Starting a new business is an exciting endeavour, but it comes with financial challenges. One of the best ways for startups to overcome these hurdles is through government grants for new businesses. Unlike loans, government grants do not require repayment, offering businesses the financial freedom to grow and thrive.
The UK government has introduced several grant schemes to support entrepreneurs, startups, and small businesses. These grants aim to promote innovation, sustainability, and community development.
Whether you’re looking to fund a green project, support community initiatives, or enhance workplace accessibility, there’s likely a grant that fits your business needs.
In this comprehensive guide, we will highlight the top 15 government grants for new businesses in the UK, covering essential details on eligibility, funding amounts, and how to apply. Let’s dive into the opportunities that could fuel your business growth.
What Are Government Grants for New Businesses?
A government grant is a financial award provided by a government body to support specific business activities or goals. Unlike loans, grants do not need to be repaid, which makes them an attractive option for startups and small businesses.
These grants are often targeted at specific sectors, regions, or types of activities, such as environmental sustainability, research, and community development. For example, businesses that reduce carbon emissions or enhance local economies may qualify for sector-specific funding.
Benefits of Government Grants for Startups
Government grants offer several distinct advantages to startups, including:
- Non-repayable funding: Unlike loans, grants provide financial support without the burden of repayment.
- Encourages innovation: Many grants support projects focused on R&D, green energy, and technological advancements.
- Supports local growth: Regional development grants target local areas to improve economic growth.
- Sustainability initiatives: Grants promote green energy and sustainability, reducing the environmental impact of businesses.
By taking advantage of these benefits, startups can reduce financial stress, achieve growth faster, and gain access to expert advice and mentorship. You can explore real-world examples and grant success stories on UK Startup News, where they break down how entrepreneurs are using these opportunities to build thriving businesses.
How to Apply for a Government Grant in the UK?
Applying for a government grant may seem like a complex process, but it becomes more manageable with the right steps. Here’s how you can secure a government grant for your business:
- Research the Right Grant: Use the Business Finance Support Finder (https://www.find-government-grants.service.gov.uk/grants) to identify grants that match your business goals.
- Check Eligibility: Each grant has unique eligibility criteria, so ensure your business qualifies before applying.
- Gather Documentation: Prepare the required business plan, financial projections, and supporting documents.
- Apply Online: Most grants require you to submit an online application through the appropriate government platform.
- Await Decision: Review times may vary, but you’ll typically receive a decision within weeks or months.
Top 15 Government Grants for New Businesses in the UK
1. Mode Shift Revenue Support (MSRS)
The Mode Shift Revenue Support (MSRS) grant is a crucial initiative aimed at reducing road freight congestion and promoting environmentally friendly transport options. This grant encourages businesses to shift their freight transportation from road to rail or inland waterways, which are often more expensive but significantly more sustainable.
Key Details:
- Location: England, Wales, Scotland
- Funding Organisation: Department for Transport (DfT)
- Who Can Apply: Private sector businesses
- Funding Amount: From £5,000 to £20 million
- Total Size of Grant Scheme: £20 million
- Application Period: Opened 1 April 2010 and closes on 31 March 2025
How Does MSRS Work?:
MSRS covers the additional costs that businesses incur when switching from road to rail or inland waterways for transporting goods. Businesses that choose this route help reduce traffic congestion and carbon emissions, which aligns with the UK’s climate goals.
Who Can Apply for MSRS?:
Private sector businesses, particularly logistics, shipping, and manufacturing companies, are eligible to apply for this grant. Companies must demonstrate that they will incur higher costs by using alternative modes of transport like rail or water instead of road freight.
How Much Funding Can You Get?:
The grant ranges from £5,000 to £20 million, depending on the scope and impact of the project.
2. Community and Environment Fund (CEF) & Business and Local Economy Fund (BLEF)
The Community and Environment Fund (CEF) and Business and Local Economy Fund (BLEF) were introduced to support local communities and economies affected by large infrastructure projects, especially the construction of Phase One and Phase 2a of the HS2 project.
Key Details:
- Location: England
- Funding Organisation: HS2 Ltd
- Who Can Apply: Public sector and non-profit organisations
- Funding Amount: From £1 to £250,000
- Total Size of Grant Scheme: £45 million
- Application Period: Opened 8 March 2017 and closes on 31 March 2035
What Do CEF and BLEF Fund?:
These grants aim to enhance communities and support businesses affected by the development of HS2. Projects can include creating community spaces, promoting business development, and supporting initiatives that reduce the negative impacts of construction.
