Overview

This bill amends the Subsidy Control Bill, primarily clarifying rules around subsidy schemes, government spending transparency, and parliamentary oversight. Key changes include adjusting notification periods, defining subsidy valuation, and specifying exceptions to transparency requirements for smaller subsidies.

Description

The Lords Amendments to the Subsidy Control Bill introduce several significant changes. These include:

• Parliamentary Scrutiny: A 40-day period is established for Parliament to review and potentially reject subsidy schemes. This period excludes parliamentary recesses.
• Subsidy Valuation: The bill clarifies that subsidy value can be determined by either gross cash amount or its equivalent. This applies to both standard and streamlined subsidy schemes.
• Marketable Risk Countries: Amendments streamline the process for designating countries posing a marketable risk, shifting from directions to regulations.
• Regional Aid Exemptions: Conditions are added for when subsidies are permitted to address social or economic disadvantages in specific areas, ensuring these subsidies contribute to an overall reduction in national disadvantage and genuinely change economic activity.
• Transparency Thresholds: The threshold for transparency requirements under the Subsidy Control Bill is lowered from £500,000 to £100,000 for certain types of subsidies.
• Notification Timelines: Shorter notification periods (three months instead of six) are introduced for reporting subsidies and modifications, particularly those involving tax measures.
• Government Powers: The Secretary of State gains power to adjust notification periods and financial thresholds through regulations.
• Consultation Requirements: The bill clarifies and amends certain consultation requirements.

Government Spending

The amendments themselves don't directly increase or decrease government spending. However, changes to transparency and notification thresholds might impact the administrative costs of managing and reporting on subsidies. The exact financial implications are not specified in the provided text.

Groups Affected

• Government Departments: Will need to adapt their subsidy schemes and reporting processes to comply with the new rules.
• Businesses receiving subsidies: May face changes to how subsidies are calculated, applied, and reported.
• Parliament: Will have a more defined role in scrutinizing and potentially rejecting subsidy schemes.
• The public: Will have increased transparency regarding subsidies above £100,000.

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