Referral of the proposed subsidy to Ebbsfleet Garden City Trust by Ebbsfleet Development Corporation
Source: gov.uk (2025-03-28)

The Subsidy Advice Unit (SAU) has published a report providing advice to Ebbsfleet Development Corporation (EDC) concerning its proposed subsidy to Ebbsfleet Garden City Trust (the Trust).

Administrative timetable

Final report

28 March 2025: The SAU has published its report providing advice to EDC concerning the proposed subsidy to the Trust. The report sets out the SAU’s evaluation of EDC’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-subsidy-to-ebbsfleet-garden-city-trust-by-ebbsfleet-development-corporation) (28.3.2025)
Request from Ebbsfleet Development Corporation

14 February 2025: The SAU has accepted a request for a report from EDC concerning the proposed subsidy to the Trust. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of EDC’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by Ebbsfleet Development Corporation

EDC is an Urban Development Corporation created under the powers in the Local Government, Planning and Land Act 1980. It is an ‘arms-length body’ of the Ministry of Housing, Communities and Local Government (MHCLG) and was established by the Government for the purpose of regenerating the Ebbsfleet area. It is a short-life organisation which will close once its purpose of delivering new homes and facilitating the creation of new parks and open spaces has been achieved.

EDC was established in 2015 to support the delivery of up to 15,000 homes, providing a platform for thousands of new jobs and opportunities for the local workforce and to create a 21st Century Garden City. Delivery of the new community at Ebbsfleet resulted in the creation of community assets including buildings and parks/open space. EDC has been working since its establishment to design and implement a cohesive strategy for the ongoing ownership and management of these assets. As part of the preferred strategy, in 2020, approval was given by HM Treasury for the creation of the Trust to provide a viable and sustainable vehicle for the long-term stewardship and management of the strategic community assets within the Garden City. The Trust was established as a key vehicle within the exit strategy of EDC. As the scope of interventions delivered by EDC continues to develop, it is envisaged that an increasing number of community assets will be transferred to the ownership and management of the Trust.

The proposed subsidy will see the transfer of six commercial assets (including retail units, commercial and office/work space, and community facilities) from EDC to the Trust, which will provide an income to Trust, ensuring that it remains financially viable and sustainable in the long-term. In turn, this will enable the Trust to safeguard the long-term management and future of strategic community assets (i.e. six interconnected natural and semi-natural spaces including parks and lakes) for the benefit of the local community. The value of the subsidy is £40,013,000, consisting of the asset transfer and a grant of £13,850,000 for development of one of the assets. Should this subsidy not be delivered, the potential consequences could include the folding of the Trust and the consequential negative impact on achieving the strategic objective of implementing a cohesive approach to the long-term management of the strategic community assets, or a longer-term requirement for EDC or MHCLG to provide revenue grant funding to support the Trust. Should the Trust fail, key strategic community assets such as parks, open spaces, and other green and blue infrastructure would likely fall into disrepair, negatively impacting the quality of life for residents and eroding the sense of community cohesion. Moreover, some planned strategic community assets in the Garden City may not even be delivered given that they would have no long-term ownership or operational management plan without the Trust.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to the Trust please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx)

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with EDC. The SAU will send a copy of your submission to EDC together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the EDC using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)