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.
Altogether, there are about 250 different kinds of financial assistance on
offer in the UK. Fortunately, you do not need to understand them all.
The key points to know are these:
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Broadly speaking, you have two main sources of help: the UK government
and the European Union.
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The former is the more important.
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There are two types of assisted areas in the UK, which are called Tier 1
and Tier 2.
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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.
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All UK grants are discretionary, which means factors such as viability,
job creation, promotion of exports or economic development are also
taken into consideration.
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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, Enterprise and Regulatory Reform 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.
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The key grants to apply for are the following:
Selective Finance for Investment in England (SFI): these help
fund new investment projects that lead to long-term improvements in
productivity, skills and employment; and
Regional Selective Assistance (RSA) in Scotland and Wales: these
help safeguard or create jobs.
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Crucially, you must apply for SFI/RSA 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.
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SFI/RSA is offered to companies making an investment in the UK for the
first time, and also to companies already there which plan expansions or
modernisations.
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? Then
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, Enterprise and Regulatory Reform, the
Regional Development Agencies and Business Link.
Also, take a look at the Local Areas on this web site, which give you
access to SFI, 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. |
