How to Get a Grant to Do Business in the UK

The Countryside Stewardship (CS) Capital Grants 2025 is a UK Government initiative designed to support agricultural businesses in delivering environmental benefits across England. The programme provides financial support for projects that enhance the environment, such as improving water quality, air quality, and biodiversity, while supporting sustainable farming practices.

Overview of Capital Grants 2025

The CS Capital Grants 2025 scheme offers funding for specific projects that deliver environmental outcomes, enabling agricultural businesses to implement sustainable practices. The grants are available for a range of activities, with no cap on the total funding amount per application, allowing flexibility for businesses of varying sizes.

• Funding Structure: Grants are provided as one-off payments for capital items, such as hedgerow planting or watercourse crossings, to achieve environmental objectives. For example, the BE1: Protection of in-field trees on arable land offers up to £612 per hectare, and the AB14: Harvested low input cereal provides up to £514 per hectare. Multiple grants can be combined for different projects within the same agreement.

• Grant Groups: The scheme covers four key areas: boundaries, trees and orchards; water quality; air quality; and natural flood management. There are 76 capital items available, detailed in the CS Grant Finder on GOV.UK.

Eligibility Criteria

To qualify for CS Capital Grants 2025, applicants must meet specific criteria:

• Eligible Applicants: The scheme is open to registered landowners, tenants, landlords, or licensors in England with management control of the land for at least 5 years from the start of the grant agreement. Business partnerships can apply, provided the signer has appropriate permission levels in the Rural Payments service. Licensees are generally not eligible unless their licence agreement provides sufficient management control, equivalent to a tenancy.

• Land Requirements: All land parcels must be registered with the Rural Payments service and have a valid parcel reference number (e.g., AA1234 5678). Land under existing grant agreements, such as the English Woodland Grant Scheme (EWGS) or Farming Recovery Fund, is typically ineligible unless capital works are complete and fully paid.

• Tenancy Conditions: Tenants under the Agricultural Tenancies Act 1995 or Agricultural Holdings Act 1986must have at least 3 years of tenure from the agreement start date and management control for 5 years, or obtain the landlord’s countersignature.

Application Process

The application process for CS Capital Grants 2025 is straightforward but requires careful preparation:

1. Register with Rural Payments: Applicants must be registered on the Rural Payments service and ensure all land parcels are listed with valid reference numbers. If not registered, submit a rural land change request.

2. Consult Advisors: Contact Natural England at enquiries@naturalengland.org.uk to discuss your application and select appropriate capital items. For woodland-only applications, the Forestry Commission will assess your submission.

3. Submit Application: Applications can be submitted online, by email, or by post using the CS Capital Grants application form, available on GOV.UK. Follow the guidance on completing the application.

4. Provide Evidence and Consents: Check each capital item for required consents (e.g., planning permissions or environmental permits) and submit evidence with payment claims.

5. Business Viability Test: For applications involving capital expenditure over £50,000, a statement from a registered accountant is required to confirm business viability.

6. Application Review: The Rural Payments Agency (RPA) assesses applications based on environmental benefits and compliance. Successful applicants receive an agreement offer, which must be accepted to proceed.

Applications are open year-round until funding is fully allocated. Applications submitted before the temporary closure in November 2024 are being processed, and new applications can be submitted when the scheme reopens in 2025.

Restrictions on Grant Use

CS Capital Grants 2025 have specific restrictions to ensure proper use of funds:

• Grants cannot fund work already completed, planning fees, agency or consultancy fees, statutory requirements, or work on land under other grant agreements with incomplete or unpaid capital works.

• Funded capital items must be maintained in the agreed condition and specification for 5 years from the agreement start date.

• Land designated as conditionally exempt from Inheritance Tax by HMRC may have specific eligibility requirements, which must be checked before applying.

Benefits of Capital Grants

The CS Capital Grants 2025 scheme offers significant advantages for agricultural businesses:

• Environmental Impact: Supports projects that enhance biodiversity, improve water and air quality, and mitigate flood risks, contributing to sustainable farming.

• Financial Support: Provides non-repayable funds to cover upfront costs of capital items, reducing financial barriers to environmental improvements.

• Flexibility: Multiple grants can be combined, and there is no limit on the funding amount per application, allowing tailored solutions for business needs.

• Business Growth: Enhances farm productivity and sustainability, aligning with the UK’s environmental and agricultural goals.

Risks and Considerations

Applying for and managing CS Capital Grants involves potential challenges:

• Compliance Risks: Failure to meet scheme requirements, such as maintaining capital items for 5 years, may result in penalties or repayment of funds.

• Application Delays: High demand may lead to funding allocation limits, and applications may be processed on a first-come, first-served basis if oversubscribed.

• Documentation: Accurate submission of evidence, consents, and financial statements is critical to avoid rejection or delays.

• Management Control: Applicants must ensure sufficient land control, and tenants may need landlord consent, adding complexity.

Engaging professional advisors, such as accountants or environmental consultants, can help navigate these challenges and ensure compliance.

Professional Support

Obtaining and managing capital grants requires careful financial and regulatory oversight. A qualified accountant can assist with business viability assessments, tax compliance, and application preparation. Our firm, Foundry Accounting, provides expert accountancy services to businesses across the UK, helping you secure and manage CS Capital Grants effectively. Contact us for tailored support to streamline your grant application process and ensure compliance.