Funding: Now you see it, now you don't

The bimonthly edition of Process Engineering includes a Plant Cost Indices section providing detailed data on the relative costs of engineering construction projects around the world.

The data regularly shows that the UK is an expensive place in which to undertake engineering construction projects and that there are more congenial world locations for such investment. However, UK-based companies are further disadvantaged by finance and funding initiatives from Government agencies that prove nigh impossible to access.

It is cynically counter-productive that, in times when bankers take all the criticism, official agencies keep a low profile, sustained by regular misleading communications that refer to funding that is not there.

In regional terms, there is supposed to be funding for capital projects via Grant for Business Investment (GBI). Part of a GBI application is an “additionality” requirement to justify doing a project in the UK. From this, it can be seen why a grant is more necessary here than anywhere else.

However, think before you commit to GBI. Availability of capital funding leads companies to think incentives for investment are waiting to be awarded. Most will be disappointed at tardy and overly complex responses. As the need grows, the complexity mushrooms. Where are those budgets being spent? Alternatively, R&D Tax Credits are a possibility as cashflow boosters that can be clawed back for up to two years, and are designed to be ongoing sources of financial help. Another good thing with R&D?Tax Credits is that you apply to HMRC, rather than to regional agencies.

As Germany and France crawl from shallow recession, are we to remain cowering in deep fear?

Try R&D Tax Credits as being marginally more accessible in the UK and most of the 27 EU states. France is most generous and productive for R&D support: the UK a poor average.

Comment: by Greville Warwick, a specialist adviser and facilitator for grants, funding and credits subsidy support in the UK and overseas. Contact: tel +44 (0) 1926 512 475; email gw@mcs-net.com: website www.mcs-net.com.