Select Committee · Business and Trade Committee

Post-pandemic economic growth: State Aid and Post Brexit Competition Policy

Status: Closed Opened: 23 Sep 2021 Closed: 3 May 2023 17 recommendations 13 conclusions 1 report

The Business, Energy and Industrial Strategy (BEIS) Committee would like to hear the views of UK businesses on the future role that government will play in investing in industry and shaping competition policy. The views and ideas that business leaders provide will help inform the Committee as it starts work on its inquiry, on State …

Clear

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Post-pandemic economic growth: state aid an… HC 759 25 Oct 2022 30 Responded

Recommendations & Conclusions

8 items
6 Conclusion Fourth Report - Post-pandemic economic … Not Addressed

We are encouraged to learn that the CMA is satisfied that it has received adequate...

We are encouraged to learn that the CMA is satisfied that it has received adequate resources to deliver its post-Brexit responsibilities, and that it appears to have made a good start in achieving its aims. However, the incoming Chair and Chief Executive will face major challenges in managing its expansion …

Government response. The CMA welcomes the Digital Markets, Competition and Consumer Bill. The response then discusses concentration in manufacturing industries, international trade, and collaboration with overseas consumer protection authorities.
Department for Business and Trade
8 Recommendation Fourth Report - Post-pandemic economic … Not Addressed

We believe that the non-binding nature of the CMA’s role when advising on subsidies which...

We believe that the non-binding nature of the CMA’s role when advising on subsidies which are referred to its Subsidy Advice Unit will be sufficient in the majority of cases. The Government should ensure that the CMA has the resources necessary for the Subsidy Advice Unit to advise public authorities …

Government response. The CMA supports the provision of effective and accessible ombudsmen services, and looks forward to the improvements that will be delivered by the Digital Markets, Competition and Consumer Bill. The Chartered Trading Standards Institute leads on ombudsmen and codes of …
Department for Business and Trade
9 Conclusion Fourth Report - Post-pandemic economic … Not Addressed

Public authorities will need to update their understanding of the rules of the new subsidy...

Public authorities will need to update their understanding of the rules of the new subsidy control regime when it comes into force in late 2022. This includes delivery of subsidies from the UK Shared Prosperity Fund, where public authorities will need to consider the new subsidy control regime rules.

Government response. The response describes CMA support for Online Dispute Resolution and Alternative Dispute Resolution in essential markets and work with international partners, but does not address public authorities needing to update their understanding of the rules of the new subsidy control …
Department for Business and Trade
10 Conclusion Fourth Report - Post-pandemic economic … Not Addressed

Although the UK Government has published further guidance on the implementation of subsides, there is...

Although the UK Government has published further guidance on the implementation of subsides, there is still a lack of detailed information in several areas of subsidy control guidance, which may cause uncertainty for public authorities who will need to seek advice on the new subsidy control regime after implementing the …

Government response. The government's response discusses consumer law enforcement and the CMA's support for reforms, which is unrelated to the committee's conclusion about the lack of detailed information on subsidy control guidance.
Department for Business and Trade
11 Conclusion Fourth Report - Post-pandemic economic … Not Addressed

The UK Shared Prosperity Fund is designed differently to its predecessor EU schemes.

The UK Shared Prosperity Fund is designed differently to its predecessor EU schemes. How subsidies are allocated, therefore, is crucial to ensuring the most effective use of public funds.

Government response. The government response discusses transparency and accountability of digital regulators, the Digital Regulation Cooperation Forum, its workplan, and opportunities for further engagement. This does not address how subsidies are allocated under the UK Shared Prosperity Fund.
Department for Business and Trade
12 Recommendation Fourth Report - Post-pandemic economic … Not Addressed

However, public authorities are in limbo until the Government publishes final guidance on the subsidy...

However, public authorities are in limbo until the Government publishes final guidance on the subsidy control regime. The UK Government needs to end this uncertainty by following the Scottish Government, which published guidance in September 2022, and publishing final guidance without delay. Only then will public authorities be in a …

Government response. The government response discusses the CMA's strategic aims for its work in digital markets and ongoing activities, without addressing the need to publish final guidance on the subsidy control regime or end the uncertainty faced by public authorities.
Department for Business and Trade
13 Recommendation Fourth Report - Post-pandemic economic … Not Addressed

The Government should update the Committee within one year of implementation on the performance of...

The Government should update the Committee within one year of implementation on the performance of the new subsidy control regime. (Paragraph 106) Consumer Policy

Government response. The CMA will continue to build the Digital Markets Unit, tackle market dominance and support the UK Government in its work to bring forward the Digital Markets, Competition and Consumers Bill.
Department for Business and Trade
15 Recommendation Fourth Report - Post-pandemic economic … Not Addressed

Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes,...

Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes, particularly for the most vulnerable in society. We 50 Post-pandemic economic growth: state aid and post-Brexit competition policy encourage Ministers to build upon existing UK consumer law and to refrain from fundamental changes to it. …

Government response. Departments will prepare their responses to the REUL Bill individually and keep the Parliamentary Business and Legislation Committee advised. Updated guidance will be developed and shared at the appropriate moment, and the Government will give the BEIS Select Committee early …
Department for Business and Trade

Oral evidence sessions

6 sessions
Date Witnesses
26 Apr 2022 Alesha de Freitas · Department for Business, Energy and Industrial Strategy, Niall Mackenzie · Department for Business, Energy and Industrial Strategy, Paul Scully MP · Department for Business, Energy and Industrial Strategy, Rt Hon Lord Andrew Tyrie View ↗
1 Mar 2022 Matthew Upton · Citizens Advice, Matthew Vickers · Ombudsman Services, Rocio Concha · Which?, Steve Ruddy · Chartered Trading Standards Institute View ↗
1 Feb 2022 Andrea Coscelli · Competition and Markets Authority, Camilla de Coverly Veale · The Coalition for a Digital Economy, Dame Melanie Dawes · Ofcom, Neil Ross · techUK, Sunil Patel · PwC View ↗
30 Nov 2021 Isabel Taylor · Slaughter and May, James Webber · Shearman & Sterling LLP, Nicole Robins · Oxera, Professor Sir John Vickers · Oxford University View ↗
2 Nov 2021 George Peretz QC · Joint Working Party of UK Bars and Law Societies on Competition Law, John Penrose · Home Office View ↗
26 Oct 2021 George Peretz · Joint Working Party of UK Bars and Law Societies on Competition Law, John Penrose · Home Office, Professor Sir John Vickers · Oxford University View ↗

Correspondence

2 letters
DateDirectionTitle
21 Feb 2023 To cttee Letter from the Secretary of State for Energy Security and Net Zero relating to…
21 Feb 2023 To cttee Letter from the Chair to Secretary of State on state aid rules, 16 January 2023