Subsidy Control Act 2022

• (1) Sections 56, 57 and 59 (voluntary referrals to the CMA) apply to subsidies in proposed primary legislation as they apply to subsidies to be given by public authorities.

• (2) For this purpose—

• (a) references in those sections to a public authority are to be taken as references to the appropriate authority and (if different) the promoter of the proposed primary legislation concerned;

• (b) section 56 is to be read as if—

• (i) in subsection (1), after “of interest”, there were inserted “or particular interest”;

• (ii) in subsection (2)(c), after “of interest”, there were inserted “or particular interest”;

• (c) section 57 is to be read as if—

• (i) in subsection (1), after “section 56(2)” there were inserted “in respect of a subsidy, or subsidy scheme, of interest”;

• (ii) in subsection (2), after “section 56(1)” there were inserted “in respect of a subsidy, or subsidy scheme, of interest”;

• (iii) after subsection (2) there were inserted—

(2A) The CMA must, before the end of five working days beginning with the day on which a request is received under section 56(1) in respect of a subsidy, or subsidy scheme, of particular interest, give notice to the appropriate authority— (a) that the request complies with the requirements under section 56, or (b) providing reasons as to why the request does not comply with those requirements.

;

• (iv) in subsection (3), after “subsection (2)(a)” there were inserted “or (2A)(a)”;

• (v) in subsection (5), after “subsection (2)(a)” there were inserted “or (2A)(a)”.

Recovery orders

10

• (1) Section 74 applies in subsidy proceedings before the appropriate court as it applies to proceedings under Part 5 before the Competition Appeal Tribunal.

• (2) For this purpose—

• (a) section 74 is to be read as if, for subsection (1), there were substituted—

(1) The appropriate court may make a recovery order if— (a) in exercise of its powers, it determines that relief should be granted in respect of a subsidy provided by means of devolved primary legislation, and (b) in reaching that determination the appropriate court finds that the giving of the subsidy, or the making of the subsidy scheme under which it was given, did not comply with a requirement of Chapter 1 or 2 of Part 2.

;

• (b) subsection (2)(a) of that section is to be read as if, for the words from “a public authority” to “that subsidy”, there were substituted “the appropriate authority to recover a subsidy provided by means of devolved primary legislation”;

• (c) subsection (2)(b) of that section is to be read as if the reference to the public authority were a reference to the appropriate authority;

• (d) subsection (4) of that section is to be ignored.

Pre-action information

11

• (1) Section 76 (duty to provide pre-action information) applies to subsidies provided by means of devolved primary legislation as it applies to subsidies given by public authorities.

• (2) For this purpose—

• (a) references in that section to a public authority are to be taken as references to the appropriate authority;

• (b) the reference in subsection (1) of that section to a subsidy or subsidy scheme that the authority has given or made is to be taken as a reference to a subsidy or subsidy scheme provided by means of devolved primary legislation;

• (c) subsection (2)(b) of that section is to be read as if—

• (i) for the words “a review of a subsidy decision under section 70” there were substituted “relief in subsidy proceedings before the appropriate court”;

• (ii) for “the decision” there were substituted “the subsidy or scheme in question”.

Time limits

12

The power under section 86 to make consequential provision includes power to make provision, in relation to subsidy proceedings before the appropriate court, corresponding or similar to provision made by section 71 in relation to proceedings under Part 5 before the Competition Appeal Tribunal.

Overview and application of Act

“Subsidy”

Financial assistance which confers an economic advantage

Financial assistance which is specific

Section 2: modification for air carriers

“Public authority”

“Enterprise”

Persons under common control

The subsidy control principles and the energy and environment principles

Subsidy schemes and streamlined subsidy schemes

Subsidies and schemes of interest or particular interest

Application of the subsidy control principles

Application of the energy and environment principles

Introductory

Unlimited guarantees

Export performance

Use of domestic goods or services

Relocation of activities

Rescuing

Restructuring

Restructuring deposit takers or insurance companies

Liquidating deposit takers or insurance companies

Liquidity provision for deposit takers or insurance companies

Meaning of “ailing or insolvent”

Meaning of “deposit taker”

Meaning of “insurance company”

