Subsidy Control Act 2022

81 Modifications to subsidies and schemes U.K.

(1) The modification of a subsidy or a subsidy scheme is to be treated for the purposes of this Act as the giving of a new subsidy, or the making of a new subsidy scheme, for the purposes of the application of the subsidy control requirements.

(2) Subsection (1) does not apply—

(a) for the purposes of section 33(1) and (3) (see instead section 33(5)), or

(b) if the modification is only a permitted modification (but section 33(5) applies to a permitted modification as it applies to other modifications).

(3) A modification to a subsidy or subsidy scheme is a “permitted modification” if it is a modification of any of the following kinds—

(a) a legacy subsidy modification;

(b) a withdrawal agreement subsidy modification;

(c) a modification (whether made under section 8 of the European Union (Withdrawal) Act 2018 or otherwise) to prevent, remedy or mitigate—

(i) any failure of the subsidy or scheme to operate effectively, or

(ii) any other deficiency relating to the subsidy or scheme,

arising from the withdrawal of the United Kingdom from the European Union;

(d) the amendment made by section 48(4);

(e) an administrative modification;

(f) an increase of up to 25% of the original budget for the subsidy or subsidy scheme;

(g) an extension of a subsidy scheme by up to six years (in total) beginning with the date on which the subsidy scheme would otherwise have terminated.

(4) In subsection (3)(a), “legacy subsidy modification” means the modification of a legacy subsidy, or a legacy scheme, as permitted under the subsidy or scheme in accordance with its terms as they had effect before the coming into force of this section.

(5) In subsection (3)(b), “withdrawal agreement subsidy modification” means the modification of a withdrawal agreement subsidy, or a withdrawal agreement scheme, as permitted under the subsidy or scheme in accordance with its terms as they had effect before the coming into force of this section.

(6) Where the terms of the subsidy or subsidy scheme provide for changes to the original budget, the 25% referred to in subsection (3)(f) is to be calculated by reference to the financial year in which the permitted modification to that subsidy or scheme is made.

(7) In this section—

• “legacy subsidy” and “legacy scheme” mean the subsidies and schemes listed in section 48(1);

• “withdrawal agreement subsidy” and “withdrawal agreement scheme” mean the subsidies and schemes listed in section 48(3).

Commencement Information

I1 S. 81 not in force at Royal Assent, see s. 91(2)

I2 S. 81 in force at 4.1.2023 by S.I. 2022/1359, reg. 2