Business News Round Up (29/07/2025)
Growth Guarantee Scheme: British Business Bank celebrates £127m Scottish lending milestone
The British Business Bank has reached the landmark milestone of £2.5bn of lending under its Growth Guarantee Scheme, with £127 million committed through 766 loans to small businesses in Scotland. Overall, 69% of lending has been delivered to businesses outside London and the South East – including 5% in Scotland. Support provided across diverse UK industries includes over £368m for manufacturing, over £366m to wholesale and retail, and over £234m to the construction sector. The Growth Guarantee Scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow. Launched on 1 July 2024, with a wide range of products supported by a broad variety of accredited lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. The Growth Guarantee Scheme can support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee.
UK construction activity tipped for growth, but uncertainty rises
New research has revealed that the key drivers of ‘cautious growth’ in UK construction remain similar to three months ago, but the economic risks and uncertainties have risen ‘considerably’. The Construction Products Association’s (CPA) Summer Forecasts states that total construction output is forecast to rise by 1.9% in 2025 and 3.7% in 2026. The growth in construction activity is tipped to be driven by the three largest sectors: private housing new build, private housing repair, maintenance and improvement (rm&i) and infrastructure. However, the CPA said these sectors remain vulnerable to delays in starting new projects in the near-term, homeowner and consumer confidence to spend, and risks around the government increasingly looking as though it will need to raise taxes once again, potentially cut back on its capital expenditure plans, or both.
Glasgow City Region gains £20m innovation funding
Local leaders in every UK nation are now being backed by at least £30 million each to unlock potentially transformative research and local innovations, the UK Sciences and Technology Secretary announced. The Glasgow City Region, Cardiff Capital Region, and Belfast/Derry-Londonderry are the latest parts of the UK to be supported by the Local Innovation Partnerships Fund of up to £500 million, to empower local leaders with skin in the game. It will help target innovation investment and make the most of communities’ expertise to unleash discoveries that can benefit the UK or create businesses central to economic growth. The decision to earmark at least £30m to each of these three high-potential areas in Scotland, Northern Ireland and Wales was reached following collaboration between the UK government and the governments of each nation.
https://www.digit.fyi/glasgow-city-region-gains-30m-innovation-funding
Greater Manchester Further Education Innovation Programme is celebrating the outstanding success of its pilot year
The Greater Manchester Further Education Innovation Programme (GMFEIP) is celebrating the outstanding success of its pilot year, which has seen innovation support and training delivered to thousands of businesses and apprentices across the region. Backed by £2.5 million in funding from Innovate UK, GMFEIP empowered nine FE colleges across Greater Manchester to deliver bespoke innovation support to more than 1,000 SMEs. Rather than concentrating resources in traditional city-centre innovation districts, the programme has embedded innovation capacity in all ten boroughs, ensuring that support reaches employers often overlooked by conventional strategies. At the heart of GMFEIP is its mission to support the “missing middle” — SMEs that are too large for start-up funding yet too small to access major R&D grants. These businesses form the backbone of Greater Manchester’s economy and now have a local partner in their FE college offering tailored, practical solutions to drive growth and innovation.