Treasury pumps £400m into Midlands Engine fund

THE Treasury is putting £400 million into the next generation of the Midlands Engine Investment Fund, bringing the total amount of investment available to SMEs in the region to more than £700 million.

The Government said it represented a significant commitment to support access to finance in the Midlands - a region which it says has suffered from gaps in the market.

This next generation of the MEIF, which is delivered by the British Business Bank, will provide “significant scale growth capital” through a combination of debt and equity available for firms in the region.

The Government said an additional £50 million has been allocated to the current MEIF programme to take it to £300 million, ensuring continuity of funding while the next generation of MEIF comes online.

The existing regional funds have been in operation since 2017 and were set up to help address market gaps in access to finance and support regional economic growth, through jobs, upskilling workers and helping businesses scale up.

In 2020, the MEIF was responsible for 25 per cent of all equity deals in the Midlands and the current fund has invested £142 million in Midlands SMEs since launch in 2017.

Its investments have helped leverage a further £150 million of private sector funds into those businesses and is forecast to create more than 3,800 jobs.

British Business Bank chief executive Catherine Lewis La Torre said: “The Chancellor’s announcement is a clear and welcome show of support for the Midlands’ most ambitious and innovative businesses and the success of the MEIF to date. Since launching in 2017, the MEIF has helped more than 460 businesses invest, innovate, grow and create jobs.

“There is a strong sense of momentum and ambition in the Midlands right now. The region’s businesses are looking to come back stronger and push forward with growth plans. These funds will continue to support innovation, expansion and the creation of high value jobs.”