International Bilateral Fund – Call 2

All successful proposals must meet UKSA’s eligibility criteria for grant funding. 

Owing to high levels of anticipated demand for this funding call, UKSA has taken the decision to restrict the number of applications to two per lead organisation (for the avoidance of doubt, this measure applies to all types of organisations, including industrial, academic and public sector research bodies).

Project Requirements

Grant recipients should be prepared to begin by Monday 1 September 2025 and projects must conclude by 31 March 2026, having submitted final reports and invoice. The start date is dependent on completion of UKSA due diligence checks. These checks may require timely applicant involvement to avoid delays to project kick off.

The following project management responsibilities will be required:

- Engage with the IBF team to complete due diligence checks ahead of project commencement, providing additional information if requested and facilitating swift communication between any supporting teams (i.e. finance, legal, partners).

- The grant recipient (and project partners) will attend a kick-off meeting to initiate the project.

- The grant recipient will schedule a mid-term review meeting with UKSA at an appropriate time to review project progress.

- The grant recipient will define milestone deliverables within the proposal using the template provided.

- The grant recipient will provide details of project risks and reduction activities which will include detail of additional time included in the Schedule for risk mitigation, risk related cost included against any budgeted items and best/worst case project outcomes. Risk consideration should also include technical, commercial and supply chains.

- The grant recipient will provide regular updates on the risk register and communicate any realised risk in a timely manner so that the grant co-ordinator may have oversight of mitigating actions and confirm these are acceptable to UKSA.

- The grant recipient will provide evidence of successfully meeting the milestone and other deliverables agreed in their Grant Funding Agreement in a timely manner.

- Confirmation is required that the Grant Recipient has expended the sums in respect of the period in which milestone payments have been claimed. For this purpose, an independent assurance report must be completed and sent to UKSA within 6 months of the end of the grant. As per the terms of the Grant Funding Agreement it is not possible to claim the cost of this report.

- As a public funding body, UKSA grants may be audited at any time which can involve information requests to project teams. Grant recipients are required to comply with these requests as part of the terms of the Grant Funding Agreement. Audit costs are not eligible to be claimed under the grant.

- The grant recipient will provide information to UKSA relating to monitoring and evaluation activity for the duration of the project and up to 10 years following, whether conducted by UKSA or by a third party.

Reporting Requirements

Projects are required to provide confidence in project management, share successes, and to inform IBF internal reporting.

Reporting Schedule

Monthly updates using the milestone reporting template provided in the template Grant Funding Agreement.

A minimum of 3 review meetings: kick off, mid-term review and final review at which reports are provided on:

- Schedule

- Risk

- Finance (spend to date, any variation on upcoming spend)

- Achievement against project goals as set out in the Grant Funding Agreement

- Realised benefits in areas relevant to each project, including but not limited to job creation and skills, knowledge generation and exploitation, global leadership, inspiration and increased follow-on revenue. A list of potential benefit descriptions can be found in Annex A.

- Alignment with future exploitation and next steps of technical development

All reporting, such as monthly updates, and deliverable reviews, will feed into milestone payments being released. Additional reporting may be required to support individual projects, discussed on a case-by-case basis with your UKSA Grant Manager. Project teams should be appropriately staffed to ensure all reporting requirements are met in a timely and accurate manner.

The grant recipient will provide a final project report including, but not limited to; an executive summary, delivery, actual outcomes, lessons learned, benefits, communication and outreach, next steps. The executive summary should be IPR free and not contain any confidential information, as it may be uploaded onto UKSA’s website. The Executive Summary must be submitted both as an appropriately formatted Microsoft Word document and in Govspeak Markdown (see How to publish on GOV.UK) with all the appropriate formatting to support publication on GOV.UK. Any images intended for inclusion should be provided alongside the report, systematically labelled and with a clear indication of their location in the executive summary.

North Star Metric Information

Applicants who submit successful proposals are required to provide information to support UKSA’s North Star Metric and other benefits of funding (i) before commencement as a forecast of project impact and (ii) following commencement actual data to be on a quarterly basis for the duration of the project and for at least 5 years. Additional information can be found in the Grant Funding Agreement and on the Agency’s grants page.

