G/SCM/N/284/EU/Add.28  
 
10 May 2016  
(16-2571)  Page: 1/53  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to the subsidy 
programmes of the  United Kingdom . 
 
_______________ G/SCM/N/284/EU/Add.28 
 
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  UNITED KINGDOM  
 
 
TABLE OF CONTENTS 
 
1   CARBON TRUST APPLIED RESEARCH OPEN CALL ......................................................... 4  
2   CCL (CLIMATE CHANGE LEVY) - EXEMPTION FOR ELECTRICITY EXPORTS 
FROM GOOD QUALITY COMBIN ED HEAT AND POWER ...................................................... 5  
3   COMPENSATION FOR THE INDIRECT EMISSION COSTS OF THE EU EMISSIONS 
TRADING SYSTEM AND THE CARBON PRICE SUPPORT MECHANISM ................................. 6  
4   DIRECT RESEARCH IN LOW CARBON TECHNOLOGY ..................................................... 8  
5   GRANT FOR BUSINESS INVESTMENT (GBI) ................................................................. 9  
6   INVEST NI - BUYING-T IME ASSISTANCE  SCHEME  ..................................................... 10  
7   INVEST NI – GRAN T FOR R&D&I SCHEME ................................................................. 11  
8   INVEST NI – NI SPIN-O UTS (NISPO) RISK  CAPITAL ................................................. 11  
9   INVEST NI – NISPO THE YOUNG INNO VATIVE ENTERPRISE (YIE) SCHEME .............. 12  
10   INVEST NI - RE STRUCTURIN G AID .......................................................................... 13  
11   INVEST NI – SELECTIVE FI NANCIAL ASSISTAN CE SCHEME ..................................... 14  
12   INVEST NI - DE VELOPMENT FUND ........................................................................... 15  
13   INVEST NI - COLLABORATI VE NETWORKS PROGRAMME ......................................... 15  
14   INVEST NI - LEADERSHIP AND MANAGEMENT FRAMEWORK ................................... 16  
15   INVEST NI – NON EXECUT IVE DIRECTOR PROGRAMME ........................................... 17  
16   INVEST NI - GR OWTH LOAN FUND .......................................................................... 18  
17   INVEST NI - RESOURCE EFFICIENCY CAPI TAL GRANT ............................................. 18  
18   INVEST NI - DESIGN MA NAGER RESOURCE  SCHEME ............................................... 19  
19   INVEST NI – TECHSTART ......................................................................................... 20  
20   INVEST NI – MANAGEMENT INFORMATION SYSTEMS E-BUSINESS 
PROGRAMME .................................................................................................................. 20  
21   INVEST NI – INTERI M MANAGER PR OGRAMM E ....................................................... 21  
22   INVEST NI – BUSINESS IMPR OVEMENT THROUGH TRAINING ................................. 22  
23   NI DETI - RENEWABLE HEAT  INITIATIVE (2 012 – 20 20) ........................................ 23  
24   NI DETI – EXTENSION OF NI GAS PIPELINE TO WEST AND NORTH WEST ............... 24  
25   NI INTERTRADEIRELAN D - ACUMEN PR OGRAMM E .................................................. 25  
26   NI INTERTRADE IRELAND – INNOVA........................................................................ 25  
27   INTERTRADEIRELAND - FUSION .............................................................................. 26  
28   NI DEL - ASSURED SKILLS ....................................................................................... 27  
29   NI DARD - RESEAR CH CHALLENGE FUND ................................................................. 28  
30   NI DARD – AGRICULTURAL  R&D SCHEME ( 2013 – 2020)  ........................................ 29  
31   NI DARD – PROCESSING AN D MARKETING GRAN T SCHEME .................................... 30  
32   NI DCAL – REGIONAL STADIUM DE VELOPMENT IN NORTHERN IRELAND ................ 31  
33   NI DOJ – 6 OU T OF 10 PR OJECT .............................................................................. 32  
34   NI URBAN DEVELOPM ENT GRANT SCHEME .............................................................. 33  G/SCM/N/284/EU/Add.28 
 
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  35   NI SCREEN FUND ..................................................................................................... 34  
36   NI SEUPB – SPIRE PROJECT .................................................................................... 35  
37   R&D TAX CREDIT ..................................................................................................... 36  
38   REGIONAL GR OWTH FU ND: ..................................................................................... 38  
39   RENEWABLES OBLI GATION ORDER 2009 ................................................................ 39  
40   SE - SCOTTISH ENTERPRISE BUSINESS SUPPORT SC HEME 2009-13 ....................... 41  
41   SE - SCOTTISH RESEARCH, DEVELOPMENT & INNOVATION SCHEME (2008-
13) ........................................................................................................................... ...... 41 
42   SE - REGIONAL SELECTIV E ASSISTANCE SCOTLAND ............................................... 42  
43   SE - SCOTTISH PROPER TY SUPPORT SC HEME 2009- 13 ........................................... 43  
44   SE - SCOTTISH ENTERPRISE TRAINING SCHEME 2009-13 ....................................... 44  
45   SE - WAVE AND TI DAL ENERGY SUPPORT ............................................................... 45  
46   SE - WESTERN ISLES BUSINESS SUPPORT SCHEME ................................................. 46  
47   TECHNOLOGY STRATEGY BOARD: RESEARCH, DEVELOPMENT AND 
INNOVATION SCHEME .................................................................................................... 46  
48   THE ENERGY TECHNOLO GIES INSTITUT E (ETI) ....................................................... 47  
49   THE LANDLORD'S ENER GY SAVING AL LOWANCE ..................................................... 48  
50   WAG – CAPITAL INVESTMENT  AID AND EMPL OYMENT AID ..................................... 49  
51   WAG –FINANCE WA LES JEREMIE FUND ................................................................... 50  
52   WAG – SUPPORT FOR TRAINING SCHEME ............................................................... 51  
53   WAG WELSH GOVERNMENT CAPITAL INVESTMENT AID AND EMPLOYMENT 
AID SCHEME ................................................................................................................... 52  
 
 G/SCM/N/284/EU/Add.28 
 
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  1  CARBON TRUST APPLIE D RESEARCH OPEN CALL 
1. Period covered by the notification 
 
2011-2013* please see under sec 7. "Duration of the programme" for clarification. 
 
2. Policy objectives 
 
The purpose of the Carbon Trust Applied Research  Open Call is the reduction of greenhouse gas 
emissions with particular emphasis on reduction of  emissions from UK sources. By supporting the 
development of low-carbon technology, the Carbon  Trust aims to bridge the funding gap in the 
market caused by the presently existing lack of  internalization of carbon costs. Carbon Trust 
funding will help to secure the funding continuum that is vital to the successful delivery to market 
of low carbon technologies. The purpose of the scheme is to support the United Kingdom and the 
European Community in meeting, as a minimum, their international commitments under the Kyoto 
Protocol. 
 The development of low-carbon technologies will lead to clear horizontal benefits. It will in 
particular lead to environmental benefits and simultaneously to increased levels of energy (carbon) 
efficiency for energy users. UK Energy use is evenly divided between buildings, industry and 
transport. Positive benefits flowing from the de velopment and use of new low-carbon technology 
will therefore not be sector specific but accrue across all sectors. The development of low carbon 
technology will benefit a wide range of in dustries as well as society as a whole. 
 3. Background and authority for the subsidy 
 The Carbon Trust Applied Research Open Call is administered by The Carbon Trust ("the Trust"), an independent not for profit company formed to invest public and eventually private finance in 
low-carbon technology and innovation. 
 The operation of the scheme by the Trust will be supervised by the UK Department of Energy and 
Climate Change ("DECC") and where appropriate the Devolved Administrations of Scotland, Wales 
and Northern Ireland. 
 The Trust will operate Carbon Trust Applied Resear ch Open Call on the basis of its Grant Offer 
letters from DECC and the Devolved Administrations of Scotland, Wales and Northern Ireland. The 
legal bases for providing money to the Carbon Trust for its programmes in England, Wales and Scotland, including Carbon Trust Applied Research Open Call, are the Science and Technology 
Act 1965 and the Environmental Protection Act 1990. In Northern Ireland, the legal bases are the 
Industrial Development (Northern Ireland) Order 1982 (NI 15) and the Energy Efficiency (Northern 
Ireland) Order 1999 (NI 3) as amended by the Industrial Development Act (Northern 
Ireland) 2002. 
 
4 Form of the subsidy 
 
The form of the subsidy takes the shape of research and development grants. 
 5. To whom and how the subsidy is provided 
 Universities and SMEs (small scale technology developers) are the main beneficiaries of the R&D grant funding of the Carbon Trust Applied Research Open Call.  
6. Total amount paid (in millions of £) 
 
2011 £2,807 
2012 £1,680 
2013 £1,134  
Note: This is the amount of state aid funding paid out in the above calendar years, not the amount 
budgeted during this time.  G/SCM/N/284/EU/Add.28 
 
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  7. Duration of the programme 
 
*The programme ran from 2002-2014 for UK. However no further awards were granted after March 2013. 
 
8. Assessment of trade effects 
 
No material trade effects given the small size  of individual R&D grants and the types of 
organizations that receive the aid. These are very  small companies in the technology development 
stage and do not have material export capacity.  
2  CCL (CLIMATE CHANGE LEVY) - EXEMPTION FOR ELECTRICITY EXPORTS FROM GOOD 
QUALITY COMBINED HEAT AND POWER 
1. Period covered by the notification 
 
2013 and 2014.  
2. Policy objectives 
 
Combined heat and power (CHP) is a low-carbon  technology, which can be between 25 and 30% 
more efficient in primary energy usage than more traditional forms of secondary energy 
generation. The aim of the scheme is to encourage more usage of this type of power generation, 
which is currently at a competitive disadvantage due to the fact that it is significantly more expensive to produce power from CHP th an from conventional power plants. 
 
The EU Cogeneration Directive (2004/8/EC) came into force on 21 February 2004, allowing Member States until 21 February 2006 to transpose it into national law. The Directive places an 
obligation on Member States to ensure that support for CHP is based on useful heat demand and 
primary energy savings. It sets out a methodol ogy for assessing the energy efficiency of CHP 
schemes based on harmonized efficiency reference values for the separate production of heat and 
power. 
 
3. Background and authority for the subsidy 
 
In 2001, the Commission approved the exemption of non-commercial CHP from the UK's climate 
change levy (CCL). This exemption was specific to electricity produced for industrial purposes, i.e. used on-site. 
 
The UK authorities decided to extend this exemption to CHP plants that "export" the electricity, i.e. 
that distribute electricity via local networks for supply to the public. The Commission approved this further exemption as allowable State aid in 2003. 
 
The exemptions for CHP apply only to "good qua lity CHP", as defined by the UK's CHP Quality 
Assurance (CHPQA) Standard. CHPQA provides the methods and procedures needed to assess and 
certify the efficiency of the full range of CHP schemes in the UK, ensuring that incentives are 
targeted fairly and only benefit those schemes whose output is certified as good quality i.e. output 
that meets certain electrical and power efficiencies. After good quality CHP electricity output has 
been identified through CHPQA, any additional power output is treated as conventional power 
generation, and so does not qualify for CCL ex emption. The CHPQA Standard has been amended 
so it is fully consistent with the definition in Article 12(2) of the Cogeneration Directive. 
 
Basic legislation for the climate change levy is contained in Schedule 6 of the Finance Act 2000, 
which provides for the exemption from the levy of electricity outputs from good quality CHP that is sold direct from the producer to end users. Section 123 of the Finance Act 2002 inserted 
paragraph 20A into Schedule 6 of the Finance Act 2000. This paragraph provides the mechanism 
to exempt from the levy supplies of electricity produced in good quality CHP sold by electricity utilities to end users. 
 
4. Form of the subsidy 
 Tax relief: exemption from the climate change levy. G/SCM/N/284/EU/Add.28 
 
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  5. To whom and how the subsidy is provided 
 
This scheme exempts from climate change levy good  quality CHP electricity supplied by electricity 
utilities to consumers. This benefits CHP operators wishing to sell good quality CHP electricity to 
electricity utilities by helping to make up the sh ortfall between the market price obtainable for CHP 
electricity and its cost of production.  
The Office of the Gas and Electricity Markets (OFGEM), as the UK's main energy regulator, has the 
lead role in ensuring that any units of electricity sold as having been produced from good quality CHP do in fact originate from this source. They use a mechanism similar to the system of levy exemption certificates already used for tracking renewable electricity, using information derived 
from the CHPQA programme, which already monitors and certifies good quality CHP electricity 
outputs on an annual basis. In this way, HM Revenue and Customs are able to audit sales of levy-free electricity through their normal assurance procedures. 
 
