Key Facts

• Amendment 39 aims to make public authorities responsible for ensuring the accuracy and completeness of their entries.
• Only 501 subsidies were recorded on the database as of December 2020, with 257 having a zero or nil value.
• The Tees Valley Capital Grant Scheme was inaccurately reported.
• Clause 32 sets out obligations for the Secretary of State to provide a database for subsidies.
• The current database was put in place to meet international subsidy reporting obligations since January 1, 2021.
• Minor improvements have been made since March and more are planned based on feedback.
• The Bill requires public authorities to upload subsidies on the transparency database, usually within six months.
• Judicial reviews can challenge any breach of statutory duties by public authorities.
• Professor Rickard described the database as “excellent” despite it being a relatively new tool.
• Enhancements to the database are planned for the coming months.
• Amendment 32 reduces the threshold for subsidies granted under subsidy schemes to be registered in the database from £500,000 to £100,000.
• Amendment 33 ensures that minimum financial assistance under £315,000 is subject to the subsidy database requirements despite being exempt from other control requirements.
• The amendments aim to enhance transparency and compliance with international commitments.
• Subsidies must be uploaded within six months of decision confirmation.
• Tax measures must be uploaded within one year.
• Individual awards less than £500,000 are exempt from the requirement to be uploaded.
• Amendment 35 would remove the exemption for subsidies under £500,000.
• The transparency database is crucial for organisations and local authorities to find information about subsidies being granted.
• Interested parties must be able to see subsidies to determine if they may be affected by subsidy control grounds.
• The Bill sets thresholds for transparency obligations, with subsidies below £500,000 or those under a scheme not requiring adherence to subsidy control principles.
• The cumulative threshold is £315,000 over three years for stand-alone subsidies.
• Large awards given under schemes over £500,000 must be uploaded to the database.
• 81% of respondents agreed with proposed rules on transparency in the consultation.
• Public authorities will publish a letter explaining MFA exemption to recipients.
• Subsidies below £315,000 over three years do not require registration.
• The Bill does not mandate publication of letters for each subsidy issued.
• Amendment 26 seeks to shorten the time period for tax measure subsidies entry in the database from one year to three months.
• Amendments 37 and 18 reduce the timeframe to enter a subsidy related to a tax measure or scheme to within one month.
• Amendment 38 requires public authorities to make entries as soon as practicable, but no later than one month after the date of the tax declaration.
• Amendment 26 would change time threshold from one year to three months for tax measures.
• Amendment 27 addresses the unclear definition of 'tax declaration'.
• Six-month period is proposed to be reduced to one month for non-tax measures.
• Amendments 37 and 38 aim to reduce the subsidy database entry period from six months or one year to one month.
• Public authorities currently have up to six months for non-tax measures and one year for tax measures to enter subsidies into the database.
• Jonathan Branton, a partner at DWF Group, questioned the necessity of such a long publication period during an evidence session.
• Six-month deadline proposed for uploading most subsidies.
• Twelve-month period allowed for tax subsidies due to complexity.
• Consultation received 74% agreement with the Government's approach.
• Amendment 27 would require a definition of a tax declaration in regulations before the subsidy control regime comes into force.
• The Minister reassures that most relevant tax declarations would indeed be tax returns but acknowledges other types such as duty.
• Clause 33 sets out the Secretary of State's power to change the threshold above which subsidies must be uploaded to the transparency database.
• Amendment 36 seeks to change the procedure for these regulations from negative to affirmative to ensure parliamentary scrutiny.
• Amendment 19 seeks to change 'may' to 'must'.
• Amendments aim to include specific details such as purpose, date of entry, duration, conditions, amount, and publication dates for subsidies.
• Additional amendments (42, 43, 44) allow the Secretary of State to set further information requirements.
• Amendments 40, 41, and 42 are proposed.
• Amendment 43 would include the date that a subsidy or scheme was entered on the database as mandatory information.
• Amendment 44 sets out requirements for public authorities when entering information about subsidies under schemes.