Financial Requirements

UKSA will carefully review your submitted budget and, if successful, milestone claims to ensure all costs included represent eligible costs.

Grant funding is offered on a cost recovery basis only. This means grant funding can only be used to cover the cost of delivering the agreed activity or goal as set out in the project plan. Any surplus funds not spent will be lost to the project unless there are alternative arrangements agreed. You can find details about what costs our grant funding can and cannot be used for on the Agency’s grants page.

If you are seeking to claim calculated overheads, you must complete the UK Overheads Template. When claiming calculated overheads, we may request to see evidence of costs incurred for verification purposes prior to releasing any payments.

Grant Funding Agreement Requirements

The Grant Funding Agreement template is included as a separate document. Applicants must sign up to the terms as set out in the Grant Funding Agreement when submitting an application.

No material changes to the terms will be considered (including to liability provisions). Minor changes may be considered if an applicant can demonstrate that agreeing to the provision within the Grant Funding Agreement would result in the applicant breaching its statutory or regulatory obligations. Grant applicants wishing to propose changes should submit their request ahead of or with their application, with a marked up copy of the Grant Funding Agreement. Changes requested by successful applicants at Pre-Award stage will be rejected.

All organisations in receipt of grant funding must abide by the UK government Code of Conduct for Grant Recipients.

All projects in receipt of grant funding may be subject to an external annual audit to ensure that costs claimed from the grant funding have been expensed on agreed project related expenditure and comply to UK Space Agency grant funding policies (e.g. match funding). Projects are selected for audit using a risk-based approach. The auditor will be appointed by UKSA. All subcontractors and partners must provide access to project relevant expenditure. Therefore, Grant Recipients must maintain, and be able to provide upon request, any supporting evidence as deemed necessary, such as:

- Timesheets (prime and, where applicable, partners)

- Staff costs (contractors)

- All receipts (including T&S)

- All partner and subcontractor invoices

- Breakdown of overhead costs

- Breakdown of capital usage (e.g. licence, data costs etc)

UKSA reserves the right to conduct ad-hoc audits throughout the life of the project.

Strategic Goals 

UKSA has an essential role in delivering the National Space Strategy’s (NSS) vision to make the UK one of the world’s most innovative and attractive space economies. Space is aligned with the UK’s wider ambitions set out in the Science and Technology Framework. Over the coming year the government is investing nearly £670 million in space through UKSA to help develop the space industry in the UK. UKSA supports the government to kickstart economic growth, maintain national security and accelerate innovation.  We help the UK to harness the power of space to benefit our people, planet and shared prosperity, by: 

• Catalysing investment – supporting projects that multiply the value of non-government contracts and capital secured by the UK space sector.

• Delivering missions and capabilities that meet public needs and advance our understanding of the universe.

• Championing space – advocating for the sustainable use of space, encouraging other sectors to use space solutions, and inspiring people into Science, Technology, Engineering and Mathematics (STEM) education and careers.

Space is an inherently international endeavour, and the UK has placed international cooperation at the heart of our strategic approach to space. International collaboration is the second pillar of the National Space Strategy and is emphasised in the Space Industrial Plan as “integral to the delivery of our future national space capabilities”. Investing in bilateral relationships provides the UK with access to global space science opportunities and expands commercial opportunities with innovative space economies. As space becomes more congested and contested, the UK must work with trusted partners to develop our capabilities and improve resilience. The IBF seeks to harness international partnerships spanning industry and academia to help establish the UK’s strategic advantage, weather geopolitical shocks, promote economic growth and support national security. 

