High flying start ups will be able to tap into a further £200m of government support “for high growth businesses as the UK leaves the European Union”.
The Brexit boost will be administered by the British Business Bank, which provides funds through its 120-strong network of banks, leasing firms, venture capital companies and digital platforms such as OakNorth and Funding Circle.
The Treasury said the extra cash will be made available in recognition that UK firms will see “changes” in their relationship with the European Investment Fund, which supports small and medium sized businesses across the EU.
Exchequer secretary Robert Jenrick said the government is determined to make the UK the best place in the world to start and grow a business.
Jenrick added: “The UK is creating more start-ups and attracting more venture capital funding than any other European country, but we want to do more to ensure our small businesses and entrepreneurs can thrive. That’s why we are injecting a further £200m into the British Business Bank, specifically to back businesses that are starting out and scaling up”.
The British Business Bank, established in 2014, currently supports some 82,000 smaller businesses with more than £5.9bn worth of finance.
The bank’s chief executive Keith Morgan said: “We welcome HM Treasury’s confirmation today that this allocation of £200m is now available to increase provision of much-needed scale-up capital for innovative businesses across the UK. We look forward to putting the funding to good use through our delivery partners to enable such businesses to get the funding they need to grow and prosper.”