Government investment in Southern start-ups is five times higher

A report conducted by the Labour Party exposes the economic divide between North and South, reports Abby Ashley-Gardner

Abby Ashley-Gardner
7th March 2021
Map: Tabitha Edwards; Money bills: George Boatfield
An analysis released by the Labour Party found that the Government provided start-up businesses in the South of England five times as much funding as those in the North and Midlands. 

The data showed that South East and London based businesses received funding of more than £700 million, whereas those in the North, Yorkshire and the Midlands combined received £140 million.

Labour's analysis of Future Fund data shows that the average award for individual businesses in London was £1,058,422, compared to £892,857 in the North East.

“The discrepancy is even starker when compare the population with 18 million people in the South East and London to 28 million in the North, Yorkshire and Midlands.”

- Ed Miliband, shadow business secretary

Ed Miliband, the shadow business secretary, accuses the Government of “reinforcing economic imbalances in our country”. 

The report argues that the figures are especially alarming when considering the comparative population sizes of the different regions, stating: “The discrepancy is even starker when compared to the population with 18 million people in the South East and London compared to 28 million in the North, Yorkshire and Midlands.”

The Future Fund programme is designed to support businesses impacted by the pandemic that are usually reliant on equity investment.

These figures also highlight the regional inequalities in terms of the number of businesses supported as approval rates for applications from the North West, Scotland, Wales and West Midlands were 84% lower than those from London and South East businesses.

“Their interventions are making regional inequality worse, not better”

Ed Miliband, the shadow business secretary

The Labour Party argues these findings show the Government’s failure to encourage innovation outside of the South. 

Ed Miliband said: “While the Government talks about backing the North and Midlands, the reality is starkly different. Their interventions are making regional inequality worse, not better.”

A Government spokesperson said in response: “We have provided an unprecedented £280 billion of support for businesses affected by COVID-19 in every nation and region of the UK.

“The Future Fund uses a set of standard terms with published eligibility criteria, independent of ministers.

“In addition to the Future Fund, the British Business Bank has provided nearly half a billion pounds to high-growth firms outside of London.”

(Visited 45 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *

ReLated Articles
magnifiercross
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram
Copy link
Powered by Social Snap