UK Subsidy Control: An Introduction And Some Reflections One Year On

The UK's "Post-Brexit" subsidy control regime has now been in place for almost one year. We reflect below on how the regime is taking shape in light of its objectives, and consider how cases have been dealt with by the Subsidy Advice Unit and Competition Appeal Tribunal.

In particular, the recent judgment of the Tribunal in Max Recycle suggests that State aid concepts and precedents may be of limited weight going forward, given the differences between the two regimes. The case also provides insight into key aspects of the Tribunal's likely approach to future subsidy control appeals.

The UK Subsidy Control regime

The Subsidy Control Act 2022 (the Act) entered into force on 4 January 2023 and introduced a new subsidy control regime that UK public authorities must follow when making subsidy decisions. The Act was introduced in accordance with the UK's obligations under the EU-UK Trade and Cooperation Agreement and is intended to maintain 'a level playing field'