In partnership with Ernst & Young
It’s not easy to get government grant funding but there are genuine opportunities available for those who persevere. Ernst & Young Director Nigel Wilcock demystifies the process.
The government agencies involved make no apology for the difficult application processes involved in getting grant funding. This is partly put in place to test the need that the applicant has for funding.Grant aid in the UK does not come strictly under the control of the Government. In fact, it is regulated through EU ‘state aid’ legislation, which only allows the government to support certain types of business or activity. One common misconception about grant funding is that there is a huge range of funding provided by the EU. In fact, the EU’s grant activities limit themselves to public-sector funding.
A firm’s location will play a major role. Companies located within an assisted area have a wider selection of grant funding schemes available to them and, in some cases, the funding available under schemes is higher in the assisted areas.
The assisted areas of the UK are based on three “tiers” relating to the maximum funding contribution that can be provided under different schemes.
What activities can gain grant support?
R&D
The provision of funding for R&D is increasing. An important distinction is between research into new products and processes (grant support is available) and continued development of an existing product or process (grant support is less likely).
Support for companies is now widely available through the R&D tax credit, which can be considered as state aid by the EU. This is an important distinction because care must be taken by companies seeking to gain grant funding in addition to a tax credit.
There is a National DTI Grant for R&D (SMART in Scotland and Wales) aimed principally at SMEs, but grant schemes for R&D are being introduced all the time. Yorkshire Forward, for example, has introduced an R&D scheme for large companies based in Yorkshire.
There is also a large pan-European grant regime called ‘Framework 6’ which is available to companies involved in collaborative R&D projects with other companies and universities across Europe.
Employment and training
Government funds are now typically aimed at ‘training providers’ that can undertake the training. This activity is organised by the Learning and Skills Council.
Employment and training funding may still be gained in some areas of the UK through the regional development agencies or other economic development agencies. This is usually linked to certain categories of employees (typically dependent upon age, previous employment status and level of qualification).
The government also subsidises the employment of high-priority employee categories through the New Deal.
Environmental grants
The EU makes provision for national governments to provide funding under environmental schemes and provides some environment...
Copyright 2010 Vitesse Media
Click here to read more from growthbusiness.co.uk
