In this article, we hear from Dr Sophie Dale-Black, Director, UK Network – Midlands and North of England at the British Business Bank, about their new finance guide for smaller businesses and funding available.
It’s fair to say that the last 18 months have been challenging for everyone across the UK, small businesses and business owners across the manufacturing sector included.
The severe impact of the COVID-19 pandemic sent many businesses into survival mode, where the priority was finding ways to overcome the enforced closures, lockdowns and financial hardship that the spread of coronavirus brought. For some businesses, this remains a priority.
While it’s true that survival is still on some businesses’ minds, others have been able to recover and can now look positively towards the future.
Managing debt, improving cashflow and moving to recovery and growth
At the British Business Bank, we have produced a new guide for smaller businesses looking to manage their debt, improve cashflow and get set for growth. This guide includes contributions from Be the Business, an independent, not-for-profit organisation focused on helping business owners and leaders improve their businesses’ performance.
This guide has been designed to provide impartial information to help businesses through survival and onto recovery, helping them stabilise and move forward to growth and future success, focusing on the following areas:
- Understanding debt finance
- Managing debt
- Improving your cash flow
- Moving from survival to recovery and growth
- Resources for businesses worried about their debt
Next generation funds
Manufacturing is the sector most invested in by the British Business Bank’s regional funds in the Midlands and the North of England: the Midlands Engine Investment Fund and the Northern Powerhouse Investment Fund. Both programmes are delivered through the British Business Bank and focus on helping to address regional funding gaps for smaller businesses. These two funds have surpassed £300m (North) and £150m (Midlands) investment milestones, respectively, in the past few weeks.
The Spending Review announcements last Autumn saw the successes of these funds – and those of the Cornwall and Isles of Scilly Investment Fund and the Northern Ireland Growth Finance Fund – recognised through a further £1.6bn commitment to a next generation of funds:
- £660m for the Northern Powerhouse Investment Fund, including an expansion into the North East of England
- £400m for the Midlands Engine Investment Fund
- £200m to provide a new fund for businesses in the South West of England, building on the Cornwall and Isles of Scilly Investment Fund.
- £150m to provide a new fund for Scottish businesses
- £130m to provide a new fund for Welsh businesses
- £70m to expand provision for businesses in Northern Ireland
We look forward to working with the Devolved Administrations’ economic development banks and local stakeholders across the UK to deliver this increased support.
Meanwhile, the existing regional funds continue to be available for smaller businesses looking to grow their business, with top-up additional commitments having been announced over the past 18 months for both the Midlands Engine and Northern Powerhouse investment funds.
We look to the future with these new resources helping to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy, by supporting access to finance for smaller businesses.
*The views expressed are the author’s and not ICAEW’s.