Technology grants for UK businesses in 2026

Technology grants for UK businesses in 2026 mainly come from two places. Made Smarter funds manufacturers buying or developing new technology, and Innovate UK runs research and development competitions open to other sectors. A smaller number of short, sector specific programmes also run throughout the year.

This guide covers which technology grants are open right now, who can apply, what the money can be spent on, and how a grant compares with R&D tax relief. It also covers what to do if a grant will not cover the full cost of the technology your business needs.

Which technology grants can UK businesses apply for in 2026?

Made Smarter Adoption

• Amount: grants of up to £20,000, matched pound for pound by your business.

• Who can apply: small and medium sized manufacturers and engineers with premises in England.

• Status: open, run regionally across nine areas of England.

This grant pays half the cost of new hardware and software for your business, such as automation, sensors, planning tools and stock systems. You also get free advice from a specialist adviser on which technology best suits your business. See full details and apply on the Made Smarter website.

Made Smarter Innovation

• Amount: no fixed amount per business. The programme has awarded over £100 million in grants since it started, matched by more than £200 million from industry.

• Who can apply: UK manufacturers, usually working with a technology company or a university, on a project that includes at least one small or medium sized business.

• Status: open, but run as individual competitions with their own opening and closing dates, not one ongoing scheme.

Made Smarter Innovation is the research and development strand of the Made Smarter programme. It funds new manufacturing technology, such as robotics, artificial intelligence and digital twins, rather than buying tools that already exist. It suits a business developing something new, not one adopting a product that is already on the market. Check current competitions on the Innovation Funding Service.

Sector accelerator programmes

• Amount: often £50,000 to £100,000 per project.

• Who can apply: a technology business paired with a business in a specific sector, such as manufacturing, energy or life sciences.

• Status: short application windows, usually open for a few weeks at a time, several times a year.

Digital Catapult and similar organisations run short grant programmes focused on a single technology. A recent example funded digital twin projects, pairing a technology business with a company that wanted to adopt the technology. These programmes suit a business that already has a working prototype and needs funding to test it with an industry partner. Because they open and close quickly, check the Innovation Funding Service competition search every few months to see what is currently open.

Local and regional technology grants

Some local authorities, growth hubs and devolved nation bodies, such as Business Wales, Scottish Enterprise and Invest NI, run their own grants for buying equipment or software. Amounts and rules vary by area, and schemes open and close throughout the year. Search the Find a Grant service by your region to see what is currently open near you.

Which businesses can get a technology grant?

Most technology grants for UK businesses are built for manufacturers. Made Smarter Adoption and Made Smarter Innovation both require your business to be in manufacturing or engineering, so a retailer, a professional services firm or most other types of business will not qualify for either one, whatever technology they want to buy.

Location is another factor. Made Smarter Adoption only covers businesses with premises in England. Several sector accelerator programmes are also limited to businesses in particular parts of the UK.

Business size limits vary by scheme, so check this on the scheme's own page rather than assuming a fixed rule applies everywhere. Before you spend time on an application, check the sector, the location and the size limit together. Many businesses rule themselves out on sector or location alone, even when they would otherwise qualify on size.

What can a technology grant pay for?

What a technology grant pays for depends on the type of grant you apply for. Adoption grants, such as Made Smarter Adoption, pay for buying and installing technology that already exists, such as sensors, planning software or stock systems. Innovation grants, such as Made Smarter Innovation or a Digital Catapult programme, pay for developing or testing something new. This can include staff time, materials, specialist equipment and the cost of working with a partner organisation. Almost none of these grants cover ongoing costs, such as software subscriptions, staff wages outside a funded project, or general running costs. If you need help with day to day technology spending rather than a specific purchase or project, a grant is usually the wrong tool. Business finance is a better fit for that.

How does R&D tax relief compare with a technology grant?

Research and development tax relief is not a grant. It reduces your corporation tax bill if your business is developing new or improved technology, or pays you a cash credit if your business is loss making.

Two schemes are available. Most companies use the merged scheme, which is worth 20% of your qualifying research and development costs, taken off your corporation tax bill. If your business is loss making and spends at least 30% of its total costs on qualifying research and development, you can claim the enhanced scheme instead, which pays a cash credit of 14.5%. You can check the latest rates and rules on HMRC's R&D relief guidance.

Unlike a grant, you do not compete for R&D tax relief. You spend the money on your project first, then claim the relief afterwards through your tax return.

You can use R&D tax relief and a grant on the same project, but the grant funded part of your costs is usually treated differently for tax purposes. Check this with your accountant before you claim.

How can you improve your chances of winning a technology grant?

• Match what the scheme is looking for. Made Smarter Innovation wants new manufacturing technology, not a purchase of something already on the market. Read what the scheme funds before you apply, not just how much it offers.

• Arrange a delivery partner early. Made Smarter Innovation and the sector accelerator programmes usually need a named partner, such as a technology company or a research organisation. Arrange this before a competition opens, not after.

• Show you can afford your share. Most technology grants are matched funding. Assessors want evidence that your business can genuinely fund its half of the project, not just that it needs the money.

• Apply early in the competition window. Some funders close a competition once demand is high enough, even before the published deadline.

• Answer the published criteria directly. Competitions are scored against a set list of criteria. Answer each one clearly, rather than writing general marketing copy about your business.

What can you do if a technology grant will not cover the full cost?

A grant may only cover part of your technology investment, or your project may not meet the eligibility criteria for any current grant. If you need to invest in equipment or technology without waiting for a grant competition, business finance can provide another way to spread the cost.

Asset finance can be used to fund eligible equipment and other business assets, with the cost repaid over an agreed term. It can also be considered alongside grant funding where your business needs to fund its contribution to a project or cover costs that the grant does not meet. If you need to invest before a suitable grant becomes available, Capitalise can help you explore asset finance options. We can match businesses with finance providers from a panel of 130+ UK lenders, with support from a funding specialist through the application process.