Subsidy Control Act 2022

Key Points

• Creates a binding UK subsidy control regime for public money given to businesses.
• Subsidies must be justified as necessary, proportionate and transparent, and aligned with government objectives.
• Public authorities must follow the rules when awarding subsidies; subsidies can be reviewed or challenged if they fall short.
• Applies to government bodies and organisations that award subsidies, shaping how public funds are spent.
• Affects taxpayers and businesses by setting the framework for subsidies and how subsidy decisions are made and disclosed.

Progress

The bill has completed passage in Parliament and received Royal Assent, making it law. It now governs how subsidies can be awarded in the UK.

Voting

In the Commons, the Second Reading vote on 22 September 2021 passed 287 Aye to 50 No. The Conservative Party supported the bill; Reform UK and Labour (Co-op) backed it in small numbers; Liberal Democrats, SNP, Plaid Cymru, DUP and SDLP voted No, with other groups recorded as mixed or not voting.