The IBF aims to build the UK space sector with international partners and promote UK ambitions globally. The work performed through the IBF should enable the UK space sector to secure international commercial opportunities and stimulate international trade. Proposals should focus on areas that can make the biggest impact for the UK and economic growth. For example, markets and capabilities where UK entities are globally competitive or areas of high potential for economic growth in the future.  It should contribute to the development and delivery of the UK’s national space capability goals noted in  the Space Industrial Plan last year, and the UK’s commitment to develop its launch capability. The areas highlighted in the Space Industrial Plan are:  

• Space Domain Awareness (SDA)

• In-Orbit Servicing, Assembly and Manufacturing (ISAM)

• Space data for Earth applications

• Position, Navigating and Timing (PNT)

• Satellite Communication Technology

UK grant holders should build partnerships with teams from around the world who best suit their project specific goals. Proposals should outline how the project builds on joint country priorities and capabilities.  

We particularly invite applications that strengthen partnerships with entities in Australia, Canada, France, Germany, Japan and the USA. The UK Government has identified these countries as strategically important for advancing broader national goals as well as science and technology and the space sector, to build strong partnerships that will benefit the UK. Applications to strengthen collaboration with wider international partners are also very welcome where they represent strong opportunities to further UK space objectives and national capability development goals. While Europe accounts for 42% of total UK space exports, the UKSA Bryce Tech report (2023), identified both developed and emerging space nations as priority export markets for the future. For markets in particular, the UK must therefore look beyond ESA for its future opportunities. 

Project consortia must include at least one international partner: any applications that are submitted without an international partner explicitly listed will be rejected. 

Scope 

Following the previous IBF round released in 2023 which provided the sector with a pipeline of funding for international cooperation, this call will provide grants under two tracks, designed to support projects at different stages of readiness. This will allow for both smaller pieces of catalysing international work and more developed, higher value projects that are more established.  

All proposals will be assessed against their potential to improve UK international relationships and provide return on investment for the UK. Projects should stimulate knowledge exchange, engagement, and collaboration with partners.  Projects must have clearly defined, measurable and tangible milestones and outcomes. Proposals can cover a wide range of activities aligned with the UK's international goals and UKSA’s priorities. Some examples of potential activity could include:  

• Research and development of space technologies (including feasibility studies for novel concepts), applications or services that rely on international collaboration;

• Developing and de-risking mission concepts with an emphasis on international collaboration;

• Education and outreach activities that deliver on short and medium-term economic growth objectives involving international partner(s);

• Development of security or hazard threat mitigation for systems and services which are common to international partners.

• Initiatives aimed at enhancing sustainable activities within the domain of in-orbit space include addressing issues related to space debris, space traffic management, domain awareness, and atmospheric ablation.

• Knowledge exchange activity between UK and international organisations to facilitate capacity building and identify shared areas for future collaboration and growth;

• Feasibility studies to scope potential future longer-term projects or new markets. 

Some examples of previous successful proposals can be found on our website for Phase 1 (2023) and Phase 2 (2024/25) in the previous iteration of the IBF.  

Projects should demonstrate strong international buy-in from international partners; we encourage applications to evidence commitments to contributions (cash or in-kind) from international partners or agencies where possible. Applicants should be aware that proposals may be shared with relevant International Space Agencies for feedback as part of the review process.  

Selected projects may be invited to apply for a closed competitive process to receive further, longer term IBF funding in financial year 2026/2027, subject to the UK Government’s Spending Review process. This funding is not guaranteed and will be subject to competitive assessment, so applicants should outline both what will be achieved within the current grant timeframe and what alternative plans for attracting wider investment will be.

The following schedule sets out the timing of processes for this funding call. Please note that each deadline may be subject to change in the event of operational constraints. We will notify applicants by email should this occur.

• Call Opens - 21 May 2025

• Webinar - 3 June 2025, 10:00-11:00 BST

• Call Closes (Full Proposal Deadline) - Monday 7 July 2025, 12:00 midnight BST

• Successful Applicants Notified - Mid/late-August 2025 

• Project Kick-off - 1 September 2025

• Projects Conclude - 31 March 2026

This call will close at midnight on Monday 7 July 2025 – no extensions are permitted. Late applications will not be accepted.

Only the lead organisation can submit an application. It is the lead organisation’s responsibility to ensure that all required information is complete and accurately submitted before the deadline.   

