Background
The Subsidy Control Act 2022 came into force on 4 January 2023, replacing previous EU State aid regulation for awarding subsidies. It aims to prevent unfair competition or negative effects on trade and investment between the UK and a country or territory outside the UK.
The UK Department for Business and Trade (DBT), has issued guidance on the Act. This guidance helps public bodies, such as Creative Scotland, decide whether awards are subsidies and, if they are, award them in a way which minimises any negative effects on competition and investment, as well as promoting the effective and efficient use of public money.
For a subsidy to be permitted it must comply with seven principles, as set out in the guidance mentioned above. Public bodies may set up Subsidy Schemes which meet these seven principles. Subsides above a certain financial threshold (currently £100,000) must be published on a database held by DBT.
Creative Scotland’s Position
Creative Scotland must comply with the Subsidy Control Act 2022 and it publishes both subsidy schemes and subsidies on the DBT database mentioned above.
Any award made by Creative Scotland deemed as a subsidy will require the recipient to acknowledge that the grant comes from public funds and confirm that the support provided is compliant with the Subsidy Control rules.
Where applicable, the recipient must agree that Creative Scotland will publish summary information relating to the grant and that the recipient will keep reasonably detailed records to demonstrate compliance with the Subsidy Control rules and shall provide a copy of such records to Creative Scotland upon reasonable request.
In the unlikely event that it is deemed to be non-compliant with the Subsidy Control rules, the recipient may be required repay the entire award (and any other sums due) immediately.