LLG submits subsidy control consultation response

LLG have submitted, on behalf of our members, a response to the Draft Statutory Guidance on the United Kingdom Subsidy Control Regime. This document was published for public consultation last month. The development of this guidance marks an important step in the implementation of the UK’s new domestic subsidy control regime. The Subsidy Control Act 2022, when fully in force, will replace the current interim subsidy regime as set out in the TCA (and accompanying BEIS guidance for public authorities). To recap, following Brexit the TCA has applied in most cases (rather than the previous EU State aid rules). This new guidance will, in due course, be statutory guidance accompanying the Act, and thus an important read for Councils when giving or receiving grant funding and other benefits.

In our response, we made three key asks on behalf of local government lawyers:

• Confirmation of the continued availabiltiy of the “flow through” principle, allowing a “no aid” (now “no subsidy”) solution where funds are passing through an intermediary, with the benefit being directed elsewhere;
• Codification of the German land decision (permitting certain activities to revitalise public land) and its application to the new regime; and
• Further guidance for Councils on undertaking ‘7 principles’ assessments under the Act, for subsidies being granted via that route

Our full response can be downloaded below:

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