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Introduction
According to a 2025 report from the National Audit Office titled UK Research and Innovation: providing support through grants – a total of 28,866 applications for competitive grant funding were assessed by the UKRI in 2023-2024. The organisation had a total funding pot of £6bn to award grants and funding in the same time period.
For 2022-2023, the average value of a grant awarded in a competitive process was £500,000. For this time period, the breakdown of the funds awarded were 43% towards basic research and development activities (including feasibility studies), 28% went to applied research with a specific aim or objective in a particular sector and 28% went to experimental development, such as funding for businesses to pilot innovative new processes or prototypes.
The UKRI is planning to roll out a new grant management system in 2026 that aims to improve the organisation’s ability to monitor and strategically manage grant spending and awarding decisions. The system is expected to help analyse data and provide better decision making on allowing grants to be awarded based on risk profiles as well as identifying barriers where funding is being prevented in certain areas. The new analysis tools will help allow incentives to be put in place to remove these barriers.
Businesses looking to apply for innovation grants can regularly check Government funding providers such as Innovate UK in order to see if grants are available that align with specific research and development goals for their projects. The European Commission Horizon Programme provides a large number of research and development funding grants across key innovation sectors for collaboratively funded projects across Europe. There are also innovation grants available on a local level, typically issued by local authorities or in collaboration with universities and backed by the UK Shared Prosperity Fund.
What Are Some Of the Latest UK Business Innovation Grants Available?
i) Research and Development Grant
Erewash Borough Council is providing funding to enable research and development of products, processes and technology that would be considered new to a business within the local area. The funding is backed by the UK Shared Prosperity Fund. Funding up to £20,000 is available.
Application Deadline: 31st January 2026
ii) UK SAF Clearing House and SAF Testing Grant
The University of Sheffield and the Department for Transport has a scheme that aims to support the development of the emerging UK sustainable aviation fuel sector as it introduces new fuels to the market. The grants will support the costs involved with pre screening testing and testing to progress a fuel towards qualification against industry standards.
Application Deadline: 1st September 2025
iii) Generative AI for Cybersecurity Applications
The European Commission Horizon Programme is inviting proposals to contribute to outcomes relating to developing, training and testing of Generative AI models for monitoring, detection, response and self-healing capabilities in digital processes, and systems against cyberattacks, including adversarial AI attacks. Funding up to €14 million is available as part of collaborations with other organisations around Europe.
Application Deadline: 12th September 2025
iv) Innovation in Support of Operations – Cycle 5
The Defence and Security Accelerator competition is seeking proposals that can make a real-world difference, fast and at scale. Proposals should address one of the following challenge areas: novel and enhanced scale complex manufacture of material, autonomous system navigation and applicable options, wide-area sense and detect and innovative solutions for minefield breaching. Funding up to £350,000 is available.
Application Deadline: 5th August 2025
v) Pendle Innovation and Productivity Grants
Pendle Borough Council is providing a grant that aims to support investment in research and development at the local level and the diffusion of innovation and knowledge activities. The funding must result in the adoption of new to the firm technologies or processes that would lead to a demonstrable improvement in productivity. The grant may also be used for capital costs including new equipment or adaptation of premises. Funding up to £18,000 is available.
Application Deadline: 28th February 2026
vi) Canada-UK Semiconductors
Innovate UK and the National Research Council of Canada Industrial Research Assistance Program is running a funding competition that aims to support collaborative projects between UK and Canadian businesses focused on developing innovative products, processes, or technology-based services in Semiconductors. Funding up to £500,000 is available.
Application Deadline: 15th October 2025
vii) GW-SHIFT HY Impact
GW-SHIFT is running a scheme that aims to support high-impact projects that accelerate the journey of hydrogen technologies to market. Projects must be university-led and co-created with civic and/or industry stakeholders to represent projects and challenges that will enable organisations to take their next steps in hydrogen adoption, aid understanding in its implementation and developing products and services for a green economy. Funding up to £65,000 is available.
Application Deadline: 28th July 2025
viii) Global Incubator Programme: India (Hyderabad) – Urban Systems, Cohort 4
UK Research and Innovation is providing access to UK businesses for the Global Incubator Programme. Companies in the Urban Systems sector can use the scheme as an opportunity to expand into the Indian market and collaborate with one of the world’s largest innovation hubs. The programme will fund and organise flights, accommodation, in-market travel and conference fees for participating companies. One representative from each company will be funded.
Application Deadline: 25th July 2025
How To Apply For Business Innovation Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested businesses can speak to innovation advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.
Want To Find The Latest UK Business Innovation Funding Opportunities?
If you want to see the full set of UK business innovation funding currently available, please visit https://getbusinessgrants.com/