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ARTICLE · 29 JULY 2026

When Has A Subsidy Been Granted? Insights From Recent Cases

Macfarlanes LLP
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Recent UK court decisions are clarifying critical procedural questions under the Subsidy Control Act 2022, including when subsidies can be challenged, what constitutes a reviewable decision, and the scope of the Competition Appeals Tribunal's authority. These rulings establish important precedents for both public authorities granting subsidies and parties seeking to challenge them.

United KingdomGovernment, Public Sector

As with any new legislative regime, there are a number of key questions surrounding the interpretation and scope of the Subsidy Control Act 2022 (the Act) and the ability to challenge subsidy decisions of granting bodies. Recent judgments are now addressing a number of these issues, as discussed below. 

The Act came into force on 4 January 2023. One of the key changes it introduced was the emphasis on private enforcement to ensure that subsidies are properly awarded. Under the Act, subsidies no longer require formal approval from an external body. Instead, granting bodies can self-assess whether a subsidy has been granted and if so, whether it is appropriate to provide the subsidy following a “principles assessment”. Large subsidies must be referred to the Subsidy Advice Unit, but ultimately it is still for the granting body to determine how to proceed following that referral process. Third parties can challenge alleged breaches of the Act by bringing a claim before the Competition

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