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Capital Grant Scheme
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Scottish Government Capital Investment Programme

Funding to upgrade independent bakery businesses 2019-20


At the Scottish Bakers Annual Conference in June 2019, it was confirmed by the Scottish Government that a Capital Grant Programme comprising total funding of £125,000 would be made available to independent bakery businesses throughout Scotland. The programme is administered by Scottish Bakers.

To apply for funding you will need to complete an application form and budget form - these are available to download below.

It is important that you read all the information on this page carefully before applying for funding. 



The grant programme aims to support and encourage economic growth of independent Scottish bakers and their capacity to innovate and respond to changing customer demands through the following:

  • Improve the quality of retail environments
  •  provide a better/more diverse food-to-go offering to consumers offerings (with an emphasis on healthier options)
  • improve operational efficiency and flexibility
  • reduce environmental impact of operations

Funds Available

A maximum grant of £5,000 is available per business. Applicants must provide at least 25% of the total project costs. Businesses may contribute more than 25% of the total but the maximum grant remains fixed at £5,000. Please see the worked examples below.

Worked Example 1

Total cost of works:


Bakery contribution (25%):


Grant awarded (75%):




Worked Example 2

Total cost of works:


Bakery contribution (25%):


Grant awarded (75%):




Worked Example 3

Total cost of works:


Bakery contribution (50%):


Grant awarded (50%):



Please note that funding is offered on only the net cost of any works being undertaken (i.e. excluding VAT).

Funds will be paid to successful applicants on completion of all works and will be subject to evidence that the work has been completed and all relevant invoices issued. All funds must be claimed within 12 months of submission of the application. 

Businesses must also show that they are compliant with legislation covering food hygiene and health and safety.

Application: terms and conditions

  • The programme is open to applications on a rolling basis from 30th July 2019 until 27 September 2019. Applications received after 27th September 2019 will not be considered. 
  • Applications may be submitted at any time during this period. 
  • Retrospective applications for works and/or capital purchases already commenced and/or completed will not be accepted. 
  • Grants will be allocated on a first-come-first-served basis. 
  • We reserve the right to close the fund early should it become oversubscribed. 
  • Applicants will be informed of the outcome of their application within 14 days. 
  • Applicants should not commence works or confirm any capital expenditure until they have received confirmation of grant award. 
  • Any funds allocated will be released only on confirmation that all works are complete.
  • Successful applicants may have their business name and value of grant awarded published on Scottish Bakers website.

Basic Eligibility & Criteria

  • The grant programme is open to independent retail and/or wholesale bakery businesses with a turnover of no more than £3,000,000 per annum. Retail bakeries must have a retail estate comprising no more than 3 outlets.
  • Bakery businesses are those whose activities are related to the manufacturing, processing, wholesaling and retailing of bakery products, including processes similar to baking.
  • Businesses can make only one application per company within any 12-month period of the grant programme being in operation.
  • Grants will not be awarded for the installation of franchised food-to-go stations.
  • All applicants must demonstrate how the investment they are seeking will reduce their impact on the environment – eg reducing energy costs, unnecessary packaging and food waste.

Additional Criteria

In addition to the basic eligibility and criteria, bakeries must demonstrate at least two of the following impacts of the investment:

  • Improved retail environment to attract customers
  • Wider range of healthier eating options
  • New production capacity
  • Production efficiencies and stock management – eg new production machinery, installation of EPOS systems
  • Introduction/renovation of food-to-go counters – eg hot cabinets, “barista” coffee machines 

When applying for funding, retailers must submit all quotes relating to the refit/installation alongside any drawings showing plans. 


When planning to add or upgrade a food-to-go station, please consider the following:

  • Ensure liaison with your local Environmental Health Department (local authority).
  • Does the design and construction of your station comply with legal requirements?
  • Are you aware of the main General Food Law Requirements?
  • Do you keep written records of all the suppliers that provide you with food or any food ingredients?
  • Have you put food safety management procedures in place and are you keeping up-to-date records of these?
  • Do you and your staff understand the principles of good food hygiene?
  • Have you considered all health and safety and fire safety arrangements?
  • Do you describe the food and drink offer accurately?


To apply for funding, please complete the application form and your budget and return with all the required supporting documentation to:

  • Scottish Bakers, Unit 2 – Halbeath Interchange Business Park, Kingseat Road, Dunfermline KY11 8RY
  • Email: 

Applications must be with Scottish Bakers no later than 27 September 2019.

Capital Grant Scheme

More InfoHide Info ]
Paperwork to support the Scottish Government Funded Capital Grant Scheme for smaller bakery businesses.
Item Name Posted By Date Posted
Scottish Government Capital Investment Program PDF (184.28 KB) Administration 22/07/2019
Capital Investment Programme: Application Form DOCX (397.86 KB) Administration 22/07/2019
Capital Investment Programme: Budget Form (Excel) XLSX (82.13 KB) Administration 22/07/2019