The decision of UKSA is final in all cases. There is no course for appeal, but we endeavour to provide feedback on all applications in due course. Incomplete or late applications and altered templates will not be considered.

Proposals for project funding shall take the form of the following items below and relevant accompanying documents as required. For templates provided these must be formatted, in single-spaced typescript (minimum font size 11-point Calibri, minimum 1.5cm margins all round, including diagrams and tables). All submitted via Find and Apply for a Grant.

This will include:  

1. Part A – Application Form submitted via Find and Apply for a Grant. 

2. Part B – Budget Breakdown (excel file titled [Org_Name]_IBF25_Part_B) 

3. Part C – National Security Questionnaire (excel file titled [Org_Name]_IBF25_NSQ) - learn more here

4. 1 additional image outside of the template to allow full definition quality (file titled [Org_Name]_IBF25_ image) 

5. Part D - Additional Overheads Template, if required (excel file titled [Org_Name]_IBF25_ OHT) 

6. High Level Financial Details (excel file titled [Org_Name]_IBF25_HLF) 

7. Cover Letter

8. CVs (file titled [Org_Name]_IBF25_CVs) 

9. Letters of Support if appropriate (PDF file titled [Org_Name]_IBF25_LoS_[#]) 

10. Marked up Grant Funding Agreement, only where an applicant wishes to request changes (word file titled [Org_Name]_IBF25_GFA) 

• Where a Template is specified, this must be used unaltered and submitted. 

• Should any section be omitted, or a Template altered, the proposal will be rejected. 

• Should any part of the application overrun the specified page/word limit, we will only consider material up to the designated page/word limit that is in the correct format. 

Part B - Budget Spreadsheet 

Please use the budget spreadsheet to provide an indication of the costs you expect to incur on the project. These tables will be made available to any external assessors and will be scrutinised by UKSA to ensure all costs proposed represent eligible expenditure under grant funding terms and conditions. 

Please include the following information:

• Subsidy Control category tab: please include each partner organisation proposed and their relevant size, which will automatically populate their subsidy control category. Subcontractors are not included in this section and should be listed as ‘additional costs’ for the lead organisation in the work package breakdown tab. 

• Work Package breakdown tab: please include a detailed breakdown of each proposed work package and the spend associated with each item. Grant funding is provided on a cost recovery basis and so no profit margins should be included on any item. 

• Proposed Milestone Table tab: grant funding is paid in arrears upon agreement of completed milestone deliverables. Please include details of your proposed milestone deliverables, the work packages these correspond to and how much grant funding is requested. 

• Summary by Work Package: this tab will automatically populate.

• Summary by Organisation: this tab will automatically populate. 

• Instruments and Equipment tab: please provide details of any instruments or equipment being used for the project, whether these are being purchased specifically for it or have an operational use beyond the end of the project.

Part C - National Security Questionnaire  

The threat to space is real and coming increasingly closer to the UK space industry as attempted breaches have demonstrated. Everyone needs to protect assets and services from adversaries, incorporating Secure by Design principles as projects, processes and systems are developed. Demonstrating a commitment to security is critical to the ongoing success of any business. Ensuring secure, robust and recoverable services and services can provide a competitive advantage in the marketplace and avoids unnecessary costly retrofitting.

UKSA works with the space industry to improve security and resilience to attack. As part of the requirements for this scheme, applicants must:

1. Complete the National Security Questionnaire and return with your application documentation by the deadline set out in this guidance (please note that project partners are not required to complete this, only the lead organisation).

2. Apply for a free login for UKSA security extranet (Resilience Direct, please see further guidance here) to obtain security alerts and other communications and access guidance and other useful information tailored for the space sector.

3. Successful applicants will be engaged at the Pre-Award stage by UKSA National Security team. All successful grant recipients must undertake measures that are appropriate and proportionate for the purposes of reducing the risks of security compromises occurring and preparing for the occurrence of security compromises.

