SCHEDULES

SCHEDULE 1 The subsidy control principles
Section 9

A Common interest
Subsidies should pursue a specific policy objective in order to—
(a) remedy an identified market failure, or
(b) address an equity rationale (such as local or regional disadvantage, social difficulties or distributional concerns).
Sch. 1 para. A in force at Royal Assent, see s. 91(1)(a)

B Proportionate and necessary
Subsidies should be proportionate to their specific policy objective and limited to what is necessary to achieve it.
Sch. 1 para. B in force at Royal Assent, see s. 91(1)(a)

C Design to change economic behaviour of beneficiary
(1) Subsidies should be designed to bring about a change of economic behaviour of the beneficiary.
(2) That change, in relation to a subsidy, should be—
(a) conducive to achieving its specific policy objective, and
(b) something that would not happen without the subsidy.
Sch. 1 para. C in force at Royal Assent, see s. 91(1)(a)

D Costs that would be funded anyway
Subsidies should not normally compensate for the costs the beneficiary would have funded in the absence of any subsidy.
Sch. 1 para. D in force at Royal Assent, see s. 91(1)(a)

E Least distortive means of achieving policy objective
Subsidies should be an appropriate policy instrument for achieving their specific policy objective and that objective cannot be achieved through other, less distortive, means.
Sch. 1 para. E in force at Royal Assent, see s. 91(1)(a)

F Competition and investment within the United Kingdom
Subsidies should be designed to achieve their specific policy objective while minimising any negative effects on competition or investment within the United Kingdom.
Sch. 1 para. F in force at Royal Assent, see s. 91(1)(a)

G Beneficial effects to outweigh negative effects
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.
Sch. 1 para. G in force at Royal Assent, see s. 91(1)(a)