Broadband infrastructure in Scotland: public review

Annex E: Subsidy Control

Following the UK's departure from the European Union on the 31 January 2020, the award of public subsidy needs to take account of World Trade Organisation rules and any international commitments made in free trade agreements. BDUK considers that this proposed subsidy falls under the subsidy control principles in Section 3 of the Trade and Cooperation Agreement (TCA)^[11] agreed between the European Union and UK Government on the 24th December 2020. The TCA places an obligation on both the UK and EU to have an effective system of subsidy control with independent oversight.

The Scottish Government will ensure that it meets these subsidy principles in awarding public subsidy for gigabit-capable broadband infrastructure, for example, by ensuring subsidy is designed to target failure in the market to achieve full coverage while minimising negative effects on competition. Public subsidy will be targeted to limit the risks of crowding out private investment, altering commercial investment incentives and ultimately distorting competition. Any future procurements led by the Scottish Government will be procured under the Public Contracts (Scotland) Regulations 2015, to help meet our subsidy control requirements.

Suppliers have the opportunity during the OMR and PR stages, to share with the Scottish Government any firm and credible investment plans that may mean that public subsidy will not be warranted.

Requesting a review of a subsidy award

Under UK subsidy control requirements, anyone can request for a review about the award of subsidy. Requests must be submitted no later than one month from the date of the award of the subsidy for Scotland. The award of subsidy will follow the procurement and contract award and BDUK’s NCC will consider requests submitted within the one month timescale, under the terms of the TCA.

This proposed award will be published by the Department for Business and Trade (formerly the Department of Business Energy and Industrial Strategy). The process for making such a request will be published here too.

More information about the UK’s Subsidy Control regime^[12] can be found on the UK Government website.