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Yahoo
3 days ago
- Business
- Yahoo
British Business Bank achieves £2.5bn in Growth Guarantee lending
The British Business Bank has achieved £2.5bn ($3.3bn) in lending through its Growth Guarantee Scheme, a programme designed to enhance access to finance for smaller UK businesses. This scheme has seen 69% of its lending directed to businesses outside London and the southeast, highlighting its broad geographic impact. In particular, more than £200m of lending has been provided in the North West, West Midlands, East of England, and Yorkshire and the Humber regions. The strategy supports a diverse range of industry sectors across the UK, including over £368m for manufacturing, more than £366m for wholesale and retail, and over £234m for the construction sector. Launched on 1 July 2024, the Growth Guarantee Scheme offers a variety of financial products through accredited lenders, such as term loans, overdrafts, asset finance, invoice finance, and asset-based lending. The initiative can back facility sizes of up to £2m, providing lenders with a 70% government-backed guarantee, while borrowers remain 100% liable for the debt. British Business Bank chief banking officer Reinald de Monchy said: 'This milestone is a demonstration of the important work done by the 50+ delivery partners who have signed up to the Growth Guarantee Scheme, since its launch in July 2024. In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported. 'The government's recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.' A new agreement was recently signed between the British Business Bank and Rural Asset Finance, aiming to unlock around £120m in funding for smaller rural and agricultural businesses across the UK. The facility is supported by funding from NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of NatWest's contribution. The agreement also features sustainability-linked incentives that may reduce borrowing costs if environmental performance targets are met. "British Business Bank achieves £2.5bn in Growth Guarantee lending" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Glasgow Times
3 days ago
- Business
- Glasgow Times
Glasgow gets £30m funding boost for innovation projects
The city will get at least £30m from the UK Government Local Innovation Fund. Lord Vallance, UK science minister, announced the cash, which could be used for key growth sectors including medical technology, life sciences, and the city's space satellite sector. The money comes from the Local Innovation Partnerships Fund (LIPF) of up to £500m, announced ahead of last month's Spending Review to empower local leaders with skin in the game. It will help target innovation investment and make the most of their communities' expertise to unleash discoveries that benefit us all and grow the economy as part of our Plan for Change. Glasgow City Region, Belfast-Derry/Londonderry and Cardiff were the three regions chosen to benefit after talks between the UK Government and the devolved administrations in Scotland, Northern Ireland and Wales. The decision to earmark at least £30m to three high-potential areas in Glasgow, Belfast-Derry/Londonderry and Cardiff was reached following collaboration between the UK Government and the governments of Scotland, Northern Ireland and Wales. Seven regions of England were also announced as recipients last month - spanning the North-East to Greater Manchester, Liverpool to London. Lord Vallance said: 'The Glasgow City Region has a proud history of transformative innovation and by working with local leaders who know their city best, this fund can help capitalise on the skills and drive that have earned that global reputation as a hub of science and technology. 'That could mean bolstering Glasgow's space cluster to unlock new opportunities beyond our planet or building on its history of cutting-edge medical technology, but ultimately this can back a wide range of research which can improve everyday lives and help deliver our Plan for Change for the UK.' Kirsty McNeill, Scotland Office minister said: "This £30 million investment in Glasgow City Region is great news. We are backing Glasgow's world-class expertise in areas like medical technology and advanced manufacturing while supporting local jobs and skills 'The UK Government is committed to unleashing Scotland's innovation potential and driving economic growth right across our country. Ensuring Scotland at the forefront of the technologies that will shape our future.'
