All RDAs across England are closing by March 2012 (see transition and closure section). With our resources reducing steadily, this page has not been recently updated and the information below may not be current. If in doubt, please contact us directly.

State aid

State aid is a European Commission term that refers to forms of assistance from a public body, or publicly funded body, given to undertakings on a discretionary basis, with the potential to distort competition and affect trade between member states of the European Union.

The 'State aid rules' are set out by the EC and comprise various articles of the EC Treaty, regulations, frameworks and guidelines. These describe what aid can be given. The EC governs member states' compliance with these rules and must be notified of all schemes involving State aid. State aid granted without Commission approval, or classified as within the scope of a Block Exemption, is automatically viewed as unlawful and recoverable.

All proposals that are accepted by the Agency for detailed application are appraised thoroughly prior to recommendation for acceptance, approval and the issuing of an offer letter. That appraisal includes a detailed examination of any State aid, which, if found to be present, is verified as being within the allowable intervention rates under any of the various options for exempted State aid. Where State aid is present but allowable, the South West RDA notifies the European Commission of such projects through the Department for Business, Innovation and Skills (BIS).

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