Business Sustainability Programme

Individual grants from £2,000 to £49,950

The Business Sustainability Programme can fund up to 60% of total project costs – businesses are expected to contribute 40% of project costs

From 14th May 2025

To maximise the delivery timeframe for what are often complex projects requiring external works, grant awards will be made on a rolling basis to projects approved at monthly decision panels, until such time as the fund is exhausted.  Early applications are encouraged to avoid disappointment.

From July 2025 until February 2026 – projects must be completed by February 2026

Successful applicants will be provided with a grant claim form.  This should be submitted when the project is complete and expenditure can be evidenced.  For large scale, more longer term projects,  interim payments (based on expenditure incurred so far) can be considered.

Types of eligible project activity within this programme might include (but are not limited to):

• Energy efficiency measures
• Retrofit of commercial buildings – lighting upgrades, insulation etc
• Energy system optimisation measures
• Renewable energy generation and battery storage
• Reducing waste and making resources go further
• Works with the aim of improving a business’ climate resilience
• Climate adaptation
• Improving biodiversity
• Decarbonising fleet and transport – Please note any vehicles/EV chargers applied for must be solely used for business purposes/located on business premises. Current fleet/transport vehicles must be shown to be approaching ‘end of life’ status. 

In the application, you will be asked to provide a full breakdown of project costs. Examples of eligible costs can include but are not limited to:

• Capital costs
• Detailed designs required for installation to take place, e.g. design of heat pump specifications
• Carrying out improvements to assets, infrastructure or buildings
• Power supply upgrades and grid connection
• Installation costs from suitably accredited suppliers

Ineligible costs can include but are not limited to:

• Expenditure on works or activity that is already underway or that has been contracted prior to the signing of the grant funding agreement
• Expenditure on works or activity that is already fully funded from other sources, or that the local authority, combined authority, project deliverer or applicant has a statutory duty to undertake
• Management or consultancy fees
• Recoverable VAT
• Capital expenditure on works which have not received the necessary permissions
• Capital expenditure on works which will not be delivered within the timescales of the programme
• Capital expenditure on works that will retain a reliance on fossil fuels (e.g a new gas boiler)

• Property-based projects should take a ‘fabric first’ approach, focussing on improving energy efficiency prior to new heating or energy installations
• If you do not own the property, landlord’s permission must be in place
• Any planning permission and building regulations required must be in place by the time the project is due to start
• Projects should adhere to the Technical Guidance given below 
• Grants will be paid ‘in arrears’ once projects have been completed, unless with prior agreement
• Recoverable VAT is not eligible
• A minimum of two quotes must be provided for capital items
• The application should indicate why the project requires SPF grant support at the level requested. This is particularly related to the ‘return on investment’ if energy efficiency or renewable energy technology is installed

• Decision panels will be held on a monthly basis. We aim to let applicants know the outcome of their application within 6-8 weeks form the date they applied. For successful applications, we aim to have a grant funding agreement in place within two to three weeks of award notification.  Once funding agreements have been finalised and signed, then project delivery can start.
• Please note that the York and North Yorkshire Combined Authority has engaged North Yorkshire Council to deliver this programme on our behalf. Staff from the YNY Growth Hub and City Of York Council will also be involved in assessing applications. Emails in relation to your application may therefore come from an @northyorks.gov.uk, @ynygrowthhub or an @york.gov.uk email domain.

All applications submitted will be scored against a consistent appraisal framework. All applications and scoring will be presented to a decision panel to make final decisions.

For the appraisal of applications, HM Treasury’s 5 Cases methodology will be followed to ensure that applications demonstrate the strategic, economic, financial, commercial and management case for investment. This will require applicants to:

• Explain and evidence the need for the project
• Explain and evidence the strategic fit with the programme objectives
• Explain and evidence the positive impact the project will have and explain how measurable outputs and outcomes will be achieved
• Provide an accurate and reasonable breakdown of project costs
• Explain how the project will be deliverable in full within the timeframe
• Explain who will be managing the project and their track record in delivery

Assessment will also include a review of the answers given to the technical compliance questions.

The grant offer email and subsequent funding agreement will set out requirements to:

• Evidence that any outstanding conditions have been met or permissions secured, e.g. planning approvals, structural integrity surveys
• Agree a project delivery schedule that is compliant with the programme specification
• Adhere to Branding and Publicity guidelines which will be issued by the York and North Yorkshire Combined Authority
• Participate in providing monitoring information, focussed on the reporting of expenditure and outputs and outcomes
• Participate in evaluation activities. This will be proportionate to the scale and scope of the project

You will need to be able to evidence that you are confident in the structural integrity of the property and that you are in a position to cover any additional works that may be required to the property in order to complete the project, but that fall outside the remit of this programme. You may also need structural integrity surveys and asbestos surveys depending on the type of project you are undertaking.

Any contractor or supplier used must have the appropriate accreditation and/or certificates to carry out works. Quotations should only be provided by accredited suppliers.

If you need planning permission for your project, your application must have been submitted before you apply to the programme. If you do not need planning permission, you must be able to evidence why it is not required.

Depending on the nature of your project, there may be other technical assurance questions that need to be answered/evidenced.  A CA officer will get in touch with you directly in such cases.   

The programme can be used to fund capital projects aimed at decarbonising your business. Businesses should use their application to carry out recommendations of energy audits and refer to the ‘eligible activity’ section of this specification.

We are only able to fund the environmental elements of a project. So, for example, if you wanted to upgrade a fleet van from a diesel to an electric, we would only be able to fund the difference in cost between these two vehicles, as that is the element of the project that is reducing carbon emissions.

Furthermore, there are match funding requirements in place. We can fund up to 60% of project costs. Businesses must fund the remaining 40%.

Once your project has been approved and the funding agreement has been signed, you are able to start your project. Projects cannot be funded through this program if work has already commenced prior to the funding agreement being signed. Payments will be made in arrears, so you will have to fund the project yourselves initially and claim the money back upon completion of the work, providing evidence that the costs have been incurred and paid for.

Yes, you will need to have received an audit from a local authority or Grow Yorkshire decarbonisation support programme, or from an alternative legitimate supplier before applying to the programme.  By legitimate supplier we mean a supplier from any of the government’s approved registers for ESOS lead assessors.

You will need to check this with the planning department of the relevant body which will either be City of York Council, North Yorkshire Council, Yorkshire Dales National Park or North York Moors National Park.  Please include evidence about whether planning permission is needed or not with your application (an email from the relevant body will suffice).  If it is needed, your application should evidence that you already have this permission in place or have applied for it at the time of submitting your Business Sustainability application. 

The best way to demonstrate business benefit would be if you can qualify what the cost saving or CO2 saving would be for the project. The audits you have previously received will provide you with a rough indication of this.

Your project will need to be compliant with all necessary Health and Safety Regulations, Building Regulations, CDM Regulations and any other applicable laws and standards. Please also see the technical guidance given above.