Nations and Regions Tracker 2025 (British Business Bank)

Summary

• The proportion of UK smaller businesses using external finance fell by 1 percentage point to 45% in 2024, with Northern Ireland recording the highest usage rate (52%) and the East Midlands the lowest (39%).p.13
• In 2024, SME loans and overdraft facilities approved or increased by the UK's major banks rose by 33% in number and 4% in value compared to 2023.p.7
• Total UK equity investment in smaller businesses fell by 2.5% to £10.8bn in 2024, with deal volumes declining 15.1% to 2,048 deals.p.40
• In 2024/25, the British Business Bank supported 24,000 new businesses, 84% of which were located outside London, generating an estimated £4.7bn in GVA and supporting 22,100 jobs outside the capital.p.8

Key insights

1. External finance usage by UK smaller businesses remained stable at the national level at 45% in 2024, but regional trends were split with half of nations and regions declining and half remaining stable or growing.p.6
2. Core debt demand rebounded in 2024 across every UK nation and region except Northern Ireland, led by a 57% increase in approved loan and overdraft facilities in the South East.p.7
3. Scotland, the North West, and the East Midlands were the only three UK nations and regions to record annual expansion in both equity deal numbers and investment value in 2024.p.7
4. The local presence of venture capital investors outside London grew from 3 unique offices per 100 high growth enterprises in 2023 to 5 in 2025, outpacing capital-city growth for the first time since 2017.p.8
5. Smaller businesses in highly deprived areas display lower debt usage (6% for overdrafts, 2% for commercial loans, 7% for asset finance) compared to non-highly deprived areas (10%, 5%, and 9%).p.30
6. Seed stage equity investment values rose 18.4% across the UK in 2024 to £1.97bn, driven by a 42% increase in investment value outside London.p.47
7. The British Business Bank's total financial capacity was expanded to £25.6bn, backed by a £6.6bn government capital commitment aligned with the UK Modern Industrial Strategy.p.49