Subsidy Control Act 2022

Key Points

• Measurement and scope: Subsidies and subsidy schemes are to be defined by gross cash amounts or their gross cash equivalents, and the definitions extend to subsidies of interest, tightening how support is counted under the regime.
• Transparency and the subsidy database: Exemption thresholds were tightened (with a lower £100,000 threshold for certain disclosures), exemptions for several subsidy types were removed, and strict deadlines were put on recording subsidies and any modifications in the database to improve public visibility.
• Oversight and reporting: The Competition and Markets Authority (CMA) must report on a three-year cycle, with sunsetting tied to its second report; the Secretary of State must lay financial stability directions before Parliament, and more information must be provided earlier in potential dispute steps (pre-action information).
• Policy focus on regional support: Schedule 1 clarifies that Principle A covers subsidies aimed at addressing local or regional disadvantage, signalling targeted regional support within the rules.
• Regulatory controls and governance: Regulations under the Act require affirmative procedures, with caps and limits on how thresholds can be amended; the government also narrowed certain powers (for example, removing the Treasury’s power to alter the meaning of “insurer”).

Progress

The bill has completed its passage through Parliament and received Royal Assent on 28 April 2022, becoming law.

Voting

The bill enjoyed cross-party support in its later stages, with the governing party and allied members voting in favour, while major opposition parties (Liberal Democrats, SNP, Plaid Cymru, DUP, SDLP) opposed or criticised aspects of the measure. The second-reading vote in 2021 showed broad agreement in the chamber, though opposed by some parties.