Center Parcs Scotland Subsidy Referral Accepted by SAU

UK CMA Cases

Published March 25th, 2026

Detected March 25th, 2026

Summary

The UK's Subsidy Advice Unit (SAU) has accepted a request to advise South of Scotland Enterprise (SOSE) on a proposed £30.033 million subsidy to Center Parcs Scotland Limited for a new holiday village. The SAU will evaluate SOSE's assessment of compliance with subsidy control requirements.

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What changed

The Competition and Markets Authority's (CMA) Subsidy Advice Unit (SAU) has accepted a request for a report concerning a proposed subsidy of £30.033 million from South of Scotland Enterprise (SOSE) to Center Parcs Scotland Limited. This subsidy is intended to support the development of a new holiday village in the Scottish Borders, with an estimated project cost of £450 million. The SAU's role is to evaluate SOSE's assessment of whether this subsidy complies with the UK's subsidy control requirements, as this is classified as a Subsidy of Particular Interest.

The SAU is expected to publish its report by May 7, 2026. Third parties have until April 9, 2026, to submit any relevant information. Regulated entities, particularly those involved in public funding or subsidy schemes, should note the SAU's evaluation process for subsidies of particular interest. While this is a non-binding advisory report, it highlights the scrutiny applied to significant public subsidies and the importance of demonstrating compliance with subsidy control rules.

What to do next

Monitor SAU's report publication on May 7, 2026
Review SOSE's assessment of compliance with subsidy control requirements once published

Source document (simplified)

Referral of the proposed subsidy to Center Parcs Scotland Limited by South of Scotland Enterprise

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to South of Scotland Enterprise (SOSE) concerning its proposed subsidy to Center Parcs Scotland Limited.

From: Competition and Markets Authority Published 25 March 2026 Case type: SAU referral Case state: Open Market sector: Recreation and leisure Opened: 24 March 2026

Administrative timetable

| Date | Action |
| --- | --- |
| 7 May 2026 | SAU’s report to be published |
| 9 April 2026 | Deadline for receipt of any third-party submissions |
| 24 March 2026 | Beginning of reporting period |

Request from SOSE

24 March 2026: The SAU has accepted a request for a report from SOSE concerning the proposed subsidy to Center Parcs Scotland Limited. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of SOSE’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by SOSE

SOSE is proposing to provide grant funding of £30.033 million (the Subsidy) to Center Parcs Scotland Limited (CP) to support the development of a holiday village in the Scottish Borders (the Project).

The Project will involve the development of CP’s first Scottish holiday village, with a focus on sustainable infrastructure, high-quality accommodation and extensive leisure facilities. It will create a site across approximately 530 acres near Hawick, including 700 lodges with capacity for up to 356,700 guests annually, a range of indoor and outdoor leisure facilities, and afforestation and habitat restoration initiatives.

SOSE expects benefits of the Project to include:

significant inward private sector investment into the Scottish Borders region of at least £420 million
an estimated £124 million in gross construction-phase gross value added (GVA) - £51 million net - across Scotland, including £15 million gross (£7 million net) in the Scottish Borders and £87 million in annual GVA generated by the site across Scotland once operational, including £75 million in the Scottish Borders
the creation of an estimated 6,665 full-time equivalent (FTE) jobs during construction phase and an estimated 1,930 FTE jobs per annum during operations, including 1,380 FTE in the Scottish Borders region – the site providing transport services and flexible working arrangements to support inclusive employment and workforce access from a wider catchment area
supporting an estimated £2.6 million in additional GVA and 82 jobs annually from off-site visitor spending; - a net present social value (NPSV) to the Scottish Borders of £1,014 million over 35 years
an estimated £131.9 million in gross tax revenue during construction, including £9.5 million in Scotland, and £25.6 million per annum during operations, including £6.5 million per annum in Scotland The Subsidy represents the necessary public sector commitment to the Project, which is needed to support and unlock the far larger private sector investment. It represents an intervention rate of around 6.7% against the estimated costs of the Project of c.£450 million (although SOSE understands from CP that this estimate may increase).

The Subsidy will support the provision of essential enabling infrastructure works needed for the Project. Due to their specific nature, these are costs which CP would need to cover from alternative sources if it did not receive the Subsidy. While they will have a wider public benefit for the region, the primary purpose of these enabling infrastructure works is to enable CP to proceed with the Project. The relevant organisations (such as Scottish Power Energy Networks and Transport Scotland) will all be charging CP for the work carried out, and CP will be drawing down grant funding towards those costs. The grant is therefore considered to confer an economic advantage on CP, and on that basis is considered by SOSE to constitute a subsidy for the purpose of the Subsidy Control Act 2022.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to Center Parcs Scotland Limited, please send your comments on or before the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at sau-sosecenterparcs2026@cma.gov.uk, copying the public authority: clienthub@sose.scot.

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with SOSE. The SAU will send a copy of your submission to SOSE together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with SOSE using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.