This Ministry of Housing, Communities and Local Government, Welsh Investment Zones Subsidy Scheme is a ten-year scheme which aims to provide a funding envelope of £160 million to two Investment Zones in Wales.
This funding will be provided by way of direct grants and tax incentives across five sections (digital and technology, green industries, life sciences, advanced manufacturing, and creative industries).
Our key takeaways from the Subsidy Advice Unit (SAU) report are:
- Assessments should detail how scheme-level conditions and eligibility criteria give the funder sufficient confidence that the Subsidy Principles have been adhered to.
- Where administration of the scheme has been devolved to other bodies, the Assessment should explain how compliance and evaluation of additionality and proportionality will occur.
- A thorough analysis should be included of the relevant sectors and sub-sectors which could be impacted by the subsidy, particularly in relation to the competition and investment impacts.
- Assessments should explain how subsidies will meet the exemption criteria in sections 18(5) – (7) of the Subsidy Control Act 2022 where administration of accountable bodies results in the relocation of activities.
- Assessments should provide examples of how the scheme intends to change the economic behaviour of beneficiaries whilst also showing compliance with Principle D in relation to devolved decision-making.
- In relation to reducing competition distortions, assessments should detail how the scheme takes into account other subsidies which are being provided to the same recipients for similar purposes as well as the process for selecting beneficiaries.
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