Frequently Asked Questions

Please contact with any questions or requests for further information. Please title your email "GCRIZ".

This page will be updated with Questions submitted and Responses provided.

Number Date Question Response
1 16/01/24 Match Funding – raised in Phase1, and noting the expectations and new GCR template to capture match funding commitment – can eligible match funding take the form of a partner providing assets / equipment, time / resource in kind? Or is the expectation purely financial spend? Eligible match funding could take the form of all of the types indicated – for the applicant to determine.
2 16/01/24 Match Funding – do all interventions require to be match funded? Could you advise if the following example projects from the Technical Guidance require match:
  • provide start-ups, spinouts and researchers with early-stage investment to support the development of an innovative ideas / technology in the Investment Zone.
  • Part or fully funded PhD fellowships.Using grant funding to hold a conference.
  • Using grant funding to hold a conference.

The guidance indicates a match funding split of 60/40. Bidders will determine the nature of the overall programme and budget required to deliver, including match funding.

There is no stipulation as to where the match / grant should be allocated.

It should be noted however that the Investment Zone Technical Guidance relates to the overall Investment Zone proposal – so at the regional, rather than individual project level. Applicants should take consider this distinction when interpreting the Technical Guidance.

3 16/01/24 Smaller Projects – do the example projects listed in Question 2 above require to be part of one larger, match funded project? Or can they be standalone initiatives? We ask this question given the feedback from EOIs submitted in Phase 1 implying that projects should be of size and scale – with those most well received being those that are multi-million £ projects with significant job numbers generated, for example. As clarified in relation to Q2 - the Technical Guidance relates to the overall GCR IZ proposal that will be submitted to UK and Scottish Government. Therefore, the examples referenced in Q2 may well form part of a wider regional programme, managed by GCR centrally.
4 16/01/24 Capital equipment – there is an example given in the technical guidance for Grant funding to support purchase of capital equipment to support improved R&D activity undertaken by businesses – on this basis, could IZ funding be sought for a piece of capital equipment that would be based at, and owned by, a local company for the use of one of the IZ Zone Projects and to increase production and employment. The company Correct would provide the match funding, linked to a research institution. Correct.
5 16/01/24 Final decision timing – noting the steps set out about GCR decision making alongside SG&UKG – and that funding to commence FY 2024/2025 – do you have any insight on when a final decision on projects is expected? For context, we need an idea to manage timing / investment plans of industry partners. Late Summer early Autumn of 2024.
6 17/01/24 Investment - in terms of minimums are we correct in saying that £70m needs to be allocated to revenue (40%) and capital (60%) across the GCR with the rest potentially available to tax incentives?

The overall programme provides £160m of investment.

Once tax incentives have been 'utilised', the remainder will be available for Capital & Revenue and the 40/60 split – the flexible spend.

The amount of spend (revenue and capital) will depend on the costs of the tax incentives. Initial estimates have indicated that it would be in or around the £70m but this will be subject to final tax costings.

7 17/01/24 Can you provide a definition of what is available under revenue/resource spend? I.e.can it be used for feasibility assessments, staff resourcing etc? Also is this available for Local Authorities?

It will be for the project as a whole to determine what is required.

For the Local Authority, it would depend on their role within the overall project.

8 17/01/24 It is our understanding that if you wish to become a tax site, then you can choose between the following tax reliefs which best suit our projects:
  • LBTT
  • NDR relief
  • Enhanced capital allowance
  • Structures and Buildings allowance
  • Employer National Insurance Contributions relief
Do we have scope to pick and choose which reliefs we wish to offer?

The tax offer is all the incentives, you can’t select one or two of them, they come as one tax incentives package.

It is over a 10-year window instead of 5 years.

9 22/01/24 Do you require successful applicants to have match funding on hand instantly? We would expect applicants to profile project spend, including match funding. This profile would demonstrate when the applicant would expect the match funding to be secured / utilised.
10 22/01/24 Would it be acceptable for applicants to use this funding as a lever in securing more than the 60% funding match requirement? Yes.
11 25/01/24 Project Duration: Is there any guidance on the expected duration for a project? Must the projects run for 10 years or can they be shorter? Project duration is flexible. It’s for the place to decide on what is best to delivering the Investment Zone using the funding across the ten years.
12 25/01/24 Industry Match Funding: Within the Innovation Accelerator programme, the funding received is governed by the InnovateUK funding guidelines for commercial/research participation. As set out in the technical document, the use of funding is flexible to increase the impact of funding.
13 25/01/24 Awarding of Funding: Will all the funding go directly to the lead bidder? If a consortium is involved with a lead bidder how will the funds be distributed to consortium partners? If a project is submitted as a consortium, we would expect the applicant to outline their approach to governance (Q3.4)
14 29/01/24 Can joint ventures/consortiums apply – if so can you provide any rules for this The GCR IZ Application process requests details of the operation management and overall governance being taken by bidders (Q3.3 & Q3.4). It doesn’t specify the type of legal arrangement – but we would expect this to be outlined.
15 29/01/24 Details of what the 60% private sector investment – what is the criteria for this? We would expect bidders to provide specific details of the make-up of their match funding Q3.1
16 29/01/24 Can there be more than one application for a project or should projects be grouped together into one? This is for the applicant to determine, although the preference is for projects of scale
17 30/01/24 Could advise what the maximum level of support for a project would be i.e. 60 % / 40%? Applicants are expected to bring 60% match funding
18 30/01/24 Our organisation is currently working through a grant application with the UK Government - the Biomanufacturing Fund (BMF). This would be a capital contribution in nature, as we seek to expand into a new facility in the Glasgow City Region. In assessing the value of applying for Investment Zone consideration, I have questions about ‘double-dipping’ into the public purse. If we were to receive a capital contribution from the BMF, would this preclude us from any involvement in the IZ? There is the requirement for 60% match-funding to support GCR Investment Zone projects. While applying for a BMF grant would not preclude an applicant from accessing the GCR IZ programme, other UK or Scottish Government investment could not be utilised as match-funding.
19 01/02/24 What is the maximum value of a total project?

