UK AI Funding
Government Funding to Accelerate Your AI Journey
Made Smarter grants of up to £20,000 and R&D tax relief can help food manufacturers adopt AI and digital technology. We can help you find the right programmes and access the funding.
Funding at a Glance
Key figures from current UK government AI and innovation funding programmes.
£2bn
UK government commitment to AI compute (by 2030)
£20k
Maximum matched grant (Made Smarter)
50%
Matched funding (Made Smarter)
20%
R&D expenditure credit rate before tax (RDEC)
Digital Adoption for Manufacturing SMEs
Up to £20,000 (50% matched)
What It Offers
- Matched funding up to £20k for digital technology in most regions
- Free expert advisory and digital roadmapping
- Workshops, leadership programmes, and digital internships
- Support for AI, IoT, robotics, and data analytics adoption
Key Details
- For manufacturing SMEs with manufacturing premises in England
- Available in the nine English regions only at present
- 50% co-investment — you fund half, the programme matches it
- Terms vary by region (in the South East, grants cover hardware only)
- Includes ongoing mentoring from industry-experienced advisors
R&D Tax Credits (RDEC)
20% above-the-line credit on eligible R&D spend, before tax
What It Offers
- 20% above-the-line tax credit under the merged RDEC scheme (accounting periods from April 2024)
- The credit is taxable, so a profitable company keeps roughly 15–16% of qualifying spend
- Custom AI and software development work often qualifies
- Loss-making, R&D-intensive SMEs may claim enhanced support (ERIS) instead
Key Details
- Applies to projects that seek to advance science or technology
- Covers staff costs, software, consumables and some subcontracted R&D; overseas costs are restricted
- If you have not claimed in the last three years, you must notify HMRC within six months of the end of the period you are claiming for, or you cannot claim
- No minimum spend; any part of the credit paid out in cash is capped at £20,000 plus 300% of your PAYE and National Insurance bill
- Claims submitted through your Corporation Tax return
- Effective benefit depends on your tax position — speak to your accountant for specifics
The Bigger Picture
The UK government has committed £2 billion to expand the country's AI compute capacity twentyfold by 2030, and has designated five AI Growth Zones — sites for AI data centres, backed by reforms to planning and energy access.
For food manufacturers, this means a growing ecosystem of support — from direct grants and tax relief to advisory services and research partnerships. The window for early adopters to benefit most is now.
Some larger manufacturers may also fit Innovate UK's BridgeAI programme, where a UK AI supplier leads the project and the manufacturer takes part as the deployer; the deployer must be a medium or large business in a listed sector such as advanced manufacturing, and food is not listed in its own right.
How We Can Help You Access Funding
We can guide you through the full funding journey — from identifying the right programmes to delivering the funded project and completing the paperwork.
Identify
We will review your project goals and match you with the most relevant funding programmes, assessing your eligibility and likely success.
Apply
We will help you prepare a compelling application — defining scope, outcomes, and budget in the language that funding bodies expect.
Deliver
We build and deliver the funded project to specification, ensuring milestones and reporting requirements are met.
Report
We will support you through completion reports, financial claims, and any audits — so you get the full benefit of any funding awarded.
Grant availability, eligibility criteria, and funding amounts are subject to change. The information on this page was last reviewed in October 2026. We recommend checking official programme websites for the latest details. Capability Systems does not guarantee funding outcomes — we provide guidance and support to help you submit the strongest possible application.
Find Out What Funding You Could Access
Many food manufacturers qualify for government grants they do not know about. We can help you assess your eligibility and build a strong application — at no cost for the initial conversation.
Programmes and their terms change, so it pays to check what you could access now.