European Structural and Investment Funds

Subsidy Control

About Subsidy Control

Subsidy Control is a UK Government term which refers to forms of public assistance given on a discretionary basis which have the potential to distort competition and affect trade within the UK and between countries with which the UK has trade deals, such as the Trade and Cooperation Agreement (TCA). The Subsidy Control Act 2022 was brought in to broadly replace EU State Aid rules in the UK, as per the terms of the TCA.

European Structural and Investment Funds (ESIF) is however still governed by EU State Aid rules, with the Subsidy Control team still supporting in these matters where necessary.

The state aid rules are set by the EC and comprise various articles of the Treaty on the Functioning of the European Union (TFEU), as well as regulations, frameworks and guidelines, which set out what aid can be given and under which circumstances.

The EC governs Member States' compliance with these rules and many aid measures must be notified to the EC for approval.

Subsidy Control and State Aid within the Scottish Government

The Subsidy Control (formerly State Aid) team set up within the Scottish Government has the following role and responsibilities:

  • to provide risk based advice and analysis to Ministers and Policy Teams
  • assist in shaping and operating of support schemes, encouraging compliance with UK and international regulations such as Fair Trade Agreements and World Trade Organisation regulations
  • liaise with UK Government, Devolved Administrations and European Commission DG for Competition
  • providing training and awareness presentations and workshops on State aid rules across the Scottish public sector
  • lead on Scottish Government policy in relation to State aid and Subsidy Control
  • administer uploads to the UKG Transparency database on behalf of policy teams and all Scottish Public Funding Bodies
  • liaise with Scottish Public Funding Bodies on the implementation of the new regime

Please note that the Subsidy Control team cannot provide advice to individual members of the public, applicants or beneficiaries of aid.

We have also published more detailed information and guidance on Subsidy Control in the Scottish Government.

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