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Introduction
According to a new survey from NerdWallet of 500 UK business owners, economic pressures at the end of this year and forecast to continue for 2026 have caused 21% of SMEs to pause their growth plans or delay major investments. A further 21% are planning to freeze recruitment or delay taking on new hires.
Due to the tough economic landscape, 71% of SMEs surveyed have considered closing down in the past 12 months, whilst it is unlikely that that many would actually close-down, the reasons for their concerns highlight the types of pressures businesses are facing, preventing them from reaching a profitable position where they can consider future growth plans.
The main issues businesses are facing are:
- 31% of businesses are seeing falling customer demand
- 30% are struggling with supply chain issues
- 29% are having difficulty accessing finance
- 28% are facing increased rent or property costs
- 25% are dealing with staff shortages
The most immediate way businesses plan to face continued tough economic conditions and return to profitability are by increasing prices of products and services in 2026. The average level of price increase will be 14.5% across all SMEs surveyed, with only 12% of business owners stating they are planning to keep their prices the same.
Whilst growth plans may be on hold for many SMEs in 2026, there is still a large amount of financial support for ambitious businesses who want to get ahead and carry out growth plans. Businesses can access growth grants and additional support from providers in their local area, such as local authorities and enterprise support agencies. There is still a large amount of Government backed UK Shared Prosperity Fund (UKSPF) funding available in many areas.
Here Are Some Of The Latest Business Growth Funding Opportunities
i) Business Growth Fund
North of Tyne Combined Authority is running a scheme providing capital grants funding to businesses looking to expand or establish new operations. Projects must contribute to outcomes including the creation and safeguarding of jobs, improved productivity, adoption of new to firm processes and technologies and an increased amount of capital investment. Areas covered include Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland and Sunderland. Funding up to £300,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Enterprising Worcestershire Grant
Worcestershire County Council is running a scheme that aims to provide businesses with the necessary support to achieve their milestones quicker and help them with establishing themselves in the market. Eligible expenditure can include, but is not limited to, machinery and equipment, website construction, marketing materials and consultancy support. Areas covered include Bromsgrove, Malvern Hills, Redditch, Wychavon and Wyre Forest. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Business Development Support
Orkney Islands Council is offering grants towards capital expenditure that will support business growth. Some revenue costs, such as design costs, non-statutory training and marketing, can be considered eligible on a case-by-case basis. Businesses in agriculture and fisheries, as well as retail and services targeting only the internal market, are ineligible to apply. Funding up to £55,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Tourism Development Grant
Blaenau Gwent County Borough Council is running a scheme that aims to support the growth and development of new and existing businesses in the hospitality and tourism sectors. Projects should support at least one of the themes in the Blaenau Gwent Destination Management Plan which include, but are not limited to, business development, challenging and changing perceptions, skills and business tourism. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Conwy Supporting Local Business Key Fund
Conwy County Borough Council is providing grants to support economic growth and sustainability through the delivery of a range of business development projects in line with the supporting local business investment priority objectives. Eligible costs can include, but are not limited to, capital equipment, website development, digitalisation upgrades and carbon reduction projects. Funding up to £50,000 is available.
Application Deadline: 30th November 2025
vi) UKSPF 25-26 Local Business Grants
Dorset Council is providing funding to support capital or revenue projects that improve productivity, provides business growth and leads to better employment. Eligible costs can include, but are not limited to, machinery and equipment, development growth into new product markets, new production facilities and growing in-house technology to increase productivity. Funding up to £40,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) High Impact Grant
Digital Enterprise and West Yorkshire Combined Authority are running a scheme that aims to support projects that will significantly impact and transform businesses. This could include developing bespoke software solutions, integrating front-end and back-office systems to automate tasks and improve efficiencies, innovating with AR or VR, or introducing AI to improve productivity. Funding up to £35,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) UK Shared Prosperity Fund: Business Productivity and Digitisation Grant
Business Doncaster is running a scheme providing capital and revenue grants to help businesses to improve their productivity and digital innovation as well as improving how they measure and report productivity gains. Funding up to £12,499 is available.
Application Deadline: 31st December 2025
How To Apply For Business Growth 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 growth 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 Growth Opportunities?
If you want to see the full set of UK business growth funding currently available, please visit https://getbusinessgrants.com/