• Banking industry approved £5.5 billion of lending to SMEs in North of England in 2018²
• Applications for finance from SMEs in the North of England more likely to be successful than elsewhere in UK
• UK Finance says banking industry determined to help ?Northern Powerhouse? reach its full potential

The banking industry approved 63,400 loans and overdrafts to small and medium-sized enterprises (SMEs) in the North of England in 2018, with a total value of over £5.5 billion, the latest figures from UK Finance have revealed. This accounted for just over one fifth (21 per cent) of the £26.6 billion of approved lending to SMEs across the UK in 2018. Of the £5.5 billion of approved lending in the region, £2.64 billion was offered to SMEs in the North West, £1.64 billion to SMEs in Yorkshire and the Humber and a further £1.23 billion to SMEs in the North East. The research has been published ahead of UK Finance's first Northern Powerhouse dinner in Manchester tomorrow (Thursday 27 June), where the industry will discuss the role of financial services in supporting the region's economy.

The total stock of outstanding borrowing by SMEs in the North of England stood at £18.5 billion at the end of 2018, making up 23 per cent of total borrowing by SMEs across the UK. Meanwhile, total bank deposits from SMEs in the region stood at £36 billion at the end of 2018. This accounted for 19 per cent of the £194.5 billion of bank deposits held by SMEs across the UK.

Separate figures from the BDRC SME Finance Monitor, a major regional survey of 18,000 firms across the UK, has revealed that SMEs in the North of England tend to be likely to succeed in securing bank finance than those in other regions. The survey found that more than eight in ten (83 per cent) of applications for finance from SMEs across Yorkshire and Humberside, the North East and North West were successful in 2018. This compares to success rates of 71 per cent for SMEs in London and 78 per cent for SMEs the South East.

Commenting on the figures, Stephen Pegge, Managing Director of Commercial Finance, UK Finance, said:

"The finance sector has a crucial role to play in supporting SMEs across all regions of the UK, including the North of England.

"Over £5.5 billion of lending was offered to SMEs across the region in 2018, while approval rates for finance applications remain higher than elsewhere in the UK. This financing is crucial to help businesses grow, narrow the productivity gap and address regional imbalances.

"However, it's clear that far more can and should be done to unleash the full economic potential of the Northern Powerhouse, including greater investment in infrastructure and skills, and UK Finance and its members are determined to play our part."

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