Monday 25 Oct 2021

£150 million budget boost for Scottish small businesses

The Chancellor is expected to announce a new, £150 million fund to help thousands of small and medium sized enterprises in Scotland at this week’s budget – building on the Government’s commitment to level up opportunities across the UK.

The fund will be delivered through the British Business Bank, working closely with local partners, and will help Scottish SMEs to invest and grow. It will build on the success of existing funds in other parts of the UK, which have been shown to support the creation of high-paying high productivity jobs and the upskilling of existing workforces.

Similar existing funds in England and Northern Ireland typically provide loans or invest in local companies – this can be recent start-ups looking to borrow smaller amounts to kickstart activity or established SMEs looking for larger investments to grow their business. Details on how businesses in Scotland can access the fund will be outlined in due course.

Chancellor Rishi Sunak said:

“This fund will help thousands of small businesses in Scotland to make ideas a reality and grow their companies . I’m always impressed by the innovation and determination of SMEs and the UK government will continue to support businesses across the UK.”

Since the start of the pandemic the UK Government has spent £352 billion right across the UK on support measures. In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.

In addition to the £150 million for Scotland, Wales will benefit from £130 million for a new fund and the British Business Bank will receive an additional £70 million to build on existing programmes in Northern Ireland.

Contact Information

HMT Press Office
020 7270 5238
pressoffice@hmtreasury.gov.uk

Notes to editors

Notes to editors

Examples of how similar funds have been used in England

Slingshot Simulations Founded as a spin-off from the University of Leeds, Slingshot Simulations was first backed by Northern Powerhouse Investment Fund in 2019 which also included investment from the university. Slingshot is a start-up and global pioneer in the field of ‘digital twin’ technology. Its technology allows businesses to create a virtual model of an object or a location to test new ideas – for example, to find the best layout in a building to reduce COVID-19 infections, or the most cost-effective route for goods from warehouse to delivery. Slingshot recently raised a further £1.5m of investment, including from NPIF, to support the roll out of its system to its first commercial customers.
Locate Bio Limited (formerly Locate Therapeutics) Pioneering specialist in regenerative medicine, Locate Therapeutics, has received the first equity investment from the Midlands Engine Investment Fund (MEIF) Proof of Concept & Early Stage Fund. The Nottingham-based firm received £400,000 from MEIF as part of an overall £2m investment. The capital will help the firm to deliver an innovative targeted drugs and stem cells delivery system to market, and also enable the company to add six more experts to its team and open the doors to international trade.