Nations and Regions Tracker 2025

Key Findings  

• External finance usage among UK smaller businesses remained broadly stable in 2024 at 45%, just one percentage point below 2023. Usage was highest in Northern Ireland (52%). However, sub-national trends were mixed: half of UK Nations and regions saw declines, including a sharp drop in the East Midlands (-9 ppts), while others like the North West and East of England recorded modest increases.
• There were no major shifts in the types of finance used by UK smaller businesses in 2024, with most categories remaining stable and only minor declines in grants, bank overdrafts, and credit cards. Credit cards remained the most commonly used finance type in the UK overall, with 15%. Nevertheless, some regions - particularly the North East and the East Midlands - saw significant drops in usage of some finance types (including credit cards and leasing/hire purchase/vehicle finance) compared to 2023.
• Borrowing intentions improved modestly in 2024 across many Nations and regions, with a rising share of businesses open to using finance for growth and proportionally fewer identifying as future non-seekers of finance. Half of UK smaller businesses said they would seek external advice if needed in the future - up from 44% in 2023 - indicating growing openness to support, though actual uptake remains limited and uneven, especially among the smallest firms.
• Access to finance challenges are not always visible at the regional level and can be more acute in highly deprived areas. Smaller businesses in these areas are less likely to use debt products such as loans and overdrafts, often due to weaker credit profiles, limited collateral, and lower confidence in securing finance. These businesses also tend to be less confident in their ability to apply successfully and are less likely to receive the full amount requested when they do.
• Demand for loans and overdrafts by smaller businesses from major banks rose in 2024, with a 33% increase in number of facilities and 4% in value. Growth was seen across all Nations and regions apart from Northern Ireland. The South East led in terms of growth in the number of facilities and the West Midlands in terms of growth in value. However, long-term concentration of lending per capita varies remain uneven, with regions like Northern Ireland, Scotland, and the North West consistently above the UK average, while London and the East Midlands remain below.
• UK equity investment declined slightly in 2024 (-2.5%), with deal volumes falling more sharply (-15.1%) and activity continuing to slow into 2025, particularly outside London. Despite subdued national trends, regions like the North West, Scotland, and East Midlands saw growth in both deal volume and value from 2023 to 2024, and several city regions - including Greater Manchester, Cardiff, and Tees Valley - recorded a positive performance. While London remains the dominant hub for equity investment and investor presence, venture capital (VC) firms are expanding their footprint across the UK, with regional VC office growth outpacing London for the first time since 2017.
• In 2024/25, the Bank supported 24,000 new businesses - 84% of which were outside London - generating an estimated £4.7bn in additional GVA and supporting around 22,100 jobs across the UK. The Nations and Regions Investment Funds played a key role, and the Bank is now expanding geographically targeted interventions aligned with the UK’s Modern Industrial Strategy. These include new regional investment funds, in the East and South East of England, a major scale-up of the Regional Angels Programme, and targeted support for innovation clusters to address persistent local finance barriers in key city regions across the UK.