HOW THE AUTUMN STATEMENT 2016 AFFECTS GRANT FUNDING
In this blog post the team at Granted Consultancy analysed the impact of the 2016 Autumn Statement on businesses in the UK. Read on if you are a business owner/director/advisor to find out about grant funding opportunities.
OVERVIEW OF THE IMPACT ON BUSINESSES
Brexit will impact UK businesses with the Office for Budget Responsibility estimating that the effect of the UK leaving the European Union will knock 2.4 percentage points from UK growth over the next 5 years.
GOOD NEWS FOR GRANT FUNDING
The Autumn Statement provided good news for UK businesses hoping to secure grant funding in the future, with the Governments’ pledge to support business growth and secure the UK’s long-term commitment to research, development and innovation through the allocation of grant funding.
Chancellor, Philip Hammond outlined the first steps in a new and ambitious Industrial Strategy which will build on the UK’s strengths and get businesses investing.
Speculation over the Local Growth Fund and the role of LEP’s in allocating business growth funding in the regions was answered with a commitment of £1.8bn of grant funding in 2017/18. Applications for this funding should be made through LEP’s for amounts ranging from £50k to £5m and will need to be matched with private sector investment in accordance with State Aid Laws.
The government also announced a review of current R&D tax incentives and substantial increases for research and development in government investment worth £2 billion per year by 2020. Furthermore, a new Industrial Strategy Challenge Fund will back priority technologies – such as robotics, artificial intelligence and biotechnology – where the UK has proven scientific strength and there is a significant economic opportunity.
It is also important to note that funding which has already been allocated is unlikely to be affected by the Autumn Statement – so in the current environment businesses in the UK can access generous grants from both the UK and EU.
Read our in-depth blogs to find out how Research & Development and Business growth grants will be affected or subscribe to our newsletter to receive our newsletter, grant alerts and information about our upcoming Breakfast Briefings.