Barclays has launched a new £500m growth fund for small and medium-sized businesses in the North of England as part of the bank’s commitment to support the Government’s Northern Powerhouse initiative. The new fund is available to inject investment into businesses across the region – including Yorkshire and Humberside – with favourable terms for manufacturing, transport and logistics companies, helping them to grow and create new jobs.
Launching the fund, Jes Staley, Barclays Group CEO, said: “Barclays has been helping businesses across the North to succeed since the dawn of the Industrial Revolution, when we financed the world’s first steam locomotive passenger railway between Stockton and Darlington. Today, we face new economic challenges and opportunities posed by the digital revolution, the growth in competition from emerging markets, and of course, Brexit.
“The Northern Powerhouse is an initiative which, if delivered, would help the whole country to meet that challenge and take those economic opportunities. That is why I’m delighted to announce our £500 million Northern Powerhouse Growth Fund, enabling businesses across the North to invest in jobs and growth. As the UK prepares for Brexit, it’s vitally important that businesses, civic leaders and Government work together to make the Northern Powerhouse a reality. That means supporting entrepreneurs and businesses to succeed, but it also means providing more ways into high quality work.”
The new fund was announced by Jes Staley as he visited Thornton Brothers Limited, in Ashington, Northumberland. The business was founded by two brothers George and Keith Thornton in 1979, who started out with £25,000 of lending from their local Barclays branch. They have since built up the business, which now employs over 70 highly-skilled engineers who modernise fleets of buses for major transport providers across the UK, including Transport for London, Go-Ahead and First Group Ltd.
George Thornton, co-founder of Thornton Brothers Limited, said: “Our family-run business was founded 40 years ago with the help of a loan from Barclays, which is why it’s so fantastic to see a growth fund of this size being launched today to help other entrepreneurs just like us. We specialise in bus refurbishment, serving a number of transport providers from across the country, helping them to modernise their fleets and serve communities.
“This fund will be a real boost to businesses just like ours across the North of England. Gaining access to finance over the years has enabled us to grow our business, hire a number of skilled engineers and build a new state of the art garage with some of the best specialist facilities of their kind in the UK.”
Commenting on the Barclays fund, John Worrall, managing director of Proper Pasty, based in Sheffield, said: “A Northern Powerhouse fund from Barclays would be excellent and provide access to finance in a new and different way. It would enable us to maximise the capacity within our existing factory and allow us to grow our business faster through an additional depot and increased fleet which would open us up to new markets.”
Marcus Doyle, co-founder of the Yorkshire Soap Company, based in Leeds, said: “This fund will potentially help us massively as we will be able to invest in new machinery such as labelling and filling machines which cost thousands of pounds. With extra investment, we could also employ more people and additional stores could be opened.”
In Yorkshire and the Humber, Barclays has a major mortgages operations centre in Leeds, and has announced plans for an Eagle Lab co-working space in Sheffield that will foster entrepreneurship.
Later, Jes Staley also met Barclays apprentices at one of the bank’s major contact centres in Doxford International Business Park, near Sunderland. The centre employs 1,600 people in customer support roles doing everything from providing mortgages, to helping to fight fraud against customers, to advising small businesses. The company has already doubled the number of apprentices it has hired in Sunderland in 2018 in comparison to last year.
During the visit, Jes Staley announced a pilot scheme for new retail entry roles in the bank’s Sunderland and Liverpool contact centres to be focused towards apprenticeships first.
Jes Staley said: “We’ve discovered at Barclays that the ‘can-do’ attitude our apprentices have means they are excellent at helping our customers and clients. We want more people to have the life-changing career opportunity that a quality apprenticeship provides.”
Small Business Minister Andrew Griffiths said: “This Government is fully behind the entrepreneurs delivering jobs, growth and greater choice for consumers so it’s great to see businesses like Barclays providing further investment to help Northern SMEs start-up and grow. Small businesses are the backbone of our economy, with over 1,000 being created every day across the country supporting nearly 3 million jobs and generating revenues of more than £200 billion in the North of England alone. Through our modern Industrial Strategy, we are building a Britain in which they will continue to thrive.”
Northern Powerhouse Partnership Vice-Chair and leading economist Lord Jim O’Neill said: “I have consistently said that for the Northern Powerhouse to be a success and deliver a more balanced economy for the whole of the UK requires the support and vision of the North’s leading businesses. This major fund from Barclays will significantly increase the potential of our SMEs across the Northern Powerhouse to embrace the next Industrial Revolution, incorporating innovation such as robotics and AI into everything they do.
“There is real momentum growing in the Northern Powerhouse, and I hope the commitment Barclays and their CEO Jes Staley have demonstrated today will be matched by our political leaders in Whitehall so the Northern Powerhouse can truly fulfil its potential.”
Francessca Teasdale, a Barclays apprentice based in Doxford International Business Park, said: “Barclays is known for being a good employer and having lots of room for progression and development, which is why I decided to apply for an apprenticeship online, and the rest is history. I’m earning while learning, and I’ve formed great relationships with my peers and colleagues. To anyone thinking of doing an apprenticeship, I’d say go for it! You’ll have amazing qualifications, a career and friends for life.”
Under the £500m Northern Powerhouse Growth Fund, Barclays will be able to offer a range of business lending services to support day-to-day cash flow, expansion and investment for growth, including:
- Up to £250,000 overdraft without the need for property security for transport and logistics, business services, wholesales and manufacturing companies1
- Term lending fee-free up to £25,0002
- Up to £100,000 lending without the need for tangible security3
- Cash flow funding to invest in acquisitions and organic business growth
- Lending and debt support, which can be combined with the Government’s Northern Powerhouse Investment Fund
The Barclays fund is intended for SMEs in the Northern Powerhouse region, including: established businesses with ambitious growth plans, start-ups with high growth potential, companies with early-stage equity funding and businesses focusing on innovation, R&D and technology.4
More details on the fund and how to apply can be found at: barclays.co.uk/business-banking or via a local relationship manager on 0333 202 7446.