UK Business Information / Grants & Business Incentives
This information, provided by the UKTI, summarises the main grants and incentives available to businesses located in the UK.
OVERVIEW – AWARDING AUTHORITIES AND TYPICAL QUALIFYING CRITERIA
Businesses based in the UK are able to access a wide range of grants and incentives that are typically provided by the following government organisations:
− the European Union,
− national UK Government Departments (such as the Department for Business, Innovation and Skills),
− regional government agencies (such as the Regional Development Agencies in England, Scottish Enterprise, the Welsh Assembly Government and Invest Northern Ireland), and
− local authorities, local development agencies and local business support organisations.
Most grants and incentives programmes in the UK are discretionary and each has specific qualifying criteria, which can include:
− the specific purpose for which the grant or incentive is required,
− the industry sector or business activity of the applicant company,
− the location of the applicant business,
− the size of the applicant business (usually in terms of the number of employees or turnover),
− the timeframe of the proposed project for which the grant or incentive is being sought, and
− the requirement for a specific proportion of project funding to come from sources other than public funds.
Businesses are strongly encouraged to contact the relevant government organisation for detailed guidance on specific grants and incentives programmes.
GRANTS AND INCENTIVES FOR RESEARCH AND DEVELOPMENT
A key focus for the UK Government is to support and encourage businesses undertaking research and development (R&D) activities. For further opportunities about undertaking R&D in the UK, please see the UK Trade & Investment information sheet entitled “R&D in the UK”.
The Government provides a number of programmes that offer financial assistance to domestic and foreign-owned companies undertaking R&D in the UK. Specific R&D programmes include:
a) R&D Tax Credits and Allowances
b) Grant for Research and Development
c) EUREKA
d) the European Commission framework programme
a) R&D Tax Credits and Allowances
R&D tax credits are available for large corporations and for small and medium-sized companies (SMEs) investing in R&D:
– Large corporations R&D: In addition to the normal 100 per cent deduction, large companies are entitled to a further deduction from their taxable income of 30 per cent of their current spending on qualifying R&D.
– SMEs R&D: In addition to the normal 100 per cent deduction, SMEs are entitled to a further deduction from their taxable income of 75 per cent of their current spending on qualifying R&D (for the purposes of this scheme only, an SME is defined as a company employing up to 500 people).
Further information on R&D tax credits can be found at: HM Revenue & Customs
b) Grant for Research and Development
The Grant for Research and Development is an initiative that provides funding to help individuals and SMEs to research and develop technologically innovative products and processes (ranging from “Micro Projects” and “Proof of Market Projects” with grants of up to £20,000, through to “Exceptional Projects” with grants of up to £500,000). The scheme is available in England, with similar initiatives running in Scotland (where support is also available for large companies), Wales and Northern Ireland. For further information, please see:
– England: Business Link
– Scotland: Scottish Business Grants
– Wales: Business support Wales
– Northern Ireland: Invest Northern Ireland
c) EUREKA
EUREKA provides support to businesses, research centres and universities that carry out pan-European projects that develop innovative products, processes and services.
Although project participants are expected to arrange the necessary finance themselves, support for EUREKA projects may be available through the Grant for Research and Development (see above). For further information, visit Eureka Network or Innovate UK
d) European Commission Framework Programme
The European Commission has doubled its R&D budget (for the period from 2007 to 2013) from €35 billion to €70 billion. Particular areas of focus for EU-funded R&D projects include health, security, biotechnology, energy, the environment, ICT and nanotechnology.
For further information on the Framework Programme, visit the "Investing in Research" website of the European Union. Business Link also has further information on R&D grants and incentives in the UK.
REGIONAL GRANTS AND INCENTIVES
There are a wide variety of grants and incentives programmes across the UK that support businesses with various development initiatives such as innovation, training, capital investment and expansion. These programmes are typically coordinated on a regional basis across England, Northern Ireland, Scotland and Wales.
a) England
The nine Regional Development Agencies in England each offer a variety of grants and incentives (some of which are national programmes delivered locally, whilst others have been specifically designed to meet local economic priorities). For details of individual regional grants and incentives programmes, please see:
− London
− Yorkshire and the Humber region
In addition, Business Links throughout England are able to provide bespoke advice on locally available grants and incentives programmes.
For further information, including a searchable “Grants Directory”, please visit Business Link.
Employers across England are also able to take advantage of a range of training grants coordinated by the Skills Funding Agency through the “Train to Gain” programme.
b) Northern Ireland
Grants and incentives are available to companies located in Northern Ireland that have completed the free-of-charge “Business Health Check” undertaken by Invest Northern Ireland. To be eligible for support, companies must be either a manufacturing business or a business offering internationally tradable services.
c) Scotland
There are several grants and incentives available to help businesses in Scotland. These range from local schemes offering small sums, to national funds offering substantial subsidies for major investments, technological innovations and business growth plans. In addition, there are particular arrangements for financial assistance in the Highlands and Islands area of Scotland which should be discussed directly with Scottish Development International. For further information, please visit the Scottish Enterprise website and Scottish Development International.
d) Wales
In Wales, grants and incentives are coordinated by the Welsh Assembly Government and include property grants, innovation support and business improvement grants. For further information, visit Business Support Wales.
THE MAIN CAPITAL INVESTMENT GRANT SCHEME IN THE UK
The main discretionary incentive scheme to support capital investment in the UK is known as:
– In England: Grant for Business Investment,
– In Northern Ireland: Selective Financial Assistance,
– In Scotland: Regional Selective Assistance, and
– In Wales: the Single Investment Fund.
The scheme is designed to support domestic and overseas-owned companies considering opening a new facility, or expanding or modernising an existing facility within an Assisted Area of the UK.
The level of grant support is linked to the number of jobs created and/or safeguarded by the proposed project and the amount of capital investment committed.
Potential applicant businesses should make contact with the relevant regional government organisation to discuss the specific levels of assistance available in each area. More detailed information is also available on the Department for Business Innovation and Skill's (BIS) website.
