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Introduction
According to recent analysis by the Institute for Public Policy Research (IPPR), among the G7 countries the UK is ranked 6th in terms of investment from private businesses at a rate of 11.1% of GDP, with only Canada ranking lower in the group. For comparison, Japan sees businesses invest 18.2% of GDP and France 12.7% and Germany 12%.
UK businesses also have a significantly lower capital intensity when it comes to investment in equipment and machinery when compared to other G7 countries. There is up to a 38% capital gap versus peer countries, meaning the average British worker has access to far fewer machines, buildings, robots and intellectual property available to them per hour worked. There is an even larger disparity in the manufacturing sector where capital intensity is up to 47% lower than in peer countries.
There is a warning that the UK is at risk of further under-investment in the manufacturing sector as energy prices rise again as a result of the current Middle East conflict. This will mean the sector will further lag behind manufacturers in other countries in terms of productivity and growth. It is the case that global manufacturing competitiveness is driven by factories adopting new forms of automation and digitisation and these new innovative drivers come with ever increasing energy consumption demands. A situation with high energy prices going on for a prolonged period of time in the UK will act as a brake on investment that British companies need to stay competitive.
Businesses looking to invest in capital equipment and technology can access grant funding to receive finance towards some of the overall eligible costs. Funding is typically available from UK councils, local business enterprise and sector specific support organisations.
What Are Some Of The Latest UK Purchasing Business Equipment Funding Opportunities Available?
i) Transforming Towns Place Making Grant 2025-2027
Ceredigion and Powys County Council are running a scheme providing funding for local businesses to support capital investment to make improvements and purchasing equipment and technology for technical improvements. Funding up to £300,000 is available.
Application Deadline: 31st December 2026
ii) Nelson Town Deal Grants
Pendle Borough Council is running a scheme that aims to help manufacturing businesses to become more resilient and to help them grow. The funding will cover investments in new plant or machinery, energy efficiency/carbon reduction and premises improvements or adaptations. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Local Economy Fund – Standard Applications
The Isle of Man Department of Enterprise is providing financial assistance to businesses, seeking to undertake activities and initiatives that support the Local Economy Strategy’s Strategic Goals. Eligible projects can include the purchase of re-usable equipment and technology Applicants will be eligible to apply for funding of up to £100,000 per year, per initiative.
Application Deadline: Applications are invited on an ongoing basis
iv) Repurposing Our High Street Grants
Cheshire East Council is running a scheme providing funding to businesses or organisations that take up leases on empty commercial premises in Crewe town centre to cover the costs of improving the property or purchasing equipment and for shop fit out. Funding up to £30,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Made Smarter Adoption North East 2026/2027 – Smart Factories
Made Smarter is running a programme that aims to help manufacturers in the North East increase profits, improve efficiency and grow by investing in smart technology. Participants can access grants to support their journey to become a smart factory. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Wychavon Growth Fund
Wychavon District Council is running a fund that will support a wide range of activities to help businesses grow, such as investing in new equipment, and expanding facilities for improving productivity and efficiency gains. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Malvern Hills Growth Fund
Malvern Hills District Council is running a scheme that provides funding to support activities that help businesses in the manufacturing, rural, tourism and hospitality sectors to grow, such as investing in new equipment, for improving productivity and getting efficiency gains. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Business Productivity and Digitisation Grant Scheme
Sheffield City Council has funding available to help businesses understand and source solutions to productivity or digital innovation challenges. Eligible costs include capital investment in machinery, equipment, technology and the fit-out of premises. Funding up to £12,500 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Purchasing Business Equipment Funding 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 individuals and businesses can speak to 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.