Report and publications
Our Nations and Regions Tracker 2024 presents an analysis that highlights geographic patterns observed in UK small business finance, based on the latest data available. This is the Bank’s fourth annual Nations and Regions Tracker, designed to complement our flagship Small Business Finance Markets report with additional Nations and regions analysis.
This year’s report comprises three main chapters. The first chapter is an overview of finance markets in the 12 Nations and regions of the UK, utilising industry data and our own management information to give as complete a picture as possible. The overview explains which forms of finance are most used across the UK and delves into some of the geographic imbalances and recent trends in usage we see. The second and third chapters provide more in-depth analysis on debt and equity finance markets respectively, highlighting recent trends in smaller businesses’ use of these types of finance.
Alongside the main report, we are releasing complementary fact sheets that cover more of the key datapoints for each Nation and region to provide a deeper understanding of finance markets in those locations.
Key findings
- External finance use among smaller businesses recovered in 2023 across most UK Nations and regions, reaching 46% from 36% the year before. Usage rates were highest in Wales (53%) and only the East of England saw no positive change.
- Borrowing intentions in 2023 also suggested a modest improvement in future demand for external finance across most Nations and regions. Use of credit cards in particular saw the strongest upturn nationally, while grants, bank loans, and loans from family and friends all experienced a fall compared to 2022.
- The number and value of loans and overdrafts secured by smaller businesses from major banks continued to fall in 2023, by 9% and 18% (in real terms) respectively but the rate of decline seen in 2022 had eased across most UK Nations and regions.
- Finance use patterns in 2023 reflected cautious optimism by smaller businesses, many of whom said they were still affected by ongoing challenges such as the impact of rising costs (76%) and concerns about the trading environment, with 61% reporting they still believed this offered more threats than opportunities. Smaller businesses’ confidence in their ability to get finance also continued to vary substantially across the UK, hitting 61% overall but ranging from 52% in Scotland to 77% in Northern Ireland.
- Equity activity remained on a downward trend throughout the UK in 2023. Last year, equity deal activity declined across all UK Nations and regions relative to 2022, with London experiencing a significant drop in both the number and value of deals of 28% and 48%, respectively. Outside London, deals fell by 22% overall, but Wales (-8%) and the East Midlands (-9%) fared slightly better. The data for the first half of 2024 suggests that despite continued decline in deal numbers across many Nations and regions, there are signs indicating stabilisation, with a positive outlook for the year ahead. In Q1 2024, equity funding for smaller businesses increased by 7% compared to the same period in 2023.
- In the last financial year, the British Business Bank continued to invest in programmes that remain crucial in helping smaller businesses across the UK access both debt and equity finance, especially during challenging economic conditions. This included completing the roll out of the Nations and Regions Investment Funds, which will provide £1.6bn investment to thousands of smaller businesses across the North, Midlands and South West of England, as well as each of the Devolved Nations - £388 million in funding has already been delivered by the Bank in 2023 through its geographically focused funds
Download the report - Nations and Regions Tracker 2024
Our Nations and Regions Tracker 2024 presents an analysis that highlights geographic patterns observed in UK small business finance, based on the latest data available.