Now that the UK has left the EU, the rules on what we know as ‘State Aid’ have changed. State aid is now referred to as a ‘Subsidy’.
A subsidy is a financial contribution using public resources which confers a benefit on the recipient. This could include, for example, a cash payment, a loan with interest below the market rate or a loan guarantee. Subsidies are administered by all levels of government in the UK including central government, devolved administrations and local authorities, as well as other types of public authority.
Subsidies should be given in the public interest, to promote a social good or address economic issues. For example, a subsidy could incentivise businesses to undertake research and development that increases economic productivity and wider prosperity, or to increase the uptake of low carbon
technology.
However, without proper controls, subsidies could potentially cause economic harm or distortive effects, for instance, by giving unfair advantage to one enterprise over their competitors.
To comply with the new requirements, we must ascertain the amount of State support (public funding via public monies) an applicant has received in the current and last two financial periods.
Please can you confirm and provide details of all financial assistance ( e.g. grants, cash payments, loans, guarantees, the forgoing of revenue otherwise due) that your organisation (including any persons within the same corporate group under common ownership and/or common control) has received, or is due to receive, from any public bodies (e.g. Local Authority, Central Government, NHS, National Lottery distributors, members of the NDA group, Copeland Community Fund etc) in the:
(i) elapsed part of the current 12 month period from 1 April to 31 March; and
(ii) the two preceding 12 month periods from 1 April to 31 March
If you require more information on the Subsidy Regime,
please see Overview
of the subsidy control regime – a flexible, principles-based approach for the
UK - GOV.UK (www.gov.uk)