Business News Round Up (21/10/2025)
SMEs lose access to key business loans scheme
Local businesses could face greater difficulty securing growth funding, after the Scottish Government confirmed it will not recapitalise the East Ayrshire-based Business Loans Scotland (BLS) fund, which has now entered its wind-down phase. The update, which will be presented to East Ayrshire Council’s cabinet, stated that the decision effectively ends one of the few local authority-led loan schemes available to small and medium-sized enterprises (SMEs) across Scotland. The report warned that while existing loans will continue to be managed until March 2029, no new lending will take place, potentially creating a significant funding gap for local firms unable to access commercial finance. BLS, a consortium of Scotland’s 32 councils, was launched in 2018 as part of the Scottish Growth Scheme, offering loans of £25,000 to £250,000 to SMEs which couldn’t secure backing from banks.
https://www.insider.co.uk/news/smes-lose-access-key-business-36105283
NPIFF II delivers £180m of support to Northern businesses
The Northern Powerhouse Investment Fund II (NPIF II) has directly invested £115 million into over 300 small businesses across the North of England alongside an additional £68m of private sector co-investment, taking its total delivery to more than £180m. Since its launch, NPIF II has now completed over 315 deals. Delivered by the NPIF II fund managers, the investments have assisted in driving sustainable economic growth by supporting innovation and local opportunities for new and growing businesses across the North. The Fund has supported a diverse range of business sectors, including advanced manufacturing, digital and technology businesses and the creative industries that align with the Government’s eight priority key sectors. Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment.
https://businesscloud.co.uk/news/npif-ii-delivers-180m-of-support-to-northern-businesses
Highest government borrowing in September for five years
UK government borrowing in September hit the highest level for the month in five years, official figures show, highlighting the challenges facing the chancellor ahead of next month’s Budget. Borrowing – the difference between public spending and tax income – was £20.2bn in September, up £1.6bn from the same month last year, the Office for National Statistics (ONS) said. A rise in debt interest payments offset the increased amount the government had raised through tax and national insurance, the ONS said. Borrowing over the first six months of the financial year has now reached £99.8bn, which is up £11.5bn from the same period last year. The figures add to the pressure on Chancellor Rachel Reeves, who is expected to raise taxes in November’s Budget to meet her self-imposed rules for government finances.
https://www.bbc.co.uk/news/articles/c8035130918o
Greater Manchester secures £20 million in funding for innovation
A new cash boost of £20 million for Greater Manchester will help to deliver more of the region’s game-changing local innovations like robotics to unlock new medicines or AI that can spot illnesses earlier. The announcement by the Science and Technology Secretary comes ahead of tomorrow’s landmark Regional Investment Summit in Birmingham. The funding package will give Greater Manchester Mayor Andy Burnham access to a total of £50 million to fund innovations in science and technology in the city region, like the next lifesaving medicine or cheaper fuels that can keep bills down. Regional funding has boosted Greater Manchester’s growth into a global AI hub, connecting university technical expertise to start-ups and SMEs so they can turn early-stage ideas into viable products – from tech which can predict disease progression earlier to work on net zero innovations to decarbonise buildings