UK's New Subsidy Control Law: Key Features You Need To Know

Public authorities and businesses in the UK have not escaped State aid controls with the UK's withdrawal from the EU. Partly in order to fulfil commitments made in the UK-EU Trade and Co-operation Agreement, the UK government enacted the Subsidy Control Act 2022 which came into force at the start of 2023. This Act applies to any type of subsidy or financial assistance provided by a public authority to an enterprise, i.e. any business.

The new rules impose important considerations for any business receiving funding in any form from any public authority, because a court could order recovery of any non-compliant funding, i.e. it could require the relevant public authority to obtain repayment from the beneficiary business, possibly with interest. Public authorities, on the other hand, should be concerned to ensure that any financial assistance or support that they provide to any business is fully in compliance with the Act so that the projects or activities that they