Best Business Startup Grants in the UK for 2025

Starting a business requires funding, and in 2025, UK entrepreneurs have access to various government and private grants designed to support innovation and growth. These grants help businesses develop new technologies, expand into new markets, and drive economic progress. Here are the top startup grants available this year.

1. R&D Tax Credits

R&D Tax Credits are a government-backed incentive that helps UK businesses invest in research and development by providing tax relief or cash credits. This funding encourages innovation and supports businesses in staying competitive.

Purpose and Funding
This scheme allows businesses to reclaim a portion of their R&D expenses. SMEs can recover up to 33% of eligible costs, while larger companies qualify for a lower percentage. Covered costs include staff wages, materials, software, and utilities.

Eligibility and Application
Any UK-based company engaged in R&D projects that address scientific or technological uncertainties can apply. Claims are submitted through the company’s corporate tax return (CT600), with detailed documentation required.

Types of R&D Tax Relief

• SME R&D relief: SMEs with fewer than 500 employees and an annual turnover below €100 million can deduct an additional 130% of their qualifying R&D costs, resulting in a total 230% deduction.
• R&D expenditure credit (RDEC): Designed for large companies and SMEs subcontracted by larger firms, offering a tax credit of 12% of qualifying R&D expenditure.

Learn more: riftresearch.com | ukstartupmagazine.co.uk

2. Innovate UK

Innovate UK is the UK’s national innovation agency, providing funding, expertise, and collaboration opportunities to help businesses advance research and commercialise new technologies.

Purpose and Funding
The programme supports projects in key sectors such as healthcare, sustainability, artificial intelligence, and manufacturing. Grants range from £25,000 to over £1 million, depending on the project’s size and expected impact.

Impact  

By supporting thousands of businesses, Innovate UK has played a significant role in advancing technology, creating jobs, and boosting economic growth across various industries.  

Eligibility and Application
UK businesses of all sizes can apply if they demonstrate strong commercial potential and societal impact. Applicants must identify a funding competition on the Innovate UK website, submit a detailed project proposal, and undergo an assessment.

Learn more: ukstartupmagazine.co.uk | ukri.org | grantup.co.uk

3. Innovate UK Business Growth Grant

The Business Growth Grant helps startups scale their operations, expand their market presence, and build long-term sustainability.

Purpose and fFunding
The grant supports businesses beyond the initial development phase, helping them scale production, hire skilled professionals, and enter new markets. Grants of up to £500,000 are available based on business needs.

Eligibility and Application
Applicants must present a strong growth strategy, including financial projections and market analysis. High-growth sectors such as technology and clean energy are prioritised. Applications go through Innovate UK’s Growth Programme, requiring a solid business case.

Learn more: ukstartupmagazine.co.uk | investni.com

4. Gigabit Broadband Voucher Scheme

This scheme supports small businesses and rural households in improving digital connectivity by funding gigabit-capable broadband installations.

Purpose and Funding
Part of the £5 billion Project Gigabit, the scheme provides vouchers of up to £4,500 per property to cover installation costs. Small businesses can receive up to £2,500 to improve operations and boost productivity.

Eligibility and Application
Businesses and households in eligible rural areas with slow broadband speeds can apply through registered suppliers listed by the Department for Digital, Culture, Media & Sport (DCMS).

Key Benefits

• Faster internet speeds enhance business efficiency and data transfer.
• High-speed broadband supports cloud computing and digital growth.
• Improved infrastructure promotes remote work and regional economic development.

Recent Developments

In January 2025, the UK government allocated £289 million to expand gigabit broadband to 131,000 homes and businesses in rural areas, including north Wales, Shropshire, Devon, and Essex.

Learn more: ukstartupmagazine.co.uk | gov.uk | parliament.uk | businessbroadbandhub.co.uk  | m247.com | theguardian.com

5. EIC Accelerator Grant

The EIC Accelerator Programme, part of the European Innovation Council under Horizon Europe, supports startups and SMEs in developing and scaling disruptive technologies.

Purpose and Objectives
The programme bridges the gap between research and commercialisation by offering financial aid and strategic support to high-risk, high-growth businesses. It focuses on companies with innovative solutions that create new markets or disrupt existing ones.

Funding Options

• Grant-only: Up to €2.5 million for innovation activities at Technology Readiness Levels (TRL) 6-8, lasting up to 24 months.
• Blended finance: Up to €2.5 million in grants, plus equity investment ranging from €0.5 million to €10 million.
• Investment-only: For mid-sized companies (up to 499 employees) or those that previously received a grant-only award, with investments of €0.5 million to €10 million through the EIC Fund.

Eligibility and Application
The programme is open to startups, SMEs, and mid-sized companies in EU Member States or Horizon Europe-associated countries. Applicants must demonstrate innovation, growth potential, and scalability. The application process involves submitting a short proposal, preparing a full proposal, pitching the innovation, and finalising funding negotiations.

Learn more: eic.ec.europa.eu | euro-funding.com

Conclusion

These UK startup grants provide essential funding and support for businesses looking to innovate, scale, and expand into new markets. Whether in technology, research and development, broadband infrastructure, or sustainability, these opportunities can help drive your business forward in 2025.