Subsidy Control Bill — Schedule 1 — The Subsidy Control Principles — Net Zero Greenhouse Gasses Emissions Target — 13 Dec 2021 at 20:00

The majority of MPs voted not to require the benefits of any subsidies to outweigh any negative effects on the UK's aim of net zero emissions of targeted greenhouse gases by 2050.

MPs were considering the Subsidy Control Bill.^[1][2][3]

The Bill provided for state subsidies for businesses subject to them being proportionate and effective means of pursuing a policy, a last resort, and implemented in a way to minimise impacts on competition and investment.

The amendment rejected in this vote was:

• Amendment 16, page 52, line 6, at end insert—
• “(c) consistency with the United Kingdom achieving its net-zero commitments established under the Climate Change Act 2008.”

The rejected amendment was accompanied by the following explanatory statement from its proposer:

• This amendment adds consistency with the UK’s net-zero commitments as a particular consideration for public authorities before deciding whether to give a subsidy.

Had it not been rejected the amendment would have impacted Schedule 1 of the Bill which set the "subsidy control principles".

Principle G, to which the proposed text would have been added, stated:

• Subsidies’ beneficial effects (in terms of achieving their specific policy objective) should outweigh any negative effects, including in particular negative effects on—
• (a) competition or investment within the United Kingdom;
• (b) international trade or investment.

Clause 12 of Bill^[2][3] states authorities "must not give the subsidy unless it is of the view that the subsidy is consistent with [the subsidy control] principles."

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• [1] Parliament's webpage on the Subsidy Control Bill, Parliament.uk
• [2] Subsidy Control Bill as introduced to the House of Lords, 14 December 2021, Parliament.uk
• [3] Explanatory notes to the Subsidy Control Bill as introduced to the House of Lords, 14 December 2021, Parliament.uk

Debate in Parliament |