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Scottish companies attract 5% of lending from UK scheme
The British Business Bank said that 69% of this lending has been delivered to businesses outside London and south-east England. It added that the scheme has supported a 'wide range of industry sectors' across the UK, declaring: 'This includes over £368m for manufacturing, over £366m to wholesale and retail, and over £234m to the construction sector.' The growth guarantee scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow, the British Business Bank observed. It added that the scheme launched on July 1, 2024, 'with a wide range of products supported by a broad variety of accredited lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending'. Read more The growth guarantee scheme can support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee. The borrower always remains 100% liable for the debt, the British Business Bank noted. Gareth Thomas, UK minister for small business, said: 'As part of our plan for change we are committed to breaking down the barriers SMEs (small and medium-sized enterprises) face when starting and scaling up, to create jobs and further boost the economy. 'This is an important milestone for the growth guarantee scheme, which plays a key role in helping us achieve this by providing vital access to finance for smaller businesses right across the UK.' Reinald de Monchy, chief banking officer at the British Business Bank, said: 'This milestone is a demonstration of the important work done by the 50-plus delivery partners who have signed up to the growth guarantee scheme since its launch in July 2024. In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported. 'The Government's recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.'
The National
23-07-2025
- Business
- The National
Anas Sarwar urged to break silence on Labour's 'nuclear tax' for Scots
Energy Security Secretary Ed Miliband has confirmed the Sizewell-C plant will cost £38 billion, nearly double the previous estimate of £20bn. Miliband snuck out a statement hours before Parliament was due to go into a six-week summer recess, admitting energy bill payers would face a decade-long levy as a result of the price hike. This is despite Labour promising ahead of the General Election that their flagship GB Energy policy would save people £300 a year on their energy bills. In actual fact, bills are on average 10% higher than they were this time last year. READ MORE: Renewables transition fund for Aberdeen oil workers launched It also comes after Chancellor Rachel Reeves cut £2.5 billion from GB Energy to fund English nuclear reactors at the Spending Review. An average of £1 will be added to each household's energy bills per month from autumn, over the duration of the nuclear site's construction phase. (Image: NQ) SNP MP Graham Leadbitter (above) has now written to Scottish Labour leader Sarwar to seek clarity on whether he still backs the plant given its spiralling cost and the fact Scots it will "punish Scottish bill payers". The letter says: "These English nuclear power plants are extortionate, but the bombshell announcement that your Labour Government slipped out was that they are to be funded by a decade-long levy on Scottish energy bills. "To be absolutely clear: in energy rich Scotland, Scots will pay more money on their energy bills to pay for English nuclear power plants. "If Ed Miliband's stated figures are correct, it could see Scots foot a £300m bill for a nuclear power plant south of the border – a 'nuclear tax' on every Scottish energy bill. A grave injustice and a far cry for your party's pledge to cut energy bills which have soared by £150 on your watch. READ MORE: Scottish Water hits back at UK minister Steve Reed's pollution claim 'Any politician from Scotland worth their salt will call this out for what it is - completely absurd. Yet far from that being the case, it seems Scottish Labour is happy to cheer on investment in England at the expense of Scottish industry and Scottish bill payers. "You and your party stand squarely behind these extortionate white elephants despite Scotland's energy future being bound in the success of renewable energy projects, carbon capture and closer links with Europe. 'Your continued silence on this matter begs the question whether you support these plans that will punish Scottish bill payers - if not, when will you speak out?" Sarwar has previously urged John Swinney to end the Scottish Government's "ideological block" on nuclear power. The UK Government announced on Tuesday that it had signed a deal with a group of investors on Sizewell-C. The Government will become the biggest equity shareholder in the project with a 44.9% stake. New investors include Canadian investment fund La Caisse with 20%, British Gas owner Centrica with 15%, and Amber Infrastructure with an initial 7.6%. Scottish Labour have been approached for comment.
