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More loans were handed out to entrepreneurs in the North of England from the Government-backed British Business Bank than their rivals in London, it has been revealed.

Since launching in 2012, the bank has loaned £151m through its Start Up Loans programme to 18,612 small businesses based in the North East, North West and Yorkshire and Humber regions.

By comparison, London-based start-ups were given loans of £128m across 15,841 businesses, with an average loan of £8,126. The Government is keen to highlight the work it is doing in the North following the recent general election, which saw swathes of traditional Labour voters switch to the Tories.

In 2019 alone, the Start-Up Loans programme lent £25m in funding to help 2,355 people in the North to start a business.

Kelly Tolhurst, the minister for small business, said: “We need entrepreneurs to unleash Britain’s potential.

“This government is backing businesses right across the northern region and is determined to level up every part of the º£½ÇÊÓƵ. Start-Up Loans make it possible for even more people to get the funding they need to turn their business ideas into reality.” One businessman to have benefited from the loan scheme is Gary Ewing, owner of Inspiral Cycles, a bicycle shop and online retailer in Bishop Auckland, County Durham, which sells bikes, parts and accessories along with a full cycle workshop.

Mr Ewing used a £25,000 Start-Up Loan to purchase stock and equipment to kick-start the business. The shop now employs four full-time staff and, in order to cater for the needs of their growing client base, it is building an extension to double the size of its current space.

 

Mr Ewing said: “Starting a business is the best thing I’ve ever done.