Jurisdiction(s):
United Kingdom

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Key definition

State aid definition

What does State aid mean? In practice, state aid refers to public financial support that selectively benefits businesses and risks distorting competition or trade. Under EU law (Articles 107-109 TFEU and case law), it covers advantages granted through state resources that favour certain undertakings or goods and affect trade between Member States. Typical measures include grants, loans, guarantees, tax reliefs, equity injections and land or services below market value. Unless covered by the General Block Exemption Regulation or de minimis rules, aid must be notified to and approved by the European Commission; unlawful aid can be recovered with interest. In Great Britain, the EU state aid...

Are s106 TCPA contributions caught by State aid rules or exempt?

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State aid: The Basics Guide

The Department for Business, Innovation & Skills’ July 2015 guide, State Aid: The Basics Guide, explains that state aid arises wherever public resources are used to give organisations an edge over others, potentially distorting competition and harming consumers and businesses across the EU. The concept is deliberately wide, as an “advantage” can be delivered in many ways, for example:

grants
Loans
tax breaks
the use or sale of a state asset free of charge or for less than market value

Public authorities, including local authorities in England and Wales, are accountable for ensuring their policies and projects comply with these requirements. During the implementation period following Brexit, state aid Rules continue to apply in the UK. The annex to the Department for Education’s November 2019 publication, Securing Developer Contributions for Education, notes that unlawful state aid can occur in relation to developer contributions towards education...

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Sarah Fitzpatrick

Norton Rose Fulbright

Sarah is a leading practitioner in all aspects of planning law, she has been involved in some of London's most high profile developments, having acted for the Sellar Property Group in securing planning permission for the Shard, for the Olympic Delivery Authority on the Olympic Park and other non-London venues, and for Land Securities on its Victoria Estate, as well as having acted for claimants on compulsory purchase compensation claims including those relating to HS1, HS2, Crossrail, the Northern Line Extension and Thameslink. She has also acted for and against acquiring authorities and promoters of compulsory purchase orders (CPO) and development consent orders (DCO) including promoting Tesco's first retail led regeneration CPO, and acting for National Grid on their North Wales Connection DCO. Sarah also advises on smaller developments both within and outside London across the use classes, including securing planning...

Web page updated on 27/05/2026

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