4. Successful grant recipients must provide a mitigation, response and recovery plan within six months of a Grant Funding Agreement being signed to resilience@ukspaceagency.gov.uk. Plans should include an annex or separate plan (proportionate to the company/project size and level of risk) detailing specific activity planned in response to a cyber security attack. Further guidance on plans is available on the Resilience Direct secure extranet and the National Cyber Security Centre website.

Part D - Calculated Overheads Template  

Cover letter

• To aid the placing of the grant agreement with successful bidders, the applications for funding must include a cover letter containing:

• A clear indication of the type of grant applied.

• The Subsidy Control Category, or that the grant will be applied for under the Minimum Financial Assistance Allowance.

• A committing offer to UK Space Agency.

• The value of the grant funding requested.

• A statement of acceptance of the standard UK Space Agency Terms and Conditions (T&Cs). The T&Cs are contained in the draft Grant Funding Agreement available as an annexe to this call documentation. Material changes to the grant terms will not be considered.

Licensing Implications 

Your activity may require a licence, granted by the UK Civil Aviation Authority, under the Space Industry Act 2018, Outer Space Act 1986, or both. This must be obtained prior to commencing any licensable activity. For more information on the licensing process, including the types of activity these Acts apply to, minimum timelines, and information required for the licensing process, please visit www.caa.co.uk/space. The CAA encourages potential licence applicants to engage with them early to help identify what licences might be required and guide applicants through the process. We highly recommend reading the CAA’s Space Licensing in the UK document which can be found here: https://www.caa.co.uk/space/licences-and-permissions/getting-started-with-licensing/. 

Pre-Award: For successful applicants only  

Successful project teams will be required to provide information to UKSA to support due diligence checks before a grant is awarded, in addition to completing the following documents: 

• (Pre-award only) Partner Assurance Statement

• Proposed Monitoring Metrics (inc. North Star), Annex 13 of the Grant Funding Agreement 

• Confirmation of TRAC methodology and overhead rates (Academic organisations) 

UK Space Agency is not able to commit to grant funding until these checks are satisfied. Funding offers at this stage are conditional and may be withdrawn if insurmountable issues become apparent or queries are not resolved in a timely manner. 

Assessment of Applications

Applications for this funding scheme will be assessed by UKSA with support from relevant independent external assessors drawn from a variety of backgrounds including academia, industry and government. Stakeholders from International Space Agencies may also be asked to comment on the strategic fit; in which case, proposals will be anonymised to ensure confidentiality. All external assessors are required to sign appropriate confidentiality and conflict of interest agreements.

UKSA now uses standard assessment questions and criteria for grant funding schemes. Full guidance on scoring available online here, including the scoring sheet and information we issue to assessors. The decision of UKSA is final in all cases. There is no course for appeal, but we provide feedback on all applications. Incomplete or late applications and altered templates will not be considered.

A summary of the assessment process is below:

• Only proposals received by the closing time and date will be considered

• Initial sift of proposals will remove any proposals which do not meet the eligibility criteria

• Eligible proposals will be assessed by reviewers to be scored against assessment criteria

• A moderation panel will follow to ensure consistency in marking

• A scored and ranked list of fundable proposals will be generated. UKSA takes a portfolio approach to funding, which means we look to fund a range of projects that cover the full breadth of the strategic objectives. This means we may move some fundable proposals up or down the ranked list.

• If needed, clarifications will be sought from organisations

• All applicants will be advised of the outcome

• Due diligence will be conducted throughout the call process as set out in section 8. If due diligence results in irreconcilable differences, the grant will not be placed.

Questions and weightings applied to this scheme are available in the application questions section. Each question will be scored by evaluators using a 0-5 scoring range, more information is available here.

Important information

The anticipated start date for successful projects is 1 September 2025. All grants must be fully completed by 31 March 2026. Projects should be prepared for a prompt start, allowing for any required recruitment to take place within the project schedule proposed. Any queries on the Grant Funding Agreement (GFA), should be submitted at the application stage. Extension requests beyond the end date are unlikely to be accepted. Proposals should outline a practical delivery plan with milestones in place, ensuring deliverables and payments are not disproportionately weighted in the final months of the project. 

