Capital Grants 2026 Update

DEFRA has now published the detailed guidance for the 2026 Capital Grants offer ahead of applications opening in July.

The biggest headline remains the increased funding pot, with £225 million allocated to Capital Grants in 2026, up significantly from the 2025 offer. However, we know demand is going to be very strong, so it is important to start work on your application now to ensure you are ready to submit as soon as the application window formally opens.

We would also strongly encourage businesses to ensure existing agreements and claims are fully up to date before the new window opens. Outstanding capital claims, incomplete agreements or mapping issues may restrict or delay new applications.

DEFRA has already indicated it will again provide updates as 25%, 50% and 75% of the budget is allocated once the scheme opens. Given how quickly funding was allocated last year, we would not recommend delaying applications unnecessarily.

DEFRA has confirmed that spending caps will broadly remain unchanged for the main categories:

• £25,000 for water quality (including fencing)

• £25,000 for air quality

• £25,000 for natural flood management

• £35,000 for boundaries, trees and orchards

We are currently working with clients on potential 2026 Capital Grant applications and reviewing projects to ensure they are application ready ahead of the expected July launch.

If we are not already in contact regarding a potential application and you would like assistance, please get in touch as soon as possible.

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Office

01454 614624

Sam Kelly

07777 696080

Jonathan Purton

07399 117257

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