1. Start Up Loans Scheme
Although technically a loan, this government-backed initiative offers startup funding of up to £25,000 per individual at a fixed 6% interest rate, with 12 months of free mentoring. It’s ideal for those launching a business with little to no trading history.
2. Innovate UK Smart Grants
For startups developing innovative products, services, or processes, Innovate UK Smart Grants offer significant funding. It’s highly competitive but perfect for high-tech and research-driven businesses.
3. New Enterprise Allowance (NEA)
Aimed at unemployed individuals receiving certain benefits, the NEA provides:
- A weekly allowance for up to 26 weeks
- Access to mentoring
- A potential business startup loan
4. Local Enterprise Partnership (LEP) Funding
LEPs across England offer localised grants and support for new businesses. These vary by region and often fund equipment, premises, or job creation projects. Check with your local LEP for availability.
5. The Prince’s Trust Enterprise Programme
For young entrepreneurs aged 18–30, the Prince’s Trust offers startup grants, training, and mentoring. It supports business planning and provides low-interest loans alongside grant options.
6. Business Growth Grants from Local Councils
Local authorities often provide grants for new business activities like shopfront improvements, marketing, or digital adoption. These grants are location-specific and aimed at local economic development.
7. The Gigabit Broadband Voucher Scheme
If your startup requires high-speed internet, this government scheme offers vouchers of up to £2,500 to install gigabit-capable connections, especially in rural areas.
8. Arts Council England Grants
Creative sector startups—such as those in film, design, and literature—can apply for funding through Arts Council England. Grants are provided for specific projects or organisational development.
9. Energy Efficiency Grants for Startups
Startups looking to reduce energy costs can benefit from environmental and sustainability grants, often delivered through local councils or business energy hubs.
10. Research and Development (R&D) Tax Credits
While not a direct grant, R&D tax relief allows startups engaged in innovation to reclaim a portion of eligible expenses. This can significantly boost cash flow for tech and science-based businesses.
Frequently Asked Questions
Are there government grants to start a business in the UK?
Yes, several national and local government programs offer grants and financial support to new business owners.
Do I need to repay government grants?
No. Unlike loans, grants do not need to be repaid as long as you meet the funding conditions.
Who qualifies for startup business grants?
Eligibility varies by grant but may depend on your age, location, business type, or whether you’re unemployed.
How do I apply for a government startup grant?
Most require an application, a detailed business plan, financial projections, and often an interview or pitch.
Can I combine grants with other funding sources?
Yes, many entrepreneurs combine grants with loans, crowdfunding, or personal savings to meet startup costs.
How long does it take to receive grant funding?
Timelines vary, but it can take weeks to months depending on the grant provider and application process.
Conclusion
Government grants to start a business in the UK provide essential financial support and resources for new entrepreneurs. From innovation to local enterprise support, these grants reduce risk and open opportunities. Research available schemes, prepare your plan, and take the first step toward business success.