Applicants must stay within the following funding guidelines:

• A minimum of 20% of the grant funding must be claimed by the lead organisation

• International partner costs should be capped at 30% of the total grant cost

• No more than 50% of the overall funding should be distributed to subcontractors

• No more than 30% of the total grant value can be spent on travel and subsistence and must be clearly justified.

Project consortia can include both international and national project partners, (who are all expected to adhere to the match funding requirements), and subcontractors, who can be paid from award funds and should therefore be included in overall project costs. All applicants, irrespective of geographic location, must satisfy the core eligibility requirements. The award will be subject to completion of satisfactory due diligence checks. 

Owing to high levels of anticipated demand for this funding call, UKSA has taken the decision to restrict the number of applications to two per lead organisation (for the avoidance of doubt, this measure applies all types of organisations, including industrial, academic and public sector research bodies). Where organisations submit more than two applications where they are the lead entity, UKSA will accept the first two received and reject any further applications. 

All eligible applications will be reviewed and assessed by an independent expert panel against the criteria outlined. Assessment teams will include UKSA’s International Relations, Analysis and Commercial teams and external assessors who will provide independent oversight of the proposals. Once applications have been scored, reviewers will make recommendations to the moderating IBF Programme Review Panel, co-chaired by UKSA’s Agency’s Director of Championing Space and the Head of International Relations. This Panel will make the final decision to proceed. To achieve the programme’s objectives, we will fund a balanced portfolio of high scoring projects across a variety of countries, technologies, markets, industries and sectors. 

There will be an online session outlining the application process, with an opportunity for questions – you can apply to attend here. 

Where required, Collaboration Agreements between project leads and partners must be signed within 1 month of completing the Grant Funding Agreement. Failure to do so risks termination of the grant. This should include provisions regarding how the results of the work, including any Intellectual Property Rights and spinouts, will be exploited by project partners. It is the responsibility of the lead organisation to ensure suitable Collaboration Agreements are drafted and agreed – UKSA will not provide advice on these documents. 

Grant funding is offered on a cost recovery basis only. Payments will only be made once evidence of successfully delivered milestones has been provided. Agreed deliverables will be reviewed by UKSA against acceptance criteria before payments are dispersed, selected evidence of spend (receipts, invoices, timesheets – as relevant) will also be required. 

UKSA has a duty to fulfil the requirements of the Public Sector Equality Duty (PSED) as set out in section 149 of the Equality Act 2010 to eliminate unlawful discrimination. We are committed to encouraging a diverse range of applicants to our funding calls. Funding proposals should also ensure that their projects give due care to equality, diversity and inclusion (EDI) considerations such as ensuring the advancement and good relations between people who share a protected characteristic and those who do not. 

Protection of any Intellectual Property (IP) rights on the project will remain the responsibility of the project participants. UKSA does not seek any ownership of project IP. Future ownership of any potential IPR should be dealt with as part of any Collaboration Agreement. 

Any sensitive information (such as IP) shared in your application will be shared with our independent expert panel to allow them to carry out their review. All reviewers will be required to complete a confidentiality agreement and conflict of interest form before accessing proposals. If you have any specific concerns (e.g. direct competitors) please state these clearly on your communication with us and request confirmation by email from ggms_ibf@cabinetoffice.gov.uk that we have received this information. 

Questions or clarifications can be directed to ggms_ibf@cabinetoffice.gov.uk. UKSA will not respond to questions asking for applications to be reviewed ahead of the submission deadline or clarification questions directed to any other email address. 

Grant Funding Agreement Requirements

The Grant Funding Agreement template is included as a separate document. Applicants must sign up to the terms as set out in the Grant Funding Agreement when submitting an application. 

No material changes to the terms will be considered (including to liability provisions). Minor changes may be considered if an applicant can demonstrate that agreeing to the provision within the Grant Funding Agreement would result in the applicant breaching its statutory or regulatory obligations. Grant applicants wishing to propose changes should submit their request ahead of or with their application, with a marked up copy of the Grant Funding Agreement. Changes requested by successful applicants at Pre-Award stage will be rejected. 

