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Introduction
According to the latest figures from the Office for National Statistics released in May 2025, business investment in the UK rose 5.9% quarter-on-quarter during the first quarter (Q1) of 2025, recovering from a 1.9% decline in the previous quarter Q4 2024. The year on year increase of UK business investment when compared to Q1 2024 was 8.1%. These figures mark the largest expansion in investment spend since Q1 2023.
This trend shows encouraging signs of renewed confidence for UK businesses after an uncertain 2024, by being able to increase their investment spend for strategic growth plans over the next 12 months. The UK Office for National Statistics considers a broad range of investments carried out by public-listed and private businesses in its economic data, including investments in transportation, ICT equipment, other machinery and equipment, software, research and development support, artistic originals, mineral exploration and buildings and other structures.
In terms of business investments specific to purchasing business equipment, the top areas of spending increase in Q1 2025 were transport equipment, which saw a significant 23% quarter on quarter rise and ICT and other machinery and equipment, which witnessed a steady 8% rise for the same period.
Businesses looking to purchase capital equipment can access grant funding to receive finance towards some of the total purchase costs. The UK Government has recently launched its latest round of funding for 2025-2026 as part of the UK Shared Prosperity Fund (UKSPF) and includes funding businesses can apply for from their local councils. Allowable grant expenses include capital expenditure against equipment and machinery to encourage the growth and expansion of businesses in every region of the UK.
Here Is A Selection Of The Latest Purchasing Business Equipment Funding Schemes
i) UK Shared Prosperity Fund – Grants for Small Scale Capital Expenditure
East Riding of Yorkshire Council is providing funding to support capital projects, including the purchase of and upgrades/improvements to moveable assets, the purchase of plant and machinery, improvements to retail premises including signage and the purchase of ICT equipment. Up to £5,000 is available for moveable assets and up to £10,000 is available for fixed assets.
Application Deadline: Applications are invited on an ongoing basis
ii) Farming Equipment and Technology Fund 2025 – Improving Productivity
The Department for Environment, Food and Rural Affairs is providing funding for items to help farmers improve productivity. When applications are made, items are scored on their productivity benefit, environmental benefit and their overall level of adoption by the UK farming sector in terms of how much funding will be awarded relative to the cost of the items. Funding up to £25,000 is available.
Application Deadline: 10th July 2025
iii) Rural England Prosperity Fund – Small Scale Investment in Micro and Small Enterprises
Bedford Borough Council is providing capital funding backed by the UK Shared Prosperity Fund to support small scale investment in micro and small enterprises in rural areas. This can include investment in net zero infrastructure for rural businesses and diversification of farm businesses outside of agriculture. Eligible expenditure includes the purchase of capital equipment. Funding up to £20,000 is available.
Application Deadline: 30th June 2025
iv) Business Growth Grant
Business Gateway Dumfries and Galloway is providing a scheme backed by the UK Shared Prosperity Fund that aims to support the growth of existing businesses within the first three years of trading. Eligible expenditure can include, but is not limited to, capital equipment, exhibition support, infrastructure improvement and training support. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) UKSPF Small Capital Grant Scheme for Businesses
Shropshire Council is providing funding backed by the UK Shared Prosperity Fund for businesses to purchase capital equipment or undertake improvements to their premises that will help them create new jobs, or develop new products, processes or services. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) High Peak Rural Business Development Grant
High Peak Borough Council This scheme aims to support the development of SMEs through investment in the adoption of new technologies and processes and/or the adoption of new or improved products or services that have the potential to lead to business growth. Funding up to £10,000 is available.
Application Deadline: 15th June 2025
vii) Pembrokeshire Growth Fund
Pembrokeshire County Council is running a fund backed by the UK Shared Prosperity Fund that aims to help businesses and inward investors to grow, prosper and be sustainable, resulting in the creation and safeguarding of jobs, thereby improving the local economy. Eligible funding includes the purchasing of capital equipment and machinery. Funding up to £32,500 is available.
Application Deadline: 30th September 2025
viii) Business Growth Grant Scheme
North Northamptonshire Council is running a scheme backed by the UK Shared Prosperity Fund that aims to support businesses to grow, diversify and innovate, with particular focus on the visitor economy. Eligible projects can include investing in equipment or building extensions and alterations. Funding up to £25,000 is available.
Application Deadline: 23rd June 2025
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 businesses can speak to funding specialists 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 More UK Purchasing Business Equipment Funding Opportunities?
If you want to see the full set of UK purchasing business equipment funding currently available, please visit https://getbusinessgrants.com/