Subsidy schemes

HIE and Subsidy

As a public body we have to consider whether subsidy is involved in assistance that we offer to businesses and community organisations.

A subsidy is financial or in-kind support from a public authority to a specific enterprise, giving it an economic advantage which may distort or harm competition, trade, or investment.

In implementing our broad economic development remit, we regularly provide grants, loans and other assistance to promote the growth of the region. Much of our assistance is governed by the UK Government’s Subsidy Control Act 2022 and further international commitments on subsidy control. These international commitments include the UK-EU Trade and Cooperation Agreement (TCA), other Free Trade Agreements (FTA) and World Trade Organisation (WTO) rules.

Most of our assistance is awarded through subsidy schemes – the details of which are listed below.  Sometimes we will award as Minimal Financial Assistance under the provisions of Chapter 7 of the Subsidy Control Act 2022.  If no suitable cover is available through these methods or through the national subsidy schemes (called Streamlined Routes), there is the option for us to consider a standalone award. The latter requires a full subsidy principles assessment which is described in the UK Guide for beneficiaries mentioned below.

We evaluate each project based on its alignment with our economic priorities for the Highlands and Islands. If eligible for assistance, we check if the support is likely to constitute a subsidy. If it does, we will work with  clients to find the most appropriate legal cover which complies with competition laws. Applicants must provide accurate information and ensure their own legal checks when receiving subsidies.

Subsidy Control: Guide for beneficiaries (published by the UK Government) provides information about subsidy regulation and what beneficiaries can expect before and after receiving a subsidy.  We encourage HIE applicants to familiarise themselves with this guidance.

The Scottish Government’s Subsidy Control webpages are also a useful information source.