Referral of the proposed Automotive Innovation Grants scheme by UK Research and Innovation
Source: gov.uk (2025-06-25)

The Subsidy Advice Unit (SAU) has published a report providing advice to UK Research and Innovation (UKRI) concerning its proposed Automotive Innovation Grants scheme.

Administrative timetable

Final report

25 June 2025: The SAU has published its report providing advice to UKRI concerning the proposed Automotive Innovation Grants scheme. The report sets out the SAU’s evaluation of UKRI’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-automotive-innovation-grants-scheme-by-uk-research-and-innovation) (25.6.25)
Request from UKRI

15 May 2025: The SAU has accepted a request for a report from UKRI concerning the proposed Automotive Innovation Grants scheme. This request relates to a Subsidy Scheme of Particular interest.

The SAU will prepare a report, which will provide an evaluation of UKRI’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the scheme provided by UKRI

The Government is committed to the long-term success of the UK automotive industry, supporting high skilled, well-paid jobs and economic growth. This new scheme will invest in innovative Research and Design (R&D) projects to design and develop strategic vehicle technologies, as part of a broader initiative to accelerate commercial scale-up, and unlock capital investment in zero emission vehicle manufacturing, batteries and the wider supply chain.

This scheme replaces the established Advanced Propulsion Centre R&D Programme, widening its focus to also include software-defined vehicles and enhancing the efficiency, productivity, and cost-effectiveness of manufacturing plants and their supply chains. This is crucial for attracting investment in zero-emission vehicle manufacturing and reducing carbon in the manufacturing process.

As part of a £500 million funding package allocated by Government for R&D in the automotive sector, approximately £375 million has been allocated to this subsidy scheme. Projects can be awarded subsidies of between £500,000 and £25 million under the Scheme. Beneficiaries will co-fund a portion of the project costs themselves, with the subsidy intensity determined by the size of the beneficiary and the nature of the research undertaken. All funding will be awarded through a competitive process, supporting collaborative and single business R&D projects. Grant award recommendations will be determined by an independent technical assessment conducted by automotive industry experts appointed by Innovate UK, and a value for money assessment performed by analysts in the Department for Business and Trade (DBT). Grant award decisions will be made by DBT Ministers and senior officials and where required HM Treasury, based on the grant award recommendations.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Automotive Innovation Grants scheme, please send your comments by the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx).

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with UKRI. The SAU will send a copy of your submission to UKRI together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with UKRI using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)