Referral of the proposed subsidy to Tata Steel UK by the Department for Business and Trade
The Subsidy Advice Unit (SAU) has published a report providing the Department for Business and Trade (DBT) with advice concerning its proposed subsidy to Tata Steel UK.
Administrative timetable
| Date | Action |
|---|---|
| 6 February 2024 | SAU’s report published |
| 9 January 2024 | Deadline for receipt of any third party submissions (submissions after 5pm on this date cannot be taken into account) |
| 21 December 2023 | Beginning of reporting period |
Final report
6 February 2024: The SAU has published its report providing advice to DBT concerning the proposed subsidy to Tata Steel UK. The report sets out our evaluation of DBT’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- (6.2.24)
Request from DBT
21 December 2023: The SAU has accepted a request for a report from DBT for its proposed subsidy to Tata Steel UK. This request relates to a Subsidy of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by DBT
The Department for Business and Trade is a public authority. The Department for Business and Trade is proposing to award Tata Steel UK Limited a capital grant of up to £500m, to enable investment into greener steel production at the Port Talbot site, currently the UK’s largest single industrial carbon emitter.
This grant is part of a larger potential capital investment from the company totalling £1.25 billion. The proposal is subject to employee consultation and includes replacing existing Blast Furnaces at Port Talbot with an Electric Arc Furnace.
This investment would reduce the UK’s entire carbon emissions by around 1.5%. The subsidy would be ringfenced for the purposes of decarbonisation, and used solely for the installation of the Electric Arc Furnace and associated works/plant. The subsidy would be paid in arrears against milestones to be agreed, reimbursing Tata Steel UK Limited for approved capital expenditure.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning DBT’s proposed subsidy, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at: sau-tatasteel@cma.gov.uk copying the public authority: steel.comms@businessandtrade.gov.uk
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- CMA press team: 020 3738 6460 or press@cma.gov.uk
Updates to this page
Last updated 6 February 2024 + show all updates
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Final report published
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First published.