Businesses across the country are scrambling to attract finance from private investors after the Bank of England announced it would pump £1.5bn into a £2bn fund aimed at helping new entrepreneurs.
The announcement came after the country’s business community expressed frustration at a lack of investment from banks.
The £1 billion fund will be backed by the Bank’s flagship fund for entrepreneurs, and will target those who have been successful in building businesses, such as entrepreneurs and those with small businesses.
“The new fund will help those who are already in business to get a competitive edge,” said a Bank of Britain spokesman.
The BoE said it was working with the business community and others to support the new fund, which is expected to have a positive impact on the economy.
The UK has been struggling with high unemployment, low interest rates and rising interest rates on mortgages and other debt.
BoE Governor Mark Carney has said it will help businesses to attract investors and encourage the UK to remain an attractive place to do business.
“We are looking to support new businesses, but also existing businesses, as well as helping to spur growth and jobs in the wider economy,” he said.
“As this fund is a complement to the Bank-led fund, it will provide greater support for existing businesses and also support those that are currently in the business.”
He said the BoE’s “long-term growth plan” would see the fund grow from £10bn to £16bn a year.
“Our long-term plan will support the economic recovery and the UK’s economic recovery, with long-lasting benefits for everyone,” he added.
The Bank of Scotland’s chief economist said the announcement was “another sign of confidence” in the financial sector.
“This is another signal that the BoEs long-range growth plan will deliver the long-run economic benefits that many expect,” John Kaye said.
He added: “It is also another signal of confidence that the Bank is on the side of the entrepreneurs, that it will support those who want to invest in the economy, and that it is helping to stimulate the economy.”
The BoS deputy governor Mark Carney said the fund would help companies attract investors.
“It will help to build a business, to get an edge and get a head start on the competition and create jobs, and it will enable the private sector to invest,” he told BBC Radio 4’s Today programme.
“There are a lot of people out there who are going to be able to get this money through.”
The fund will have a focus on those who were already in the sector, including small businesses and entrepreneurs.
BoEs deputy governor John Kayes says the fund will focus on people who have already got their start.
He said: “We’ve got to make sure that we can attract investment into the business in the long run.”
We need to get more people into the economy and there is a lot that can be done to attract them.
“So, the BoS is providing financial support to encourage investment.” “
We know that the UK is not an easy place to start a business,” he explained.
“So, the BoS is providing financial support to encourage investment.”
A spokeswoman for the Business Council of Great Britain said: ‘There is an opportunity for companies to be funded through a private fund.
This is a great way to help businesses get off the ground and to be competitive.’
It added that “the UK’s economy has already benefited from a boom in the construction and manufacturing sectors”.
The spokeswoman said: “[The BoEs] support will help the UK remain an economically competitive place to invest.”
However, the BBC’s business editor, David Barboza, said that “some are going ahead anyway, hoping for an easy fix” by the BoG.
“That will be the case with the BoR fund.
” The BoB’s chief executive, Ben Broadbent, told the BBC: “In order to create the kind of growth we need to sustain the recovery, the UK needs more business to enter the economy – businesses that are creating jobs and creating the prosperity that we want. “
“And the UK has the skills, and the business, the capital to do it.” “
The BoB’s chief executive, Ben Broadbent, told the BBC: “In order to create the kind of growth we need to sustain the recovery, the UK needs more business to enter the economy – businesses that are creating jobs and creating the prosperity that we want.
“And the UK has the skills, and the business, the capital to do it.”
So I think that’s the point.
“If you can attract some business into the country, that will make it easier for people to get into the UK.”
The BCSB chief economist, Simon Jenkins, said the new investment would help businesses in areas such as manufacturing and construction.
He told the Today programme: “What I’d like to see is more funding for the private capital investment in this sector.”