Rachel Reeves to unveil contemporary assist for small companies that would ‘unlock billions’
Rachel Reeves will announce expanded financial support for small and medium-sized enterprises (SMEs) in her final Mansion House speech on Tuesday, that could help unlock billions
Rachel Reeves is set to announce a major change on Tuesday for small businesses(Image: Anadolu via Getty Images)
Rachel Reeves is set to unveil a major boost for small businesses in what is likely to be one of her last acts as Chancellor.
Ms Reeves will announce expanded financial support for small and medium-sized enterprises (SMEs) in her final Mansion House speech on Tuesday, that could help unlock billions.
The flagship measure is the expansion of a Government guarantee on commercial loans for SMEs, aimed at helping British businesses borrow money to help them grow.
The Growth Guarantee Scheme (GGS) provides a 70% guarantee by the Government on loans to small businesses, and has provided more than £3.7 billion to SMEs since it was launched in 2022.
The Chancellor’s plans will provide a £6.5 billion uplift to the scheme, which the British Business Bank estimates will help 33,000 businesses across the UK over the coming three years.
The term length for loans is also being extended from six to ten years, and businesses with a turnover of as much as £54 million will be able to apply for the scheme, up from those with a £45 million turnover.
Ms Reeves said: “Our plan for the economy has put Britain on a stronger footing – restoring stability, getting investment flowing, and delivering reform.
“We know that small businesses are the backbone of this economy and growth in all our regions, and for too long they have heard ‘no’ when trying to raise the funds they need to grow and create jobs across the UK. When they succeed, we all succeed, and today’s major reforms are the most significant step in years to unleash their potential.”
It came as the Chancellor warned Andy Burnham must have a “worked-through plan” for governing Britain when he walks through the door of No 10 Downing Street.
Ms Reeves told the BBC “it is important that when Andy walks through that door he has a worked-through plan, because governing is hard in Britain, and lots of challenges and shocks will come his way”.