No maximum value has been set for an individual project. The maximum public sector funding will be £160m over the lifetime of the Investment Zone. With the match funding requirement of 60/40, in theory a one private sector project would need to have a project value of at least £400m to meet that threshold. This is the minimum match funding threshold however, so the project value may be higher.

It is expected however that the GCR Investment Zone programme will be the collection of a number of individual projects.

20 08/02/24 It would be helpful to clarify which sources of match funding would be eligible for this call. We would envisage leveraging funding from Scottish Enterprise capital investment - is this eligible as match funding for the GCR IZ? There is the requirement for 60% match-funding to support GCR Investment Zone projects. Other UK or Scottish Government investment cannot be utilised as match-funding – including via 3rd parties, such as Scottish Enterprise.
21 14/02/24 The Investment Zone guidance references ‘The precise costs of tax sites will vary by site, however the estimated cost of 600 hectares of tax reliefs is £45 million, to be deducted from the overall £80 million envelope available to an Investment Zone.’

Following the Autumn Statement announcement, do this now mean £90m of the overall £160m envelope?
The flexible spend will be £160m minus any tax incentives taken as part of the IZ proposal.
22 13/02/24 Are established projects seeking growth and expansion considered eligible under this funding scheme? Yes.
23 13/02/24 Is there a minimum for either investment amount or business revenue to qualify for this program? While there is no minimum threshold, we would expect projects to be of scale.
24 13/02/24 Regarding the requirement for a 60% self-investment over a five-year period, could you please clarify if full funding needs to be available at the outset, or if an initial investment coupled with a detailed plan for future investments suffices? Investment does not need to be available at the outset, however we would expect a detailed plan of future investment and commitments within the application.
25 14/02/24 Can the Funding of this application be used to support wider group business? Providing the investment is made only towards the Glasgow site location? Yes.
26 14/02/24 Are costs incurred to set up an additional manufacturing location applicable? Yes, as long as located in Glasgow City Region
27 14/02/24 Please can you provide more detail on the type of outputs and outcomes expected to be covered in question 2.1. And, advise if these should also be covered in questions 2.2, 2.3 and 2.4 It is anticipated that responses will include detail on the expected gross and net jobs and GVA benefits. Plus, public benefit cost ratio for the project. Where applicable, the economic impacts of construction years would also be welcome.
28 27/02/24 Can the Glasgow City Region Intelligence Hub provide economic modelling to support the development of the economic case? Upon request, the Hub may be able to offer economic modelling to support responses to 2.1-2.4. This would require the correct inputs being available from the applicants e.g. proposed development type, employment sectors, investment and timescales. An applicant should not rely on this support as availability will be subject to capacity. For further information please contact using the subject title ‘GCR IZ Economic Modelling’
29 27/02/24 Will further clarifications be required following submission of GCR IZ Phase 2 applications? Yes. Clarifications may be sought from applicants following submission. Any clarification questions will be directed to the registered applicant email address.
It is anticipated this will focus on the information provided relating to the economic and financial case.
30 21/02/24 Please clarify the relationship between the 40% IZ contribution to a project and the tax offset derived from tax site status. Do we count the possible tax deductions as part of the 40% IZ contribution?

And is this in addition to any direct grant or seed funding contribution form the IZ?
Any tax incentive drawn down as part of the IZ programme will be taken from the 40% grant allocation.

Therefore, any tax incentive will be part of, not in addition to, any other grant contribution.
31 06/03/24 Is there a word or page limit for proposals? Is there a proposal template or form? Provide a link to it please. How should proposals be submitted, to what email or postal address? May appendices be added to proposals? Are appendices included in the word or page limit? Are there any restrictions on graphs, tables or diagrams included in the proposal? Should proposals be submitted as PDF? For all of these questions the Application website provides details of word count and whether attachments are permitted, for each of the individual questions. Responses should be submitted via the dedicated application web-site.
32 06/03/24 Are proposals led by companies registered in Scotland and operating in GCR valid? Are proposals led by a not-for-profit company registered in Scotland and operating in GCR valid? Yes in both instances
33 12/03/24 Private sector match – where can it come from and over what period? It is for the project to determine the nature of the match funding and the profile over the period of the Investment Zone. We expect both these elements to detailed within the application submission.

