Clifford Chance
UK Subsidy Control Regime entered into force on 4 January 2023
5 January 2023
On 4 January 2023, the main provisions of the UK's Subsidy Control Act 2022 (SCA) entered into force. From this day, subsidies granted by UK public authorities (Public Authorities) to businesses operating in the UK (Recipients) will be subject to the SCA. Following Brexit, most subsidies granted by Public Authorities were governed by the Trade and Cooperation Agreement between the UK and the EU (TCA), whereas the EU's State aid rules applied prior to Brexit.
This shift in legislative landscape presents opportunities for Public Authorities and Recipients alike, as the UK seeks to forge a less burdensome pathway towards economic growth, facilitated by financial assistance originating from the public sector. Early navigation of this territory will nevertheless be tricky, as questions over the interpretation and enforcement of the regime are as of yet unsettled.
