Insight
We recently advised Glasgow City Council on its application for £13 million from the Levelling Up Fund (LUF) to restore Pollok Stable and Sawmill. The historic Glasgow site is to have hydro-power, a community centre with educational activities and space for the local community and schools to use. It is one of the Scottish projects to be supported by £172m investment announced as part of the recent UK budget.
When public funds are invested, an important consideration is the new subsidy control regime. This replaced the previous EU State aid rules when the UK left the EU. It is important for both funders and recipients to assess whether proposed funding complies with the new regime. Unlike in the case of a European Commission State aid decision, the UK’s Competition and Markets Authority does not have the power to block or clear aid and a funding decision may be at risk of judicial review by an interested party or the government if it is considered to breach the subsidy control regime.