6. Total subsidy per year (in millions of £) 
 
2013 Estimated at between £6.4 million and £20 million.  
2014 - NIL  Please note that the figure calculated, using published data, for 2013 of Exchequer revenue 
foregone, £6.4 million, should be treated as an estimate and is very likely an underestimate; the 
need to allow for margins of error and to reflect the lack of sufficiently robust data publicly available means that the actual figure could have been higher.  The maximum upper estimate of 
£20m is simply the figure for the previous year, 2012, divided by 4. No figure has been 
provided for 2014 since the programme came to an end on 31 March 2013.  
 
7. Duration of the programme 
 
The Commission considered a ten-year exemption of the levy to be appropriate in order to guarantee the effectiveness of this measure, thereby running from 1 April 2003-31 March 2013. 
Although just straddling a small part of th e relevant two year reporting period, the 
programme has now expired. Climate Change  Levy Exemption Certificates for good 
quality CHP ceased to be issued after 31 March 2013 . 
 
8. Assessment of trade effects 
 
This measure helps enhance the economics of CHP and therefore helps to stimulate the growth of 
CHP capacity or, when market conditions are poor such as in the last few years, helps maintain installed capacity in the UK. It does not affect any one particular sector of the UK economy. While we have no data that can provide statistical evidence of the impact of this measure, it is clear that 
its value (in 2012/13, c. £5.09 per MWh) has helped. 
 3  COMPENSATION FOR THE INDIRECT EMISSION COSTS OF THE EU EMISSIONS 
TRADING SYSTEM AND THE CARBON PRICE SUPPORT MECHANISM 
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 
To provide aid to electricity-intensive industries for their indirect domestic and European emission 
costs due to the European Union Emission Tradin g System and the domestic Carbon Price Support 
mechanism in their retail electricity prices, and th us to reduce the risk of carbon leakage and 
enable them to remain competitive in international markets. 
 3. Background and authority for the subsidy 
 The Commission publication "Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2012" (C 158/4) enables member states to implement state aid measures relating to the EU Emissions Trading System (EU ETS). Further, G/SCM/N/284/EU/Add.28 
 
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  the Commission publication "Guidelines on State aid for environmental protection and energy 
2014-2020" (C 200/1) enables member states to implement state aid measures for energy and 
environmental objectives. Aid to businesses relating to the UK's Carbon Price Support mechanism (CPS) falls within the scope of this latter text. 
 
Because of the impact of indirect emission costs on the competitiveness of electricity-intensive manufacturing businesses, the Government has implemented a compensation scheme for the 
indirect costs of the EU ETS and the CPS. Bo th of these schemes operate under domestic 
legislation contained in sections 7 and 8 of the Industrial Development Act 1982.  The Commission considered the Government's proposal for an EU ETS compensation scheme to be 
compatible with the Treaty of the Functionin g of the European Union on 5 May 2013 (C(2013) 
2380), and considered the Government's proposal for a CPS compensation scheme to be compatible with the Treaty of the Functi oning of the European Union on 21 May 2014 
(C(2014) 3136). 
 4. Form of the subsidy 
 Compensation, with an aid intensity of 85%, and typically a benchmark of 80% of the indirect costs incurred by eligible manufacturing activities (both specified by the Commission in C 158/4), reduces overall aid to 68% of costs. This is then applied against an established historic baseline of 
manufacturing output, which may be recalculated if a beneficiary notifies the Government of 
significant changes to their manufacturing activity.  
In calculating the amount of compensation due for the indirect costs of the EU ETS, we have 
applied the following formulae:  
Where product-specific electricity consumption efficiency benchmarks are applicable to the 
products in question the amount of compensa tion payable in calendar year 't' equalled: 
 Equation 1 
 
Amax
t = Ait x Ct x Pt-1 x E x BO  
 
I n this  formula, A i t is the aid intensity at year t, expressed as a fraction (e.g. 0.85); C t is the 
applicable UK CO 2 e m i s s i o n  f a c t o r  ( 0 . 5 8 )  a t  c a l e n d a r  y e a r  t ;  P t-1 is the EUA forward price at 
calendar year t-1 
(£/tCO 2); E is the applicable product-specific electricity consumption efficiency 
benchmark; and BO is the baseline output. 
Where no product-specific electricity efficiency consumption benchmarks are applicable the fall-
back benchmark will be used and the amount of compensation payable in calendar year 't' 
equalled:   
 Equation 2 
 
Amax
t = Ait x Ct x Pt-1 x EF x BEC 
 I n this  formula, A i
t is the aid intensity at year t, expressed as a fraction (e.g. 0.85); C t is the 
applicable UK CO 2 e m i s s i o n  f a c t o r  ( 0 . 5 8 )  a t  c a l e n d a r  y e a r  t ;  P  t-1 is the EUA forward price at 
calendar year t-1 (£/tCO 2); EF is the fall-back electricity consumption efficiency benchmark (0.8); 
and BEC is the baseline electricity consumption (MWh). 
 
In calculating the amount of compensation due for the indirect costs of the CPS, we have applied 
the same formulae. However, for these calculations, we have substituted the Carbon Price Support 
rate (in £/tCO 2) for the scheme year, in place of the previous year's EUA forward price. 
 5. To whom and how the subsidy is provided 
 
The Commission publication C 158/4 defines a list of eligible NACE codes and their associated 
sectors. Companies manufacturing goods that fall within these NACE codes, which pass (or have a direct competitor in the UK which has applied and passes) a filter test, are deemed to be eligible to 
receive compensation G/SCM/N/284/EU/Add.28 
 
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  Compensation is paid by direct bank transfer, in up to four instalments per beneficiary per scheme 
year. This reflects the quarterly nature of beneficiaries' returns, which are made to confirm that a beneficiary is still manufacturing eligible products and has not undergone any significant changes in manufacturing or in company structure. 
 
6. Total amount budgeted (in millions of £) 
 
2013 - £32m†, in respect of ETS only. 
2014 - £48m‡, for both ETS and CPS.  † - Actual spend for calendar year 2013. 
 
‡ - This figure is the actual spend to date at 10 March 2015. Compensation is paid quarterly in 
arrears, and not all of the final returns for 2014 ha ve been received at the time of writing. Our 
projected spend for calendar year 2014 is £53m 
 7. Duration of the programme 
 Both schemes will run to March 2020. EU ETS compensation commenced in August 2013, and was paid with effect from 1 January 2013; CPS comp ensation commenced in August 2014, and was 
paid with effect from 1 March 2014. 
 
8. Assessment of trade effects 
 
The aim of the aid measures is to mitigate the policy costs which affect the competitiveness of 
British businesses, and to keep them competitive in international markets. The measures are fully 
consistent with the relevant Commission guidelines, which are designed to minimise any negative 
trade effects of such measures. Given that the Commission approved the schemes, it has 
confirmed that they have minimal, if any, negative trade effects. Although data on the effectiveness of the compensation awarded duri ng 2013 is currently undergoing analysis, the 
Government also believes that these relief measures will not distort domestic or international 
competition. 
 4  DIRECT RESEARCH IN LOW CARBON TECHNOLOGY 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 This Programme addresses important "innovation gaps" and reduces the risks for the private 
sector involvement in early-stage technology development with the ultimate aim of accelerating 
low-carbon products to market.  
3. Background and authority for the scheme 
 
The UK Government's low carbon technology i nnovation policies and programmes support the 
research, development and demonstration (RD&D) of new or enhanced low carbon technologies 
and their associated systems and processes.   The aim of these policies and programmes is to bring cheap, green, effective technologies to the 
point at which they are sufficiently proven that the market can deploy them widely. 
 4. Form of the subsidy 
 The scheme covers:  
 Aid for R&D projects through direct non-repayable grants. 
 Aid for Young Innovative Enterprises through non-repayable grants G/SCM/N/284/EU/Add.28 
 
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  5. To whom and how the subsidy is provided 
 
The scheme is open to businesses of all sizes and research organizations involved in the development of low carbon technologies. The subsidy is provided as equity investments, quasi-
equity investments, convertible loans and grants. 
 6. Total amount budgeted (in millions of £) 
 2013 - £35m. 2014 - £35m.  
These are overall budgeted figures covering programme and capital costs. 
 7. Duration of programme 
 July 2011-March 2016.  
8. Assessment of trade effects 
 
The European Commission has found that the scheme does constitute State aid and it is in line with the guidelines provided in the R&D&I Framew ork and therefore passes the balancing test. Due 
to the knowledge spill over market failure for investment in early-stage R&D and the relatively 
small amounts being provided the scheme is not expected to have a significant effect on 
international trade. 
 
5  GRANT FOR BUSINESS INVESTMENT (GBI) 
1. Period covered by the notification 
 
2013 and 2014 (2013/14 and 2014/15).  2. Policy objectives 
 To assist economic development in areas of special hardship in England.  
3. Background and authority for the scheme 
 
The Industrial Development Act 1982. 
 
4. Form of the subsidy 
 Grants (Loans are theoretically available, though no loan agreements have been entered into in 
the relevant period). 
 5. To whom and how the subsidy is provided 
 The scheme was available to eligible projects in the manufacturing and service sector and encourages companies to invest in the Assisted Areas in England. The scheme also offers support 
for SMEs that are based in non-assisted areas. 
 Financial assistance was on a discretionary basis, in the form of a grant phased against achievement of progress on the project (jobs & capital costs). 
 
The scheme was available across all eligible sectors, including services (though purely local service activities did not qualify). It has not been possible to remove support to the service sector from 
the data set out below. 
 6. Total amount budgeted (in millions of £) 
 2013/14 - £44.4m. 2014/15 - £18.6m.  G/SCM/N/284/EU/Add.28 
 
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  7. Duration of programme 
 
The GBI scheme opened to new applications on 23 October 2008 and closed to new application from 1 February 2011, except for large exceptional projects and applications to the Department 
DECC from offshore wind equipment manufacturers. 
 The scheme operated under the terms of the European Commission General Block Exemption 
Regulation (No 800/2008). This regulation came to an end on 30 June 2014. Therefore the GBI 
scheme is not currently in force.  8. Assessment of trade effects 
 This scheme was designed to help areas of special difficulty to compete on level terms with more 
advantaged regions. 
 
6  INVEST NI - BUYING-TIME ASSISTANCE SCHEME 
1. Period covered by the notification 
 
2013 and 2014.  2. Policy objectives 
 Short-term support to enable companies in difficulty to present a restructuring plan on a timescale enabling a decision to be made on the viability of such a plan.  
 
3. Background and authority for the scheme 
 
Buying Time forms one part of Invest NI's support under the European Commission's Rescue and 
Restructuring Guidelines.   EC State aid reference – SA.13097. 
 
UK legal authority for the scheme:  
 Industrial Development Act (NI) 2002. 
 Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
4. Form of the subsidy 
 Loan. 
 
5. To whom and how the subsidy is provided 
 
The loan is provided to manufacturing and internationally traded service companies in Northern 
Ireland who are experiencing trading difficulties.  
6. Total UK expenditure (in millions of £) 
 
2013  £0.875. 2014  £0.140. 
 
Scheme is not co-financed by EC.  
7. Duration of Programme 
 
Indefinite from 28 December 2001  
 
8. Assessment of Trade effects 
 No statistical data is available.  G/SCM/N/284/EU/Add.28 
 
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  7  INVEST NI – GRANT FOR R&D&I SCHEME  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
- to support research, development and innova tion (R&D&I) activities undertaken within 
companies, 
 - to encourage collaboration and effective co-operation between companies and higher 
and education institutions including research organizations to raise both the level and 
the quality of commercially relevant R&D activity, 
 
- to stimulate R&D and innovation and encourage best practice throughout business, 
foster the creation and development of innovative business starts, help firms develop innovative products, processes and internationally tradable services with commercial 
potential, boost the scale relevancy of R&D&I in Northern Ireland through increased 
business as well as higher education expenditure in R&D. 
 3. Background and authority for the scheme 
 The objectives of the scheme are also focused on  the increase both of the number of companies 
performing effective R&D&I and the number of companies participating in R&D&I for the first time. 
 
EC State aid references – N215/2008, SA.37855 & SA.40154  
UK legal authority for the scheme: 
 The Industrial Development Act (NI) 2002.  The Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
4. Form of the subsidy 
 
Grants, loans and equity investments. 
 5. To whom and how the subsidy is provided 
 SMEs and large companies in Northern Ireland in manufacturing and traded services sectors.  6. Total UK expenditure (in millions of £) 
 2013  £12.063 2014  £12.959 
 
Scheme is co-financed by EC at a rate  of 50% of eligible ERDF expenditure 
 
7. Duration of programme 
 
2 January 2008 to 31 December 2020.  
8. Assessment of trade effects 
 
No statistical data is available.  
 
8  INVEST NI – NI SPIN-OUTS (NISPO) RISK CAPITAL 
1. Period covered by the notification 
 
2013 and 2014.  G/SCM/N/284/EU/Add.28 
 
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  2. Policy objectives 
 
To encourage growth of early-stage young innovative enterprises in Northern Ireland and facilitate the commercialisation of research and development by universities and companies. 
 