Who Can Apply for CEF & BLEF?:
The fund is open to public sector organisations, non-profits, and community-based groups. Projects must benefit communities affected by the HS2 construction.
How Much Funding Can You Get?:
Funding ranges from £1 to £250,000, depending on the scale and type of project.
3. Woodland Creation Planning Grant (WCPG)
The Woodland Creation Planning Grant (WCPG) supports the development of well-planned, UK Forestry Standard (UKFS)-compliant woodland projects. This grant aims to boost environmental sustainability and help England meet its woodland creation targets.
Key Details:
- Location: England, including the North East, North West, South East, South West, and Midlands
- Funding Organisation: Department for Environment, Food & Rural Affairs (DEFRA) / Forestry Commission (Nature for Climate Fund)
- Who Can Apply: Individuals, public sector, private sector, and non-profits
- Funding Amount: From £1,000 to £30,000
- Total Size of Grant Scheme: £708,607
- Application Period: Opened 1 December 2015 and closes on 31 March 2025
How Does WCPG Work?:
This grant covers the costs associated with designing and planning the creation of new woodlands. The design must comply with UK Forestry Standards (UKFS) and help move proposals forward for future grant funding.
Who Can Apply for WCPG?:
Eligible applicants include landowners, farmers, environmental groups, public sector bodies, and private businesses that aim to create sustainable woodlands.
How Much Funding Can You Get?:
Funding ranges from £1,000 to £30,000 per woodland project, depending on the scale of the project and the planning costs.
4. England Woodland Creation Offer (EWCO)
The England Woodland Creation Offer (EWCO) is designed to increase woodland cover in England and support the UK’s ambition to achieve Net Zero by 2050. This grant provides financial support for planting new woodlands that deliver biodiversity, nature recovery, and environmental benefits.
Key Details:
- Location: England
- Funding Organisation: Department for Environment, Food & Rural Affairs (DEFRA) / Forestry Commission (Nature for Climate Fund)
- Who Can Apply: Individuals, public sector, private sector, local authorities, and non-profits
- Funding Amount: From £4,000 to £2 million
- Total Size of Grant Scheme: £115 million
- Application Period: Opened 1 June 2021 and closes on 5 April 2025
How Does EWCO Work?:
The grant supports the creation, management, and protection of new woodlands in England. Projects that support biodiversity, carbon reduction, and natural habitat restoration are prioritised.
Who Can Apply for EWCO?:
Landowners, land managers, public authorities, and non-profits are eligible to apply for this grant. The land must be suitable for woodland creation and must meet specific criteria.
How Much Funding Can You Get?:
Grants range from £4,000 to £2 million, with payments based on a per-hectare basis and stackable bonuses for wider environmental benefits.
5. Community Ownership Fund
The Community Ownership Fund was created to empower communities to acquire and operate community assets, such as pubs, community centres, and cultural sites. This grant helps communities protect critical assets that might otherwise be lost.
Key Details:
- Location: England, Wales, Scotland, Northern Ireland
- Funding Organisation: Department for Levelling Up, Housing & Communities (DLUHC)
- Who Can Apply: Public sector and non-profit organisations
- Funding Amount: From £1 to £2 million
- Total Size of Grant Scheme: £150 million
- Application Period: Opened 12 July 2021 and closes on 31 March 2025
How Does the Community Ownership Fund Work?:
This grant supports communities to purchase and manage key community assets, such as village halls, pubs, and sports facilities. The fund aims to boost social wellbeing and improve access to community resources.
Who Can Apply for the Community Ownership Fund?:
Eligible applicants include community groups, charities, non-profits, and public sector organisations that are working to save community spaces from closure.
How Much Funding Can You Get?:
Grants range from £1 to £2 million to cover the purchase, repair, and running costs of community assets.
6. Disabled Facilities Grants (DFG)
The Disabled Facilities Grant (DFG) provides financial support to help individuals adapt their homes to make them safer and more accessible for people with disabilities. This grant enables modifications such as installing ramps, stairlifts, or accessible showers, allowing people to live more independently.
