Rural England Prosperity Fund business energy and resource grant

Funding Overview

The Rural England Prosperity Fund (REPF) is a ‘top up’ fund allocated to Rural Districts in England as an addition to the UK Shared Prosperity Fund (UKSPF).

North Kesteven District Council has been allocated £224,218 for the 25/26 financial year. This funding will be used to deliver the Business Energy and Resources Grant (BERG) scheme which will be a discretionary capital grant that will support small and micro business operating in North Kesteven with investments aimed at reducing energy costs and improving resource efficiency.

The grant programme aims to meet Government missions to kick-start the growth of the economy and develop the circular economy within rural North Kesteven. It seeks to improve energy efficiency of rural business by lowering emissions, managing resources and encouraging the development of green tourism. Thereby also improving the competitiveness of rural businesses while protecting and enhancing our rural environment which is The District’s distinctive Place defining asset enjoyed by all.

An additional £50,000 from core UKSPF funds has been added to this grant scheme pot to deliver to businesses that would otherwise be geographically ineligible based on REPF criteria (see below details on geographical eligibility).

Eligibility Criteria

All applicants must align with the following criteria:

• Applicants must be Micro or Small enterprises, which for this scheme are defined as those with less than 50 employees (FTE) and an annual turnover of less than £10million.
• Applicants must be based and operate in North Kesteven, and the requested works must be planned to take place in North Kesteven.
• REPF can only be used to support businesses in an area defined as rural by DEFRA. While this represents the majority of North Kesteven, DEFRA do not include areas of North Hykeham and lower Waddington. They are considered contiguous to the city limits of Lincoln. To counter this, NKDC is using £50,000 of core UKSPF funds to support this grant scheme for those businesses within North Hykeham and Waddington. This means all applicants across the district, that meet the other criteria, are eligible to apply.
• Businesses from all economic sectors (except primary agriculture) are eligible to apply. Note that as this scheme is competitive, and in the event that the grant is oversubscribed the following sectors will be prioritised:
  • Visitor economy, (attractions, visitor venues and accommodation including hospitality and pubs) and directly associated supply chains.
  • Food and drink manufacture, processing and directly associated supply chains.
  • Non-agricultural farm diversifications.
  • Manufacturing.
• There is a maximum intervention rate (grant %) of 70%. This means all applicants must be able to contribute a minimum of 30% of the total cost of the submitted application. Any match funding contribution less than this will result in an ineligible application.
• The grant requested (70% or less of the total cost) must be more than £5,000.
• Limited Companies, Partnerships, Sole Traders and the self-employed are eligible for this grant.
• Start-ups (business trading less than 18 months) are also eligible for this grant subject to passing financial checks.
• Business trading before 1 April 2023 must be able to provide a copy of their latest filed company accounts or a copy of an HMRC Tax Return as evidence of financial viability. Own records will not be accepted.
• Businesses will require either a business bank account or a separate bank account from their current account. Transfer accounts are not acceptable.
• All applicants must provide and meet all requested information/documentation outlined during the application process. Incomplete applications without explanation will be treated as ineligible.

The following are ineligible:

• Companies in Administration, Insolvent or in receipt of a Striking-Off Notice.
• Primary agricultural business including diversifications concerned with primary production
• Businesses without the necessary planning permission or waiver.

Eligible Measures

The fund is for capital investments only.  In practice this means purchase and installations costs of eligible equipment (outlined below).

The grant will support investments in energy saving and efficiency technologies including:

• Solar panels.
• Battery Storage.
• Heat Pumps.
• Insulation.
• Small scale wind turbines.
• Support for circular economy projects.
• Other technologies associated with improving energy efficiency and or the management of natural resources and environmental sustainability.

All quotes provided must be from nationally accredited installers/providers.

Please note only one application per business can be submitted. Multiple applications for individual measures are not accepted.

Ineligible Costs

The Grant cannot be used for revenue items including, carbon audits or consultancy, feasibility studies, purchase of stock, staff costs, or repairs.  All vehicles are excluded. Hire is excluded. EV charging points are not eligible for this grant as Government funding is already available via the Workplace Charging Scheme.

Important note: Planning

Some types of installation or development may require planning permission. Planning permission is not always required for the installation of solar panels or associated technologies depending on the location and status of the property.

In all cases, all applicants must seek advice from the Council’s Planning Team and in the event that permission is required, an application must be made before a grant application is submitted.

If permission is not required, proof in writing from the Council’s Planning Team must be submitted with the application at the time of application. Applications that ignore these planning requirements will be rejected.

Application Process and Requirements

The application process will be digital, via electronic form only and a link will be available on the Council’ website and promoted through Council Social Media accounts and weekly BusinessNK newsletter. Any business that is unable to apply online should contact the Grants Team directly for assistance.

