What is Subsidy Control
What is subsidy control?
When we give out grant funding, we have to follow certain rules set by the UK government. These rules are called subsidy control.
Subsidy control is about making sure public money (like grants) is used fairly. It helps to stop organisations getting an unfair advantage over others – for example, by receiving funding that could harm competition or trade.
We follow these rules to make sure our funding is legal, fair and used in the right way.
You don’t need to know all the legal details - we’ll guide you through anything you need to do as part of your application.
Legal definition
Subsidy control is the legal framework that regulates how public authorities give money to businesses. It makes sure funding we make does not distort market competition or trade.
After the UK left the EU on 31 December 2020, the EU’s State Aid regulations, which provided rules on what could give an 'unlawful advantage', were replaced on 1 January 2021 with the UK’s international subsidy control commitment.
Our funding is public money. It cannot be used to give organisations an unfair advantage over others - this would be against the law.
From 1 January 2021, as a result of Brexit and the end of the transition period for leaving the EU, the EU State Aid regulations no longer apply to our funding. Instead, the UK’s new international subsidy control commitments provide rules on when our funding could give an unlawful advantage.
We have to follow these new rules and processes.
Read more about the UK’s international subsidy control commitment from 1 January 2021.
State aid
State aid is still relevant, however, for some grants awarded before 31 December 2020, and in Northern Ireland.
UK state aid guidance can be found at https://www.gov.uk/guidance/state-aid.