Chancellor commits £400m to next generation of Midlands Engine Investment Fund

The Chancellor has today announced a new £400m allocation for a new Midlands Engine Investment Fund to be delivered by the British Business Bank, bringing the total for investment in the region to over £700m.

This announcement represents a significant commitment by the government to support access to finance in the Midlands where we know there has been market gaps. This next generation of MEIF will deliver significant scale growth capital for business through the set-up of a new fund providing debt and equity to firms in the region.

An additional £50m has been allocated to the current MEIF programme to take it to £300m, ensuring continuity of funding whilst the next generation of MEIF becomes operational and funds are made open to investment.

This builds on the success of the existing regional funds in operation since 2017, which have helped address market gaps in access to finance, and are demonstrably effective in supporting regional economic growth, through supporting the creation of high-paying high productivity jobs, upskilling existing workforces, and supporting the scaling up of regional businesses. In 2020, the Midlands Engine Investment Fund was responsible for 25% of all equity deals in the Midlands.

The current MEIF fund has invested £142m in Midlands SMEs since its launch in 2017. Its investments have helped leverage a further £150m of additional private sector funds into these businesses and is forecast to create more than 3,800 jobs.

The new fund is HMG funded and its design is subject to consultation with local stakeholders.

Catherine Lewis La Torre, CEO of British Business Bank, said:

“The Chancellor’s announcement is a clear and welcome show of support for the Midlands’ most ambitious and innovative businesses and the success of the MEIF to date. Since launching in 2017, the MEIF has helped more than 460 businesses invest, innovate, grow and create jobs.

“Today’s commitment of a further £400m through the next generation of MEIF demonstrates the Government’s resolve in supporting the Midlands’ economy and ensuring the regions business community has access to the right finance, at the right time.

“There is a strong sense of momentum and ambition in the Midlands right now. The region’s businesses are looking to come back stronger and push forward with growth plans. These funds will continue to support innovation, expansion and the creation of high value jobs.”