Grants, public procurement and state aid rules
Produced in partnership with Lee Digings of Lee Digings Associates
Grants, public procurement and state aid rules

The following Public Law practice note Produced in partnership with Lee Digings of Lee Digings Associates provides comprehensive and up to date legal information covering:

  • Grants, public procurement and state aid rules
  • Brexit impact—public procurement
  • Status of grants in public procurement law
  • Public Contracts Regulations 2015
  • Public service delivery
  • Grant recipient safeguards
  • Grant or contract—tax
  • State aid

Brexit impact—public procurement

The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU. For general updates on the process and preparations for Brexit, see Practice Note: Brexit timeline. For further reading on the impact of Brexit on public procurement, see Practice Note: Brexit—the implications for public procurement.

Status of grants in public procurement law

Public Contracts Regulations 2015

The Public Contracts Directive, which sets out the European Union public procurement rules, is implemented in the UK (as regards England, Wales and Northren Ireland) by the Public Contracts Regulations 2015 (PCR 2015). PCR 2015 apply where one of the parties to any arrangement is a 'contracting authority' as defined at regulation 2(1). In addition, the arrangement must be within the scope of PCR 2015—that is, subject to exemptions (at regulations 7 to 12 of PCR 2015):

  1. there is an arrangement which is a 'public services contract', 'public supply contract' or 'public works contract', as these terms are defined at regulation 2(1), and

  2. the relevant contract is of a value above certain thresholds (regulation 5)

There is therefore concern that an arrangement between a contracting authority and the recipient of a grant could fall within the scope of PCR 2015.

Public service delivery

The confusion about the application of PCR 2015 mainly arises in connection with public service contracts. This is

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