The CMA’s Subsidy Advice Unit (SAU) is soon to publish its 100th referral report under the UK subsidy control regime. This developing body of non-binding assessments gives useful insight into compliance with the subsidy control principles, which public sector bodies are required to consider when giving subsidies. Over the summer, amendments have been made to the regime raising the thresholds for mandatory referrals, simplifying transparency requirements on the giving of subsidies under schemes, and outlining plans to create two new streamlined routes to make it easier to give certain subsidies. We have also seen a handful of cases now reach the Competition Appeal Tribunal, so are beginning to see how subsidy challenges play out in practice.
Almost 3 years in, the regime is currently under review with a report and any further recommendations on further changes expected by mid-2026. For public authorities, the regime provides much greater scope for the giving of subsidies compared to EU State aid rules. For businesses, as recipients of assistance, it presents keys to unlock projects and business ideas for growth as well as a potential lifeline to support them through challenging times. Businesses may also wish to challenge subsidies which have been given in a way that distorts competition.
For further information on the Subsidy Control Act 2022, associated secondary legislation and statutory guidance, and what it means for you, read our expert guide on the UK subsidy control rules.