3. Background and authority for the scheme 
 
The scheme forms part of Invest NI's on-going strategy to develop the venture capital / risk 
capital sector in Northern Ireland.  EC State aid reference – N652/2007. 
 
UK legal authority for the scheme:  
The Industrial Development (NI) Order 1982. 
The Industrial Development (NI) Act 2002. The European Communities Act 1972. 
 
4. Form of the subsidy  
 Government participation in funds venture capital, disbursed to young innovative enterprises 
principally in the form of equity but also repayabl e advances or soft loans. The aid is provided in 
the forms of a guarantee to investors in the fund and in the form of equity or debt to investee SMEs.  
 
5. To whom and how the subsidy is provided 
 
The subsidy is provided to investors in the funds and investee SMEs. 
 6. Total UK expenditure (in millions of £) 
 
2013  £2.617 
2014  £1.435  
Scheme is not co-financed by EC. 
 7. Duration of programme 
 1 April 2008 to 1 April 2018.  8. Assessment of trade effects 
 No statistical data is available.   
9  INVEST NI – NISPO THE YOUNG IN NOVATIVE ENTERPRISE (YIE) SCHEME 
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 
To encourage growth of early-stage Young Innova tive Enterprises in Northern Ireland and to 
facilitate the commercialisation of research and development by universities and enterprises.  
3. Background and authority for the scheme 
 
Through the scheme Invest NI provides funding to three legal entities, established jointly by Invest 
NI, the Queens University and the University of Ul ster: the Queens University Fund; the University 
of Ulster Fund and NITECH 2 Fund. The only purp ose of these funds is to transfer funding to 
eligible SMEs. The Funds are not be engaged in any other economic activities.  G/SCM/N/284/EU/Add.28 
 
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  EC State aid reference – N373/2007. 
 UK legal authority for the scheme:  
The Industrial Development (NI) Order 1982. 
The Industrial Development (NI) Act 2002. The European Communities Act 1972 
 
4. Form of the subsidy 
 Equity, repayable advances and quasi equity (soft loans). 
 
5. To whom and how the subsidy is provided 
 
Small enterprises in Northern Ireland which have been of existence for less than 6 years at the 
time when the aid is granted.  
6. Total UK expenditure (in millions of £) 
 
2013  £0 2014  £0 
Scheme is not co-financed by EC. 
 7. Duration of programme 
 17 January 2008 to 1 October 2017.  
8. Assessment of trade effects 
 
No statistical data is available.  
 
10  INVEST NI - RESTRUCTURING AID 
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 To provide short-term support to enable companies in difficulty to implement a restructuring plan on an appropriate timescale enabling them to return to long term viability.  
3. Background and authority for the subsidy 
 
Restructuring Support forms one part of Invest NI's support under the European Commission's 
Rescue and Restructuring Guidelines. 
 EC State aid reference – N717a/2001. 
 
UK legal authority for the scheme:  The Industrial Development Act (NI) 2002. 
The Industrial Development Order (NI) 2002. 
The European Communities Act 1972.  
4. Form of the subsidy 
 
Grant, Equity, Loan. 
 G/SCM/N/284/EU/Add.28 
 
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  5. To whom and how the subsidy is provided 
 
The supported is provided to manufacturing and internationally traded service companies in Northern Ireland who are experiencing trading difficulties. 
 
6. Total UK expenditure (in millions of £) 
 
2013  £0.001. 
2014  £0.000.  Scheme is not co-financed by EC. 
 
7. Duration of the programme 
 
Indefinite from 21 January 2002.  
 8. Assessment of trade effects 
 No statistical data is available.   11  INVEST NI – SELECTIVE FINANCIAL ASSISTANCE SCHEME 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
This is the principle scheme of assistance used in Northern Ireland to attract new inward 
investment and encourage existing companies to develop their international competitiveness leading to growth and greater employment opportunities.  
The SFA Scheme relates to the setting up of a new establishment, where eligible the extension of 
an existing establishment or the starting up of an activity involving a fundamental change in the 
product or production process of an existing establishment.  
 
3. Background and authority for the scheme 
 
EC State aid references – XR11/2007 & SA.39233. 
 UK legal authority for the scheme:   
 The Industrial Development Act (NI) 2002. 
 The Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
4. Form of the subsidy 
 
Capital grant, revenue grant, loan or loan guarantees or share capital.  
 5. To whom and how the subsidy is provided 
 
Companies in the manufacturing and international traded service sectors (in line with EU 
restrictions on shipbuilding, coal and steel, synthetic fibres, vehicles, textiles and clothing, and agriculture and food processing). 
 
6. Total UK expenditure (in millions of £) 
 
2013  £34,386 
2014  £45,518  The scheme is co-financed by EC at rate of 50% of eligible co-financed expenditure. G/SCM/N/284/EU/Add.28 
 
- 15 - 
 
  7. Duration of Programme 
 
1 January 2007 to 31 December 2020  
8. Assessment of Trade effects 
 
An evaluation of the Selective Financial Assist ance scheme over the period 2004/05 to 2010/11 is 
available on the website of the Department of Enterprise Trade and Investment for Northern 
Ireland: https://www.economy-ni.gov.uk/publications/e vaulation-selective-fi nancial-assistance-
northern-ireland-2004-2011  
 
 
12  INVEST NI - DEVELOPMENT FUND  
1. Period covered by the notification 
 
2013 and 2014.  
2. Policy objectives 
 
The objective of the scheme is to address the lack of seed, start-up and expansion risk capital funding for SME companies located in Northern Ireland (an assisted area), which have high growth 
potential but which find it difficult to access capital markets. 
 3. Background and authority for the subsidy 
 UK legal authority for the scheme:  
 The Industrial Development Act (NI) 2002. 
 The Industrial Development Order (NI) 1982.  The European Communities Act 1972.  
EC State aid reference – SA.34142 
 4. Form of the subsidy 
 Provision of risk based equity  and quasi-equity capital. 
 
5. To whom and how the subsidy is provided 
 
Northern Ireland companies in the manufacturing and international traded service sectors.  
6. Total UK expenditure (in millions of £) 
 
2013  £1.375 
2014  £2,375 
 Scheme is co-financed by EC at a rate of 60% of eligible matched (public/private) finance 
 
7. Duration of the programme 
 1 January 2012 to 31 December 2023. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
13  INVEST NI - COLLABORAT IVE NETWORKS PROGRAMME  
1. Period covered by the notification 
 
2013 and 2014. G/SCM/N/284/EU/Add.28 
 
- 16 - 
 
   
2. Policy objectives 
 To increase innovative collaboration and clustering, and knowledge exchange amongst networks of 
Northern Ireland manufacturing and traded service companies,  
 3. Background and authority for the subsidy 
 UK legal authority for the scheme:   Industrial Development Act (NI) 2002 
 Industrial Development Order (NI) 1982 
 The European Communities Act 1972.  
EC State aid reference – SA.34899. 
 4. Form of the subsidy 
 Grant.  5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded service companies.  
6. Total UK expenditure (in millions of £) 
 
2013  £0.451 
2014  £0.572 
 Scheme is not co-financed by EC.  
7. Duration of the programme 
 
1 May 2012 to 31 December 2020. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
14  INVEST NI - LEADERSHIP AND MANAGEMENT FRAMEWORK  
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 Increased competitiveness through training and coaching for senior and middle management to develop leadership and management functions. 
 
3. Background and authority for the subsidy 
 UK legal authority for the scheme: 
 
 Industrial Development Act (NI) 2002.  Industrial Development Order (NI) 1982. 
 The European Communities Act 1972. 
 EC State aid reference – SA.34900. 
 
4. Form of the subsidy 
 G/SCM/N/284/EU/Add.28 
 
- 17 - 
 
  Grant. 
 5. To whom and how the subsidy is provided 
 
Northern Ireland manufacturing and traded service companies. 
 6. Total UK expenditure (in millions of £) 
 2013  £0.18 2014  £0.414  
Scheme is not co-financed by EC. 
 7. Duration of the programme 
 8 May 2012 to 31 Dec 2020.  
8. Assessment of trade effects 
 
No statistical data is available. 
15  INVEST NI – NON EXECUTIVE DIRECTOR PROGRAMME  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
Increased management competence through provision of third party consultancy expertise. 
 3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
  Industrial Development Act (NI) 2002. 
 Industrial Development Order (NI) 1982. 
 The European Communities Act 1972.  
EC State aid reference – SA.34902. 
 4. Form of the subsidy 
 
Grant. 
 5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded service companies.  
6. Total UK expenditure (in millions of £) 
 
2013 £0.136 2014 £0.245 
 
Scheme is not co-financed by EC.  
7. Duration of the programme 
 
1 May 2012 to 31 Dec 2014. 
 
8. Assessment of trade effects 
 G/SCM/N/284/EU/Add.28 
 
- 18 - 
 
  No statistical data is available. 
16  INVEST NI - GROWTH LOAN FUND  1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 To increase start-up and expansion funding for SME companies located in Northern Ireland (an assisted area) which have growth potential but which find it difficult to access capital markets.  
3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
 
 Industrial Development Act (NI) 2002.  Industrial Development Order (NI) 1982. 
 The European Communities Act 1972. 
 EC State aid reference – SA.34997.  
4. Form of the subsidy 
 
Equity and quasi equity risk and loan capital finance. 
 
5. To whom and how the subsidy is provided 
 
Northern Ireland SMEs in the manufacturing and traded services sectors. 
 6. Total UK expenditure (in millions of £) 
 
2013  £3.3 
2014  £3.5  
Scheme is not co-financed by EC. 
 7. Duration of the programme 
 1 June 2012 to 31 March 2022  8. Assessment of trade effects 
 No statistical data is available. 
17  INVEST NI - RESOURCE EFFICIENCY CAPITAL GRANT  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 To enable business to achieve water and material efficiencies beyond EU regulatory requirements. 
 
3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
  Industrial Development Act (NI) 2002. 
 Industrial Development Order (NI) 1982. G/SCM/N/284/EU/Add.28 
 
- 19 - 
 
   The European Communities Act 1972. 
 EC State aid reference – SA.35862.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded services companies 
 
6. Total UK expenditure (in millions of £) 
 
2013  £1.27 
2014  £0.364  
Scheme is not co-financed by EC. 
 7. Duration of the programme 
 
12 November 2012 to 31 March 2015 
 8. Assessment of trade effects 
 No statistical data is available.  
18  INVEST NI - DESIGN MANAGER RESOURCE SCHEME  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
To increase the uptake and use of professional design a business tool across their operations. 
 3. Background and authority for the subsidy 
 UK legal authority for the scheme:   Industrial Development Act (NI) 2002. 
 Industrial Development Order (NI) 1982. 
 The European Communities Act 1972.  
EC State aid reference – SA.37145. 
 4. Form of the subsidy 
 Grant.  5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded services companies.  
6. Total UK expenditure (in millions of £) 
 
2013  £0.002 
2014  £0.003 
 Scheme is not co-financed by EC.  G/SCM/N/284/EU/Add.28 
 
- 20 - 
 
  7. Duration of the programme 
 
1 August 2013 to 30 April 2017  
8. Assessment of trade effects 
 
No statistical data is available. 
 
19  INVEST NI – TECHSTART   
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 Provision of start-up and growth capital to know ledge based high growth potential start-ups in 
Northern Ireland. 
 
3. Background and authority for the subsidy 
 UK legal authority for the scheme: 
 
 Industrial Development Act (NI) 2002.  Industrial Development Order (NI) 1982. 
 The European Communities Act 1972. 
 EC State aid reference – SA.39644. 
 
4. Form of the subsidy 
 Equity, quasi equity, grant, loan 
 
5. To whom and how the subsidy is provided 
 
Northern Ireland manufacturing and traded services companies. 
 6. Total UK expenditure (in millions of £) 
 2013  £0 2014  £0.550  
Scheme is not co-financed by EC. 
 7. Duration of the programme 
 13 September 2014 – 30 June 2024.  
8. Assessment of trade effects 
 
No statistical data is available.  
20  INVEST NI – MANAGEMENT INFORMATION SYSTEMS E-BUSINESS PROGRAMME   
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
To increase SME investment in ICT. 
 G/SCM/N/284/EU/Add.28 
 
- 21 - 
 
  3. Background and authority for the subsidy 
 
UK legal authority for the scheme:  
 Industrial Development Act (NI) 2002. 
 Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
EC State aid reference – X423/2009.  [NB – from 1 January 2014, scheme operates on the basis of the EC's de minimis regulation] 
 
4. Form of the subsidy 
 
Grant. 
 5. To whom and how the subsidy is provided 
 Northern Ireland SMEs in manufacturing and traded services   6. Total UK expenditure (in millions of £) 
 2013  £1.0 2014  £1.062 
 
Scheme is co-financed by EC at a rate of 50% of eligible ERDF expenditure. 
 
