Review of the effectiveness and impact on competition and investment in the UK of the UK’s Subsidy Control Act
Source: gov.uk (2025-04-15)

As required by the Subsidy Control Act 2022 we are reporting on the effectiveness and impact on competition and investment in the UK of the UK’s subsidy control regime.

Administrative Timetable

Call for inputs: closed

15 April 2025: After our previous consultation (https://www.gov.uk/government/consultations/subsidy-advice-unit-proposed-approach-to-monitoring-under-the-subsidy-control-act-2022) on what to include, we plan to review the effectiveness of the subsidy control regime by assessing how well it is meeting the objectives set out by the UK Parliament.

Respond by 24 June 2025 (now closed) through our dedicated call for inputs (https://www.gov.uk/government/calls-for-evidence/review-of-the-effectiveness-and-impact-of-the-uks-subsidy-control-act-call-for-inputs) page.

Proposed approach to monitoring under the Subsidy Control Act 2022 consultation: now closed

1 February 2024: The SAU launched a consultation which provided an explanation of, and requested views on, the SAU’s proposed approach to carrying out its monitoring function. The consultation, which closed on 28 March 2024, received 16 responses.

The SAU published the 16 responses received, along with a summary document on the consultation page (https://www.gov.uk/government/consultations/subsidy-advice-unit-proposed-approach-to-monitoring-under-the-subsidy-control-act-2022).

We note that the consultation was carried out, and all responses received, prior to the general election of 4 July 2024 and so under the last administration.

Background

The SAU of the Competition and Markets Authority (CMA) is required by the Subsidy Control Act 2022 (the Act) to review the effectiveness of the operation of the Act, and the impact of the Act on competition and investment within the UK.

This covers all aspects including, but not limited to, guidance, the referral process, our own role in the SAU, the ability to challenge subsidies, as well as the thresholds and exemptions that apply.

After consulting in January 2024 (https://www.gov.uk/government/consultations/subsidy-advice-unit-proposed-approach-to-monitoring-under-the-subsidy-control-act-2022) on our approach, we plan to review the effectiveness of the subsidy control regime by assessing how well it is meeting the objectives set out by the UK Parliament.

These are:
- empowering public authorities to design subsidies that deliver strong benefits for the UK taxpayer and deliver strategic interventions to support the UK’s economic growth and policy priorities
- providing certainty and confidence to businesses investing in the UK
- contributing to the UK’s international commitments on subsidy control
We’ll also be looking at the impact of the regime on competition and investment in the UK. This means looking at the types of subsidies given or not given, and their impact on:
- prices
- market shares
- entry and exit
- location
- output
- investment decisions
- customer behaviour
The SAU must publish and lay its first report before Parliament as soon as is practicable after the end of the first reporting period (31 March 2026). We intend to do so by summer 2026.

For more information, see our accompanying blog (https://competitionandmarkets.blog.gov.uk/2025/04/15/the-uks-subsidy-control-regime-have-your-say/).

Contact:
- SAU team: xxx@xxx.xx (mailto:xxx@xxx.xx)
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)
Personal information

The CMA may collect, use and share personal data for its market investigations under the Enterprise Act 2002. This includes processing personal data for the purposes of the UK General Data Protection Regulation and the Data Protection Act 2018.

For more information about how the CMA handles personal information, please see the CMA’s personal information charter (https://www.gov.uk/government/organisations/competition-and-markets-authority/about/personal-information-charter).