Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what additional funding he will make available to businesses affected by unsafe cladding who have a shortfall in funding as a result of the effect of state aid de minimis rules.

In order to operate funds for the remediation of unsafe cladding prior to the end of the United Kingdom and European Union transition period on 1 January 2021 the Government was required to adhere to EU State aid rules. As set out in the answer to the Hon Member’s previous question of 11 March 2021 (UIN 167376), the EU State aid De Minimis rules includes a maximum threshold of €200,000 that a business can receive in funding over a three year period. EU State aid rules no longer apply in the United Kingdom, except for aid in scope of the Northern Ireland Protocol, and so do not apply to applications for Government funding for cladding remediation made after 1 January 2021. The Department has written to applicants detailing the implications of the new subsidy control regime on their applications, and will publish updated guidance shortly. We continue to process applications in adherence with the new subsidy rules.

We are aware of instances where State aid rules have resulted in deductions to the funding provided through the remediation fund for applications before 1 January 2021, and are working closely with applicants to ensure unsafe cladding is remediated as quickly as possible. It is not permitted to provide additional funding to businesses to compensate for deductions which have been made in order to adhere to State aid rules.