The UK and European Union agreed to terms on a Trade and Co-operation Agreement (TCA), which came into force on 1 January 2021. This agreement contains provisions related to subsidy control.
The EU State aid regime was effectively revoked from UK law from 1 January 2021, therefore any reference to state aid should generally be removed from all websites/offer letters etc.
Public funding is currently subject to an interim Subsidy Control regime. We draw your attention to the guidance issued by the Department for Business Energy and Industrial Strategy (BEIS). Please be aware this is a living document and may be updated by BEIS at regular intervals.
UK Government ran a consultation from 3 February 2021 to 31 March 2021 inviting views to determine new regulations to replace EU state aid, which was intended to form the basis of a Subsidy Control Bill.
On 30 June 2021, the UK Government presented a Subsidy Control Bill to the House of Commons to establish the basis for a new set of rules which will apply to Scotland and other parts of the UK. This received Royal Assent on 28 April 2022 and is now the UK Subsidy Control Act 2022. This new Subsidy Control regime is expected to come into effect around late 2022. Further information can be found in this publication.
The Subsidy Control Team will provide further information for Scottish funding bodies and local authorities in due course and will cascade updates through our usual stakeholder channels.
Please note, aid given as part of European Structural and Investment Funds is still subject to EU state aid laws until schemes end on 31 December 2023.
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