Subsidy Control Bill

Kwasi Kwarteng Excerpts

3rd reading
Monday 13th December 2021 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I beg to move, That the Bill be now read the Third time.

I pay tribute to my hon. Friend the Minister for his leadership and diligence in steering the Bill through this House. I recognise the contribution of all the officials in my Department whose outstanding work has advanced us to this point. I thank you, Madam Deputy Speaker, and your colleagues for all the work you have done. I extend my thanks to all the House staff who have made sure that everything has gone as one might expect.

This Bill is a hugely important piece of legislation. It establishes a subsidy control system that has been designed by and for the UK. It demonstrates the Government’s clear commitment to seize the opportunities arising from Brexit. For the first time, the decision on whether to grant a subsidy will fall to the granting authority itself. At the heart of the regime is a set of clear and proportionate principles that will be underpinned by guidance.

Local authorities, public bodies and the devolved Administrations in Edinburgh, Cardiff and Belfast will be empowered to decide if they can issue taxpayer-funded subsidies by acting consistently with the principles outlined in the legislation. That includes a principle specifically designed to minimise distortions to UK competition and investment. The new regime will help to unlock potential so that all areas of the UK feel the benefits of targeted subsidies. That includes investment in skills, infrastructure, new technologies, and research and development.

With agreement, in Committee, the Government made some technical changes to the provisions to provide clarity in certain areas. Those included ensuring that the transparency requirements apply to subsidies under legacy schemes subject to certain exemptions and that the content of the CMA’s post-award report is consistent with that of its pre-award report.

There has been a thorough debate, including today, about specific elements of the regime. I welcome the recognition on both sides of the House of the need for the Bill. The new subsidy control regime will ensure that the UK maintains a competitive free market economy, which is fundamental to our national prosperity, while protecting the interests of the British taxpayer. The debate will continue through the remaining stages of the Bill as it passes to the other place and we will of course be mindful and attentive to that continuing debate. On that basis, I commend the Bill to the House.

--- Later in debate ---

[Kwasi Kwarteng]

I am very pleased that there have been as many contributions as there have been. I look forward to taking the Bill forward, as does my hon. Friend the Minister.

Question put and agreed to.

Bill accordingly read the Third time and passed.