GovWire

The SAUs role

The SAU supports public authorities in their decision-making about the design and assessment of subsidies referred to it, to help make sure that those decisions are based on a strong assessment of their compliance (Assessment of Compliance) with the requirements of theSubsidy Control Act 2022.

This takes the form of an independent advisory report that evaluates the public authorities Assessment of Compliance. The SAU publishes its reports on GOV.UK.

The SAUs report is non-binding. Public authorities are responsible for deciding to give a subsidy or make a scheme, based on their own Assessment of Compliance, with the benefit of the SAUs evaluation where applicable.

Further guidance on the role of the SAU and its procedures can be found at Guidance on the operation of the subsidy control functions of the Subsidy Advice Unit. This guidance should be read alongsidestatutory guidance, which explains the legal obligations on public authorities under the domestic regime.

What to refer to the SAU

Public authorities must refer (request a report) the following subsidies to the SAU (mandatory referrals):

• a subsidy or subsidy scheme of particular interest (SSoPI)
• a subsidy or subsidy scheme called in by the Secretary of State

The Secretary of State has the power, in certain circumstances, to refer subsidies to the SAU after they have been awarded.

Public authorities can also voluntarily refer subsidies or subsidy schemes of interest (SSoI).

The criteria for identifying SSoI and SSoPI are set out in theSubsidy Control (Subsidies and Schemes of Interest or Particular Interest) Regulations 2022.

Discuss referrals with the SAU

We encourage public authorities to contact the SAU for an early discussion on potential referrals in advance of formally submitting a request for a report. The SAU can provide guidance in these conversations on how the referral process works, what is needed for a referral, and next steps including timings.

Public authorities decide when to formally submit a request for a report but we suggest contacting the SAU in good time in advance of an anticipated request for this initial discussion.

Once an Assessment of Compliance is sufficiently developed, the SAU also recommends holding a pre-referral discussion. This is an opportunity to meet with some of the SAU team likely to work on the referral, so they can understand more about the subsidy or scheme and have a look at the draft assessment. Pre-referral discussions can support public authorities in ensuring that their assessment is ready for referral, reducing the risk that the SAU will reject the request as incomplete.

Pre-referral discussions are limited to matters that fall within the SAUs remit.

For more information about the scope of the pre-referral discussions, please visit theprocedural arrangementssection in the SAUs guidance.

Process after submission of a referral

Within 5 working days (beginning on the date the referral is received from the public authority), the SAU will undertake a preliminary assessment to decide whether it will provide a report.

For mandatory referrals, the SAU will assess whether the request contains the required information. For voluntary referrals, the SAU will also decide whether to accept the request, in line with itsprioritisation principles.

The SAU will notify the public authority of its decision to accept, reject or decline a request for a report. If the referral is accepted, the SAU will publish details of the referral and associated subsidy on GOV.UK.

Where a request is accepted (and no extension has been agreed with the public authority or the Secretary of State) the SAU will publish a report on GOV.UK in 30 working days and will provide a copy of the report to the public authority and the Secretary of State.

Additional support on subsidy control requirements

Details of the subsidy control requirements are set out inStatutory Guidance, which includes relevant sources of guidance and support.

Public authorities can request support and guidance on the subsidy control requirements from the subsidy control teams at Department for Business and Trade, the subsidy control teams in the devolved governments and certain other government departments listed inStatutory Guidance.

Contact us

Public authorities can emailsau@cma.gov.uk to discuss the preparation of a request.