Three-quarters of £225m grants budget already allocated

Three-quarters of England’s £225 million Capital Grants budget for 2026 has already been allocated, with Defra urging prospective applicants to act quickly.

Despite being 50% larger than the funding available in 2025, only a quarter of this year’s budget now remains unallocated.

The scheme is open to farmers, land managers and foresters across England.

It supports investment in capital works and equipment intended to improve water quality, enhance biodiversity, benefit nature and encourage more sustainable land management.

Defra said interest had remained consistently strong since the offer opened.

The department had committed to publishing updates when 25%, 50% and 75% of the budget had been allocated.

It said the latest milestone reflected the continued popularity of the offer and the level of investment being made in environmental improvements.

Applicants considering the scheme have been encouraged to submit their applications as soon as possible.

“With a significant proportion of the available budget now allocated, funding is becoming more limited,” Defra said.

Applicants can consult the Capital Grants 2026 guidance for details of the available items and eligibility requirements.

Defra’s Capital Grant Finder can also be used to identify options suited to individual farms, landholdings and rural businesses.

The department has published an application webinar offering practical guidance on accessing the funding.

Defra has not said how many applications account for the allocated budget, how much funding is linked to applications still being assessed or when it expects the remaining money to be allocated.

It said a further update would be published once the full 2026 budget had been allocated.

The figures relate only to the Capital Grants 2026 offer.

Capital grants available through Countryside Stewardship Higher Tier are funded from a separate budget and are not included in the 75% figure.