The guidance on match-funding as noted in Q20 should also be considered.

34 11/03/24 Is there any specific format you’d like our financial breakdown shown, eg: Staff, Capital, Expenses, Overheads etc? Standard accounting practice should be followed. We would therefore expect information split between capital and revenue. Revenue information would cover: employee costs; admirative costs; property costs; professional fees; miscellaneous.

The financial information should be broken down annually,
35 11/03/24 The ‘number of characters allocated’ is in fact characters and not word count. How stringent are the counts? This is correct. However, the character limit is sufficient to meet the required word count limit.

There is no flexibility on the word count. The system will not allow additional text. It should be noted that some questions provide the opportunity to include attachments
36 14/03/24 Whether a potential IZ grant award or tax assistance for an investment project will impact the company’s ability to claim R&D tax credits in future? No.
38 14/03/24 Tax Sites – would the maximum tax allowance be doubled for the new £160m across 10 years? The timescale and financial develop are both doubled. It should be noted that the number of sites and total area don’t change. Equally the tax site reliefs as outlined in Appendix C of the technical document remain the same
39 14/03/2024 Tax Sites – for an area proposing the full tax allowance, is it reasonable to assume £15,000 per hectare per annum (i.e. £90m / 10 years / 600 hectares)? Any bidder should be clear on why tax status is required to support IZ objectives and that it meets the under-developed criteria set out in the tech doc .

The UK and Scottish Governments will then assess and cost the tax sites and deduct this from the overall £160m envelope. The bidder is not required to do this.
40 14/03/2024 Tax Sites – do the governments have a view on use of tax incentives over time e.g. would there be any issue if it is front loaded during the 10 years? As per response to 39, the UK Government will assess each proposal upon receipt. However, the bidder should note the guidance for timescales in Appendix C of the technical document.
41 14/03/2024 Subsidy control – when capital spending is being passed from governments to region (under a ‘lead’ authority) to local authority, who is the ‘accountable authority’ for subsidy control purposes The final approach to this is being finalised to reflect learnings from the Green Freeport.
42 18/03/24 Are any Terms and Conditions we need to agree to as part of the application At this phase, there are no specific terms and conditions as part of the bid process. However, relevant government departments will review any proposals which are recommended to proceed.
43 18/03/24 VAT Treatment – are grant funding requests to be inclusive of VAT? A response from UK and Scottish governments is awaited.
44 18/03/24 Tax Zone valuations – Noting Annex C to the guidance on the tax offer: “Based on UK government estimates of Investment Zones in England, the estimated cost of 600 hectares of tax reliefs for 5 years could be £90 million, scaled down to £30 million for 200 hectares , to be deducted from the overall £160 million envelope available to an Investment Zone. As part of the tax site assessment process outlined in section 3 and through the provided criteria Investment Zones need to provide information about the value of their tax site proposals. We reserve the right to reject tax sites that we believe cost significantly more than the above estimate”. In the absence of a Scottish-specific example valuation, is it fair to assume the same applies i.e. 200 hectares is equivalent and entitled to £30m in total tax reliefs? And would this be available over the whole IZ period of 10 years rather than 5? See answers to 38 and 39
45 20/03/24 If the financial ask from one application is at a level beyond the expectations of City Region/Governments, could there be a dialogue after submission and assessment on a reduced amount, obviously with reduced benefit too? Yes, there is an expectation that clarifications may be sought from bidders once the application process has closed – this may also be in relation to how individual projects fit together as an overall programme.
46 23/03/24 Is the GCRIZ focused on existing large organisations generating revenue or can start-ups (pre-revenue) apply that meet the ambitions of the overall scheme i.e. Investment in innovation, creation of jobs, improving social issues? There is no restriction on the type / size of organisation that can apply.
47 23/03/24 Can GCRIZ investment be utilised for the creation of MVP projects/ products supporting commercial readiness It is up to the bidder to outline the nature of the project / product and the impact this will have – in line with the strategic, economic and commercial aspects of the application process.
48 23/03/24 Whilst there is no maximum amount that can be requested as part of the bid - is there a minimum? i.e. will bids requesting <£1m be considered less favourably due to their potential scale? As noted in the response to Q16, the preference is for projects of scale
49 23/03/24 Character limits on each question, is that including spaces or not including spaces? The character limit is sufficient to meet the word count allocated to each question.
50 25/03/24

In the online project submission form, there is a field called "Organisation's Match Funding".

Is this the match funding that is to be provided by the submitting organisation only, or the sum of all private/industry match funding?

This should be considered as the sum of all private/industry match funding