0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

consultation launched on the future of subsidy control law

4 February 2021

The Department for Business, Energy & Industrial Strategy has just launched its consultation on the future of subsidy control law (previously known as state aid) in the UK. The government hopes that a new regime will give sufficient certainty to enable confident funding and investment decisions while avoiding undue bureaucracy and responses to the consultation will inform that balancing act.

The current subsidy control system in the UK is suboptimal to say the least – it consists of a combination of the old EU state rules incorporated through the Northern Ireland Protocol and new subsidy control rules drawn directly from the UK’s Trade and Cooperation Agreement (TCA) with the EU. The new subsidy control rules draw heavily on the old state aid rules so in the absence of a more detailed regime most public authorities are still aligning with the old state aid regime as the only source of authority for how to comply with the principles within the new subsidy control regime.

Clearly this is not the government’s intention for the future of subsidy control so a new regime is to be welcomed. The consultation is wide ranging and surprisingly seeks opinions on implementing rules that in some cases go beyond what is required by the UK-EU TCA. This suggests the government recognises the advantages of a comprehensive regime even as it endeavours to reduce bureaucracy.

We will certainly be responding to the new consultation and we strongly recommend engaging with the process as it provides a rare opportunity to shape the future of subsidy control law in the UK.

related opinions

An exit for public sector exit pay

It took over 5 years for secondary legislation implementing the £95,000 cap on public sector exit payments to be brought into force; only a few months later, the Government has announced that the Public Sector Exit Payments Regulations 2020 (the “Regulations”) will be revoked, citing “unintended consequences” which have been identified after “extensive review”.

View blog

The Debt Respite Scheme and its implications for creditors

The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 is due to come into force on 4 May 2021. It’s a snappy title but what exactly is it?

View blog

New Year, new-ish state aid rules

From 1 January 2021 the state aid principles set out in the Trade and Co-Operation Agreement are incorporated into law by the EU (Future Relationship) Act 2020.

View blog

The Restriction of Public Sector Exit Payments Regulations 2020

On 14 October 2020, The Restriction of Public Sector Exit Payments Regulations 2020 (the “Regulations”) were made into law and will come into force on 4 November 2020.

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up