Select committee: Business, Innovation, Science and Trade Committee

Recommendation 24

Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy Published 25 Oct 2022 Paragraph 157 Addressed to Department for Business and Trade

Business, Innovation, Science and Trade Committee Post-pandemic economic growth: State Aid and Post Brexit Competition Policy All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗

Recommendation (the committee's words)

We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of the 2021–22 Session, on the need for the Civil Aviation Authority to have the power to impose financial penalties on airlines which fail to refund customers when required to do so by law. We recommend that the BEIS Department considers the enforcement powers of sectoral regulators more widely, as part of our recommendations in this report on its future work with the CMA, as the primary enforcer of consumer law in the UK.

From: Business, Innovation, Science and Trade Committee, Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy (HC 759), paragraph 157, 25 October 2022

Government response

Fifth Special Report - State aid and post-Brexit competition policy: Office for the Internal Market response to the Committee’s Fourth Report

The government responded to the whole report on 28 April 2023 (deadline 25 December 2022).

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Third Special Report - Post pandemic economic growth: State aid and post-Brexit competition policy: Responses to the Committee’s Fourth Report of Session 2022–23

Published 10 February 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report, says it agrees that competition, consumer protection and an effective subsidy regime support growth, and refers the recommendations addressed to the CMA to the CMA for a separate response.

On the Digital Markets, Competition and Consumer Bill, it states the Bill "will be introduced in the current session", and says it will strengthen consumer protection law through the Bill.
It does not commit to updating the Committee within one year on the subsidy regime, saying it is "unlikely that key lessons will be learned within a single year" but it will update the Committee "as appropriate".
The CMA is to review and report on the subsidy regime's effectiveness, with the first monitoring report "due three years after commencement of the regime, in 2026".
On subsidy control guidance, it says BEIS published statutory guidance, a 'quick guide' and a principles assessment template on 11 November, ahead of commencement in January 2023.

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