy schemes

30 Effect of prohibitions etc in relation to subsidy schemes

Subsidies or schemes subject to mandatory referral

31 Subsidies or schemes subject to mandatory referral

CHAPTER 3 Transparency

32 Subsidy database

33 Duty to include information in the subsidy database

34 Information to be included in the subsidy database

PART 3
Exemptions

CHAPTER 1 Introductory

35 Introductory

CHAPTER 2 Minimal or SPEI financial assistance

Minimal financial assistance

36 Minimal financial assistance

37 Section 36: procedural requirements

Services of public economic interest assistance

38 Services of public economic interest assistance

39 Section 38: procedural requirements

General

40 Mergers and acquisitions

41 Exemption for certain subsidies given to SPEI enterprises

42 Chapter 2: supplementary and interpretative provision

CHAPTER 3 Emergencies etc.

43 Natural disasters and other exceptional circumstances

44 National or global economic emergencies

CHAPTER 4 Other miscellaneous exemptions

45 National security

46 Bank of England monetary policy

47 Financial stability

48 Legacy and withdrawal agreement subsidies

49 Tax measures

50 Large cross-border or international cooperation projects

51 Nuclear energy

PART 4
CMA: referrals and functions

CHAPTER 1 Functions on referrals of subsidies and schemes

Mandatory referrals

52 Mandatory referral to CMA

53 CMA reporting period for mandatory referral

54 Cooling off period following mandatory referral

55 Call-in direction

Voluntary referrals

56 Voluntary referral to CMA

57 CMA reporting period for voluntary referral

58 Call-in direction following voluntary referral

Mandatory and voluntary referrals: contents of CMA report

59 CMA report following mandatory or voluntary referral

Post-award referrals

60 Post-award referrals

61 CMA reporting period for post-award referrals

62 CMA report following post-award referral

Exemptions

63 Referrals in relation to subsidy schemes

64 Other exemptions

CHAPTER 2 General functions

65 Monitoring and reporting on subsidy control

66 CMA annual report

67 Information-gathering powers

CHAPTER 3 Subsidy Advice Unit

68 Subsidy Advice Unit

69 References to subsidy control groups

PART 5
Enforcement

70 Review of subsidy decisions

71 Time limits for applications under section 70

72 CAT powers on review: England and Wales and Northern Ireland

73 CAT powers on review: Scotland

74 Recovery orders

75 Appeals against decisions of the CAT

76 Duty to provide pre-action information

77 Misuse of subsidies

PART 6
Miscellaneous and general

CHAPTER 1 Miscellaneous

78 Subsidies and schemes in primary legislation

79 Guidance

80 Disclosure of information

81 Modifications to subsidies and schemes

82 Gross cash and gross cash equivalent amount of financial assistance

83 Minor amendment to the Financial Services Act 2021

CHAPTER 2 General

84 Financial provision

85 Crown application

86 Power to make consequential provision

87 Regulations

88 Directions

89 Interpretation

90 Extent

91 Commencement

92 Short title

SCHEDULES

SCHEDULE 1 The subsidy control principles

SCHEDULE 2 The energy and environment principles

SCHEDULE 3 Subsidies provided by primary legislation

Changes to legislation:

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PART 6Miscellaneous and general

CHAPTER 2General

84Financial provision

There is to be paid out of money provided by Parliament—

(a)

any expenditure incurred by the Secretary of State in connection with the establishment and maintenance of the subsidy database, and

(b)

any increase attributable to this Act in sums payable under any other Act out of money so provided as a result of the carrying out of functions by the CMA under or by virtue of Part 4.

Annotations:
Commencement Information

I1S. 84 in force at Royal Assent, see s. 91(1)(c)

85Crown application

(1)

This Act, and any provisions made under it, bind the Crown.

(2)

The reference to the Crown in subsection (1) does not include—

(a)

Her Majesty in Her private capacity,

(b)

Her Majesty in right of the Duchy of Lancaster, or

(c)

the Duke of Cornwall.

Annotations:
Commencement Information

I2S. 85 in force at Royal Assent, see s. 91(1)(c)

86Power to make consequential provision

(1)

The Secretary of State may by regulations make provision that is consequential on this Act.

(2)

Regulations under this section may amend, repeal, revoke or otherwise modify any provision of primary legislation, F1assimilated direct legislation or subordinate legislation.

