HS2 Ltd (administered by Groundwork UK)

HS2 Community and Environment Fund (CEF) and Business and Local Economy Fund (BLEF)

HS2 Ltd's rolling grant funds, run by Groundwork UK, for not-for-profit organisations and public bodies in communities demonstrably disrupted by construction of HS2 between London and the West Midlands (Phase One). CEF Local funds community and environment projects up to £100,000, and CEF Strategic funds multi-community capital projects from £100,001 to £250,000. BLEF funds local business and tourism projects from £10,000 to £250,000. Priority goes to projects within 1km of the line, and capital work must be within 5km. The Phase 2a (West Midlands to Crewe) funds closed after the October 2023 cancellation announcement. The combined Phase One pot is £40m, of which about £24m had been awarded to 431 projects.

You could get
£1 – £250,000
no fixed round
Deadline
Rolling
apply any time
Effort
Heavy
budgets, references, often several stages

Who can apply

  • Organisations formally established for public benefit and not for profit
  • Non-statutory bodies need a governing document with non-distribution statements, at least 3 unrelated people on the committee (unrelated trustees or directors), and their own bank account with 2 signatories
  • Filings with the Charity Commission or Companies House must be up to date
  • The funds mainly target the voluntary and community sector: registered charities, constituted clubs, associations or trusts set up for charitable purposes, companies and CICs limited by guarantee, social enterprises with an asset lock, community businesses, Industrial and Provident Societies and CASCs
  • Local authorities, parish and town councils, schools, colleges and universities can also apply
  • Companies and CICs limited by guarantee must have operated for at least 2 years, have filed at least their first accounts, and have no person with significant control holding over 50% of voting rights
  • Projects must benefit communities demonstrably disrupted by construction of HS2 Phase One (London to West Midlands), mainly along the line of route; a few off-route disrupted locations also qualify
  • Priority goes to projects within 1km of the line and to areas that have so far received below-average funding
  • Only one application per lead applicant at a time
  • A second grant can be sought only six months after a satisfactory Final Completion Report
  • BLEF is mainly for organisations whose formal objectives support local business or tourism

What it funds

CEF adds benefit over and above committed mitigation and statutory compensation to communities demonstrably disrupted by HS2 construction between London and the West Midlands. Illustrative examples are:

  • Health and wellbeing activities for young or older people
  • Landscape and nature conservation projects that increase biodiversity
  • Enhancing or replacing sports and recreational facilities
  • Improved access to and enhancement of public open space
  • Music, theatre and cultural activities
  • New or enhanced community facilities
  • Refurbishing or re-using historic buildings and monuments

Environmental projects must also bring tangible benefits to disrupted communities.

CEF Local (up to £100,000) can fund capital, revenue or both.

Revenue grants last up to three years and can include salaries, volunteer expenses, equipment and up to 20% towards overheads linked to the project.

CEF Strategic (£100,001-£250,000) is capital only and must benefit multiple disrupted communities.

Public realm improvements such as street furniture, public art, planting, play areas, lighting and signage can be eligible.

Continuation of existing projects is allowed.

BLEF (£10,000-£250,000, capital or revenue) supports local economies disrupted by HS2, for example promotional campaigns, events, tourism, public realm and business support.

It is for organisations whose formal objectives support local business or tourism.

Match funding is not required for CEF grants up to £100,000; CEF Strategic needs at least 10% match.

What it will not fund

  • Individuals, limited liability partnerships and private sector companies
  • Projects not based in areas disrupted by HS2 London-West Midlands construction; capital work more than 5km from the route is unlikely to be funded
  • Phase 2a (West Midlands to Crewe) areas - those funds are closed
  • Retrospective costs already incurred
  • Purchasing vehicles, land or facilities
  • Personal equipment and clothing that would become an individual's property
  • Direct financial benefits to individuals (bonuses, gifts, prizes, vouchers) or paying individuals to attend training
  • General capacity building, budget shortfalls, debt or loan repayments, reserves or endowments
  • Organisational overheads that would be incurred anyway (beyond the allowed project-linked contribution)
  • Projects primarily promoting religion or politics, and campaigning or lobbying
  • Curriculum-only activity or projects primarily benefiting schools during the school day
  • Costs of fundraising or bid writing, and feasibility studies
  • Regranting funds to other organisations
  • Trips (UK or overseas) and international activity
  • Broadband, business rates, subsidies and car parking subsidies
  • Road safety measures (speed cameras, speed bumps, crossings, junction changes) and maintenance of pavements, rights of way or footpaths
  • Ongoing maintenance or running costs of capital projects
  • Community radio stations
  • Work already covered by HS2 mitigation, compensation or other HS2 funds (e.g. Road Safety Fund, Woodland Fund)
  • Planning permission and other up-front development costs (except up to £1,000 of legal fees for grant security)

How to apply

  1. Read the CEF (or BLEF) Guidance & FAQs, the current geographical priority areas, and any additional guidance for schools, health, faith or arts projects on hs2funds.org.uk
  2. Use the HS2 Environmental Statements and HS2 local community pages to evidence how your community is disrupted by construction
  3. Optionally email Groundwork UK (hs2funds@groundwork.org.uk) to discuss the project; this is required before a CEF Strategic application
  4. Create an account on the online portal and complete the eligibility quiz; if eligible you are given a link to the application form
  5. CEF Local: submit the full online application with supporting documents
  6. CEF Strategic (£100,001-£250,000): submit a Stage One application; if encouraged, submit a Stage Two application within six months
  7. If successful, accept the conditional award online within 30 days and meet the conditions (bank details, recent bank statement, three quotes or tenders for capital work or services) before claiming
  8. Report progress regularly to Groundwork UK and claim payments through your online grant account

Sample application forms can be downloaded for planning only; all applications must go through the online portal.

Unsuccessful applicants are given feedback and may reapply.

Have ready

  • Governing document (same organisation name as the accounts and application)
  • Full copy of the latest accounts (micro-company accounts not accepted); new organisations provide projected income and expenditure plus a recent bank statement
  • Copies of the last 3 months' bank statements, if requested by Groundwork UK
  • Lease or freehold document for capital projects over £20,000 (lease of at least 5 years after completion for £20,001-£100,000, 10 years for £100,001-£250,000)
  • Landowner permission form guaranteeing public access for 2 years, for capital projects up to £20,000 on land you do not own
  • Safeguarding policy, if working with children, young people or vulnerable adults
  • Evidence of confirmed match funding (e.g. offer letters), if any
  • Proof of identity and address for the main contact, if the organisation is not on Companies House or the Charity Commission register
  • Letters of support from strategic partners (CEF Strategic)

Local authorities, parish and town councils and further or higher education institutes do not need to provide accounts.

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