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Chamber and committees

Question ref. S6W-01947

Date lodged: 28 July 2021

Question

To ask the Scottish Government what impact EU state aid requirements continue to have in Scotland, and what guidance it has issued to public bodies regarding this.

Current status: Answered by Ivan McKee on 10 August 2021


Answer

Following the UK’s exit from the EU on 31 December 2020, the EU State aid regime was effectively revoked from UK law from 1 January 2021 and therefore ceased to apply in Scotland and the rest of the UK.

Scottish Government continue to work under the interim Subsidy Control regime introduced by the UK Government on 1 January 2021 and provisions held within the EU-UK Trade and Cooperation Agreement. Alongside this, consideration has to be given to any further UK Subsidy Control obligations such as World Trade Organisation membership and commitments arising from international treaties and Fair Trade Agreements to which the United Kingdom is a party. However, our preference is to continue to align with EU State aid rules as a safe harbour for interventions and to help facilitate any future accession arrangements.

Scottish Government has regularly engaged with public bodies prior to the UK’s exit from the EU and from 1 January 2021 to keep them abreast of Subsidy Control requirements, issuing technical guidance and information received via colleagues in UK Government. This is an ongoing process.