Key Facts

• Clause 1 provides an overview of what each part of the Subsidy Control Bill will cover.
• It establishes definitions, requirements, exemptions, and functions of the Competition and Markets Authority (CMA).
• Clause 2 sets out the definition of a subsidy for the purposes of the Bill.
• Clause 4 elaborates on circumstances where financial assistance is not considered specific.
• Subsection (2) confirms financial assistance is not specific if different enterprises are treated differently based on justified criteria.
• Examples include special levies for environmental purposes and tax measures by local authorities.
• Clause 6 establishes the definition of a public authority for the purposes of the Bill.
• It includes provisions relating to subsidies given by Parliament, Scottish Parliament, Welsh Senedd, and Northern Ireland Assembly.
• These subsidies are captured separately due to their unique legal and constitutional positions.
• The clause establishes the definition of 'enterprise' for the purposes of the Bill.
• An enterprise is any person or group offering goods or services in a market, under common ownership or control.
• Social enterprises engaged in economic activity are included within the definition.
• Seema Malhotra moves amendment 6 to include 'areas of deprivation' as an example of equity rationales subsidies should address.
• The EU state aid rules allowed targeting subsidies at economically deprived areas, aiding struggling regions.
• Professor Fothergill's statement highlights the importance of using state aid as a tool for delivering new jobs in less prosperous areas.
• Amendment 7 proposes adding 'the United Kingdom reaching its net-zero commitments' as a consideration for public authorities.
• Amendment 8 aims to ensure subsidies related to energy and the environment incentivise the beneficiary to help deliver the UK's net-zero targets.
• The amendments address both the impact of subsidies on achieving net-zero goals and encouraging beneficiaries to contribute to these objectives.
• The amendment seeks to add a new principle G in schedule 2 of the Bill.
• Alexander Rose from DWF Group noted that civil servants would be mandated to take account of net zero.
• Dr Barker mentioned that an effective subsidy system can support the green industrial revolution.
• The Subsidy Control Bill does not currently mention transport, agriculture, or housing insulation.
• The government's net zero targets are set for 2050.
• The amendment aims to ensure the UK reaches its net-zero commitments as part of the subsidy control regime.
• The Bill aims to enmesh net zero thinking in policy development at every layer of government.
• The clean heat grant and contracts for difference scheme have been announced to support low-carbon heat pumps and biomass boilers.
• Schedule 1 includes seven general subsidy controls, including a balancing test on competition and investment within the UK.
• Principle F aims to ensure subsidies are designed to achieve policy objectives while minimising negative impacts on competition or investment.
• Principle G requires beneficial effects of a subsidy to outweigh any negative effects, including those affecting competition or investment within the UK.
• Amendment proposed to schedule 2 was negatived with 6 Ayes and 9 Noes.