Key Details:
- Location: England, Wales, Northern Ireland
- Funding Organisation: Department for Levelling Up, Housing & Communities
- Who Can Apply: Personal/Individual applicants (homeowners, tenants, and landlords on behalf of tenants)
- Funding Amount: From £1 to £36,000 depending on the extent of the work required
- Total Size of Grant Scheme: Not specified
- Application Period: Opened 1 January 2022 and closes on 31 March 2025
How Does the Disabled Facilities Grant (DFG) Work?:
This grant covers the cost of home adaptations required to improve the quality of life for individuals with disabilities. Examples of modifications include:
- Installing ramps for wheelchair users
- Fitting stairlifts or platform lifts
- Converting bathrooms into accessible wet rooms
- Improving lighting and heating control systems for better accessibility
The grant supports people of all ages and applies to all housing tenures, including homeowners, tenants, and those living in rented properties.
Who Can Apply for the DFG?:
This grant is available to individuals who need to make their homes more accessible. Landlords can also apply on behalf of their tenants if the property needs adaptations. Eligibility criteria include proof of disability and evidence that the modifications are necessary for the person to live safely and independently.
How Much Funding Can You Get?:
The funding ranges from £1 to £36,000, with the actual amount depending on the nature of the required adaptations.
7. Adoption Support Fund (ASF)
The Adoption Support Fund (ASF) is designed to provide financial support for adoptive families and families with a Special Guardianship Order (SGO). The grant enables access to therapeutic services that support the wellbeing of children and parents involved in adoption and guardianship arrangements.
Key Details:
- Location: England
- Funding Organisation: Department for Education
- Who Can Apply: Individuals, Local Authorities, and Regional Adoption Agencies (RAAs)
- Funding Amount: From £1 to £5,000 for therapeutic services per eligible child
- Total Size of Grant Scheme: Not specified
- Application Period: Opened 1 April 2022 and closes on 30 March 2025
How Does the Adoption Support Fund (ASF) Work?:
This grant provides funding for services such as therapy, counselling, and support for adoptive families and guardians. The goal is to provide children and parents with the emotional and psychological support they need to create a stable home environment.
Who Can Apply for the ASF?:
The Adoption Support Fund is available to:
- Adoptive parents of children under 21 years old
- Special guardians with Special Guardianship Orders (SGOs)
- Local authorities and Regional Adoption Agencies (RAAs), who apply on behalf of the family
How Much Funding Can You Get?:
Grants of up to £5,000 per child are provided to cover therapeutic services and mental health support.
8. Healthy Start Grant
The Healthy Start Grant helps pregnant women and families with children under 4 to access healthy food, milk, and vitamins. The initiative provides a prepaid Healthy Start card that is loaded with money every four weeks to purchase essential food items.
Key Details:
- Location: England, Wales, Northern Ireland
- Funding Organisation: Department for Work and Pensions (DWP) and the NHS
- Who Can Apply: Pregnant women and parents with children under 4
- Funding Amount: Varies depending on family size and eligibility
- Total Size of Grant Scheme: Not specified
- Application Period: Opened 1 April 2022 and closes on 30 March 2025
How Does the Healthy Start Grant Work?:
Once eligible, recipients receive a Healthy Start card preloaded with funds every four weeks. The card can be used at specific retailers to purchase healthy foods, including:
- Fresh fruit and vegetables
- Cow’s milk and baby formula
- Vitamins for pregnant women and children
Who Can Apply for the Healthy Start Grant?:
This grant is open to pregnant women and parents with children under the age of 4. To be eligible, applicants must be on certain benefits or tax credits, such as Universal Credit or Child Tax Credit.
9. Woodland Partnership (Forestry England)
The Woodland Partnership Grant offers financial incentives for landowners to lease their land for the development of sustainable woodlands. Under this scheme, Forestry England will design, plant, and manage woodlands, while the landowner receives annual rent payments.
Key Details:
- Location: England
- Funding Organisation: Department for Environment, Food & Rural Affairs (DEFRA) / Forestry England
- Who Can Apply: Public sector, private sector, and non-profit organisations
- Funding Amount: Between £100 and £300 per hectare per year
- Total Size of Grant Scheme: £50 million
- Application Period: Opened 1 April 2022 and closes on 31 March 2025
How Does the Woodland Partnership Grant Work?:
Under the scheme, landowners lease their land to Forestry England for 60 to 120 years. During the lease period, Forestry England is responsible for designing, planting, and managing the new woodland. In return, the landowner receives an annual payment based on the size of the land.
