The North East economy is expected to see a £200m economic boost as a result of support from a Government-backed development fund.
The British Business Bank has issued its second annual Impact Report, demonstrating the support it has ploughed into the Ƶ and wider regions in the last year – a financial period which also includes backing from its recent £660m Northern Powerhouse Investment Fund II. The research shows it has supported 800 North East businesses in the 2024/25 financial year with funding that’s expected to generate £400m in additional turnover over the lifetime of the finance.
Around 8,200 existing jobs have been supported and an extra 900 jobs are also expected to be created through funding boost.
The figures include the Northern Powerhouse Investment Fund II (NPIF II) – which offers loans from £25,000 up to equity investment of £5m – which made investments of more than £80m into new and growing North East businesses since its launch.
Companies which have benefited from NPIF II backing include Durham fashion brand Charles Grey menswear, which is stocking up for expansion after securing a five-figure investment, and Chester-le-Street based engineering design consultancy JH Partners, which is set to create new jobs after securing a seven-figure investment deal.
Other notable deals announced during NPIF II’s first year include a five-figure investment from the NPIF II - NEL Smaller Loans Fund given to Newcastle-based Canny Folk hospitality group, to help it add a new Mother Mercy cocktail bar in Heaton, and a six-figure investment from the NPIF II – NEL Debt Finance Fund into North Shields-based energy equipment business Greener Solutions Group, to support multimillion-pound contracts and continued growth.
The British Business Bank said the Impact Report underlines its continued commitment to the North East and wider nations and regions, showing 84% of the businesses supported by the Bank in 2024/25 were based outside of London.
Shaun Fooy, senior network manager at the British Business Bank, said: “The North East is home to some truly extraordinary businesses, so it’s always a pleasure to take a step back and look at the very real impact we’re having on the region, and 2024/25 has been another very strong year for Bank support. It’s particularly encouraging to see that the share of businesses supported outside of London is so high, ensuring we’re backing businesses right across the Ƶ. There’s plenty more to be excited about in the coming year, and I can’t wait to see this impact grow further and support even more ambitious businesses.”
Across the Ƶ in 2024/25, the Bank supported a total of £6.8bn of finance for smaller businesses. This helped the Bank to support 24,000 businesses that hadn’t received Bank-supported funding before, as well as 4,000 that were first funded by the Bank before 2024/25.
