Subsidies and Schemes of Interest and of Particular Interest
Read the full outcome
Detail of outcome
Respondents were broadly supportive of the government’s proposed approach to defining subsidies and schemes of interest and of particular interest.
Having considered the responses, we propose to make the following changes to the policy proposal:
- the introduction of a minimum value of £1 million for referral of cumulated subsidies to the Subsidy Advice Unit. This will avoid referrals of small, cumulated subsidies, which would not be proportionate to their likely level of market distortion
- the definition of relocation subsidies of £1 million or more as Subsidies of Particular Interest and those below £1 million as Subsidies of Interest. This is given the higher risk that they present of distorting competition and causing harm
- special provisions for the valuation and cumulation of tax schemes and subsidies
The government will lay draft regulations before Parliament which reflect the original policy proposal and the changes noted above. We have provided further details on both in the government response.
Detail of feedback received
We received 40 responses to this consultation. Respondents represented a broad range of stakeholders from across the UK, including:
- business representative organisations and trade industry groups
- charities
- experts and academics
- businesses
- local government
- other public sector organisations
The government response includes a summary of the responses received, and the government’s position with regard to them.
Original consultation
Consultation description
The Subsidy Control Bill provides the framework for a new, United Kingdom-wide subsidy control regime. This regime will enable public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored and bespoke for local needs to deliver government priorities such as levelling up and achieving net zero carbon, as well as supporting the economy’s recovery from COVID-19.
It is crucial that the new subsidy control regime can identify subsidies and schemes that have the potential to cause negative effects on competition or investment within the United Kingdom or in relation to the United Kingdom’s international trade, and subject these to additional scrutiny and review.
To achieve this, the Subsidy Control Bill provides for 2 distinct categories of subsidy or subsidy scheme that could potentially have a distortive effect:
- Subsidies or Schemes of Interest (SSoI)
- Subsidies or Schemes of Particular Interest (SSoPI)
We intend to develop criteria that are clear and easy for public authorities to interpret and apply.
This consultation:
- seeks views on these categories of subsidies and schemes
- sets out, in the accompanying draft regulations, the government’s intended approach to setting criteria and definitions
- includes initial proposals for related guidance
Documents
Updates to this page
Published 25 March 2022Last updated 24 August 2022 + show all updates
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Government response and analysis published.
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First published.