The European Commission has now approved two new schemes to
allow Scottish local authorities to give support to small and medium
sized enterprises (SMEs) for consultancy and research and
development, and for training.
Local authorities have, in the past, been able to provide assistance to
SMEs under the Local Authority Block Approval scheme (N342/1999).
The State Aid Unit has recently requested information from authorities
on the number of companies aided under this scheme and the value of
all aid given (excluding de minimis) during 2005.
From 1 January 2006, authorities should instead use the cover
provided by the two new schemes and an existing scheme which
allows authorities to support new investment by SMEs (full details
of these schemes follow). Although lacking the convenience of one
scheme, the new arrangements bring cover for Scottish local
authorities in line with the SME and training block exemptions.
1) Support for new investments by SMEs : scheme XS/44/2001
This scheme allows authorities to support companies by providing
guarantees, loans and grants. Full details of the scheme, including the
maximum aid that can be given, are available here.
2) Support for SMEs for Consultancy and Research and
Development : scheme XS/18/2006
This scheme allows authorities to support companies by meeting up to
50% of the costs of outside consultants and/or participation for the first
time at a particular trade fair or exhibition. The scheme also allows
authorities to provide support for research and development. A summary
of the scheme is available here.
3) Support for SMEs for Training : scheme XT/10/2006
This scheme allows authorities to support companies by contributing
to the costs of training staff. A summary of the scheme, including the
maximum aid that can be given, is available here.
The above three schemes are due to expire on 31 December 2006.
During the course of this year, we will seek to extend the schemes
in line with the SME and training block exemptions to ensure that
authorities have continuous cover.