All organisations in receipt of grant funding must abide by the UK government Code of Conduct for Grant Recipients. 

All projects in receipt of grant funding may be subject to an external annual audit to ensure that costs claimed from the grant funding have been expensed on agreed project related expenditure and comply to UK Space Agency grant funding policies (e.g. match funding). Projects are selected for audit using a risk-based approach. The auditor will be appointed by UKSA. All subcontractors and partners must provide access to project relevant expenditure. Therefore, Grant Recipients must maintain, and be able to provide upon request, any supporting evidenced as deemed necessary, such as: 

• Timesheets (prime and, where applicable, partners)

• Staff costs (contractors)

• All receipts (including T&S)

• All partner and subcontractor invoices

• Breakdown of overhead costs

• Breakdown of capital usage (e.g. licence, data costs etc)

UKSA reserves the right to conduct ad-hoc audits throughout the life of the project. 

Confidentiality

The procedure for handling and assessing the applications for project funding will be as follows:

1. Completed applications must be submitted to UKSA. All bids will be held in confidence.

2. Once the call closing date has passed, electronic copies of all eligible documents will be distributed to the independent assessors. UK Space Agency confidentiality rules will apply.

3. For those bids not recommended by the panel for funding, documentation will be retained by UKSA for reference. The proposals will not be visible to any others, and the names of any unsuccessful bidders will not be published. However, UKSA reserves the right to contact unsuccessful bidders for evaluation purposes and may share details with an external evaluator for further follow on.

4. Information submitted for those projects selected for funding will be retained by UK Space Agency but remain confidential.

5. Summary information about the projects selected for funding may be published on UKSA website.

UKSA will monitor the funded project through project reports and the submission of project deliverables. The Agency requests that any confidential information is clearly marked Commercial in Confidence. 

Subsidy Control

Streamlined Scheme for Research, Development and Innovation

This award is being offered under the Research, Development and Innovation Streamlined Subsidy Scheme subcategory 2: Industrial Research and Experimental Development Projects in accordance with Section 10 (4) of the Subsidy Control Act 2022. Projects funded as part of this scheme qualify as “feasibility study”, “industrial research” or “experimental development”, where:

• “Feasibility study” means the evaluation and analysis of the potential of a project, which aims at supporting the process of decision-making by objectively and rationally uncovering its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to carry it through and ultimately its prospects for success.

• “Industrial research” means the planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services. It can include the creation of component parts to complex systems and may include prototypes in a laboratory or environment with simulated interfaces to existing systems, particularly for generic technology validation.

This would include digital products, processes or services, in any technology, industry or sector (including, but not limited to, digital industries and technologies, such as super-computing, quantum technologies, block chain technologies, artificial intelligence, cyber security, big data and cloud technologies). Industrial research comprises the creation of component parts of complex systems and may include the construction of prototypes in a laboratory environment or in an environment with simulated interfaces to existing systems as well as of pilot lines, where necessary for the industrial research and notably for generic technology validation.

• “Experimental development” means acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills with the aim of developing new or improved products, processes or services. This may include, for example, activities aimed at the conceptual definition, planning and documentation of new products, processes or services.

This includes digital products, processes or services, in any technology, industry or sector (including, but not limited to, digital industries and technologies, such as for example super-computing, quantum technologies, block chain technologies, artificial intelligence, cyber security, big data and cloud or edge technologies). This may also encompass, for example, activities aimed at the conceptual definition, planning and documentation of new products, processes or services.

Experimental development may comprise prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real-life operating conditions where the primary objective is to make further technical improvements on products, processes or services that are not substantially set. This may include the development of a commercially usable prototype or pilot which is necessary for the final commercial product and which is too expensive to produce for it to be used only for demonstration and validation purposes.

Experimental development does not include routine or periodic changes made to existing products, production lines, manufacturing processes, services and other operations in progress, even if those changes may represent improvements.