Business News Wales
22-07-2025
- Business
- Business News Wales
Strategy Without Substance - The Hidden Cost of Missed Priorities
This article has been co-authored and researched by Frank Holmes, Partner Gambit Corporate Finance and University of Bath student Ben Greenhaf. Whether we are citizens, employees, scholars or consumers, our daily lives are heavily shaped by strategies from public, private, academic and governmental institutions. Yet, many of these strategies are rooted in pre-set mission statements, off-the-shelf management models, or narrow organisational agendas. They often fail to identify the root causes of the problems they aim to solve, leading instead to short-term fixes that allow inefficiencies to return time and again. At its core, strategy should be a blend of policy and action aimed at solving major challenges or unlocking new opportunities. For a strategy to succeed, it must identify the 'crux', the central issue that appears solvable and then design a clear plan to remove obstacles to its resolution. Recently, the UK government launched a range of initiatives designed to stimulate growth. These include the 10-year Industrial Strategy 2025, the upcoming Spending Review, Investment and Industrial Zones, AI Growth Zones, and a Strategic Sites Accelerator designed to address stagnant productivity. These initiatives are emerging at a time of record national debt, an expanding population of economically inactive individuals, and widespread infrastructure vulnerability. The UK's economic decline predates recent shocks like the COVID-19 pandemic and the war in Ukraine. It can be traced back to Brexit, the 2008 financial crash, and even the end of the 1990s ICT boom. Weak demand, volatile liquidity, and persistent uncertainty have choked economic momentum. While technology has steadily progressed, productivity has remained flat, with low levels of R&D investment and a general reluctance among businesses to commit to capital improvements or workforce development. Instead, many firms have responded to rising demand by simply increasing their labour inputs, rather than by improving efficiency. This stagnation has reached a point where the Bank of England is now warning that slack in the labour market, fewer people being hired or remaining in work, may justify lowering interest rates. All signs point to one inescapable conclusion: we must repurpose human capital and embrace digital efficiency if we are to revive productivity. But this won't be painless. The transition will bring job displacement due to automation and artificial intelligence, and it will require significant investment in skills, training and social infrastructure to support those affected. Currently, only around 15% of UK firms (approximately 432,000) use AI. Yet, research from St Andrews Business School suggests AI adoption could boost SME productivity by up to 133%. The challenge is that the benefits will not arrive overnight. As with the adoption of computers in the 1960s, which only produced significant productivity gains from the mid-1990s onwards, there will be a lag. But the long-term gains could be substantial, with researchers estimating digitalisation could push UK productivity growth to 2.8% annually over the next decade. In the meantime, governments and public institutions must focus their efforts. They need to promote procurement that supports innovation, invest directly in R&D and skills, revise outdated competition rules, remove regulatory barriers, and stimulate demand through targeted fiscal policy. Infrastructure gaps, especially in housing and energy, must be addressed with urgency, and businesses must be incentivised to adopt net zero commitments. While these aims are reflected in various government announcements, such as energy bill subsidies, the true test lies in delivery. Turning policy into real outcomes is where success or failure will be determined. Geopolitical instability reinforces the need to avoid deindustrialisation and instead push for national security through self-sufficiency. Manufacturing continues to be a vital pillar of the UK economy, powering supply chains and contributing significantly to research and development. As factories evolve with greater automation and digitalisation, the demand for a new breed of skilled workers, technicians, engineers, and digital specialists is accelerating. However, nearly half (47%) of employers in advanced engineering report that their workforce lacks the necessary IT capabilities. Despite this challenge, the UK possesses world-class design talent and a rich vein of intellectual property and brand development. These strengths not only enhance the competitiveness of our manufacturing sector but also offer global open-source and licensing opportunities—with minimal need for heavy capital investment. With larger firms employing only 40% of the workforce, it's clear that widespread training must reach smaller enterprises too if we're to unlock meaningful productivity gains. The green energy transition adds further urgency. The UK must be able to manufacture its own wind turbines, modular nuclear components, and grid infrastructure if it wants to avoid supply chain disruption and remain globally competitive. There's a well-worn phrase: we have godlike technology but childlike attention spans. Despite astonishing advances, we repeatedly squander the potential for prosperity. That must change. Our past success was built on a willingness to take risks, work hard and invest in long-term goals. National pride and discipline helped power innovation and economic progress. Without those traits, our current trajectory of slow decline could become irreversible. This may sound bleak, but it's a realistic assessment. From the economy to healthcare, housing, education and immigration, the UK faces a series of interconnected crises. Each will only improve if we address the crux of what is driving their deterioration. Three centuries ago, we led the world through bold ideas, entrepreneurial spirit and practical application. We now need leaders willing to face short-term discomfort in order to rebuild long-term national strength.