(3)

Regulations under this section are subject to the affirmative procedure if they amend, repeal or revoke any provision of primary legislation F2….

(4)

Regulations under this section to which subsection (3) does not apply are subject to the negative procedure.

87Regulations

(1)

Any power to make regulations under this Act is exercisable by statutory instrument.

(2)

Any power to make regulations under this Act includes power—

(a)

to make different provision for different purposes;

(b)

to make supplementary, incidental, consequential, transitional, transitory or saving provision.

(3)

Where regulations under this Act are subject to “the affirmative procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.

(4)

Where regulations under this Act are subject to “the negative procedure”, the statutory instrument containing them is subject to annulment in pursuance of a resolution of either House of Parliament.

(5)

Any provision that may be made by regulations under this Act subject to the negative procedure may be made in regulations subject to the affirmative procedure.

(6)

Any power to make regulations under Part 4 to amend a provision of this Act may not be exercised after the period of one year beginning with the day on which the CMA publishes its second report under section 65.

(7)

A power to make regulations under this Act is not to be taken as limiting the power to make regulations under section 31 of the European Union (Future Relationship) Act 2020 (general implementation power).

(8)

This section does not apply to regulations under section 91.

Annotations:
Commencement Information

I4S. 87 in force at Royal Assent, see s. 91(1)(c)

88Directions

(1)

A direction under this Act must be given in writing.

(2)

A direction under this Act may be varied or revoked by a further direction.

Annotations:
Commencement Information

I5S. 88 in force at Royal Assent, see s. 91(1)(c)

89Interpretation

(1)

In this Act—

the CMA” means the Competition and Markets Authority;

energy and environment principles” means the principles set out in Schedule 2;

enterprise” has the meaning given by section 7;

Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;

Northern Ireland Protocol” means the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement;

primary legislation” means—

(a)

an Act of Parliament,

(b)

an Act of the Scottish Parliament,

(c)

an Act or Measure of Senedd Cymru, or

(d)

Northern Ireland legislation;

public authority” has the meaning given by section 6(1);

special drawing rights” means special drawing rights as defined by the International Monetary Fund;

“SPEI enterprise” and “SPEI services” have the meanings given in section 29(9);

streamlined subsidy scheme” has the meaning given by section 10(4);

subordinate legislation” means an instrument made under primary legislation or under F3assimilated direct legislation;

subsidy” has the meaning given by section 2(1);

subsidy control principles” means the principles set out in Schedule 1;

subsidy control requirements” has the meaning given by section 1(2);

subsidy database” means the database of subsidies established under section 32;

subsidy scheme” has the meaning given by section 10(1);

“subsidy scheme of interest” and “subsidy scheme of particular interest” have the meanings given by section 11;

the Trade and Cooperation Agreement” and “supplementing agreement” have the same meanings as in the European Union (Future Relationship) Act 2020 (see section 37(1) of that Act);

working day”, in relation to a part of the United Kingdom, means a day other than—

(a)

a Saturday or Sunday, or

(b)

a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in that or any other part of the United Kingdom.

(2)

Section 30 of the European Union (Future Relationship) Act 2020 (interpretation of agreements: public international law) applies where a court or tribunal has regard to the Trade and Cooperation Agreement or a supplementing agreement for the purposes of interpreting a provision of this Act.

90Extent

(1)

Subject to subsection (2), this Act extends to England and Wales, Scotland and Northern Ireland.

(2)

Section 48(4) extends to England and Wales and Scotland only.

Annotations:
Commencement Information

I7S. 90 in force at Royal Assent, see s. 91(1)(c)

91Commencement

(1)

The following come into force on the day on which this Act is passed—

(a)

Part 1;

(b)

any power to make regulations under Part 2, 3 or 4 or Chapter 1 of this Part;

(c)

this Chapter.

(2)

The rest of this Act comes into force on such day as the Secretary of State may by regulations appoint.

(3)

Different days may be appointed for different purposes.

(4)

The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.

(5)

The power to make regulations under subsection (4) includes power to make different provision for different purposes.

(6)

Regulations under this section are to be made by statutory instrument.

Annotations:
Commencement Information

I8S. 91 in force at Royal Assent, see s. 91(1)(c)

92Short title

This Act may be cited as the Subsidy Control Act 2022.

Annotations:
Commencement Information

I9S. 92 in force at Royal Assent, see s. 91(1)(c)