- This report relates to a proposed subsidy of £299,745,750 in the form of a low-interest loan to Barking and Dagenham Reside Weavers (B&D Reside) over a term of 52 years, aiming to increase the affordable housing supply within the London Borough of Barking and Dagenham to overcome the market failure of under-provision and deliver associated social equity benefits.
- Our key takeaways from the Subsidy Advice Unit (SAU) report are:
- The context of this proposed subsidy is “somewhat unusual” due to the fact that the houses which the subsidy relates to have either already been completed or will be completed by mid-2025. As such, the takeaways of this assessment are particularly specific to the proposed subsidy. However, it is substantially similar to another proposed subsidy from the Council to Barking and Dagenham Homes Limited.
- Assessments should include supporting evidence and make good use of information contained in the evidence to provide support to conclusions.
- In the counterfactual, assessments should detail what the public authority could do otherwise without providing the proposed subsidy.
- When analysing the design of the proposed subsidy’s characteristics, the assessment should systematically reflect the Statutory Guidance, particularly considering the size of the proposed subsidy in relation to the beneficiary and the relevant markets and the duration of the proposed subsidy, and evidence its conclusions.
- Assessments should systematically analyse potential impacts on competition and investment by describing the affected markets in detail and include evidence as to their conclusions.
- Assessments should take full account of potential negative effects including the scale of potential market distortions to competition and investment, in balancing and benefits and negative effects of the proposed subsidy.
- If relevant, assessments should explain compliance with the full list of SPEI requirements as specified in section 29 of the Subsidy Control Act.
London Borough of Barking and Dagenham Council, Barking and Dagenham Reside Weavers LLP
Posted in Subsidy Advice Report Tracker.