Who Can Apply for the Woodland Partnership Grant?:
Public sector, non-profit, and private landowners with land suitable for woodland creation can apply.
How Much Funding Can You Get?:
Landowners receive £100 to £300 per hectare per year as rent payments for allowing their land to be used for woodland development.
10. Electric Vehicle Infrastructure Grant for Staff and Fleets
The Electric Vehicle (EV) Infrastructure Grant helps small and medium-sized businesses (SMEs) install EV charge points and associated infrastructure for their staff and fleets. This initiative supports the transition to zero-emission vehicles.
Key Details:
- Location: National (across the UK)
- Funding Organisation: Office for Zero Emission Vehicles (OZEV)
- Who Can Apply: Public sector, non-profits, and private sector SMEs
- Funding Amount: Up to £15,000 towards the cost of EV infrastructure installation
- Total Size of Grant Scheme: Not specified
- Application Period: Opened 1 April 2022 and closes on 31 March 2025
How Does the EV Infrastructure Grant Work?:
The grant covers a portion of the cost to install EV charging points for staff and fleet vehicles. This support includes upgrades to electrical infrastructure, such as electrical connections, chargers, and cables.
Who Can Apply for the EV Infrastructure Grant?:
Small and medium-sized enterprises (SMEs), non-profits, and public sector bodies with dedicated staff or fleet parking can apply.
How Much Funding Can You Get?:
Grants of up to £15,000 per site are provided to help install the necessary infrastructure.
11. Apply for Funding for Community Projects
The Apply for Funding for Community Projects grant supports the development of community-driven initiatives, such as youth activities, volunteer programmes, and the improvement of community facilities. This grant aims to enhance local well-being and strengthen community ties.
Key Details:
- Location: England, Wales
- Funding Organisation: Local Authorities
- Who Can Apply: Individuals, public sector bodies, non-profits, and private sector organisations
- Funding Amount: Amounts vary depending on the project and local authority guidelines
- Total Size of Grant Scheme: Varies
- Application Period: Opened 1 April 2022 and closes on 31 December 2025
How Does the Community Projects Grant Work?:
The grant provides financial assistance to community projects that improve the well-being of local residents. Projects can range from youth support programmes and volunteering initiatives to the development of community centres and other shared facilities. The funding is distributed by local authorities, each of which may have different eligibility criteria.
Who Can Apply for Funding?:
The grant is open to a broad range of applicants, including:
- Individuals looking to create youth activities or support local initiatives
- Community organisations and non-profits focused on volunteering, training, or community development
- Public sector bodies such as local authorities and councils
- Private sector organisations working on public-benefit community projects
12. Workplace Charging Scheme (WCS)
The Workplace Charging Scheme (WCS) aims to encourage businesses to install electric vehicle (EV) charging points for their employees. As the UK transitions to a net-zero economy, this grant helps small and medium-sized enterprises (SMEs) and organisations adopt sustainable practices.
Key Details:
- Location: National (across the UK)
- Funding Organisation: Office for Zero Emission Vehicles (OZEV)
- Who Can Apply: Public sector bodies, non-profits, and private sector businesses
- Funding Amount: From £300 to £350 per charging point
- Total Size of Grant Scheme: £5 million
- Application Period: Opened 1 April 2022 and closes on 31 March 2025
How Does the WCS Work?:
The WCS provides financial support for the purchase and installation of EV charging points at workplaces. Businesses receive a subsidy for each charging point installed, making it easier and more affordable to support electric vehicles. This initiative reduces carbon emissions while supporting employee well-being.
Who Can Apply for the WCS?:
This grant is open to:
- Public sector bodies and local councils
- Non-profit organisations with staff parking facilities
- Private sector companies of any size
How Much Funding Can You Get?:
Businesses can receive between £300 and £350 per charge point.
13. Fisheries and Seafood Scheme (FaSS)
The Fisheries and Seafood Scheme (FaSS) aims to safeguard the sustainability, resilience, and prosperity of the seafood sector. It provides funding to support innovation, improve sustainability, and promote modernisation within the seafood industry.
