Tees Valley Combined Authority, Subsidy to Teesside International Airport Limited

The Tees Valley Combined Authority, Subsidy to Teesside International Airport Limited is a proposed grant worth £12,519,370 to develop hangar space and associated infrastructure on the northside of Teesside International Business Park.

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

• Statements relating to commercial viability and funding gaps should be supported by evidence.
• If conclusions relating to counterfactuals of investments not proceeding are included, reference should be made to any business cases which explain why commercial funding could not be obtained.
• Detail should be provided on how the costs of the project have been calculated and appraised when determining the size of the subsidy.
• If relevant, assessment should evaluate whether a subsidised loan would more a more proportionate and less distortive alternative to the subsidy.
• If the space developed is being rented out to businesses, an assessment should be made as to whether that business could be characterised as indirect beneficiaries

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