Homes England, Subsidy to Berkley Homes (East Thames) Limited

• This subsidy, worth £29.4 million, is drawn from the London Brownfield, Infrastructure and Land (BIL) Fund to Berkeley Homes (East Thames) Limited from March 2025 – March 2026 for the development of Lombard Square, an ex-brownfield site. It will support the Phase 2 infrastructure works, comprising 1,038 homes of which 23% are affordable.
• Our key takeaways from the Subsidy Advice Unit (SAU) report are:
  • Clear explanation as to how identified “public goods” meet the definition of “public good”, and how “market failures” aligns with “market failure”, as set out in the Statutory Guidance.
  • Assessments should provide detail about the projects that the relevant subsidy facilitates, and how the project will remedy the identified inequality.
  • Assessments should clearly explain why methods of achieving the policy objective other than a subsidy are discounted.
  • Assessments should explain clearly its conclusions in regard to which counterfactual is most likely, as opposed to other potential scenarios, framing the additionality assessment in light of this appropriately.
  • Full explanation is needed to demonstrate why the proposed subsidy is designed, and why potential design features are discounted, to minimise negative effects on competition.
  • Assessments should consider impacts on location within local geographical areas and further related markets.
  • Assessments should methodologically analyse potential negative impacts of the subsidy and whether there could be an impact on international trade and investment when carrying out the balancing exercise.
  • Regarding the energy & environment principles, assessments should describe the nature of any environmental protection involved in the projects.

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