7. Duration of the programme 
 
5 January 2009 to 31 December 2013.  
8. Assessment of trade effects 
 
No statistical data is available. 
 
21  INVEST NI – INTERIM MANAGER PROGRAMME   
1. Period covered by the notification 
 
2013 and 2014.  2. Policy objectives 
 Increased management capability through the provision of specialist third party consultancy advice  
3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
 
 Industrial Development Act (NI) 2002.  Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
EC State aid reference – X424/2009.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded services companies. G/SCM/N/284/EU/Add.28 
 
- 22 - 
 
   
6. Total UK expenditure (in millions of £) 
 2013  £0.48 
2014  £0.57 
 Scheme is not co-financed by EC. 
 
7. Duration of the programme 
 2 March 2009 to 31 December 2014. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
22  INVEST NI – BUSINESS IMPROVEMENT THROUGH TRAINING   1. Period covered by the notification 
 
2013 and 2014.  2. Policy objectives 
 To increase business competitiveness through training and skills enhancement.  
3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
 
 Industrial Development Act (NI) 2002.  Industrial Development Order (NI) 1982.  The European Communities Act 1972. 
 
EC State aid reference – X73/2009.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 Northern Ireland manufacturing and traded services companies. 
 
6. Total UK expenditure (in millions of £) 
 
2013  £4.821 
2014  £3.673  
Scheme is not co-financed by EC. 
 7. Duration of the programme 
 
2 January 2009 to 30 June 2015. 
 8. Assessment of trade effects 
 No statistical data is available.  G/SCM/N/284/EU/Add.28 
 
- 23 - 
 
  23  NI DETI - RENEWABLE HEAT INITIATIVE (2012 – 2020) 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The Strategic Energy Framework (SEF), endorsed by the Northern Ireland Executive and published 
by DETI in September 2010, sets ambitious targets for renewable energy generation.   
 
For renewable heat a target of 10% has been set by the Northern Ireland Executive. The current 
heat demand in Northern Ireland has been assessed as being 17,362 GWh per year, of which 
around 1.7% (300 GWh) is from renewable sources.   
Looking forward to forward to 2020, Northern Irelan d's overall heat demand is predicted to drop 
from 17.4 TWh per year to 16.7 TWh per year, with rises in demand from new development being outweighed by reductions in demand with efficien cy improvements in the existing sector. The 10% 
for renewable heat therefore equates to 1.6TWh (or an additional 1.3 TWh when considering 
existing levels).   3. Background and authority for the subsidy 
 UK legal authority for the scheme:  
The Renewable Heat Incentive Scheme Regulations,(Northern Ireland) 2012.  
The European Communities Act 197.2 
 
EC State aid reference – SA.34140 
 4. Form of the subsidy 
 
Technology based tariff incentives for renewable heat generated by the commercial sector. 
 5. To whom and how the subsidy is provided 
 All eligible commercial renewable heat technology installations are entitled to a tariff based incentive payment for a 20 year period. 
 
6. Total UK expenditure (in millions of £) 
 2013  £0.138 
2014  £2.182 
 Scheme is not co-financed by the EC. 
 
7. Duration of the programme 
 
1 July 2012 to 31 March 2040. 
 8. Assessment of trade effects 
 
No statistical data is available. 
 G/SCM/N/284/EU/Add.28 
 
- 24 - 
 
  24  NI DETI – EXTENSION OF NI GAS PIPELINE TO WEST AND NORTH WEST 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
Extension of the natural gas network to further towns in the West and North West of Northern 
Ireland (namely Dungannon, Cookst own, Magherafelt, Coalisland, Omagh, Enniskillen/Derrylin and 
Strabane).   
The economic appraisal on the project calculated th at this will involve investment of some £203 
million in the provision of approximately 169 km of new natural gas transmission (high pressure) and some 142 km of new gas distribution (low pressure) infrastructure to facilitate the provision of 
natural gas to the seven towns identified above (f inal costs are subject to final scheme design and 
tendered contracts).  
The project aims to save 86 000 tonnes of CO2 annually by 2052 and bring greater fuel choice to 
some 34,000 consumers in these areas, provide an  option for businesses to use a cleaner, more 
efficient and cheaper fuel, help to reduce the de pendence on coal and oil for household heating 
and help to alleviate fuel poverty. 
 
3. Background and authority for the subsidy 
 
UK legal authority for the scheme: 
  Energy (Northern Ireland) Order 2003. 
 The European Communities Act 1972. 
 EC State aid reference – SA.36290.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 
The beneficiary of the project is the holder of an  exclusive gas conveyance licence (awarded by the 
NI Authority for Utility Regulation following a competitive process) who has responsibility for implementing the gas transmission (high pressure) infrastructure in the West. It is anticipated that initial construction work will start in late 2015 with the major pipelines expected to be laid in 2016 
and 2017. Indirect beneficiaries are the businesse s, industries and households that will be 
connected to the natural gas network.  
6. Total UK expenditure (in millions of £) 
 
2013  £0 
2014  £0 
 Grant assistance up to £32.5 million is expected to be paid to the licensee over the period 2015/16 
to 2017/18. 
 
Scheme is not co-financed by the EC.  
7. Duration of the programme 
 
11 February 2015 (date of licence award) to 31 March 2018. 
 
8. Assessment of trade effects 
 No statistical data is available. G/SCM/N/284/EU/Add.28 
 
- 25 - 
 
  25  NI INTERTRADEIRELAN D - ACUMEN PROGRAMME 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The Acumen programme aims to help SMEs to gr ow their business on the island of Ireland. 
 Benefits to companies as a resu lt of the programme include: 
 
 Access to new markets and increased cross-border sales. 
 Better knowledge of the cross-border market. 
 New business opportunities identified. 
 Improvements to their sales and marketing strategy. 
 Increased business contacts and prospects across the island. 
 
3. Background and authority for the scheme 
 
The legal basis for the scheme is the British/ Irish Agreement Act 1999, which authorises the 
awarding body (InterTradeIreland: a non-departme ntal body) to administer and fund projects 
under the proposed scheme. 
 EC State aid reference – X672/2009. 
 
4. Form of the subsidy 
 
Assistance will be provided in the form of non-repayable grants. 
 5. To whom and how the subsidy is provided 
 
SMEs in manufacturing and tradable services sectors. 
 6. Total UK expenditure (in millions of £) 
 2013  £0 2014  £0.004 
 
Scheme is not co-financed by EC.   7. Duration of programme 
 8 June 2009 to 30 June 2014  
8. Assessment of trade effects 
 
No statistical data is available. 
 
26  NI INTERTRADEIRELAND – INNOVA  
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 Northern Ireland and the Republic of Ireland spend approximately 1.5% of the GDP on R&D 
initiatives, whereas the EU average largely exceeds 2% of the GDP. Ireland ranks for 12
th lowest 
country in terms of GPD spend on R&D among deve loped economies. Therefore there is a need to 
invest on R&D in order to boost economic growth in Northern Ireland and the Republic of Ireland G/SCM/N/284/EU/Add.28 
 
- 26 - 
 
  and also to target 3% of GDP for overall R&D spending as agreed at the Barcelona European 
Council.   The aim of the scheme is to address this weakne ss by encouraging and supporting enterprises to 
undertake collaborative cross-border research and technological development with commercial 
potential in order to stimulate growth, strengthen competitiveness and encourage flow of technology among network of companies, particular ly SMEs in Northern Ireland and the Republic 
of Ireland.  
 The scheme is mainly targeted at R&D in the Life  Sciences, ICT, Agri-food & advanced engineering 
sectors. Thus, it will support companies that are developing their R&D activity in the wider life and 
health technologies sectors, acting in cross-border collaboration with other companies.  
 3. Background and authority for the scheme 
 The legal basis for the scheme is the British/ Irish Agreement Act 1999, which authorises the 
awarding body (InterTradeIreland: a non-departme ntal body) to administer and fund projects 
under the proposed scheme.  
 EC State aid references – N765/2007 & SA.37908.  
4. Form of the subsidy 
 
Assistance will be provided in the form of non-repayable grants. 
 
5. To whom and how the subsidy is provided 
 
The scheme is targeted at SME's, although large co mpanies will be eligible to apply. The estimated 
number of recipients is up to 35.  6. Total UK expenditure (in millions of £) 
 2013  £0.392 2014  £0.258 
 
Scheme is not co-financed by EC.  
7. Duration of programme 
 
1 January 2008 to 31 December 2014  
8. Assessment of trade effects 
 
No statistical data is available. 
 
27  INTERTRADEIRELAND - FUSION 
1. Period covered by the notification 
 
2013 and 2014.  2. Policy objectives 
 Through developing and facilitating three way cross-border partnerships (company, academics and graduates) the FUSION programme aims to: 
 
 Support the development of businesses on the island of Ireland by transferring 
and embedding knowledge on a cross-border basis between industry and 
academia; 
 
 Improve the flow of and access to knowledge capital across the island of Ireland; 
 G/SCM/N/284/EU/Add.28 
 
- 27 - 
 
   Increase process and/or product development within businesses; 
 
 Increase industry R&D capability and thereby improve business innovation; and 
 
 Improve industry-academic linkages and thereby improve the knowledge and skills 
base within SMEs and larger companies. 
3. Background and authority for the scheme 
 
The legal basis for the scheme is the British/ Irish Agreement Act 1999, which authorises the 
awarding body (InterTradeIreland: a non-departme ntal body) to administer and fund projects 
under the proposed scheme. 
 
EC State aid reference – X673/2010  
4. Form of the subsidy 
 
Assistance will be provided in the form of non-repayable grants. 
 
5. To whom and how the subsidy is provided 
 The scheme is targeted at SMEs, although large companies are eligible to apply. It is anticipated 
that on average 60 projects will be supported per annum. 
 6. Total UK expenditure (in millions of £) 
 2013  £1.131 2014  £0.963 
 
Scheme is not co-financed by EC.  7. Duration of Programme 
 8 June 2009 to 30 June 2014.  
8. Assessment of Trade effects 
 
No statistical data is available.   
28  NI DEL - ASSURED SKILLS 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The aim of the programme is to attract high value, highly paid jobs to Northern Ireland and 
achieve the Executive's targets on productivity and wealth generation.  
3. Background and authority for the scheme 
 
Assured Skills is a joint Department for Employment and Learning (DEL) and Invest NI (INI) programme to deliver a range of activities an d interventions guaranteeing companies that 
Northern Ireland has the ability to satisfy their future skills and experience needs.  
 EC State aid references – X355/2010 & SA.40225 
 
4.  Form of the subsidy 
 
Grant. 
 G/SCM/N/284/EU/Add.28 
 
- 28 - 
 
  5. To whom and how the subsidy is provided 
 
Assured Skills is open to INI Client companies th at have committed to expand, as well as new 
inward investors who have committed to establish a facility in Northern Ireland.  
 
6. Total UK expenditure (in millions of £) 
 
2013  £0.434 
2014  £1.048m  7. Duration of programme 
 1 September 2010 to 31 December 2020.  
8. Assessment of trade effects 
 
No statistical data is available. 
29  NI DARD - RESEAR CH CHALLENGE FUND 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
 To improve the competitiveness of rural enterprises and create wealth from the 
research base; 
 To increase the number of agricultural and rural enterprises engaging in effective 
research and development and innovation (R&D&I) - including those participating for 
the first time - and the level of private sector expenditure on R&D&I; 
 To increase the level of collaboration between Northern Ireland's rural enterprises and 
the local, national and international research base; and 
 To increase collaboration and effective co-operation between rural enterprises. 
3. Background and authority for the scheme 
 
The Scheme is designed to provide funding to cons ortia of industry and research providers to carry 
out innovative, high quality, pre-commercial research and technological development projects which have the potential to further the sustainab ility of Northern Ireland's agri-food and rural 
enterprises. 
 The legal base for the Scheme is Section 5 of the Agriculture Act (Northern Ireland) 1949 (Chapter 2) (as amended). 
 
The legislation which gives effect to EC law in Northern Ireland is:  
European Communities Act (1972) (section 2(1)); and  
Northern Ireland Act (1998) (c. 47, p. II, s7 (1(a))).  
EC legal basis 
 
All State aid provided under this Scheme will be provided in compliance with the 2008 and 2014 
General Block Exemption Regulations. 
 
EC State aid references – X187/2010 & SA.37738  G/SCM/N/284/EU/Add.28 
 
- 29 - 
 
  4. Form of the subsidy 
 
Subsidy is in the form of a Grant.  
5. To whom and how the subsidy is provided 
 
Industry partners must be from the agri-food and rural sector and have manufacturing or 
processing capability or other rural economic activity in Northern Ireland. Large enterprises, SMEs 
and SME representative or levy bodies can apply. Large enterprises must collaborate with at least one SME. Applications from sing le SMEs will not be accepted 
 
Research partners must be public sector research establishments. It is not essential for the 
research partner to be located in the Northern Ir eland, but there must be a clear benefit to the 
region from the R & D. 
 