Further guidance around these definitions can be found within the Research, Development and Innovation Streamlined Route guidance. The onus is on applicants to determine which category their project falls within based on their knowledge of the work they are proposing to undertake and UKSA cannot provide pre-application advice on which to select. 

Subsidies given under these categories are subject to maximum award amounts and subsidy ratios set out in the Research, Development and Innovation Streamlined Subsidy Scheme. 

These are as follows:

• Feasibility Study

  • Small Enterprises: 70% of the eligible project costs

  • Medium Enterprises: 60% of the eligible project costs

  • Large Enterprises: 50% of the eligible project costs

  • Academic Partner: 80% Full Economic Cost

• Industrial Research

  • Small Enterprises: 70% of the eligible project costs

  • Medium Enterprises: 60% of the eligible project costs

  • Large Enterprises: 50% of the eligible project costs

  • Academic Partner: 80% Full Economic Cost

• Experimental Development

  • Small Enterprises: 45% of the eligible project costs

  • Medium Enterprises: 35% of the eligible project costs

  • Large Enterprises: 25% of the eligible project costs

  • Academic Partner: 80% Full Economic Cost

Enterprises may receive a 15% uplift to the subsidy ratios where the project involves collaboration between enterprises, where at least one of the enterprises is an SME, or between an enterprise and one or more research and knowledge dissemination organisation, which must have the right to publish its own research results. Academic partners on projects led by enterprises will still be funded in all cases at 80% of full economic cost. 

For the purposes of subsidy control, the following definitions are applicable:

• A small enterprise has an annual turnover below £10.2 million, a balance sheet total below £5.1 million and the average number of employees must not be more than 50

• A medium enterprise has an annual turnover below £36 million, a balance sheet total below £18 million and the average number of employees must be no more than 250

• A large enterprise has an annual turnover above £36 million, a balance sheet total above £18 million and the average number of employees is above 250

To qualify, two of the three conditions in the above definition must be met. 

Applicants should note that the maximum award amount for both industrial research and experimental development projects is £3,000,000 per enterprise per project. Due to cumulation rules and limits of the scheme, organisations seeking project funding that would exceed a total of £3million from public bodies in the last 3 years for this project will be ineligible to apply for this opportunity. 

Applicants must ensure that they supply the correct information that allows UKSA to award grants within the scheme. It is the responsibility of the grant funder to ensure compliance with the relevant subsidy controls rules and the applicant to assist the funder in doing this by acting within the terms and conditions of the scheme. 

Subsidy Control: Minimum Financial Assistance

The Subsidy Control Act 2022 includes provision relating to Minimum Financial Assistance (MFA). MFA allows authorities to provide grants that are considered small enough to support individual businesses without giving them an unfair advantage. Enterprises can receive up to £315,000 of MFA funding over a rolling 3 fiscal year period without having to provide match funding. You must declare any previous MFA awards you have received in your application form. 

When calculating eligibility for the application of the MFA provision, applicants must also include cumulation of any EU State aid de minimis grants under the EC’s de minimis regulation and Small Amounts of Financial Assistance (SAFA) under the EU Trade and Co-operation Agreement (TCA) for the same 3 fiscal year period. The maximum total under the EC de minimis regulation is €200,000, the maximum total under SAFA is £340,000 or 325,000 Special Drawing Rights. This is for all project types and for most purposes, including operating aid. 

The application form asks you to tell us about any awards, including those made under de minimis and SDR, (from any source of public funding) over a rolling 3 fiscal year period. 

If you have received an award under de minimis or SDR for the same period, this will be added to your total allowance under MFA. This means that the total award must not exceed £315,000) for any one organisation. You must declare this allowance to any other funding body who requests it. 

You can only apply for the maximum amount of £315,000 using MFA. Organisations who wish to apply for funding above this amount will be subject to the Subsidy Control Act 2022 requirements set out in this call guidance. 

Further information on UK Space Agency’s obligations under the Subsidy Control Act 2022 can be found on our grants page.