Regional inequalities ‘stopping SMEs accessing loans and investment’

Half of businesses feel regional inequalities are hampering their financial health and ability to attract loans and investment.

It comes as the government is due to publish its long-awaited white paper on levelling up this month.

Levelling up the country and fixing regional inequalities such as access to jobs and transport links were key Tory election pledges.

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Research by alternative lender Nucleus Commercial Finance found 56 per cent of small- and medium-sized enterprises (SMEs) blame regional inequalities such as poor infrastructure for stopping them accessing investment.

Four in 10 blamed regional differences for their ability to get a bank loan.

Critics say the levelling up term has been poorly defined by the government so far.

This was backed up by the Nucleus research which showed half of firms were confused what levelling up means for their business and the country.

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“Despite the levelling up agenda being a central idea of Boris Johnson’s government, SME leaders remain confused about what this is and how it will impact their business,” Chirag Shah (pictured), chief executive of Nucleus Commercial Finance, said.

“In addition, it’s particularly concerning that they feel regional inequalities are putting financial pressures on their business and are severely impacting their opportunities to succeed.

“As SMEs are the backbone of the economy and will play a crucial role in helping the UK recover from the impact of the pandemic, it is vital that the levelling up white paper provides clarity for SMEs.

“This is an opportunity for the government to reinforce its commitment to level the playing field and put its promises into action.”

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