If you are thinking of setting up an office or plant in the UK, there is a
good chance you will be eligible for some kind of financial assistance.
There are numerous kinds of financial assistance on offer in the UK. These
are currently undergoing the Business Support Simplification Programme,
creating Solutions for Business administered through the Business Link
service. Fortunately, you do not need to understand them all.
The key points to know are these:
Broadly speaking, you have two main sources of help: the UK government
and the European Union.
The former is the more important.
There are two types of assisted areas in the UK, which are called Tier
1 and Tier 2.
You will have access to the most generous, and the greatest number of
grants, if you locate in one of the UK’s Assisted Areas (see map), in
Northern Ireland or in an area that benefits from monies supplied by
European Union Structural Funds.
All UK grants are discretionary, which means factors such as
viability, job creation, promotion of exports or economic development
are also taken into consideration.
The amount of assistance you receive will be determined by negotiation
with the government department or agency offering the grant, which in
most cases is the Regional Development Agency. The Department for
Business, Innovation & Skills may appraise the larger applications. In
these negotiations, your company will be treated equally to a UK one
which means that there is not assistance specifically designed for
inward investors.
Crucially, you must apply before your investment goes ahead. This is
because to get support, you must demonstrate that your inward investment
project is seen to be viable and will not be able to go ahead without
government help.
The grants are offered to companies making an investment in the UK for
the first time, and also to companies already there which plan
expansions or modernisations.
The key grants to
apply for are the following:
-
England -
Grant for Business Investment (GBI): helps fund new investment
projects that lead to long-term improvements in productivity, skills and employment;
-
Scotland - Regional Selective Assistance (RSA): helps safeguard
or create jobs;
-
Wales - Single Investment Fund: aims to generate and protect
jobs and boost the economy;
-
Northern Ireland is a special case. If you locate there, you
will be eligible to apply for a set of grants and incentives not
available anywhere else in the UK. Some are provided by Invest Northern
Ireland and cover programmes such as Invest in Growth - Selective
Financial Support, which provides support for capability building
development projects where private sector finance is not forthcoming.
Under the European
Guidelines for the period 2007-2013 the proportion of the UK population
covered by the Assisted Areas is 23.9%, compared to 30.9% previously
covered. The reduction in coverage reflects the impact of EU enlargement,
which has led to regional aid being concentrated in the new, poorer Member
States.
Want to know more?
REQUEST A FREE COPY of our annual
directory, Invest in the UK; or use our Free Grants
Assessment Service described below. Full details can be obtained from
the Department for Business, Innovation & Skills, the Regional Development
Agencies and Business Link.
Also, take a look at the Local Areas on this web site, which give you
access to the most generous kind of UK grant and the contacts to guide you
through the process. They are:
FREE GRANTS ASSESSMENT SERVICE
Would you like to know how much
government grant your company might receive, if it were to locate an
office or plant in the United Kingdom?
You can find out by using Invest in the UK’s
Free Grants Assessment Service.
This service is provided by officers
in local authorities and development agencies, who can advise the amount
of grant you could be offered in their area.
There is no obligation attached to this service, which is available to
companies turning over US$10 million plus. |