Only projects classified as industrial research or experimental development will be eligible for funding. 
 
Funding is provided in the form of grant assistance of up to a maximum of 50% of total eligible costs and up to a ceiling of £250,000 of public fu nding derived from any source. The grant is paid 
quarterly in arrears. 
 
6. Total UK expenditure (in millions of £) 
 
2013  £0.541 
2014  £0.607  
Scheme is not co-financed by EC. 
 7. Duration of programme 
 
1 January 2008 to 31 October 2016. 
 8. Assessment of trade effects 
 No statistical data is available.  
30  NI DARD – AGRICULTURAL R&D SCHEME (2013 – 2020) 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The aim of the Scheme is to undertake research  and development in relation to Agricultural 
products. The Department of Agriculture and Rura l Development (Northern Ireland) (DARDNI) will 
direct the Agri-Food & Biosciences Institute (AFBI) to undertake fundamental research, industrial 
research and experimental development intended to improve the efficiency and quality of 
production of Annex 1 products. The aim of this inte rvention is to increase profitability and market 
share by generating niche products or by improving production methods. There will be benefits across all sub-sectors of the agriculture sector as well as being benefit to consumers. 
 
3. Background and authority for the subsidy 
 
DARDNI has as its Strategic Vision a thriving and sustainable rural community and environment in 
Northern Ireland. To ensure that the Department's policy and operational activities are appropriately designed and targeted to achieve this Vision, it needs sound scientific evidence 
across the full range of its responsibilities. DA RDNI's Evidence and Innovation Strategy (EIS) 
2009-2013 therefore provides the overarching framework for research and development to 
underpin evidence-based policy and delivery and to promote innovation in agri-food, farming, 
forestry and other rural businesses. G/SCM/N/284/EU/Add.28 
 
- 30 - 
 
   
All work relevant to the Scheme will be commissi oned from the AFBI, which is a Non-Departmental 
Public Body (NDPB) established by the Agricultur e (Northern Ireland) Order 2004. AFBI carries out 
high technology research and development, statut ory, analytical, and diagnostic testing functions 
for DARDNI and other Government departments, public bodies and commercial companies. AFBI's 
NDPB status enables it to be innovative and entrepreneurial in its approach to business development. AFBI is forging new partnerships with other scientific institutes and research 
organisations and extending the range of services it offers. This enables AFBIs unique breadth of 
scientific capabilities in the areas of agriculture,  animal health, food, environment and biosciences 
to be offered to a wider prospective national and international customer base.  
UK legal authority for the scheme:  Agricultural Act (Northern Ireland ) 1949 and Agriculture 
(Northern Ireland ) Order 2004.  
 
EC State aid reference – SA.36383. 
 4. Form of the subsidy 
 100% Grant-in-aid.  5. To whom and how the subsidy is provided 
 The grant in aid will be paid to AFBI on a monthly basis.  
6. Total UK expenditure (in millions of £) 
 
2013  £0.771  
2014  £0  
 Scheme is not co-financed by EC.  
7. Duration of the programme 
 
1 April 2013- 31 March 2020. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
 31  NI DARD – PROCESSING AND MARKETING GRANT SCHEME  
1. Period covered by the notification 
 
2013 and 2014.  
2. Policy objectives 
 
To improve the economic performance and intern ational competitiveness of the agri-food and 
forestry sectors by:  
 
 adding value to agricultural products through the application of appropriate 
technology together with sound manufacturing and environmental management 
practices;  
 encouraging greater integration and collaboration between producers, processors and 
others in the food chain, improving the application of technology within the supply 
chain and improving the marketing capability of businesses; and  
 improving the application of technology in the forestry sector, encouraging greater 
integration and collaboration between producers, processors and others in the wood 
supply and renewable energy chains and improving the marketing capability of 
businesses.  G/SCM/N/284/EU/Add.28 
 
- 31 - 
 
  3. Background and authority for the subsidy 
 
The Scheme provides financial support for Northe rn Ireland's agri-food and forestry processing 
sectors towards capital expenditure on buildings and equipment, the cost of a business plan for the 
project, and directly related technical costs such as architects', engineers' and consultants' fees. 
 Projects must primarily (at least 90%) concern the processing of products (other than fishery 
products) covered by Annex I to the Treaty of Rome or forestry products.  
 Investments must fall within the following sectors:- red meat, pig meat, poultry meat, eggs, milk and milk products, potatoes, horticulture (including flowers, fruit and vegetables), cereals and 
forestry.  
 It is intended that the Scheme will enable supported enterprises to increase the value of sales and 
improve overall economic performance. 
 UK legal authority for the scheme: Agricultural and Forestry Processing and Marketing Grant 
Regulations (Northern Ireland) 2007 (S.R. 2007 No. 418). 
 EC State aid reference – SA.37434.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 
The Scheme is open to micro, small, medium and intermediate sized enterprises involved or wishing 
to become involved in processing including pr ocessors, groups of producers and individual 
producers.   
The maximum rate of grant per project is 40% up to £500k. Grant is paid in arrears to project 
promoters.   
In the case of the forestry sector the Scheme is limited to micro enterprises.  
 6. Total UK expenditure (in millions of £) 
 2013 – £1.75m 2014 - £1.65m  
Scheme is co-financed by EC.  
 7. Duration of the programme 
 01.01.2014 to 31.12.2015.  
8. Assessment of trade effects 
 
No statistical data is available. 
32  NI DCAL – REGIONAL STADIUM DEVELOPMENT IN NORTHERN IRELAND  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The reconstruction of three old sports stadia in Belfast, in order to provide safe stadia for the three 
main sports of the region (namely: soccer; gaelic  games and rugby) and in addition to regenerate G/SCM/N/284/EU/Add.28 
 
- 32 - 
 
  deprived urban communities. The project will also encourage social cohesion in communities 
divided by religion to come together through sport, and will contribute to the NI Peace Process.  3. Background and authority for the subsidy 
 UK legal authority for the scheme:  
 Recreation and Youth Service (Northern Ireland) Order 1986. 
 Northern Ireland Act 1998.  Departments (Northern Ireland) Order 1999.  The European Communities Act 1972. 
 
EC State aid reference – SA.37342.  
4. Form of the subsidy 
 
Grant. 
 
5. To whom and how the subsidy is provided 
 The Irish Football Association, the Ulster Council of  the Gaelic Athletic Association and the Ulster 
Branch of the Irish Rugby Football Union. 
 6. Total UK expenditure (in millions of £) 
 2013  £13.3m 2014  £14.7m 
 
The scheme is not co-financed by EC.  7. Duration of the programme 
 2012 – 2018.  
8. Assessment of trade effects 
 
No statistical data is available. 
33  NI DOJ – 6 OUT OF 10 PROJECT   
1. Period covered by the notification 
 
2013 and 2014 
 
2. Policy objectives 
 
The overall objective of the project is to change th e life of the young child by targeting their young 
parent through a mix of family, parenting and training interventions and employment for one year in a social enterprise set up specifically to aid the young parent with developing the skills they 
need to secure permanent employment. 
 3. Background and authority for the subsidy 
 
UK legal authority - Section 94, Justice Act (Northern Ireland) 2011 and the European 
Communities Act 1972.  
EC State aid reference – SA.39918. 
4. Form of the subsidy 
 
Grant. 
 G/SCM/N/284/EU/Add.28 
 
- 33 - 
 
  5. To whom and how the subsidy is provided 
 
The Book Reserve, a Community Interest Company, via a 3 year grant.  
6. Total UK expenditure (in millions of £) 
 
2013  £0 
2014  £0.413 
 The scheme is not co-financed by EC.  
7. Duration of the programme 
 
November 2014 – April 2017. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
34  NI URBAN DEVELOPMENT GRANT SCHEME 1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objectives 
 Urban Development Grant is a discretionary grant with the objective of promoting job creation, inward investment and environmental improvement by the stimulation of development of vacant, 
derelict or underused land or buildings. 
 3. Background and authority for the subsidy 
 
The Department for Social Development (DSD) administers the Urban Development Grant scheme 
under the provisions of the Social Need (Northern Ireland) Order 1986. Projects should fit within a 
wider strategic context, complementing other initiatives or strategies. Projects should be 
consistent with policy on tackling poverty and social exclusion and the Department's Statutory 
Equality Obligations. The scheme operates under the European Commission's General Block Exemption Regulation (GBER) and the scheme reference number is X20/2009. 
 
UK legal authority for the scheme:   The Social Need (Northern Ireland) Order 1986. 
 The European Communities Act 1972. 
 EC State aid reference – X20/2009. 
 
4. Form of the subsidy 
 
The subsidy takes the form of a cash grant. 
 5. To whom and how the subsidy is provided 
 
UDG is currently available for speculative developments, owner-occupier new-build and 
refurbishment schemes, in specific priority urban areas designated by DSD. The grant is available 
for a range of physical development projects in sectors such as inner/middle city housing, 
commercial, retail and light industrial. The amount of grant offered is the minimum necessary to 
trigger a project.   
For speculative developments, the grant is base d on the shortfall between the projected total 
development cost of a project and its value on completion (following appraisals carried out by G/SCM/N/284/EU/Add.28 
 
- 34 - 
 
  Central Procurement Directorate Quantity Survey ors and Land and Property Services valuers 
respectively). Grants offered to owner-occupier projects are based on eligible costs only.  6. Total UK expenditure (in millions of £) 
 2013  £1.775 2014  £2.729 
 
The scheme is not co-financed by the EC.  7. Duration of the programme 
 UDG was first introduced in 1982 under the Social Need (Grants) Act (NI) 1970, which was subsequently replaced by the Social Need (NI) Order 1986. The form and focus of the UDG scheme 
is reviewed periodically and policy is kept under continuous review. 
 8. Assessment of trade effects 
 No statistical data is available.  35  NI SCREEN FUND 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The primary objective is to provide financial assistance for the development and production of 
moving image or audiovisual product. Funds will be provided to help deliver a consistent flow of high quality and culturally significant programming  including Irish Language programming with the 
ultimate aim of ensuring that the culture and crea tive potential of Northern Ireland is expressed 
through moving image. The Fund is in line with the Communication on certain legal aspects 
relating to cinematographic and other audio-visual guidelines (2002/C 43/04).  
3. Background and authority for the subsidy 
 
Education and Library Services etc. Grants Regulation (Northern Ireland) 1994. 
Industrial Development Act (Northern Ireland) 2002. 
 EC State aid reference – SA.33920.  
4. Form of the subsidy 
 
Loan. 
 
5. To whom and how the subsidy is provided 
 
The Scheme is limited to film and television production companies. 
 6. Total UK expenditure (in millions of £) 
 
2013  £5.67 
2014  £6.18  
Scheme is Co-financed by th e ERDF at a rate of 50%. 
 7. Duration of the programme 
 1 April 2012 to 31 March 2016.  G/SCM/N/284/EU/Add.28 
 
- 35 - 
 
  8. Assessment of trade effects 
 
No statistical data is available. 
36  NI SEUPB – SPIRE PROJECT 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives  
 
Aid for environmental studies linked to investme nts in the promotion of energy from renewable 
sources.  
 This environmental study is part of a larger project that is investigating the potential for 
compressed air to be used as an energy storage medium. This element will investigate the 
potential of salt caverns as a Compressed Air Energy Storage medium.  
The SPIRE project will provide an informed evidence base on the potential to develop the salt 
caverns below Larne as a Compressed Air Energy Storage medium which, working in tandem with wind energy, will lead to reductions in carbon em issions by reducing the amount of electricity that 
has to be generated using conventional fossil fuels. 
 
3. Background and authority for the subsidy  
 
The purpose of the SPIRE project (Storage Platform  for the Integration of Renewable Energy) is to 
establish the value of energy storage as a variability management mechanism for the Irish all-island electricity market by undertaking modelling and aspects of demonstration, in order to 
determine the storage technologies best suited to  meeting market needs at the small (domestic), 
medium (distributed) and large (utility) scale.  The SPIRE project aims to assess the economic and technical feasibility of energy storage types at 
three distinct levels: 
 
  Large scale energy storage - facilitate to expl oration of salt deposits at Larne to determine 
whether the area is technically capable of supporting the large scale storage 
(approximately 1 Gigawatt-hour) of energy within a compressed air energy storage (CAES) facility. 
 
  Medium scale energy storage - assess energy storage at an individual industrial site or 
campus.  
  Small scale energy storage - trial the applic ation of small scale energy storage systems 
(e.g. hot water storage systems) at the test houses ("Terrace Street") in the UU. 
 
This will be completed via three distinct work packages: 
 
  Modelling. 
 
  Laboratory Evaluation. 
 
  Final Evaluation. 
 
