£250m extra for new British Business Bank

Another £250 million is being pumped into the British Business Bank to help thousands of small and medium sized firms

Deputy Prime Minister Nick Clegg
Deputy Prime Minister Nick Clegg

Another £250 million is being pumped into the British Business Bank to help thousands of small and medium sized firms take advantage of the economic recovery.

Deputy Prime Minister Nick Clegg said the extra money - on top of £1 billion announced last year - would ensure companies can access funds to invest and take on staff.

The Bank will be able to leverage the capital and use government guarantees to lend much higher sums.

Ministers have now agreed that it will be based in Sheffield. Liberal Democrat leader Mr Clegg and Business Secretary Vince Cable will unveil the move on a visit to a small firm in west London today. It is said to be the first in a series of announcements on boosting business leading up to the Autumn Statement on Thursday. Chancellor George Osborne is expected to curb business rates as part of the package. Mr Clegg said: “Small businesses are working hard to fuel our recovery and help us build a stronger economy. I am determined that we do all we can to help companies that have struggled to get the investment they need - investment that means they can employ those extra people, take on that new order, and buy new equipment.”

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