CMA SAU Accepts Report Request for Mayoral Growth Subsidy Scheme

UK CMA Cases

Published March 26th, 2026

Detected March 27th, 2026

Summary

The UK Competition and Markets Authority's Subsidy Advice Unit has accepted a request to report on the proposed Mayoral Revolving Growth Subsidy Scheme. The scheme, proposed by the Ministry of Housing, Communities and Local Government, aims to provide subsidies via patient capital to unlock commercial development and will run for 30 years.

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What changed

The Competition and Markets Authority's Subsidy Advice Unit (SAU) has accepted a request to evaluate the Ministry of Housing, Communities and Local Government's (MHCLG) proposed Mayoral Revolving Growth Subsidy Scheme. This scheme, designated as a Subsidy Scheme of Particular Interest, will provide subsidies through repayable, patient capital to facilitate commercial development supporting productivity and economic growth. The SAU will issue a report assessing MHCLG's compliance with subsidy control requirements within 30 working days.

Regulated entities and interested third parties should be aware that the SAU will publish its report on May 7, 2026. Third parties have until April 10, 2026, to submit comments relevant to the SAU's evaluation. The scheme itself is set to run for 30 years, from 2026 to 2056, and requires public authorities to ensure subsidies are used for eligible costs, represent the minimum public funding necessary, and are awarded based on objective and transparent criteria.

What to do next

Third parties wishing to comment must submit by April 10, 2026.
Monitor SAU's report publication on May 7, 2026.

Source document (simplified)

Referral of the proposed Mayoral Revolving Growth Subsidy Scheme by the Ministry of Housing, Communities and Local Government

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Ministry of Housing, Communities and Local Government (MHCLG) concerning its proposed Mayoral Revolving Growth Subsidy Scheme.

From: Competition and Markets Authority Published 26 March 2026 Case type: SAU referral Case state: Open Market sector: Building and construction Opened: 24 March 2026

Administrative timetable

| Date | Action |
| --- | --- |
| 07 May 2026 | SAU’s report to be published |
| 10 April 2026 | Deadline for receipt of any third-party submissions |
| 24 March 2026 | Beginning of reporting period |

Request from the Ministry of Housing, Communities and Local Government

24 March 2026: The SAU has accepted a request for a report from MHCLG concerning the proposed Mayoral Revolving Growth Subsidy Scheme. This request relates to a Subsidy Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of MHCLG’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy scheme provided by the Ministry of Housing, Communities and Local Government

The Mayoral Revolving Growth Fund (MRGF) subsidy scheme will come into effect from 2026 and will run for 30 years to 2056. It enables relevant public authorities (Mayoral Strategic Authorities (MSAs)) to provide subsidies via repayable, patient capital to help unlock commercial development that supports long term productivity and economic growth.

The Ministry of Housing, Communities and Local Government (MHCLG) announced the policy in the MRGF Policy Statement in 2025 and has since worked with eligible MSAs to develop proposals aligned with MSAs’ Local Growth Plans. The fund is designed to address well evidenced barriers to investment in major regional cities, including high financing costs, lower land values and limited availability of early stage, risk tolerant capital.

Under the scheme, relevant public authorities may give subsidies in the form of Financial Transactions (repayable investment) to businesses in eligible MSA areas, where this supports the objectives of the programme. They may also provide financial transactions that are not subsidies within the scope of the scheme. Subsidies may be used to bring forward activity such as developing high quality office, innovation, laboratory or other activities aligned with each MSA’s Local Growth Plan.

All subsidies awarded under the scheme must comply with the eligibility criteria published in the MRGF subsidy scheme guidance. Subsidies can only be given for eligible costs that are necessary for delivery of the proposed project and must represent the minimum level of public funding required to make the investment viable. Accountable bodies must ensure that decisions are made using objective and transparent selection criteria, consistent with their existing governance and assurance frameworks.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Mayoral Revolving Growth subsidy scheme, please send your comments 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-mayoralgrowthfund@cma.gov.uk, copying the public authority: localgrowthstrategyenquiries@communities.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 MHCLG. The SAU will send a copy of your submission to MHCLG together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme 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 MHCLG 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.