The Subsidy Control Bill has its second reading in Parliament tomorrow providing MPs with their first opportunity to debate the principles of this important piece of post-#Brexit legislation.
In this 🧵 I set out the main issues to look out for…
1/8 linkedin.com/posts/alexande…
In this 🧵 I set out the main issues to look out for…
1/8 linkedin.com/posts/alexande…
1) Is the overall strategy correct?
The Subsidy Control Bill aims to create a more permissive system than under EU State aid rules.
Doing away with EU rules will be popular but how will free market minded MPs respond to a policy of loosening the controls on public funding?
2/8
The Subsidy Control Bill aims to create a more permissive system than under EU State aid rules.
Doing away with EU rules will be popular but how will free market minded MPs respond to a policy of loosening the controls on public funding?
2/8
2) Transparency Concerns
The Government’s anti-corruption Tsar @JohnPenroseNews has raised concerns about the transparency of the subsidy regime.
Indeed there are fewer subsidies listed on the national database than public bodies awarding subsidies
tinyurl.com/Subsy
3/8
The Government’s anti-corruption Tsar @JohnPenroseNews has raised concerns about the transparency of the subsidy regime.
Indeed there are fewer subsidies listed on the national database than public bodies awarding subsidies
tinyurl.com/Subsy
3/8
3) What kind of subsidies will be subject to @CMAgovUK scrutiny?
We know certain subsidies will be subject to review by the Competition and Markets Authority - but the Government has yet to specify which types of subsidy will be subject to the mandatory referral process.
4/8
We know certain subsidies will be subject to review by the Competition and Markets Authority - but the Government has yet to specify which types of subsidy will be subject to the mandatory referral process.
4/8
4) Is the Subsidy Control Bill inconsistent with Levelling Up?
Redwall MPs may be surprised the Bill doesn’t include express provisions to incentivise investment into deprived areas
Indeed under the new rules it can be easier to fund a project in Mayfair than Middlesbrough
5/8
Redwall MPs may be surprised the Bill doesn’t include express provisions to incentivise investment into deprived areas
Indeed under the new rules it can be easier to fund a project in Mayfair than Middlesbrough
5/8
https://twitter.com/AlexanderPHRose/status/1438777183707795458
5) Who will design the safe harbours?
Thankfully the Subsidy Control Bill contains provision for the development of ‘Streamlined Subsidy Schemes’ (cf. safe harbours).
However these need to be designed with the input of practitioners. Will the Government set up a taskforce?
6/8
Thankfully the Subsidy Control Bill contains provision for the development of ‘Streamlined Subsidy Schemes’ (cf. safe harbours).
However these need to be designed with the input of practitioners. Will the Government set up a taskforce?
6/8
6) Making sure the new rules don’t inadvertently obstruct good projects
Some of the drafting in the Bill is problematic, for example an unnecessarily overly prescriptive definition of “ailing or insolvent”.
telegraph.co.uk/business/2020/…
7/8
Some of the drafting in the Bill is problematic, for example an unnecessarily overly prescriptive definition of “ailing or insolvent”.
telegraph.co.uk/business/2020/…
7/8
The Subsidy Control Bill is an incredibly important piece of post-#Brexit legislation shaping how public funding awarded by over 500 bodies can support our economy in the future.
It’s crucial the UK gets this right…
tinyurl.com/SubsidyLaw
8/8
It’s crucial the UK gets this right…
tinyurl.com/SubsidyLaw
8/8
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