Subsidies for insurers that provide export credit insurance

Subsidies for air carriers for the operation of routes

Services of public economic interest

Effect of prohibitions etc in relation to subsidy schemes

Subsidies or schemes subject to mandatory referral

Subsidy database

Duty to include information in the subsidy database

Information to be included in the subsidy database

Introductory

Minimal financial assistance

Section 36: procedural requirements

Services of public economic interest assistance

Section 38: procedural requirements

Mergers and acquisitions

Exemption for certain subsidies given to SPEI enterprises

Chapter 2: supplementary and interpretative provision

Natural disasters and other exceptional circumstances

National or global economic emergencies

National security

Bank of England monetary policy

Financial stability

Legacy and withdrawal agreement subsidies

Tax measures

Large cross-border or international cooperation projects

Nuclear energy

Mandatory referral to CMA

CMA reporting period for mandatory referral

Cooling off period following mandatory referral

Call-in direction

Voluntary referral to CMA

CMA reporting period for voluntary referral

Call-in direction following voluntary referral

CMA report following mandatory or voluntary referral

Post-award referrals

CMA reporting period for post-award referrals

CMA report following post-award referral

Referrals in relation to subsidy schemes

Other exemptions

Monitoring and reporting on subsidy control

CMA annual report

Information-gathering powers

Subsidy Advice Unit

References to subsidy control groups

Review of subsidy decisions

Time limits for applications under section 70

CAT powers on review: England and Wales and Northern Ireland

CAT powers on review: Scotland

Recovery orders

Appeals against decisions of the CAT

Duty to provide pre-action information

Misuse of subsidies

Subsidies and schemes in primary legislation

Guidance

Disclosure of information

Modifications to subsidies and schemes

Gross cash and gross cash equivalent amount of financial assistance

Minor amendment to the Financial Services Act 2021

Financial provision

Crown application

Power to make consequential provision

Regulations

Directions

Interpretation

Extent

Commencement

Beneficial effects to outweigh negative effects

Common interest

Proportionate and necessary

Design to change economic behaviour of beneficiary

Costs that would be funded anyway

Least distortive means of achieving policy objective

Competition and investment within the United Kingdom

Beneficial effects to outweigh negative effects

Aim of subsidies in relation to energy and environment

Introductory

Editorial notes

Regulations

Directions

Interpretation

Extent

Commencement

Short title

Common interest

Proportionate and necessary

Design to change economic behaviour of beneficiary

Costs that would be funded anyway

Least distortive means of achieving policy objective

Competition and investment within the United Kingdom

Beneficial effects to outweigh negative effects

Aim of subsidies in relation to energy and environment

Introductory

Tax measures

Large cross-border or international cooperation projects

Nuclear energy

Mandatory referral to CMA

CMA reporting period for mandatory referral

Cooling off period following mandatory referral

Call-in direction

Voluntary referral to CMA

CMA reporting period for voluntary referral

Call-in direction following voluntary referral

CMA report following mandatory or voluntary referral

Post-award referrals

CMA reporting period for post-award referrals

CMA report following post-award referral

Referrals in relation to subsidy schemes

Other exemptions

Monitoring and reporting on subsidy control

CMA annual report

Information-gathering powers

Subsidy Advice Unit

References to subsidy control groups

Review of subsidy decisions

Time limits for applications under section 70

CAT powers on review: England and Wales and Northern Ireland

CAT powers on review: Scotland

Recovery orders

Appeals against decisions of the CAT

Duty to provide pre-action information

Misuse of subsidies

Subsidies and schemes in primary legislation

Guidance

Disclosure of information

Modifications to subsidies and schemes

Gross cash and gross cash equivalent amount of financial assistance

Minor amendment to the Financial Services Act 2021

Financial provision

Crown application

Power to make consequential provision

Regulations

Directions

Interpretation

Extent

Commencement

Short title

Common interest

Proportionate and necessary

Design to change economic behaviour of beneficiary

Costs that would be funded anyway

Least distortive means of achieving policy objective

Competition and investment within the United Kingdom

Aim of subsidies in relation to energy and environment

Introductory

Extent

Commencement

Short title

Common interest

Proportionate and necessary

Design to change economic behaviour of beneficiary

Costs that would be funded anyway

Least distortive means of achieving policy objective

Competition and investment within the United Kingdom

Beneficial effects to outweigh negative effects

Aim of subsidies in relation to energy and environment

Introductory