Fair Work First - conditionality in public sector grants: business and regulatory impact assessment

6. Competition Assessment

The policy measure applies to any business or organisation that seeks to receive public sector grant funding to which these specific Fair Work First conditions apply. This is not sector-specific, and is in part discretionary on the part of the organisation, as it results from their choosing to apply for Scottish Government funding.

Any additional costs that accrue to a successful applying organisation would arise from the extent to which this aspect of Fair Work First conditionality is already implemented within their organisation.

Competition questions:

• Will the measure directly or indirectly limit the number or range of suppliers?

No. It is not anticipated that the measure will reduce the range of suppliers of goods and services, though it may impact on individual organisations’ decision-making as to whether to apply of grants.

• Will the measure limit the ability of suppliers to compete?

Unclear. It may impact some suppliers ability to compete but these are mitigated by exceptions where uplifting those groups of workers to at least the rLW is unaffordable. The measure may lead to organisations in receipt of public sector grants some individual businesses pricing policies and costs may be passed on to customers, but this is mitigated by business discretion whether to apply for grants. Overall, the impact limited by number of apprentices and 16-17 year olds in those organisations who apply for public sector grants.

• Will the measure limit suppliers’ incentives to compete vigorously?

No. It is not envisaged that this will affect the incentives facing suppliers competing within markets.

• Will the measure limit the choices and information available to consumers?

No.