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Subsidy Control Bill - Sitting 11

18 November 2021

Proposing MP
Caroline Nokes Con
Romsey and Southampton North
Type
Public Bill Committee

At a Glance

Issue Summary

Clause 78 of the Subsidy Control Bill addresses how subsidies provided by primary legislation are regulated under the subsidy control requirements. Caroline Nokes discusses amendments to clause 79 of the Subsidy Control Bill, focusing on the issuance of guidance by the Secretary of State. The statement discusses the Subsidy Control Bill and the need for clear and comprehensive guidance on how public authorities should interpret and apply subsidy control principles. Caroline Nokes discusses amendments requiring the Secretary of State to seek consent from devolved administrations before issuing guidance or making regulations under the Subsidy Control Bill. Paul Scully is addressing amendment 82, which proposes requiring the Secretary of State to seek consent from the devolved Administrations before issuing guidance on subsidy control. The Minister is discussing the Subsidy Control Bill and addressing amendments related to seeking consent from devolved Administrations. The discussion revolves around amendments to Clause 81 of the Subsidy Control Bill concerning permitted modifications to subsidies and schemes. The discussion revolves around the Subsidy Control Bill, particularly clause 81 which allows for modifications to subsidy schemes without reassessment. The Minister is discussing amendments and clauses related to subsidy modifications in the Subsidy Control Bill. Seema Malhotra proposes an amendment to Clause 91 of the Subsidy Control Bill. Caroline Nokes discusses an amendment to the Subsidy Control Bill regarding a three-month period before parts of the Act come into force after certain regulations and guidance are issued. The minister is discussing amendments related to the commencement of the Subsidy Control Bill and addressing concerns about ensuring proper guidance and preparation for public authorities before the new regime begins. Caroline Nokes discusses the Subsidy Control Bill, specifically addressing new clause 4 which requires annual reporting on subsidies and schemes by the Secretary of State and devolved administrations. The statement discusses the importance of transparency in the Subsidy Control Bill and the role of public authorities in reporting subsidies.

Action Requested

The clause outlines specific obligations for those responsible for subsidies within primary legislation, ensuring transparency and robust regulation while accommodating constitutional considerations. It also specifies that voluntary referrals to the subsidy advice unit can be made at discretion without mandatory referrals causing procedural delays or disruptions.

Key Facts

  • Clause 78 applies provisions in the Subsidy Control Bill to subsidies given by means of primary legislation.
  • Paragraphs 6 and 7 apply subsidy control principles, prohibitions, requirements, and exemptions to devolved primary legislation.
  • Voluntary referrals may be made for subsidies or schemes of interest in devolved primary legislation without mandatory referrals.
  • Caroline Nokes discusses amendments 24 and 81.
  • Amendments seek to mandate guidance on specific areas of clause 79.
  • Amendment 24 ensures guidance is made by affirmative regulation.
  • Clause 79 allows the Secretary of State to issue statutory guidance.
  • Consultation includes devolved Administrations, businesses, and public authorities.
  • Guidance will be issued before the Bill comes into force in autumn.
  • Amendment 82 requires consent from devolved administrations before issuing guidance under Clause 79.
  • Amendment 86 proposes similar requirements for the Secretary of State to seek consent before making regulations under the Act.
  • If consent is not given within one month, the Secretary of State may proceed but must publish a statement explaining the decision.
  • Amendment 82 would require the Secretary of State to seek the consent of the devolved Administrations before issuing guidance.
  • Clause 79 allows for adding greater detail to public authorities on compliance requirements through statutory guidance.
  • The Bill currently states that the Secretary of State must consult appropriate persons before issuing further guidance.
  • Amendment 86 requires the Secretary of State to seek consent from devolved Administrations before making regulations under the Bill.
  • If consent is not given, the Secretary of State must publish a statement explaining why they proceeded without consent.
  • Clause 79 gives the Secretary of State power to issue and update guidance on subsidy scheme implementation.
  • Amendment 83 proposes replacing 'up to 25%' with 'up to the rate of inflation'.
  • Amendment 84 would remove paragraph (g) which allows six-year extensions.
  • Amendment 85 would replace '25%' with 'inflation rate' in clause text.
  • The clause allows for a limited degree of modification to subsidy schemes without reassessment.
  • EU state aid regime allows an increase of up to 20% in the original budget of an existing scheme before notification and approval are required from the EU Commission.
  • UK's proposed rule provides a 25% uplift, intended to reduce unnecessary processes and provide maximum certainty.
  • Clause 81 allows modifications up to a 25% increase of the original budget or extension by up to six years.
  • Clause 82 enables secondary legislation for determining gross cash and gross cash equivalent values.
  • Clause 83 makes consequential amendments to the Financial Services Act 2021 regarding Gibraltar.
  • Clause 84 establishes that expenditure incurred under the Bill will be paid out of money provided by Parliament.
  • Amendment 87 is proposed by Seema Malhotra.
  • The amendment aims to insert text into clause 91, page 50, line 26.
  • The Act must come into force no later than six months following Royal Assent.
  • Amendment 25 proposes a three-month period after the issuance of certain regulations and guidance.
  • The amendment focuses on sections 34, 52, and 79 of the Act.
  • The aim is to ensure that organisations have time to understand and comply with the new regime.
  • Amendment 25 proposes requiring regulations to have been in force for at least three months before the new regime commences.
  • Amendment 87 seeks to ensure that the Act comes into force no later than six months following Royal Assent.
  • Clause 91 establishes provisions for bringing parts of the Bill into effect, with certain powers coming into force on the day of Royal Assent.
  • New Clause 4 requires annual reporting on subsidies and schemes by the Secretary of State, Scottish Ministers, Welsh Ministers, and Northern Ireland Department of Economy.
  • All reports under subsection (1) must be published.
  • The statement addresses the new clause which mandates annual reports on subsidies by public authorities.
  • The minister highlights the use of a subsidy database as a one-stop shop for transparency.
  • There is recognition of the need to balance transparency with administrative efficiency.
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