Aerospace Research Grant Funding up to £5 Million

GOV.UK Business Finance & Grants

Published December 17th, 2025

Detected March 8th, 2026

Summary

The Department for Business and Trade has announced funding of up to £5 million for the Aerospace Technology Institute (ATI) Strategic Programme. This initiative supports research and technology development to enhance the UK's competitive position in civil aerospace.

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What changed

The Department for Business and Trade, in conjunction with Innovate UK and the Aerospace Technology Institute, has launched the ATI Strategic Programme, offering up to £5 million in grant funding for research and technology development in civil aerospace. The programme aims to maintain and grow the UK's competitive standing in the sector. Eligible UK-registered businesses of any size can apply for funding to lead industrial research projects that align with the UK's aerospace technology strategy, 'Destination Zero'.

Organisations must address specific requirements, including carrying out research in the UK and intending to exploit the results domestically. Applicants are encouraged to engage with the ATI before submitting capital infrastructure project proposals. The application process involves a two-stage competition: an outline stage followed by a full stage application. While partners can be non-UK businesses, their costs will not count towards eligible project costs.

What to do next

Review eligibility criteria for the ATI Strategic Programme.
Consult with the ATI before submitting capital infrastructure project applications.
Prepare outline and full stage applications aligned with the UK's aerospace technology strategy.

Source document (simplified)

Aerospace Technology Institute (ATI) Strategic Programme

Funding for research and technology development to maintain and grow the UK’s competitive positions in civil aerospace.

From: Department for Business and Trade Published 17 December 2025 Last updated 3 March 2026
— See all updates Type of support: Finance and Grant Business stage: Start-ups (1-2 years trading) and Established Industry: Manufacturing Number of employees: 0 to 9 employees, 10 to 249 employees, 250 to 500 employees and More than 500 employees Region: East Midlands, Eastern, London, North East and North West Show 7 more Northern Ireland, Scotland, South East, South West, Wales, West Midlands, and Yorkshire and the Humber

Who it’s for

To lead an industrial research and technology project, your organisation must:

be a UK-registered business of any size for research projects
carry out your aerospace research project work in the UK
intend to exploit the results from or in the UK
address the specific requirements of the UK’s aerospace technology strategy – Destination Zero
sign up to the ATI framework agreement
claim funding
speak to the ATI before submitting a capital infrastructure project application as early engagement is likely to help develop a proposal suitable for the programme Your business does not have to be registered with Companies House when you apply, but it must be registered before you can receive funding.

Your project can include partners that do not receive any of this competition’s funding, for example, non-UK businesses. Their costs will not count towards the total eligible project costs but must be included in your application.

More information on the different types of organisations can be found on Innovate UK’s (IUK) website under funding rules. We accept single applicant-led projects, though encourage collaborative project applications.