Legislation – Subsidy Control Act 2022

New Search

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

PART 2Subsidy control requirements

CHAPTER 3Transparency

32Subsidy database

(1)

The Secretary of State must make arrangements for the provision of a database of subsidies and subsidy schemes for the purposes of this Part (“the subsidy database”).

(2)

The Secretary of State must ensure that—

(a)

the subsidy database is accessible to the public free of charge,

(b)

public authorities are able to edit the subsidy database for the purpose of carrying out their duties under section 33, and

(c)

the subsidy database is kept under review in such manner and at such intervals as the Secretary of State considers appropriate.

(3)

The Secretary of State may direct the CMA to perform on behalf of the Secretary of State the duties under this section.

33Duty to include information in the subsidy database

(1)

A public authority must ensure that an entry in the subsidy database is made in respect of—

(a)

a subsidy given by the authority (subject to subsection (2)), and

(b)

a subsidy scheme made by the authority.

(2)

Subsection (1)(a) does not apply to a subsidy if—

(a)

it is given under a subsidy scheme,

(b)

an entry is made in the subsidy database in respect of the scheme, and

(c)

the amount of the subsidy is no more than £100,000.

(3)

An entry in the subsidy database must be made in respect of a subsidy or scheme—

(a)

if given as a subsidy in the form of a tax measure, within one year beginning with the date of the tax declaration,

(b)

if made as a subsidy scheme in the form of a tax measure, within three months of the confirmation of the decision to make the scheme, or

(c)

if given or made in any other form, within three months of confirmation of the decision to give the subsidy or make the subsidy scheme.

(4)

A public authority must ensure that an entry it makes under this section is maintained on the subsidy database for six years beginning with the date on which the entry is made, or for the duration of the subsidy or scheme if longer.

(5)

Where a subsidy or subsidy scheme is modified, the public authority must ensure that the modification is entered in the subsidy database—

(a)

within one year of the date of the modification, in respect of a subsidy given in the form of a tax measure,

(b)

within three months of the date of the modification, in respect of a subsidy scheme made in the form of a tax measure, or

(c)

within three months of the date of the modification, in respect of a subsidy given, or subsidy scheme made, in any other form.

(6)

Subsection (5) does not apply to the modification of a subsidy if—

(a)

the subsidy is one to which subsection (2) applied, and

(b)

the amount of the subsidy as modified is no more than the applicable amount.

(7)

For the purpose of subsection (6)(b) “the applicable amount” is—

(a)

the amount specified in subsection (2)(c), or

(b)

if regulations under subsection (9)(b) provide for a different amount in relation to the subsidy, that amount.

(8)

For the purpose of subsection (2)(c)

(a)

if the subsidy is provided in cash, the gross cash amount given is to be used in determining the amount of the subsidy;

(b)

if the subsidy is provided otherwise than in cash, the amount of the subsidy given is to be determined by reference to the gross cash equivalent of the subsidy.

(9)

The Secretary of State may by regulations—

(a)

substitute a different amount for the amount specified in subsection (2)(c);

(b)

provide for a different amount to apply, instead of an amount specified in subsection (2)(c), in the case of particular descriptions of subsidy.

(10)

An amount specified in regulations under subsection (9) may not exceed £500,000.

(11)

The Secretary of State may by regulations—

(a)

amend subsection (3) or (5) so as to substitute a different period of time for the period of time specified;

(b)

provide for a different period of time to apply, instead of a period of time specified in subsection (3) or (5) in the case of particular descriptions of subsidy or subsidy scheme.

(12)

A period of time specified in regulations under subsection (11) may not exceed—

(a)

one year in respect of a subsidy given in the form of a tax measure;

(b)

one year in respect of a subsidy scheme made in the form of a tax measure;

(c)

six months in respect of a subsidy given or scheme made in any other form.

(13)

Regulations under subsection (9) or (11) are subject to the affirmative procedure.

34Information to be included in the subsidy database

(1)

The Secretary of State may by regulations make provision about the information that must be included in a public authority’s entry in the subsidy database in relation to a subsidy or subsidy scheme.

(2)

The regulations may, in particular, require a public authority’s entry to include—

(a)

the power under which the subsidy is given;

(b)

the policy objective of the subsidy or scheme;

(c)

the name of the beneficiary to which the subsidy is given;

(d)

the date the public authority confirms the decision to give the subsidy or make the scheme;

(e)

the duration of the subsidy or scheme;

(f)

any time limits or other conditions attached to the use of the subsidy or scheme;

(g)

the amount of the subsidy or scheme or the amount budgeted for the subsidy or scheme;

(h)

the location of any of the information mentioned in paragraphs (a) to (g) and subsection (3);

(i)

the location of any other publicly available information relating to the subsidy or scheme.

(3)

In relation to subsidy schemes, the regulations may require a public authority’s entry to include—

(a)

the categories of beneficiary eligible to receive subsidies under the scheme;

(b)

the terms and conditions for subsidy eligibility;

(c)

the basis for the calculation of the subsidy including any relevant conditions relating to subsidy ratios.

(4)

Regulations under this section are subject to the negative procedure.