Homes England, Subsidy to 2020 Developments (Luton) Limited

This Homes England, Subsidy to 2020 Developments (Luton) Limited will provide £29.5 million to 2020 Developments (a subsidiary of Luton Town FC) to take forward the Power Court Project (the “Project”).

This is a SIP because it exceeds £25 million in value.

The Project involves redeveloping a derelict 7-hectare power station site into a new football stadium and residential and commercial area.

The subsidy will fund activity related to the infrastructure works related to the commercial/mixed-use plots onsite. It will not fund activity related to the stadium infrastructure.

Our key takeaways from the Subsidy Advice Unit (SAU) report are:

• Explain how the Subsidy will remedy market failures, over and above what would have happened in the counterfactual scenario
• Explain in more detail why the Project’s returns were considered sufficient to bring about the change in economic behaviour while remaining limited to what is necessary
• Explain in more detail how the subsidy amount of £29.5 million was determined and why Homes England considers this to be an appropriate and proportionate level of support.

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