A new report has revealed that the British Business Bank’s Nations and Regions Investment Funds (NRIF) has channelled £294m into smaller UK businesses.
The ‘Early Assessment Report’ by independent research company SQW Ltd found that the NRIF programme is helping UK SMEs to innovate and scale by successfully addressing long term regional financing gaps.
The report found that the NRIF programme delivered 951 investments to 877 businesses, bringing funding to firms that may have otherwise struggled to secure finance, as well as leveraging £233m of private sector investment alongside.
The NRIF programme supports businesses across a wide range of sectors: Manufacturing accounted for 15% of supported businesses, followed by information and communication (14%) and professional, scientific and technical activities (13%).
Reported evidence suggests that investments are already strengthening drivers of business growth and productivity. The supported businesses reported increased productive capacity (77%), improved efficiency (71%), improved workforce skills (66%) and development of new products and services.
The programme has also supported around £45.5m of additional research and development investment, with half of all companies increasing R&D output. Among recipients of equity, 57% secured institutional finance for the first time.
Adam Kelly, Managing Director of Debt & Regional Funds at the British Business Bank, said: “This evaluation demonstrates the important role the Nations and Regions Investment Funds are playing in improving access to finance for ambitious smaller businesses across the UK.
“While it remains early in the programme’s lifetime, it is encouraging to see strong evidence that the fund is supporting businesses that may otherwise have struggled to secure finance and helping to create the conditions for long-term economic growth.”
The six funds evaluated as part of the £1.6bn NRIF programme, were the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland. The data covers activity up to September 2025, so does not take into account recent investments in the East and South East.
