Find out about subsidy control

Subsidy control, previously known as state aid, is a legal framework that controls the giving of subsidies.

A subsidy is a grant, tax relief, or any other financial assistance given directly to a business by the government or a public organisation. 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. The new statutory subsidy control regime replaced EU state aid rules.

Business rates and limits

Business rates reliefs awarded under discretionary powers will likely be considered as a subsidy.

The Retail, Hospitality and Leisure Relief Scheme and Supporting Small Business Relief are subject to the Minimal Financial Assistance (MFA) limits under the Subsidy Control Act. This means no recipient can receive more than £315,000 over a 3-year period. These 3 years are made up of the current financial year and the 2 previous financial years.

COVID-19 business grants received from local government and any other subsidy claimed under the Minimal Financial Assistance or Small Amounts of Financial Assistance Allowance over the 3 years should be counted.

The Council will automatically withhold reliefs where it is clear the ratepayer will, or is likely to, exceed the MFA limit.

What do I need to do?

If you, or a company in your group, have received more than the Minimal Financial Assistance limit of £315,000 over 3 years, including the current financial year, you must contact the Council so that any award of relief can be removed or adjusted to meet the MFA limit.

You do not need to do anything if you do not exceed these limits.

More information

Further details about subsidy control can be found on the GOV.UK website.