UK legal authority for the scheme:  
 The British Irish Agreement Act 1999. 
 The European Communities Act 1972.  
EC State aid references – SA.37243 & SA.40275. 
 G/SCM/N/284/EU/Add.28 
 
- 36 - 
 
  4. Form of the subsidy 
 
Grant.  
5. To whom and how the subsidy is provided  
 
The total cost of the SPIRE project is £3,737,076. 
 
This will be funded by an INTERREG IVA grant of £2,932,733 which has been awarded to the 
University of Ulster as Lead Partner. £804,344 w ill be provided by a private sector company, 
Gaelectric. 
 
6. Total UK expenditure (in millions of £) 
 
2013  £0.287 
2014  £1.077  
The total amount of State aid is £1,876,803 (i.e. 70% of £2,681,147) of which 77.49% 
(£1,454,335) will be UK State aid and 22.51% (£422, 468) will be Irish State aid. This Member 
State aid is also subject to an ERDF co-financing rate of 75%.   
7. Duration of the programme 
 
24 July 2013 to 31 December 2020. 
 
8. Assessment of trade effects 
 
No statistical data is available. 
 37  R&D TAX CREDIT  
1. Period Covered by the notification 
 
2013 and 2014  
2. Policy Objectives 
 
The aim of the R&D Tax Credit Scheme is to encourage innovation by companies which are small 
or medium-sized enterprises (SMEs). It gives an incentive to companies including high risk start-
ups to take up R&D activities and also encourages companies already carrying out R&D to increase their level of spend.  
3. Background and authority for the scheme 
 
The R&D Tax Credit Scheme was introduced in 2000 after extensive consultation both on the 
details of the scheme (Inland Revenue Technical Note "Research and Development: New tax 
incentives for small and medium-sized companies" - March 1999) and on the definition of research 
and development (Inland Revenue technical note "Research and Development: Definition and 
Appeals" – January 1999). 
 It was notified to the European Commission as a State aid and approved by them under reference N802/99. Amendments have been notified and approved under references: 
 
  N245/2003 (on 3 September 2003); 
 
  N293/2004 (on 1 December 2004); 
  N816/2006, N33/2007 and N 34/2007 (on 30 May 2008); and 
  SA.32786 (2011/N) (on 19 July 2011). G/SCM/N/284/EU/Add.28 
 
- 37 - 
 
  Legislation governing the scheme was introduced in the Finance Act 2000 (Schedules 20 and 21) 
and subsequently amended in the Finance Act 2002 (Schedule 15), the Finance Act 2003 (Schedule 31), the Finance Act 2004 (section 141), the Finance Act 2006 (Sections 28 and 29 and Schedules 2 and 3), the Finance Act 2007 (Sections 49 and 50) and the Finance Act 2008 
(Sections 26 to 29 and Schedules 8 and 9). The legislation was rewritten in clearer language, but 
not amended in substance, in the Corporation Tax Act 2009 (CTA 2009). It is now in Chapter 2 of Part 13 of CTA 2009. It was further amended in the Finance Act 2012 (Section 20). 
 
The R&D Tax Credit Scheme applies to "larger SMEs" – companies that meet the normal conditions for an SME, except that they may have up to 500 staff, turnover up to €100m and balance sheet total up to €86m – in relation to expenditure incurred on or after 1 August 2008. 
 
4. Form of the subsidy 
 
Tax relief (see below). 
 5. To whom and how the subsidy is provided 
 There are two separate schemes in place. The UK offers R&D tax relief to all companies. Until April 2013, this was available as a corporation tax super-deduction of 30%. All firms are also able to take advantage of the standard 100% corporate tax deduction for R&D expenditure, providing a 
total deduction of 130%. Following a review of th is scheme, it was changed in 2013 to a taxable 
credit known as the Research & Development Expenditure Credit (RDEC) (with firms able to choose whether to claim the super-deduction or the RDEC until 2016). The current rate of the 
RDEC is 10%. After the credit is taxed, this provides an effective rate of relief of 28% (including 
the standard 100% deduction of R&D expenditure).  
SMEs have the option to instead claim R&D tax credits under a separate scheme. This provides 
relief equal to 225% of their qualifying R&D ex penditure (on or after 1 April 2012; previously 
200%), comprising of a standard deduction which is  available to all companies undertaking R&D of 
100% and an enhanced R&D tax relief of a further 125%.  
 
A company not yet in profit may surrender the relief to the Government in return for a payable credit of 14.5%. The amount surrenderable is li mited to the proportion of the unrelieved loss 
attributable to the qualifying R&D expenditure. 
 The additional aid under the SME scheme is the difference between what is available under the 
RDEC and the SME scheme. The current aid intens ity for profit-makers is 17% (the difference 
between the effective rate of relief for profit-m akers under the SME scheme and under the RDEC). 
For loss-makers it is 24.6% (the effective rate of relief under the SME payable credit and that of the RDEC). 
 
The eligible activities for the UK R&D tax credit schemes fall under the R&D stages of fundamental 
research, industrial research and experimental development in the meaning of point 1.3(m), (q) 
and (j) of the R&D&I Framework. As the schemes  do not distinguish between the different R&D 
categories, the aid intensity limit for experimental development applies (25%) to the SME scheme. The availability of R&D tax credit to a corporate SME is subject to the following criteria: 
 
a. the qualifying expenditure for the R&D tax cr edit for any accounting period of the company 
is limited to the aggregate of: 
 the direct costs of staff directly involved in carrying out the R&D activity. These costs 
comprise the gross remuneration (excluding benefits-in-kind) plus national insurance 
contributions payable by the company, plus contributions to a pension scheme paid by 
the company; plus 
 the cost of consumable or transformable materials used directly in the R&D activity; plus 
 the cost of computer software, power, water and fuel used directly in the R&D activity; 
plus G/SCM/N/284/EU/Add.28 
 
- 38 - 
 
   if the company subcontracts all or part of the R&D while retaining ownership rights of 
any intellectual property (IP) produced ( from 9 December 2009 a company no longer requires to own the IP created by the R&D carried out), 65% of the payments due to the subcontractor (representing a generalised measure of the costs above). Alternatively, 
the company may claim the actual costs it incurs within the above categories. This latter 
rule is the only option where the principal and subcontractor are connected. 
b. the R&D tax credit is not available on R& D spending that has been met by a grant or 
subsidy. No R&D expenditure will qualify for the tax credit if incurred in relation to a project 
in receipt of any other notifiable State aid; 
c. the credit is only available to a company if it is a going concern; d. There is a cap of €7.5m on the total amount of R&D tax credit and vaccine research relief 
that can be claimed in respect of any particular R&D project. 
R&D spending by joint ventures and consortia will be eligible for the R&D tax credit, but only 
insofar as the tax credit can be limited to corporate SMEs. 
 
6. Total amount budgeted (in millions of £) 
 
Estimates of the number of claims made for R&D tax credits and the cost of support claimed are 
published as National Statistics on the HM Reve nue and Customs website. The latest figures were 
published in August 2014 and cover years up to 2012/13. The statistical tables, including background information, can be found at: 
 
https://www.gov.uk/government/publications/tax-c redits-evaluation-of-research-and-development  
 
The amount budgeted under state aid is not equal to the cost of the SME scheme. This is because 
in the absence of the SME scheme, firms could still continue to benefit from the RDEC. So the cost 
of the aid is equal to the total value of claims under the SME scheme minus the value they would 
have been under the RDEC. In 2012-13, this would have been roughly equivalent to £400m. 
 7. Duration of programme  
 
Until 31 March 2017. 
 8. Assessment of trade effects 
 The aim of the R&D tax credit scheme is to increase innovation by companies, flowing from increases in their R&D expenditure. There is no territorial limit to R&D qualifying for tax credits, 
but the incentive does operate by reducing UK corporation tax, so there may be some impact on 
decisions to locate R&D. However the measure applies only to SMEs, and it is larger companies that tend to operate internationally, particularly when it comes to the location of R&D. Therefore, the impact of the R&D tax credit on such location decisions is likely to be small. 
 
An evaluation of Research and Development Tax Credits was published in 2010: https://www.gov.uk/government/publications /tax-credits-evaluation-of-research-and-
development . The report summarised the findings of a suite of studies, undertaken or 
commissioned by HMRC to inform an evaluation of the schemes introduced since April 2000. 
 
38  REGIONAL GROWTH FUND:  
1. Period Covered by the notification 
 
2013 and 2014. 
 
2. Policy Objectives 
 
The Regional Growth Fund (RGF) operates ac ross England. Its two key objectives are: 
 G/SCM/N/284/EU/Add.28 
 
- 39 - 
 
   - To stimulate enterprise by providing support for projects and programmes with 
significant potential for economic growth, leveraging in private sector investment, and creating additional sustainable private sector employment; and,  
 
 To support in those areas currently dependent on the public sector to make the 
transition to sustainable private sector-led growth and prosperity.  
 
3. Background and authority for the scheme 
 
In October 2010, under plans to rebalance the economy, the UK government set out its role in supporting locally driven growth, encouraging business investment and promoting economic 
development. To support this objective, it established the Regional Growth Fund.  
 The legal basis for RGF awards is primarily the Industrial Development Act 1982 Sections 7 and 8. 
Those sections empower the Secretary of State to provide selective financial assistance, 
respectively for industry in Assisted Areas and for industry generally.  
4. Form of the subsidy 
 
The RGF provides primarily grants but also some loans. Funds are provided direct to end beneficiaries through projects, where there is a minimum bid threshold of £1 million, or through 
programmes, which are administered by scheme managers. 
 5. To whom and how the subsidy is provided 
 The RGF is a competitive fund with bidders in England invited to submit bids for funding, either for a project or through a programme, in bidding rounds; there have been six rounds to date. Private 
sector firms and public-private partnerships were eligible to bid for funding in rounds 1 to 4 and 
private sector firms only were eligible to bid for funding in rounds 5 & 6. In 2013 a policy was introduced to accept exceptional RGF (eRGF) funding applications; this allows the RGF to be more flexible and respond to urgent requests for funding outside the bidding rounds where there is a 
significant economic opportunity. 
 The RGF is not targeted at particular sectors or at a particular size of firms. Bids are appraised on 
how well they meet the main objectives of the RGF by assessment of five criteria. These are 
project location, additionality, sustainable private sector growth, value for money, and state aid compliance. 
 
6. Total amount budgeted (in millions of £) 
 2013  £284m 
2014  £613m 
 7. Duration of programme  
 The RGF scheme started in 2011/12 and fund s are to be drawn down by 2016/17. 
 
8. Assessment of trade effects 
 
The RGF is a supply-side intervention which addresses market failures and other related barriers to business investment at the firm and local/regional level. It supports projects and programmes that 
lever private sector investment to create economic growth and sustainable employment. National 
displacement impacts are considered on a case by case basis to minimise any trade effects. It is notified as a scheme under the EU General Block Exemption Regulation (GBER) and awards are 
generally made in compliance with GBER  or the EU de minimis regulations.  
 39  RENEWABLES OBLIGATION ORDER 2009 
[Since its introduction in 2002 the RO has been amended numerous times to reflect changes in 
policy. The period which is being notified was covered by the Renewables Obligation Order 2009 incorporating amendments made by the Renewables Obligation Order (Amendment) Orders 2013 and 2014 for England and Wales. Similar amendments were made to the Renewables Obligation G/SCM/N/284/EU/Add.28 
 
- 40 - 
 
  Order (Northern Ireland) 2009 and the Renewables Obligation (Scotland) Order 2009 incorporating 
amendments made by the Renewables Obligatio n (Scotland) Amendment Order 2013 and 2014 for 
Scotland]  
1. Period covered by Notification 
 
2012/13 and 2013/14. 
 
2. Policy Objectives 
 To deliver an increase in electricity generation from eligible renewables sources. 
 
3. Background and authority for the scheme 
 
The Scheme is a mechanism for supporting large scale renewable electricity generation. It imposes 
an obligation on licensed electricity companies to source a specified and annually increasing proportion of their electricity sales from eligible  sources. As of 1 April 2009, when 'banding' was 
introduced, different technologies receive different numbers of Renewables Obligation Certificates 
(ROC) per MWh, to reflect differences between tec hnologies including the cost of generation and 
potential for large-scale deployment. Generators are then able to sell their ROCs onwards to the suppliers.  
 
In the event the supplier is unab le to provide the requisite number of ROCs they will pay the 
buyout price for each ROC by which they fall shor t of meeting their Obligation. The buyout price 
was set in 2002 and has increased in relation to inflation (measured by the Retail Price Index – 
RPI). The buyout fund at the end of the compliance year (April-March) is recycled to suppliers in proportion to the number of ROCs they presented. 
 
4. Form of the subsidy 
 Recycling of buy-out payments. 
 
5. To whom and how is the subsidy provided 
 
Licensed electricity suppliers who have met their Renewables Obligation through ROCs. Monies are 
then passed on to electricity generators generating electricity from eligible renewable sources by way of power purchase agreements etc. 
 
