Government boost for businesses to drive freight innovation
Source: gov.uk (2025-12-03)

Funding of up to £130,000 will be paid out to 9 small and medium-sized firms, exploring ways to solve challenges within the freight and logistics industry.

- government to provide £1.1 million in funding to help British businesses trial cutting-edge technologies, solving some of the biggest challenges in the freight and logistics sector
- up to £130,000 will go to individual small and medium-sized businesses across the UK to test their innovations, ranging from aerodynamic trailers to software that can identify stress in staff
- demonstrates government is backing emerging technology in the sector, crucial to boosting the economy
British businesses will receive nearly £1.1 million to test innovative technologies which could transform the face of freight and logistics in the UK, through the government’s Freight Innovation Fund.

Funding of up to £130,000 will be paid out to 9 small and medium-sized firms, looking at fresh ways to solve key challenges within the freight and logistics industry. Money will go towards testing and trialling their new technologies, with support from key players in the sector, Connected Places Catapult.

See all the Freight Innovation Fund winning projects (https://www.gov.uk/government/publications/freight-innovation-fund-winning-projects).

The fund aims to tackle some of the most pressing challenges in the freight sector, ranging from decarbonisation and wastage to efficiency and upskilling of staff.

Technology to be trialled includes lightweight trailers inspired by the aerodynamics of racing cars, sensors designed to improve the well-being of staff working at ports, as well as environmentally-friendly electric trailers, which can be pulled along by bikes rather than cars or vans.

All of these innovative projects will be tested in real-world environments, creating a pipeline of future technologies, which could prove vital to keeping the British economy moving.

Aviation, Maritime and Decarbonisation Minister, Keir Mather, said:

We know how crucial the freight industry is to keep Britain moving, and how important it is that transport is equipped to face modern-day challenges.

Our funding will allow businesses to start trialling their revolutionary technology on our roads, ports and railways, meaning they can make an immediate difference and help grow the economy.

Alongside the Freight Innovation Fund, the government is providing additional funding for transport and freight through the Transport Research and Innovation Grants (TRIG) – supporting the development of new technologies to meet challenges within the wider transport sector. Successful TRIG projects could progress on to the Freight Innovation Fund, where they will be tested in realistic environments.

This follows the development of a new freight plan to be published in 2026, which will set out our commitment to building a modern, efficient and resilient freight and logistics system that underpins economic growth, strengthens supply chains and supports net zero ambitions.

Sameer Savani, Managing Director for Transport at Connected Places Catapult, said:

The freight sector has enormous potential for innovation and that innovation drives economic growth. Since it began in 2023, the Freight Innovation Fund Accelerator has provided expert support and £3.9 million of funding to 29 companies, with 27 of those conducting real-world technology trials. The companies supported have so far gone on to secure over £100 million of investment and create 44 jobs.

I’m excited to see this fourth cohort of high-potential businesses working with the sector’s heavy-hitters to trial new ideas to improve freight.

Cato Davies, Co-founder and CEO of Ensemble Analytics – a previous beneficiary of the fund – said:

The Freight Innovation Fund enabled us to work side by side with the teams at Associated British Ports and The Bristol Port Company to refine Athena with real feedback from the people running day-to-day operations.

That experience helped us build a flexible workforce management platform that genuinely supports accurate planning, safe staffing and operational confidence for ports. Both partners have since moved to commercial contracts, and the platform’s success has already resulted in new partnerships with further UK operators and with major global operators overseas.

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