The past few weeks have brought some good news for anyone keeping an eye on innovation funding with new announcements suggesting that government-backed R&D investment is set to grow, and that there’s more scope for businesses to get involved.

At the start of November, the Department for Science, Innovation and Technology confirmed a £55 billion, multi-year R&D funding package. It’s designed to give long-term stability to the UK’s main research agencies and to strengthen work in key areas such as clean energy, healthcare, and advanced technology (source: GOV.UK).

For those of us who support innovative businesses: accountants, advisers, and referrers alike, it’s a welcome sign that grant funding will keep pace with the wider tax incentive system.

A new opportunity already live

Almost immediately after that announcement, Innovate UK opened a fresh competition under the long-running Biomedical Catalyst programme. The call, titled Industry-Led R&D Large Projects 2025, offers up to £25 million for UK-registered companies developing new healthcare solutions. Applications are open into the new year (source: UK Research and Innovation).

Although this particular fund sits within the life-sciences space, it’s a useful indicator of what’s coming next. When one sector gets a a boost, others usually follow. Manufacturing, digital, sustainability, and clean-energy programmes are likely to reopen soon, each with their own focus and eligibility rules.

What this means for advisers and partners

For accountants and professional advisers, the implication is simple enough: now is the time to start the conversation. Clients who are already innovating may not realise that grants could support early-stage work, long before a product or process is market-ready.

Helping a business to line up potential grants alongside R&D tax relief or Patent Box shows real forward thinking. It also creates a natural bridge between the work you already do and the broader financial strategy around innovation.

Those who act early tend to get the best outcomes. By the time budgets tighten or deadlines approach, the most suitable funds have usually closed.

And for businesses themselves

If you’re working on something new, this is a good moment to take stock. The message coming from government is clear: innovation remains a national priority, and there is money available to support it.

Grant applications take time and planning, but with the right support, they can open doors to partnerships, market visibility, and future funding rounds. A well-planned submission can complement your existing R&D activity and strengthen your case for future investment.

Our view

At ABGi, we often tell clients that grant funding and R&D tax relief aren’t competing tools but parts of the same journey. Grants help to start new ideas; tax relief helps to sustain them. What matters most is timing. Knowing when to apply, how each scheme interacts, and how to document your projects properly can make a real difference to the end result.

If you advise innovative businesses or manage R&D projects yourself, now’s the moment to look ahead to 2026 funding cycles and start preparing. Please contact the ABGi Team to find out more about how we support both businesses and advisers in building compliant, evidence-based R&D claims.