Buy-out fund recycled in autumn of each year.   6. Total amount budgeted 
 In 2012/13 £164.4m was redistributed to suppliers across the UK.  
In 2013/14 £42.4m was redistributed to suppliers across the UK. 
 These figures are taken from Ofgem's RO annual reports. 
 
7. Duration of programme 
 Currently to 2036/37. 
 
8. Assessment of trade effect 
 
The RO is open to renewable electricity generating stations situated in the UK regardless of their 
country of ownership.  G/SCM/N/284/EU/Add.28 
 
- 41 - 
 
  40  SE - SCOTTISH ENTERPRISE BUSINESS SUPPORT SCHEME 2009-13 
1. Period covered by the notification 
 
 2013 and 2014 (until June 2014) 
 
2. Policy objectives 
 
The objective is to support business development primarily for SMEs. Fields covered include 
management, finance, new technology, e-commerce, protection of intellectual property rights, assessing feasibility of new ventures, environmental protection; participation in trade fairs and exhibitions; studies relating to investment decisions on environmental protection, energy saving 
measures and energy from renewable energy sour ces; purchase of specific dedicated capital 
equipment and/or assets related to a development project and which are additional to the SME.  
 
3. Background and authority for the scheme 
 
The legal basis for the scheme is the European Communities Act 1972 and the Enterprise and New 
Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish Statutory Instrument 2001 
No. 126.  4. Form of the subsidy 
  Grant.  
5. To whom and how the subsidy is provided 
 
To companies who apply to Scottish Enterprise for support under a number of grant products. 
Applicants must submit an application for assistance to SE before work on the project or activity has 
started, and the application must be approved in writing before work can commence on the project. Where the applicant is a large company, additional conditions will be applied to ensure that the aid has an incentive effect.  
 
6. Total amount 
 
2013 £15.3m 
2014 £6.1m  
7. Duration of programme 
 
To 30 June 2014  
8. Assessment of trade effects 
 
Potential recipients potentially participate in trade between Member States. The scheme is 
therefore regarded by the Commission as affecting trade. The aid is regarded as compatible with 
the Treaty as its objectives concur with the General Block Exemption Regulation.  
41  SE - SCOTTISH RESEARCH, DEVELOPMENT & INNOVATION SCHEME (2008-13) 
1. Period covered by the notification 
 
2013 and 2014 (until June 2014) 
 
2. Policy objectives 
 
The principal objective of the scheme is to encourage enterprises in Scotland to undertake 
innovative research and technological development with commercial potential in order to stimulate growth, strengthen competitiveness, and boost em ployment in Scotland. It aims to provide an 
incentive for enterprises to undertake research, de velopment and innovation (R&D&I) activities in 
addition to their existing R&D&I activities and to encourage enterprises that are not currently 
doing so, to carry out R&D&I. G/SCM/N/284/EU/Add.28 
 
- 42 - 
 
  3. Background and authority for the scheme 
 
The legal basis for the scheme is the European Communities Act 1972 and the Enterprise and New 
Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish Statutory Instrument 2001 
No. 126. 
 4. Form of the subsidy 
  Grant.  5. To whom and how the subsidy is provided 
 To companies who apply to Scottish Enterprise for support under a number of grant products. Applicants must submit an application for assistance to SE before work on the project or activity 
has started, and the application must be approved in writing before work can commence on the 
project. Where the applicant is a large company, additional conditions will be applied to ensure that the aid has an incentive effect. The scheme will permit the granting authorities to assist 
enterprises (in isolation or in collaboration with other industrial partners and/or public or private 
research base organisations) to carry out innovation, research and development (R&D&I) projects falling under a range of categories:   
 Aid for R&D Projects. 
 Aid for Technical Feasibility Studies. 
 Aid for Industrial Property Rights Costs for SMEs. 
 Aid for Young Innovative Enterprises. 
 Aid for Process and Organisational In novation in Services Activities. 
 Aid for Innovation Advisory Services an d Innovation Support Services for SMEs. 
 Aid for the Loan of Highly Qualified Personnel for SMEs. 
 
6. Total amount 
 
2013 £19.2m 
2014 £9.3m  
 
7. Duration of programme 
 
To 30 June 2014. 
 
8. Assessment of trade effects 
 Potential recipients potentially participate in trade between Member States. The scheme is 
therefore regarded by the Commission as affecting trade. The aid is regarded as compatible with 
the Treaty as its objectives concur with the R&D&I Framework.  
42  SE - REGIONAL SELECTIVE ASSISTANCE SCOTLAND 
1. Period covered by the notification 
 
2013 and 2014 (until June 2014). 
 2. Policy objectives  
The objective is to support regional development through new investment projects and job 
creation in Assisted Areas.  
3. Background and authority for the subsidy 
 
Enterprise and New Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish Statutory 
Instrument 2001 No. 126.  
Powers to offer RSA in Tier 1 and Tier 2 areas are under section 7 of the Industrial Development 
Act 1982 and Article 13 of the EC General Bloc k Exemption Regulation (EC) No 800/2008. 
 G/SCM/N/284/EU/Add.28 
 
- 43 - 
 
  4. Form of the subsidy  
 
Grant support for capital expenditure on tangible assets- land, site preparation, buildings, plant and machinery, and also intangible assets (patents and know-how costs). Aid can also be given for 
the wage costs of newly created jobs linked to investment. Aid is subject to maximum limits 
dependent on the location of the supported company.  
5. To whom and how the subsidy is provided 
 
Aid is provided to SMEs and non-SMES located with in Assisted Areas. Applicants must submit an 
application for assistance to SE before work on the project or activity has started, and the 
application must be approved in writing before  work can commence on the project. Where the 
applicant is a large company, additional conditions  will be applied to ensure that the aid has an 
incentive effect.  
 
6. Total amount 
 
2013  £29.8m 
2014  £13.0m 
 
7. Duration of the programme 
 To 30 June 2014.  
8.  Assessment of trade effects 
 
Potential recipients potentially participate in trade between Member States. The scheme is 
therefore regarded by the Commission as affecting trade. The aid is regarded as compatible with 
the Treaty as it has the objective of regional deve lopment and is in accordance with the guidelines 
on regional aid and the General Block Exemption Regulation.  
43  SE - SCOTTISH PROPERTY SUPPORT SCHEME 2009-13 
1. Period covered by the notification 
 
2013 and 2014 (until June 2014). 
 2. Policy objectives  
 The implementing bodies have a number of statutory functions including furthering the development of Scotland's economy. The purpose of  the Scottish Property Support Scheme is to 
support the development of premises and buildings  for commercial purposes by the private sector. 
Such development can involve the construction of new buildings and/or the renovation and 
conversion of existing ones.  
 
This support will be provided in situations where there is, in the view of the implementing bodies, 
a market failure. Examples of such market failures are situations where the estimated development costs of the property exceed its esti mated end market value or where risk aversion 
and uncertainty in forecasting project outcomes prevents property development.  
 
Using various instruments the implementing bodies will at their discretion provide an amount of 
aid that is the minimum necessary for selected property development projects to go ahead, with 
the maximum aid intensities as determined by the relevant State aid regulations. 
 3. Background and authority for the subsidy 
 Enterprise and New Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish Statutory Instrument 2001 No. 126. 
 G/SCM/N/284/EU/Add.28 
 
- 44 - 
 
  4. Form of the subsidy  
 
Development grants, subsidised loans, interest rebates, development financing aid (grants, rental guarantees), loan guarantees, joint venture finance, development services. 
 
5. To whom and how the subsidy is provided 
 
Projects can be launched at the initiative of the gr anting authorities themselves if they own a site 
and wish to see it developed. Developers would normally be sought by public tender, with the bid requiring the lowest subsidy and meeting the qualitative criteria being selected. Projects may also be brought to the funding author ities by the property developers, in which case an assessment 
would be made of new economic benefits compared with cost, the need for public sector 
intervention established, and the minimum level and intensity of aid calculated. The recipients may be property developers or end-users. Grants are only provided for initial investment as described 
in the guidelines on regional aid, and maximum aid intensities are applied in Assisted and non-
Assisted areas as per the regional aid map. Outwit h Assisted Areas, support is restricted to SMEs. 
 
6. Total amount 
 
2013  £2.3m 2014  £0.3m 
 
7. Duration of the programme 
 
To 30 June 2014. 
 8.  Assessment of trade effects 
 Potential recipients – property developers and occupiers – all potentially participate in trade between Member States. The scheme is therefore re garded by the Commission as affecting trade. 
The aid is regarded as compatible with the Treaty as it has the objective of regional development 
and is in accordance with the guidelines on regional aid and the General Block Exemption 
Regulation.  
44  SE - SCOTTISH ENTERPRISE TRAINING SCHEME 2009-13 
1. Period covered by the notification 
 
2013 and 2014 (until June 2014). 
 2. Policy objectives  
 
To assist companies to carry out workforce training in support of their business development 
needs.  
3. Background and authority for the subsidy 
 
The Enterprise and New Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish 
Statutory Instrument 2001 No. 126.  
 4. Form of the subsidy  
 
Grants or access to training programmes procured by SE. 
 5. To whom and how the subsidy is provided 
 To companies, SMEs and non-SMEs. Applicants must submit an application for assistance to SE before work on the project or activity has started, and the application must be approved in writing 
before work can commence on the project. Where the applicant is a large company, additional 
conditions will be applied to ensure that the aid has an incentive effect.   G/SCM/N/284/EU/Add.28 
 
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  6. Total amount 
 
2013 £2.8m 2014 £1.2m 
 
7. Duration of the programme 
 
To 30 June 2014. 
 8.  Assessment of trade effects 
 
 Potential recipients potentially participate in trade between Member States. The scheme is 
therefore regarded by the Commission as affecting trade. The aid is regarded as compatible with the Treaty as its objectives concur with the General Block Exemption 
Regulation. 
 45  SE - WAVE AND TIDAL ENERGY SUPPORT 
1. Period covered by the notification 
 
2013 and 2014 (until June 2014).  
2. Policy objectives 
 
Environmental investment aid for the promotion of energy from renewable energy sources, 
focused on the wave and tidal energy sectors.  
 3. Background and authority for the scheme 
 The legal basis for the scheme is the European Communities Act 1972 and the Enterprise and New 
Towns (Scotland) Act 1990, as amended 1 April 2001, by Scottish Statutory Instrument 2001 No. 126. 
 
4. Form of the subsidy 
 
Grant. 
 5. To whom and how the subsidy is provided 
 To companies who apply to Scottish Enterprise for support under calls for projects. Applicants must submit an application for assistance to SE before work on the project or activity has started, and the application must be approved in writing before work can commence on the project. Where 
the applicant is a large company, additional conditions will be applied to ensure that the aid has an 
incentive effect.   
6. Total amount 
 
2013  £0.3m 
2014  £0.2m 
 7. Duration of programme 
 
To 30 June 2014. 
 8. Assessment of trade effects 
 Potential recipients potentially participate in trade between Member States. The scheme is therefore regarded by the Commission as affecting trade. The aid is regarded as compatible with 
the Treaty as its objectives concur with the General Block Exemption Regulation. 
 G/SCM/N/284/EU/Add.28 
 
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  46  SE - WESTERN ISLES BUSINESS SUPPORT SCHEME  
1. Period Covered by the notification 
 
2013 and 2014. 
 
2. Policy Objectives 
 
Provide financial support for business startup an d development of micro businesses and SME's in 
the Western Isles.  3. Background and authority for the scheme 
 This Scheme (Business Support Scheme Reference Number : X 151/2008) is operated under the European Commission General Block Exemption Regulation (EC) No 800/2008 (Articles 13, 14, 15, 
26, 27), Local Government Scotland Act 2003 and the European Communities Act 1972. 
 4. Form of the subsidy 
 Interest-Free loans – up to £2,000 
Loans at 4 and 6% - up to £50,000 Grants, up to 35% - up to £20,000 
 
5. To whom and how the subsidy is provided 
 
New and Existing Businesses / Social Enterprises. 
 6. Total amount budgeted (in millions of £)  
 
2013  £24,000 (0.0024M) 2014  £28,000 (0.0028M)  
7. Duration of programme  
 
Unlimited 
 
8. Assessment of trade effects 
 
State aid test completed for each application – no trade effects 
 47  TECHNOLOGY STRATEGY BOARD: RESEARCH, DEVELOPMENT AND INNOVATION SCHEME 
1. Period Covered by the notification 
 
2013 and 2014 
 
2. Policy Objectives 
 
The primary objective is to support research, deve lopment and innovation activities primarily in 
businesses and research organisations. To scheme aims to stimulates and increase investment in R&D and innovation activity, encouraging businesses to develop innovative products, processes and services with future commercial potential. 
 
