Member Article

Hot on the heels of the Subsidy Control Act 2022 fully entering into force on 4 January 2023, the three streamlined routes under which UK public authorities will be able to give subsidies without having to assess each one against the subsidy control principles have recently been laid before Parliament: Subsidy Control Act 2022: Streamlined Routes - GOV.UK (www.gov.uk)

The routes cover (i) research development and innovation (ii) energy usage and (iii) local growth. Each of them contains various conditions that need to be met before the subsidy can be granted.

Research development and innovation will cover subsidies for feasibility studies, industrial research and experimental development projects and SME research development and innovation support. Energy usage will cover subsidies for energy demand reduction, green heat networks and related skills training. Finally, local growth will cover subsidies for SMEs for business development projects, support for the employment of disadvantaged workers and workers with disabilities.

These three streamlined routes are the closest we have so far to the general block exemption regulation that used to be applied to provide financial assistance before the UK left the previous state aid regime behind following Brexit. There are similarities to the conditions contained in the general block exemption regulation under the state aid regime, such as applying maximum limits on awards and specifying a maximum percentage of permitted costs that can be claimed, often depending on the size of the recipient.

The routes are yet to be rolled out by public authorities but are available for use until 4 January 2029.

 

 

Subsidy Control Act 2022: Streamlined Routes

 

Link to article