Source · Select Committees · Business and Trade Committee
Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy
Business and Trade Committee
HC 759
Published 25 October 2022
Recommendations
8
Not Addressed
Para 84
We believe that the non-binding nature of the CMA’s role when advising on subsidies which...
Recommendation
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 …
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Government Response Summary
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 practice.
Department for Business and Trade
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12
Not Addressed
Para 105
However, public authorities are in limbo until the Government publishes final guidance on the subsidy...
Recommendation
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 …
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Government Response Summary
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
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13
Not Addressed
The Government should update the Committee within one year of implementation on the performance of...
Recommendation
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 Summary
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
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15
Not Addressed
Para 120
Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes,...
Recommendation
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 …
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Government Response Summary
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 notice of the intended use of LROs as part of the REUL reform programme where relevant.
Department for Business and Trade
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Conclusions (4)
6
Conclusion
Not Addressed
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 Summary
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.
9
Conclusion
Not Addressed
Para 102
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 Summary
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 regime.
10
Conclusion
Not Addressed
Para 103
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 Summary
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.
11
Conclusion
Not Addressed
Para 104
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 Summary
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.