Subsidy Control
The Subsidy Control Act 2022 aims to prevent unfair competition or negative effects on trade and investment between the UK and a country or territory outside the UK.
About the Subsidy Control Act 2022
About the Subsidy Control Act 2022
The Subsidy Control Act 2022 came into force on 4 January 2023, replacing previous EU State aid regulation for awarding subsidies.
To ensure that all awards we make are legal, Arts Council England needs to undertake compliance work to minimise any negative effects on competition or investment between the UK and a country or territory outside the UK.
The Department for Business and Trade (DBT), has issued guidance on the Act. This guidance helps public authorities, such as Arts Council England, to award subsidies in a way which minimises any negative effects on competition and investment, as well as promoting the effective and efficient use of public money.
If you have been awarded a subsidy, DBT has issued guidance you may find helpful here.
For a subsidy to be permitted it has to comply with seven principles, as set out on the guidance on the UK government website.
Public authorities may set up ‘Subsidy Schemes’ which meet these seven principles.
Subsides above a certain financial threshold (currently £100,000) must be published on a database held by DBT.
What does this mean for me?
What this means for applicants
It is Arts Council England’s responsibility to comply with the rules, though we may ask applicants or grant recipients to help us during the process.
If we believe your award is a Subsidy as defined by the Subsidy Control Act, we will inform you of this. There may be additional conditions as part of your funding agreement to ensure we maintain compliance.
If you award is classed as a subsidy and is for over £100,000 or above, we will also need to publish its details on the UK Subsidies Transparency Database.
For further support we’ve put together some Frequently Asked Questions.
What is a subsidy?
Subsidy Schemes
A subsidy scheme is a set of rules that describes the eligibility, terms, and conditions for any number of possible subsidies of a similar type.
Subsidy schemes allow public authorities to make multiple awards without needing to complete individual assessments.
We will share details of Subsidy Schemes here as they are announced.
Legacy Subsidy Schemes
Legacy Subsidy Schemes
Legacy schemes are subsidy schemes that were in existence prior to the Subsidy Control Act 2022 coming into force.
Legacy subsidies and schemes are exempt from the subsidy control requirements of the Act but, depending on value, they may still have to be reported on the Government’s Transparency Database.
Notice of Legacy Subsidy Schemes
EU State Aid Law
EU State Aid Law
The previous EU State Aid Law will still apply to some grants awarded before 31 December 2020.
UK state aid guidance can be found on the UK government website.