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25 Jan 2023

Time to reap the benefits? The UK's new subsidy control regime comes into effect

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We are pleased to share with you our briefing on the UK's new subsidy control regime under the Subsidy Control Act 2022 ("SCA") which came into full effect on 4 January 2023.  It provides an overview of the key features of the new regime, which represents a substantial change to the EU State aid rules that applied to the UK before the end of the transition period. 

Indeed, the UK Government has long set much store behind the introduction of a bespoke subsidy control regime. In its Brexit negotiations with the European Union, the disapplication of the EU State aid rules was a key red line for the UK. It is hoped that a targeted system of subsidy awards will better enable the UK Government to pursue key aspects of its socio-economic agenda, such as its so-called 'Levelling Up' programme, by empowering public authorities in the UK to award direct subsidies and introduce subsidy schemes with greater autonomy and discretion in a quicker, fairer and simpler way. 

Only time will tell whether the SCA will enable UK public authorities to boost industry sectors and tackle regional inequalities without creating distortive effects on competition and investment in the UK.

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