Guide to UK Small Business Grants by Region
An overview of the main grant programmes available to UK small businesses, organised by region, with guidance on eligibility, application and what funders look for.
Business grants provide funding that does not need to be repaid – unlike loans, there is no interest and no monthly repayment. For UK small businesses, grants are available from central government, devolved administrations, local councils, lottery funds and private foundations. The challenge is finding the right one and putting together a strong application.
Grants are competitive. Most programmes receive far more applications than they can fund. Understanding who offers what, what they are looking for and how to present your case significantly improves your chances.
For more general information on grant funding, see our guide to business grants .
National programmes
These grants are available to businesses across the UK, regardless of location:
| Programme | What it funds | Grant size | Who can apply |
|---|---|---|---|
| Innovate UK Smart Grants | Research and development, innovation projects | £25,000 to £2 million | Businesses developing innovative products, processes or services |
| Innovate UK Catalyst | Sector-specific innovation (varies by round) | Varies | Businesses in targeted sectors (announced per round) |
| Knowledge Transfer Partnerships (KTP) | Embedding a recent graduate to work on an innovation project with university support | £30,000-£70,000 per year (grant contribution) | Businesses partnering with a UK university |
| Creative Europe / UK equivalents | Creative and cultural sector projects | Varies | Creative businesses and cultural organisations |
| Energy efficiency grants | Improving energy efficiency in SMEs | Varies | SMEs in eligible sectors |
Innovate UK
Innovate UK is the largest single source of grant funding for UK businesses. It runs multiple competitions throughout the year, each targeting specific themes or sectors. Applications are assessed on innovation, commercial potential, project plan quality and value for money.
Typical Innovate UK grants fund 50-70% of project costs for SMEs (the business must provide the rest as match funding). Projects usually last 6-36 months.
England
National funds
| Programme | What it funds | Grant size |
|---|---|---|
| UK Shared Prosperity Fund (UKSPF) | Business support, skills, community projects | Varies by local authority |
| Growth Hub grants | Business growth, productivity, innovation | Typically £1,000-£25,000 |
| Rural England Prosperity Fund | Rural business development, tourism, community | Varies |
Regional funds
England’s regional grant landscape is delivered primarily through Local Enterprise Partnerships (LEPs), Combined Authorities and local councils. Availability changes frequently as programmes open and close.
| Region | Typical programmes |
|---|---|
| North East | North East Growth Hub grants, North of Tyne Combined Authority business support |
| North West | Greater Manchester Business Growth Hub, Lancashire business grants |
| Yorkshire and Humber | West Yorkshire Combined Authority grants, South Yorkshire business support |
| Midlands | Midlands Engine investment, WMCA business grants, D2N2 LEP grants |
| East of England | New Anglia LEP grants, Cambridgeshire & Peterborough Combined Authority |
| London | Mayor of London business programmes, London Growth Hub |
| South East | Coast to Capital, Enterprise M3, Solent LEP grants |
| South West | Heart of the South West LEP, Cornwall and Isles of Scilly Growth Hub |
Each region’s offering depends on local priorities and available funding. The best starting point is your local Growth Hub (gov.uk maintains a directory), which provides free advice and can point you to current programmes.
Scotland
Scottish Enterprise and Highlands and Islands Enterprise are the main agencies for business grants in Scotland.
| Programme | What it funds | Grant size |
|---|---|---|
| Scottish Enterprise R&D grants | Research and development projects | Up to 50% of eligible costs |
| Highlands and Islands Enterprise grants | Business start-up, growth and innovation | Varies |
| Scottish Government SME grants | Various sector-specific programmes | Varies |
| Business Gateway grants | Start-up and early-stage support | Typically smaller grants and support packages |
| Can Do Innovation Challenge Fund | Innovative solutions to public sector challenges | Varies |
Scotland also has strong sector-specific support in food and drink, renewable energy, life sciences and technology. Business Gateway (the Scottish equivalent of Growth Hubs) is the first point of contact for grant advice.
Wales
Business Wales and the Development Bank of Wales are the primary channels.
| Programme | What it funds | Grant size |
|---|---|---|
| Business Wales Accelerated Growth Programme | High-growth businesses | Support and advisory (not always direct grants) |
| Smart Innovation programme | R&D and innovation | Up to £50,000 |
| Tourism Investment Support Scheme | Tourism businesses | Varies |
| Development Bank of Wales grants and loans | Start-up, growth, green investment | Varies (loans and grants) |
| Regional funds (e.g. North Wales Growth Deal) | Regional economic development | Varies |
The Development Bank of Wales blends grant and loan funding, often offering grants alongside micro-loans for start-up businesses .
Northern Ireland
Invest Northern Ireland is the lead agency.
| Programme | What it funds | Grant size |
|---|---|---|
| Invest NI Grant for R&D | Research and development | Up to 50% of eligible costs |
| Invest NI Skills interventions | Staff training and development | Varies |
| Go for It programme | Start-up businesses | Advisory support + small grants |
| Innovation Vouchers | Working with a knowledge provider on a specific project | Typically £5,000 |
| InterTradeIreland programmes | Cross-border trade and innovation | Varies |
Northern Ireland businesses may also access EU-funded legacy programmes and cross-border schemes with the Republic of Ireland.
What funders look for
Grant applications are assessed against published criteria. While each programme differs, common themes include:
| Criterion | What to demonstrate |
|---|---|
| Innovation | Is the project genuinely new or different? What problem does it solve? |
| Commercial viability | Can the project generate revenue and sustain itself beyond the grant period? |
| Value for money | Are the costs reasonable and proportionate to the expected outcomes? |
| Additionality | Would the project happen without grant funding? Funders want to support activity that would not otherwise take place |
| Impact | Jobs created, revenue generated, exports, productivity improvements |
| Deliverability | Does the team have the skills and resources to deliver the project? |
| Match funding | Can you demonstrate that your contribution (cash or in-kind) is secured? |
How to apply successfully
- Check eligibility carefully before investing time in an application. Most rejections are because the applicant does not meet the basic criteria
- Start with your local Growth Hub or enterprise agency – they offer free advice and often pre-screen applications
- Be specific about outcomes – vague promises do not score well; use numbers (jobs, revenue, units, exports)
- Budget accurately – include realistic quotes and explain each cost line
- Demonstrate match funding – show where your contribution is coming from (savings, revenue, other funding)
- Allow enough time – grant applications take longer than you think; start well before the deadline
- Get feedback on failed applications – most programmes offer feedback that you can use to strengthen a resubmission
- Keep records meticulously – grant conditions require you to evidence spending and outcomes; poor record-keeping leads to clawback
Grant accounting
When you receive a grant, the accounting treatment depends on whether it is a revenue grant (funding operating costs) or a capital grant (funding asset purchases):
| Grant type | Accounting treatment |
|---|---|
| Revenue grant | Recognise as income in the period the related expenditure is incurred |
| Capital grant | Recognise over the useful life of the asset (matching the depreciation), or deduct from the cost of the asset |
Under FRS 102 (Section 24), grants are recognised using either the performance model (recognise when performance conditions are met) or the accrual model (recognise systematically over the period the costs are incurred).
Grants are not free money in the sense that most come with conditions. Failing to meet those conditions – whether milestones, job creation targets or reporting requirements – can result in the grant being clawed back in part or in full. Budget for the admin and monitoring obligations alongside the project itself.