Key Details:
- Location: England
- Funding Organisation: Department for Environment, Food & Rural Affairs (DEFRA)
- Who Can Apply: Individuals, public sector bodies, non-profits, and private sector businesses
- Funding Amount: From £500 to £250,000
- Total Size of Grant Scheme: £20.3 million
- Application Period: Opened 13 April 2022 and closes on 28 February 2025
How Does the Fisheries and Seafood Scheme (FaSS) Work?:
The grant provides funding to modernise fishing vessels, promote sustainable aquaculture, and support projects that enhance the seafood supply chain. It also promotes carbon reduction initiatives within the sector.
Who Can Apply for the Fisheries and Seafood Scheme?:
Eligible applicants include:
- Fishing vessel owners looking to modernise or improve vessel sustainability
- Seafood businesses that process, distribute, or retail seafood
- Non-profit and public sector organisations supporting the industry
How Much Funding Can You Get?:
Grants range from £500 to £250,000 depending on the nature and impact of the project.
14. Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme (BUS) supports the decarbonisation of homes and small businesses. It offers grants to install low-carbon heating systems like heat pumps and biomass boilers, encouraging a shift away from fossil fuel-based heating.
Key Details:
- Location: England, Wales
- Funding Organisation: Department for Energy Security and Net Zero
- Who Can Apply: Individuals, public sector bodies, and private sector organisations
- Funding Amount: From £5,000 to £7,500
- Total Size of Grant Scheme: £775 million
- Application Period: Opened 23 May 2022 and closes on 31 December 2027
How Does the Boiler Upgrade Scheme (BUS) Work?:
The BUS offers financial support to replace fossil fuel heating systems with low-carbon alternatives, such as:
- Air source heat pumps
- Ground source heat pumps
- Biomass boilers
The grant reduces the up-front costs of installing these systems, helping individuals and businesses transition to greener energy sources.
Who Can Apply for the Boiler Upgrade Scheme?:
The grant is open to:
- Homeowners looking to upgrade their residential heating systems
- Small businesses with non-domestic buildings
- Public sector bodies and social housing providers
15. Commissioned Rehabilitative Services (CRS) General Grant Scheme
The Commissioned Rehabilitative Services (CRS) Grant Scheme provides support for people with protected characteristics or shared life experiences. It aims to promote rehabilitation and reduce reoffending, improving the effectiveness of probation services.
Key Details:
- Location: England, Wales
- Funding Organisation: Ministry of Justice (MOJ)
- Who Can Apply: Non-profit organisations only
- Funding Amount: From £8,000 to £450,000
- Total Size of Grant Scheme: Not specified
- Application Period: Opened 22 July 2022 and closes on 29 March 2027
How Does the CRS Grant Work?:
The CRS grant funds projects that promote rehabilitation, support for ex-offenders, and desistance activities. Projects may include rehabilitation programmes, skills development, and services for vulnerable groups.
Who Can Apply for the CRS Grant?:
Only non-profit organisations are eligible. These organisations must work to improve rehabilitation services for individuals under the supervision of Her Majesty’s Prison and Probation Service (HMPPS).
How Much Funding Can You Get?:
Grants range from £8,000 to £450,000 based on the project’s scale and impact.
Conclusion
Securing government grants can provide the financial boost your business needs to succeed. From community funding to support for EV infrastructure, the opportunities are vast. Explore the Business Finance Support Finder or contact local authorities for more details on how to apply.
FAQs About Government Grants for New Business
Which is the best grant for new businesses in the UK?
The best grant depends on your industry and needs, but popular options include the Start Up Loans and Community Ownership Fund for community-driven projects.
Do government grants have to be repaid?
No, government grants do not have to be repaid as long as you meet the grant conditions and use the funds as specified.
Can I apply for more than one grant at a time?
Yes, businesses can apply for multiple grants as long as they meet the eligibility criteria for each grant.
How long does it take to receive a grant decision?
It varies depending on the grant, but it typically takes a few weeks to several months for applications to be reviewed and approved.
Are grants available for green energy projects?
Yes, grants like the Boiler Upgrade Scheme (BUS) and Woodland Partnership Grant support green energy, decarbonisation, and sustainability projects.
Can I get a grant for equipment purchases?
Yes, grants like the Workplace Charging Scheme (WCS) and Fisheries and Seafood Scheme (FaSS) support the purchase of equipment and infrastructure.
What documents are required for a grant application?
You may need a business plan, financial forecasts, project proposal, and proof of eligibility such as certificates, ID, or evidence of need for funding.
