Subsidy control
===============

![Illustration](https://storage.googleapis.com/scvo-platform-assets/scvo/images/headers/montage-two.png?version=)

Supported by **[Brodies LLP](https://brodies.com)**

[![](https://files.scvo.scot/2024/04/brodies.jpg)](https://brodies.com)

Subsidy control is the legal framework that applies to certain forms of financial assistance provided by public authorities to organisations. This guide, produced by SCVO and Brodies LLP with input from Third Sector Interfaces, explains what the framework means in practice for voluntary organisations and public authority commissioning teams.

Explore the sections below to find out what subsidy control means for your organisation, when it applies, and what to do if you think a public authority has got it wrong.

Subsidy control and the voluntary sector
----------------------------------------

[

What subsidy control is
-----------------------

The legal framework that regulates how UK public authorities award subsidies to third parties, like voluntary organisations, to deliver policy objectives.





](/support/running-your-organisation/finance-business-management/subsidy-control/what-subsidy-control-is)

[

Defining a subsidy
------------------

The four-limbed test used to decide whether financial assistance counts as a subsidy — and what falls outside the regime altogether.





](/support/running-your-organisation/finance-business-management/subsidy-control/defining-a-subsidy)

[

Why subsidies are awarded
-------------------------

Subsidies must pursue a clear public policy objective: addressing a market failure or a social inequity.





](/support/running-your-organisation/finance-business-management/subsidy-control/why-subsidies-are-awarded)

[

How subsidies can be awarded
----------------------------

The lawful routes available to public authorities — standalone subsidies, subsidy schemes, streamlined routes, SPEIs, and Minimal Financial Assistance.





](/support/running-your-organisation/finance-business-management/subsidy-control/how-subsidies-can-be-awarded)

[

What subsidy control means for the voluntary sector
---------------------------------------------------

Many public resources received by voluntary organisations won't be subsidies at all — and where they are, funding still isn't prohibited.





](/support/running-your-organisation/finance-business-management/subsidy-control/what-subsidy-control-means-for-the-voluntary-sector)

[

From State Aid to Subsidy Control
---------------------------------

How the UK's departure from the EU replaced the State aid regime with a new domestic subsidy control framework from January 2023.





](/support/running-your-organisation/finance-business-management/subsidy-control/from-state-aid-to-subsidy-control)

[

Exemptions
----------

Circumstances where a public authority can award a subsidy without needing to comply with the full subsidy control requirements.





](/support/running-your-organisation/finance-business-management/subsidy-control/exemptions)

[

Voluntary organisations distributing public funding
---------------------------------------------------

Where a voluntary organisation distributes public resources on a public authority's behalf, and what that means for compliance.





](/support/running-your-organisation/finance-business-management/subsidy-control/voluntary-organisations-distributing-public-funding)

[

Challenging a public authority's approach
-----------------------------------------

What to do if an organisation disagrees with how a public authority has treated financial assistance under the regime.





](/support/running-your-organisation/finance-business-management/subsidy-control/challenging-a-public-authoritys-approach)

[

Where to get help & further resources
-------------------------------------

Guidance documents, statutory guidance, and further support from SCVO, Third Sector Interfaces, and UK/Scottish Government.





](/support/running-your-organisation/finance-business-management/subsidy-control/where-to-get-help-further-resources)

---

## About SCVO

SCVO (Scottish Council for Voluntary Organisations) is the national membership organisation for Scotland's voluntary sector.

Our role is to champion the role of voluntary organisations in Scotland and to support them to do work that has a positive impact.

SCVO supports members and the wider voluntary sector with all aspects of setting up and running a voluntary organisation. SCVO represents the needs and concerns of the voluntary sector to the Scottish government in Holyrood and UK government and Westminster. Through our learning and events programme SCVO offers training and development opportunities to the sector.

Members access an extensive membership benefits package including specialist, in-depth, 1-to-1 guidance from our Information Services team and from professional service partners.

Access to exclusive membership networks (including comms, employers, governance and policy) supports members to grow their connections, stay up to date, exchange ideas and views with peers, and learn through tailored, learning opportunities.

SCVO members enjoy free access to Funding Scotland Premium to stay on top of funding opportunities to support their organisation’s financial resilience.

Discounts and savings savings on SCVO products and services (including our HR service, managed IT support, payroll service and events and training) and partner offers provide members with support to allow them to focus on delivering their organisation’s goals. Further SCVO products and services include [extensive digital support](https://scvo.scot/support/digital), a climate action resource [Growing Climate Confidence](https://climateconfident.scot), a voluntary sector publication [Third Force News](https://tfn.scot) and a voluntary sector jobs and recruitment service [Goodmoves](https://goodmoves.org).

For more information on SCVO membership, visit [SCVO membership](https://scvo.scot/membership)
