Question reference: S6W-23280
- Asked by: Fulton MacGregor, MSP for Coatbridge and Chryston, Scottish National Party
- Date lodged: 28 November 2023
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Current status: Answered by Neil Gray on 6 December 2023
Question
To ask the Scottish Government what its response is to reports that the diversification test used to determine eligibility for the Scottish Enterprise Regional and SME Investment Subsidy Scheme is unduly restrictive and unfair to long-established manufacturing businesses that are seeking to invest in and grow their operations in Scotland.
Answer
Scottish Enterprise uses the Scottish Enterprise Regional and SME Investment Subsidy Scheme (the Scheme) to provide RSA grant funding. The Scheme includes a requirement that, to be eligible for support, large companies must be opening a new establishment or diversifying the activity at an existing site. There is no such requirement for SMEs. This requirement is consistent with the general approach to regional investment funding across the UK and Europe.
RSA is not the only mechanism Scottish Enterprise uses for funding eligible projects within the manufacturing sector. Scottish Enterprise has a wide range of subsidy schemes for which diversification is not a requirement for funding. The Scottish Government and Scottish Enterprise consistently review support mechanisms in place and welcome feedback on how to support companies within the rules set out by the Subsidy Control regime.