For applications the following will need to be provided;

• Business Name/Address and contact information
• Sector/type of business
• Company Registration Number (if registered)
• Company VAT number (if applicable)
• Number of employees FTE (if applicable)
• Annual energy usage and cost for each fuel type relevant to the planned investment, and evidence to support (e.g. energy bills, financial accounts).
• Details of how much funding is required and the proportion of match funding available. Note, the total project cost should equal the grant request and match funding combined and should be the actual cost based on provided quotes. Do not round or provide estimate figures.
• Details of any previous grant funding or subsidy received over last 3 full financial years
• Fraud declaration

Additionally, the following documents must be uploaded during completion of online form:

• A project investment plan. This will need to provide a description of the proposed investment and its benefits to the business, local environment and/or community. This document should clearly demonstrate:

  • Estimates of the total impact of the investment on the business – financial, energy consumption, competitive, environmental etc. This includes the expected energy and financial savings the project will deliver, plus any other associated or ancillary benefits to the business

  • The total cost of the proposed investment (including purchase, labour and installation) and a timeline to completion

  • Any risks and mitigation efforts associated with this investment

  • How you will monitor and measure the success of the intervention

  • If you have one in place, please incorporate a copy of your business’s energy sustainability plan, energy audit, environmental statement or other documentation that supports either the business or environmental case for the project.

• 3 quotes for the proposed investment, purchases and any associated works.
• Where planning permission is required, details of the application and approval notice.
• Where planning permission is not required, written confirmation from The Council that the proposed development is not subject to permission.
• Proof of ownership of business premises, or permission letter from landlord, along with copy of lease agreement, if property is rented.
• Bank details and copy of recent bank statement.
• Most recent full set of financial accounts.
• Energy bills (or other relevant documentation) to support the annual usage and costs provided.
• Evidence that the any additional match funds are in place to complete the works by the 1 March deadline.

All applications will be subject to financial checks.

Eligible applicants will be contacted directly by a member of the team for additional information and clarification as required.
Failure to provide the requisite information or pass financial checks will result in applications being rejected.

Timescale and Award Process

The application window will be open from 1 June 2025 until 30 September 2025.

Final decisions will be communicated to applicants as soon as possible upon closure of the window.

NKDC reserves the right to adjust this timeframe dependent upon the volume and quality of the applications, or in the event of the fund being significantly oversubscribed. Any updates will be notified through changes to this site and through the publicity channels highlighted above.

All awarded projects must be complete by 1 March 2026.

Process

All submissions will be reviewed and assessed against the eligibility criteria outlined here. Due to the limited timeframe available for this scheme, it is important that applicants are aware that incomplete applications, without appropriate justification will lead to the application being declined. It is therefore strongly recommended that applicants read these instructions carefully and if in doubt contact the grants team directly.

This grant is competitive and therefore each application will be assessed and scored by suitably qualified officers. The scoring will focus on the following areas:

1. Direct impact on the business.
   1. Financial (for example energy cost savings).
   2. Growth and resilience (what other impacts will the intervention have on the business).
2. Direct impact on the environment (Reduction in energy consumption and/or energy resiliency).
3. Value for money.
   1. Intervention rate (% grant vs % match).
   2. Project costs: Is the cost of the investment competitive and does it represent good value for money?

Points 1 and 3 represent the highest weighted scoring elements.

In the event that the fund is over-subscribed applicants in priority sectors (see above) where all other factors are equal will be favoured. This does not mean an application from a business in a priority sector with a low score will be promoted above applications with higher scores.

Recommendations will be made by assessors to an NKDC Panel representing The Council for approval and confirmation of award amount.

This grant scheme is discretionary, The Council’s decision is final and there is no right of appeal.

Important Conditions for Applicants

As this is a capital fund, payments will only be made on proof of expenditure. Applicants must plan to finance the entire project cost up front, with reimbursement of the awarded grant made after all evidence has been submitted and approved.

As per standard grant procedure, NKDC will not accept retrospective applications for work already complete or partially undertaken. As such NKDC stipulates that no pre-emptive work on any proposal must be undertaken until such time as a decision has been made by the award panel and the applicant has been notified of the outcome.

All applications consisting of proposals that require planning permission, or other permissions, must have these approved and in place before making an application to this scheme.

All works must be completed by the preferred supplier identified from the quotes during your submission. Any changes to provider, or scope of work will need approval by NKDC and cannot be guaranteed.

It is the applicant who employs the installing contractor, and not the Council. The contract for the works will be between yourself and your installer. The Council may monitor the progress of the works, but you are responsible for supervising your contractor. The Council cannot issue any direct instructions to the contractor and are not liable for any issues encountered during and after installation.

NKDC must undertake short to medium term monitoring of all awarded interventions. The applicant must therefore be willing to assist NKDC in providing information as required for 24 months post-completion of the awarded works. The aim of this will be to quantify the benefit and outcome of the intervention supported by a grant.

Grant income received by a business is taxable therefore funding paid under the Local Authority is subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.

The Council will not accept deliberate manipulation and fraud. Any business caught falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back as may any grants paid in error.

Subsidy Allowance rules and requirements apply to this scheme and applicants will be required to complete a declaration statement.

For general enquires please contact the grants team: UKSPF@n-kesteven.gov.uk.