The Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) (Amendment) Regulations 2025, effective August 4th, 2025, amend the 2022 Subsidy Control Regulations.
The key change increases the threshold for subsidies deemed 'of particular interest' from £10 million to £25 million in non-sensitive sectors.
This amendment impacts how public authorities must refer subsidies before disbursement, as schemes enabling these higher-value subsidies are considered 'schemes of particular interest' under the 2022 Act.
Arguments For
Increased Flexibility for Businesses: Raising the threshold allows for larger subsidies in non-sensitive sectors, potentially stimulating economic growth and investment.
Reduced Administrative Burden: The higher threshold may reduce the number of subsidies requiring referral to the Competition and Markets Authority, streamlining the process for businesses and public authorities.
Alignment with EU Practices: The amendment could reflect evolving practices in similar subsidy regimes, promoting consistency and reducing complexity for businesses operating across jurisdictions.
Economic Stimulus: The increase in the threshold may foster conditions for larger-scale projects which benefit the economy, by enabling larger subsidies in sectors that need more investment.
Arguments Against
Potential for Increased State Aid Concerns: Higher thresholds could raise concerns about potential distortions in competition, and increased state aid concerns without proper oversight.
Impact on smaller businesses: A higher threshold for 'particular interest' subsidies could disadvantage smaller businesses compared to larger corporations in access to funding.
Insufficient public scrutiny: The higher threshold may reduce scrutiny of larger subsidies which could result in poor use of public funds and less accountability to the public.
Limited impact assessment: The lack of a full impact assessment could mean unforeseen consequences from the change in threshold.
- Citation, commencement and extent (1) These Regulations may be cited as the Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) (Amendment) Regulations 2025. (2) These Regulations come into force on 4th August 2025. (3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section details the title, effective date, and geographical scope of the regulations.
The regulations are officially titled 'Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) (Amendment) Regulations 2025', taking effect on August 4th, 2025, and applying across the UK.
- Amendment of the Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) Regulations 2022 In sub-paragraph (b) of regulation 3(2) of the Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) Regulations 2022, for “£10 million” substitute “£25 million”.
This section specifies the amendment made to existing legislation.
It modifies the 2022 Subsidy Control Regulations by raising the financial threshold in regulation 3(2)(b) from £10 million to £25 million.
This threshold determines when a subsidy is considered 'of particular interest', triggering specific reporting requirements.
Explanatory Note (This note is not part of the Regulations) These Regulations amend the Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) Regulations 2022 (“the 2022 Regulations”). In particular, regulation 2 amends regulation 3(2) of the 2022 Regulations by increasing the threshold (in non-sensitive sectors) above which subsidies (individually or cumulating with other related subsidies) are deemed subsidies of particular interest, from £10 million to £25 million. A subsidy scheme that allows one or more subsidies of particular interest to be given under it is deemed a scheme of particular interest. Section 52(1)(a) of the Subsidy Control Act 2022 requires a public authority to refer subsidies or subsidy schemes of particular interest to the Competition and Markets Authority before they are given or made, respectively. A full impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sector is foreseen. An Explanatory Memorandum is published alongside this instrument on www.legislation.gov.uk.
The explanatory note clarifies the purpose and effects of the regulations.
The regulations change the 2022 subsidy control regulations by raising the threshold for a subsidy to be considered 'of particular interest' from £10 million to £25 million.
This means subsidies above this threshold must be referred to the Competition and Markets Authority.
The note also states that a full impact assessment was deemed unnecessary.
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