3. Background and authority for the scheme 
 
Section 5 of Science and Technology Act 1965. 
 4. Form of the subsidy 
 Assistance is provided in the form of discretionary grants paid to the recipient. G/SCM/N/284/EU/Add.28 
 
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5. To whom and how the subsidy is provided 
 Aid is provided to businesses of all sizes, rese arch organisations, charities and public sector 
organisations. Offers of aid are made via a form al undertaking between the awarding body and the 
recipients concerning the conditions of the scheme and the decision to offer aid.  
6. Total amount budgeted (in millions of £) 
 
2013  £255.7 2014  £358.6 
 
7. Duration of programme  
 
Technology Strategy Board: Research, Development and Innovation Scheme came into operation 
on 1 January 2012. The scheme ended on 31st December 2014 to comply with the introduction of 
the new Community Framework for State aid for Research, Development and Innovation.  
 
8. Assessment of trade effects 
 The impact of the scheme, which covers R&D and i nnovation grants to individual businesses and 
collaborations between businesses and businesses and research organisations, delivers impact 
ultimately in terms of an increase in GVA and jobs through new products, processes and services. Evaluations of the scheme are carried out on a regular basis. 
 
48  THE ENERGY TECHNOLOGIES INSTITUTE (ETI) 
1. Period Covered by the notification 
 
2013 and 2014.  2. Policy Objectives 
 The objective of the ETI is to accelerate the development, demonstration and commercial deployment of energy technologies in order to increase energy efficiency, reduce greenhouse gas 
emission and help achieve energy and climate ch ange goals. The measure aims at coordinating 
R&D efforts by the state and the industry and addressing the barriers to effective deployment of new energy technologies in the UK. 
 
3. Background and authority for the scheme 
 The legal basis is Section 2 or 5 of the Science and Technology Act 1965, Section 5(2)(a) 
Regional Development Agencies Act 1998, the Engi neering and Physical Science Research Council 
Royal Charter and the Technology Strategy Board Royal Charter.  
4. Form of the subsidy 
 
Direct grant. 
 
5. To whom and how the subsidy is provided 
 ETI members and project participants via the ETI on either a capped actual cost basis or agreed 
fixed price for milestones achieved. The ETI is funded on a 50:50 basis private/public. 
 6. Total amount budgeted (in millions of £) 
 2013  £21.4m 2014  £10.3m 
 
7. Duration of programme 
 Until 1 March 2018. G/SCM/N/284/EU/Add.28 
 
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8. Assessment of trade effects 
 Each project is reviewed so as to establish the in centive effect of state aid. The categories for all 
ETI projects receiving public funding are: 
  Increase in R&D scope; 
 Increase in speed; 
 Increase in total amount spent on R&D&I; 
 Increase in R&D human capital. 
49  THE LANDLORD'S ENERGY SAVING ALLOWANCE 
1. Period Covered by the notification 
 
2013 and 2014. 
 
2. Policy Objectives 
 
Increasing energy efficiency in residential property can make a significant contribution to reducing 
carbon emissions. There is a particular need for action targeted at the rented residential sector, 
since such properties produce more emissions than other homes. This reflects a market failure in the residential rented property sector, which discourages landlords from improving the energy 
efficiency of the properties that they let. There is a real incentive for a homeowner to improve the 
energy efficiency of their home, which does not exis t for landlords. This is because the benefits of 
such improvements, in the form of increased comf ort and lower utility bills, are enjoyed by the 
tenant and not to the landlord. It is this market failure that the Landlords Energy Saving Allowance 
seeks to address.  
3. Background and authority for the scheme 
 
The 2006 Pre-Budget Report announced the scheme would apply to corporate landlords of residential property, subject to State aid approval from the European Commission. Primary 
legislation was laid in 2007 and following receipt of State aid approval in May 2008, secondary 
legislation was laid in June 2008.  
Primary Legislation: Corporation Tax Act 2009 
 Secondary legislation: The Energy-Saving It ems (Corporation Tax) Regulations 2008/1520. 
 
4. Form of the subsidy 
 LESA allows landlords to deduct from their taxable profits the costs of acquiring and installing 
certain energy saving items in the properties they rent, thus reducing their liability to corporation 
tax.  
The allowance is capped at £1,500 per dwelling a year and the qualifying materials are: loft 
insulation, cavity wall insulation, solid wall insulation, hot water system insulation, draught proofing and floor insulation. 
 
5. To whom and how the subsidy is provided 
 The allowance is available to corporate landlords of residential properties. The allowance enables 
the beneficiary to deduct the costs of acquiring an d installing specified energy-saving items in the 
residential properties they let when computing the taxable profits of their property business. Such 
costs are not deductible under normal tax rules. 
 G/SCM/N/284/EU/Add.28 
 
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  6. Total amount budgeted (in millions of £) 
 
2013  Est. £6M (2011/2012 – 6/4/2012 to 5/4/2013) 2014  Est. £6M (2012/2013 – 6/4/2013 to 5/4/2014) 
 
7. Duration of programme  
 
8 July 2008-31 March 2015. 
 8. Assessment of trade effects 
 
No assessment has been made as no such effects are anticipated. 
 50  WAG – CAPITAL INVESTMENT AID AND EMPLOYMENT AID  
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The aims of the Scheme are to allo w the Welsh Assembly Government to: 
 
 assist with the development of the most disadvantaged regions in Wales by supporting 
sustainable investment, job creation and safeguarding employment; 
 help address regional imbalances within Wales and between Wales and the rest of the UK; 
 help address market failures such as commercial property investment; 
 help to offset the difficulty that SMEs have obtaining capital investment and employment aid 
given the risk-averse nature of certain financial markets and the limited collateral that SMEs 
may be able to offer. 
 
3. Background and authority for the scheme 
 
The scheme will be open to all enterprises in Wa les. All aid awarded under the Scheme will be 
transparent and in line with criteria set out in the General Block Exemption Regulation. 
 
Legal: Powers of the Welsh Ministers which allow the Welsh Assembly Government to support enterprises under the Scheme are contained in: 
 
 the Welsh Development Agency Act 1975 (section 1) (as amended); and  
 the Housing Grants, Construction and Regeneration Act 1996 (section 126) 
 The Industrial Development Act 1982 
 
The legislation which gives effect to EC Law in Wales is: 
 
 the European Communities Act (1972) (section 2(1)); and 
 the Government of Wales Act (section 80). 
4. Form of the subsidy 
 
Grants. 
 
5. To whom and how the subsidy is provided 
 
Companies undertaking capital investment, through payment of grants on achievement of agreed 
capital expenditure, job creation and job safeguarding triggers. 
 G/SCM/N/284/EU/Add.28 
 
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  6. Total amount budgeted (in millions of £) 
 
2013  £35,410,000 
2014  £28,340,000 
 
7. Duration of programme 
 
1 January 2009 to 30 June 2014. 
 
8. Assessment of trade effects 
 
Information on the safeguarding/creation of jobs an d private sector investment is collected during 
the lifetime of the project and upon completion. 
 
51  WAG –FINANCE WALES JEREMIE FUND 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
Horizontal scheme aimed at the provision of risk capital support to Small and medium sized 
enterprises(SMEs) in Wales. 
 
3. Background and authority for the scheme 
 
Investment would only be permitted in viable enterprises located in Wales that fall within the EU 
definition of SMEs and which are not in difficulty (in line with the Commission's definition of a firm 
in difficulty). Investing in AIM/Ofex-quoted firms would be ineligible.  
 
No investment would take place in companies active in the following industries – shipbuilding (as 
defined in the Framework on State aid to Shipbuilding, OJ C317, 30.12.2003 p11-14), coal (high, medium and low grade category A and B within the meaning of the internal codification system for 
coal laid down by the UN Economic Commission fo r Europe) and steel (as defined in Annex I in the 
guidelines on National Regional Aid for 2007-2013, OJ C 54, 04.03.2006 p13-45). 
 
Legal: Section 60 of the Government of Wales Act 2006 and section 1 of the Welsh Development 
Agency Act 1975. 
 
4. Form of the subsidy 
 
Both loan and equity instruments are utilised in providing investment finance to businesses to 
facilitate expansion and growth. 
 
5. To whom and how the subsidy is provided 
 
The investments are made into SMEs by way of one-off or staged payments. 
 
6. Total amount budgeted (in millions of £) 
 
2013  Nil Return 
2014  Nil Return 
 
7. Duration of programme 
 
The investment phase of the scheme is designed to run from April 2009 until March 2014. 
 
8. Assessment of trade effects 
 
The most appropriate measure of the effect on trade is by recognition of the private finance leveraged alongside these investments, the gross sum (leverage plus direct investment) 
representing growth in the supply of capital in the economy that would otherwise not have 
occurred. 
 G/SCM/N/284/EU/Add.28 
 
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  52  WAG – SUPPORT FOR TRAINING SCHEME 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objectives 
 
The aim of the Scheme is to allow the Welsh Assembly Government to provide support to 
enterprises in Wales to actively encourage them to invest in training. The scheme is made 
available to businesses to stimulate demand for le arning and skills development which will have a 
direct impact on the performance of a particular business, and in turn, make a contribution to the 
economic success of Wales.  
 
3. Background and authority for the scheme 
 
I n  p r i n c i p l e  t h e  S c h e m e  w i l l  b e  o p e n  t o  a l l  e n t e r p r i s e s  i n  W a l e s ,  a l t h o u g h  i n  l i n e  w i t h  W e l s h  
Assembly Government policy focus some elements will only be open to SMEs, or certain targeted 
sectors. 
 
All aid awarded under the Scheme will be transpar ent and in line with criteria set out in the 
General Block Exemption Regulation. The scheme reference number is X1/2009. 
 
Legal: Powers of the Welsh Ministers which allow the Welsh Assembly Government to provide 
training support under this Scheme are contained in: 
 
 the Learning and Skills Act 2000 (Section 34)  
 
 the Education Act 2002 (Section 14)  
 
The legislation which gives effect to EC Law in Wales is: 
 
 the European Communities Act (1972) (section 2 (1)) 
 
 the Government of Wales Act 2006 (section 80) 
4. Form of the subsidy 
 
The form of the subsidy was a financial contribution towards the training costs of enterprises in 
training their staff (workforce development), for companies taking on people who had been made 
redundant (via REACT initiative), to safeguard jobs and improve workforce skills during the economic downturn (PROACT initiative) and to generally improve the skills and competitiveness of 
the workforce (Workforce Development - Discretionary Funding Programme). 
 5. To whom and how the subsidy is provided 
 
 The scheme provided subsidies to Large firms and SMEs, by way of financial subsidies 
towards the costs of workforce training.  
 
 The Scheme at all times respected the GBER Training Aid limits and ceilings in doing so. 
 
6. Total amount budgeted (in millions of £) 
 
2013:  £3,121,660 2014:  £1,887,000
 
 7. Duration of programme 
 
To 30 June 2014. 
 G/SCM/N/284/EU/Add.28 
 
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  8. Assessment of trade effects 
 
The effect of the scheme was to generally improve competitiveness and productivity of the 
enterprises involved and to ensure enterprises remained competitive during the 2009-2010 economic downturn and recession, and improve their trading levels. 
 
53  WAG WELSH GOVERNMENT CAPITAL INVESTMENT AID AND EMPLOYMENT AID SCHEME 
1 Period Covered by the notification 
 
2013 and 2014.  
2. Policy Objectives 
The aims of the Scheme are to allow the Welsh Assembly Government to:  
 
 assist with the development of the most disadvantaged regions in Wales by supporting 
sustainable investment, job creation and safeguarding employment;  
 help address regional imbalances within Wales and between Wales and the rest of the UK; 
 
 help address market failures such as commercial property investment ; 
 
 help to offset the difficulty that SMEs have obtaining capital investment and employment aid 
given the risk-averse nature of certain financial markets and the limited collateral that SMEs may be able to offer.  
 
3. Background and authority for the scheme 
 
The scheme will be open to all enterprises in Wa les. All aid awarded under the Scheme will be 
transparent and in line with criteria set out in the General Block Exemption Regulation. Legal: Powers of the Welsh Ministers which allow the Welsh Assembly Government to support enterprises under the Scheme are contained in: 
 
 the Welsh Development Agency Act 1975 (section 1) (as amended); 
 
 the Housing Grants, Construction and Regeneration Act 1996 (section 126); and 
 
 The Industrial Development Act 1982 
 
The legislation which gives effect to EC Law in Wales is:   the European Communities Act (1972) (section 2(1)); and 
 
 the Government of Wales Act (section 80). 
 
4. Form of the subsidy 
 
Grants. 
 
5. To whom and how the subsidy is provided 
 Companies undertaking capital investment through payment of grants on achievement of agreed 
capital expenditure, job creation and job safeguarding triggers. 
 6. Total amount budgeted (in millions of £) 
 2013 – NIL 2014 – £0.24 
 G/SCM/N/284/EU/Add.28 
 
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  7. Duration of programme  
 
1/7/14 to 31/12/2020.  
8. Assessment of trade effects 
 
Information on the safeguarding/creation of jobs an d private sector investment is collected during 
the lifetime of the project and upon completion. 
 
__________