Subsidy Rules

Subsidy is financial assistance which:

• is given, directly or indirectly, from public resources by a public authority
• confers an economic advantage on one or more enterprises
• is specific, that is, is such that it benefits one or more enterprises over one or more other enterprises with respect to the production of goods or the provision of services and
• has, or is capable or having, an effect on
  

  1	competition or investment within the United Kingdom,
  2	trade between the United Kingdom and a country or territory outside the United Kingdom, or
  3	investment as between the United Kingdom and a country or territory outside the United Kingdom

The Subsidy Control Act 2022 came into force on 4 January 2023.  This law replaces the EU state aid rules, which no longer apply in the UK for new subsidies awarded after 1 January 2021, unless the grant funding will affect trade between Northern Ireland and the EU.

Subsidy Declaration

Under the Subsidy Control Act 2022, any business seeking financial assistance from Mid Devon District Council (such as a grant or rate relief) must declare any subsidies they have received in the current financial year and preceding two financial years. This includes any financial assistance from a public body (including local councils). Examples include, but are not limited to:

• Grants and Funding Awards (including annual strategic grant awards managed as well as individual grants received in response to successful funding applications/requests). This is all grant values no matter how small or large.
• Business Rate Reliefs and Tax Breaks (including Small Business Rate Relief, Retail Rate Relief etc).  
• Grants issued from Government or Government bodies on its behalf, such as Business Support Grants, funding received from DeFRA, Innovate, BEIS.
• Any Loans on Favourable Terms issued by a public body.
• Facilities provided below market price (including rental of business units owned by a Local Authority).

Subsidies do not include any personal income benefits such as Universal Credit or Self-Employment Income Support Scheme. You do not need to include these.

All of the business grants and rate reliefs awarded by Mid Devon District Council count towards Subsidy levels. This includes projects awarded under the Shared Prosperity Fund / Rural England Prosperity Fund. 

Businesses applying for financial assistance from Mid Devon District Council will be asked to complete a Subsidy Declaration Form.  If you require assistance completing this, please let us know.

We’re currently implementing changes to our business grants and rate relief processes to comply with this new law.  We’ll be in touch with you directly if any changes affect you immediately.

In the meantime, if you have any questions about Subsidy Control please email businessgrants@middevon.gov.uk or revenues@middevon.gov.uk.