Subsidy Allowances

If your organisation has received an award of discretionary relief and the total amount will exceed the subsidy control/cash cap levels you must notify the council immediately so that a full determination can take place.

The Subsidy Control Act allows an economic actor to receive up to £315,000 in a 3-year period (the 2023/24 year and the 2 previous financial years).

Discretionary relief is likely to amount to being classed as a subsidy. Therefore, reliefs such as Retail, Hospitality & Leisure, Supporting Small Business and CARF would all be classed as subsidies.

Retail Discount granted in 2021 to 2022 does not count towards the £315,000 allowance but business support grants made by councils during the pandemic (which fall within the 3-year period) and any other subsidy claimed under the Minimal Financial Assistance or under the Small Amounts of Financial Assistance limit of the Trade and Cooperation Agreement should be counted under the £315,000 allowance.

It is the responsibility of ratepayers, on a self-assessment basis, to inform the authority if they are in breach of the Minimal Financial Assistance MFA limit. If they are not, they do not need to do anything

The new UK subsidy control regime commenced from 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments.

The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. See more information on the UK subsidy control regime.