Annex 1: Subsidy control – GOV.UK

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Published 25 April 2023

© Crown copyright 2023
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The UK Space Agency (UKSA) supports organisations to invest in research, development and innovation. The support we provide is consistent with the UK’s international obligations and commitments to Subsidy Control (see further information at Annex 2).
Before awarding subsidies, the UK Space Agency must ensure that the subsidy scheme meets the terms of the principles as determined in the Subsidy Control Act 2022:
The principles are that:
The intervention rates detailed in Annex 2 shall apply unless:
a) the bidder seeks to claim exemption from having to make a contribution under the Minimal Financial Assistance Allowance (previously known as de-minimis under State Aid & Small Amounts of Financial Assistance under Trade & Co-operation Agreement) rules.
b) the bidder is a research or public sector organisation or charity:
When referring to research organisations, the UK Space Agency uses the definition from the Framework for state aid for research and development and innovation which states:
“research and knowledge dissemination organisation’ or ‘research organisation’ means an entity (such as universities or research institutes, technology transfer agencies, innovation intermediaries, research-oriented physical or virtual collaborative entities), irrespective of its legal status (organised under public or private law) or way of financing, whose primary goal is to independently conduct fundamental research, industrial research or experimental development or to widely disseminate the results of such activities by way of teaching, publication or knowledge transfer. Where such entity also pursues economic activities, the financing, the costs, and the revenues of those economic activities must be accounted for separately. Undertakings that can exert a decisive influence upon such an entity, for example in the quality of shareholders or members, may not enjoy a preferential access to the results generated by it.”
Within the UK Space Agency, this means:
This list is not comprehensive and is subject to change and exceptions.
Research organisations undertaking non-economic activity will be funded as follows:
Research organisations should be non-profit distributing to qualify. They should explain how they will disseminate the output of their project research as outlined in the application.
Research organisations which are engaged in economic activity as part of the project will be treated as business enterprises for the purposes of funding
Public sector organisations and charities can work with businesses to achieve innovation through knowledge, skills and resources. These organisations must not take part in any economic activity or gain economic benefit from a project. They can apply for 100% of funding for their eligible costs under the following conditions:
Third sector organisations are primarily voluntary and community, such as associations, self-help groups, mutuals and cooperatives. Third sector organisations can be non-funding partners in a project.
Bidders must identify the work proposed, and this must be consistent with the work programme described in the technical case. Note that the company size defines the maximum ‘Intervention’ rate (and hence the minimum required PV level) that is permitted (see Annex 2). Bidders will be expected to justify the category of work selected.
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