Labour plan to provide more money for start-ups

YORKSHIRE’S START-UP businesses need a strategic investment to boost recovery, Labour has said.

The party claimed the region’s start-ups had been underfunded compared to the rest of the country, with figures from the British Business Bank showing new businesses in Yorkshire received just one per cent of equity investment in the UK in 2019, despite being home to seven per cent of small businesses.

In comparison, the figures showed London received 66 per cent of investment despite being home to 19 per cent of small businesses.

Labour said its proposals would target funding at Yorkshire and other under-funded regions and focus on businesses with high-growth potential.

It comes as MPs Tracy Brabin and Rachel Reeves hosted a virtual event yesterday focussing on how West Yorkshire can recover from the pandemic.

Leeds West MP and Shadow Cabinet Minister Ms Reeves said there were immediate things for the Government to address now, but she said: “I also want the Government to take this opportunity to think about how our economy and society works, and not just to build back, but to build something more resilient, more secure, and stronger for the future.”

West Yorkshire mayoral candidate and Batley and Spen MP Ms Brabin added there was an opportunity to “lead our own recovery” due to the devolution deal.

Ed Miliband, Shadow Business Secretary and MP for Doncaster North, said: “The pandemic has not only seriously affected existing businesses, it has stifled business creation. As well as supporting businesses to survive the crisis and beyond, Labour is determined we tackle the deep inequalities in our country by investing in new businesses in Yorkshire.”