Who’s backing business? The grants, subsidies and tax reliefs businesses can use to drive innovation

With the UK tentatively creeping out of a recession, business confidence across the nation is slowly growing.

The UK’s Business Confidence Index improved by a further 1.5% in quarter two. In fact, almost one in four (23.1%) companies reported a favourable forecast.

In the Spring Budget, the former Chancellor confirmed £360 million for businesses in research and development (R&D) and manufacturing, and prospects seem positive. However, until this funding is made available, businesses may be missing out on harnessing tax relief opportunities for research and development applications…

£25 million available in grant funding

There are a wealth of ways to access funding initiatives which encourage R&D in your business. One such way is to apply for funding via the Innovate UK Smart grants competition.

Under this scheme, UK-registered businesses can apply for a share of up to £25 million to fund R&D innovations that can be deployed commercially to boost the national economy. Importantly, this scheme is not open to large organisations. Instead, it is geared specifically towards micro, small or medium-sized enterprises (SMEs), which make up 99% of the UK economy.

To access up to £500,000 in funding, projects eligible to be considered must have a completion timescale of between 6 to 18 months. Projects of 19 to 24 months are also eligible and can apply for funding worth up to £1 million.

The deadline for applying for funding through this competitive scheme is Wednesday 24 July 2024 at 11:00.

Financing essential R&D in agriculture

With leading experts claiming that the next 30 years will be the ‘most important in history’ for crop yields, R&D must be underpinned throughout the British agricultural sector.

Luckily for one of the most important sectors in our region, there are a number of finance options available, including:

• The Farming Innovation Programme; this DEFRA-run scheme is designed to help the food producers overcome sector-specific challenges to enhance yield and productivity. This channel is exclusively for those working in collaboration with a team. From feasibility studies through to nutrient management, there are a number of options available. Explore your eligibility here.
• R&D tax credits; researchers seeking to overcome technological barriers or scientific uncertainty with an idea that a professional in the field could not reasonably work out, but instead requires targeted investment to advance the sector, could claim R&D credits. Companies with fewer than 500 staff can explore their eligibility to deduct up to 86% of their qualifying expenditure here. Importantly, this is not just open to agri applications but can also be applied for by those involved in the arts, humanities and social sciences, including economics.
• The Agri-tech Catalyst Programme; originally launched in 2013, this key programme in developing the agricultural sector is geared towards helping businesses tackle global food shortages and challenges.
• The Agriculture Transition Plan; promising a ‘slurry of investment’ for the sector post-Brexit, this time-limited scheme offers financial support to suppliers negatively impacted by limitations on food export and import. If your business has been affected by limiting Brexit legislation, learn more here.

Creative industries, claim your share of rolling funding

The Creative Growth Finance Fund is a scale-up loan scheme backed by trusted investors that is specifically available to businesses in creative industries. Unlike other schemes, the funding available here has no set open and close date for intake; it is a rolling programme that can be accessed at any time. After all, when creativity strikes, it seldom does so on a schedule.

If your business is a change-maker, a disruptor or actively leading innovation, you could claim up to £500k initially with the option of further finance after two years. With the fund having already provided loans of over £1m across each region of the UK, make sure you check your availability now.

£60,000 available to university researchers in VR

The remit for this grant channel is very specific - but the sector itself is experiencing a surge in widespread use and popularity. Researchers working at UK universities experimenting with virtual reality applications could be entitled to up to £60,000.

Similar funding opportunities are available through UK Research and Innovation; explore the full range of options here.

Access financial help through local Growth Hubs

Businesses ineligible for the above grant opportunities may be able to claim subsidies through a dedicated network of 38 Growth Hubs across the UK, supported by local enterprise partnerships (LEPs). LEP Growth Hubs are set up to “face the current cost-of-living challenges - with two million businesses helped in the past year alone”.

Explore the opportunities open to your business in the Greater Lincolnshire Growth Hub, the Derby, Derbyshire, Nottingham, Nottinghamshire Growth Hub, and the Leicester and Leicestershire (Business Gateway Growth Hub).

Businesses in the region would also be remiss to not take advantage of the benefits of the East Midlands Freeport and investment zones; discover more about these developments here.

Of course, funding opportunities are always changing and adapting to the shifting needs of the market, so to ensure you’re making the most of all the opportunities available to your business, get in touch with our expert team of advisers today.