Lloyds announces £1.6bn pot to help Scots firms thrive

Bank of Scotland owner Lloyds Banking Group has unveiled plans to lend up to £1.6 billion to firms in Scotland this year, to help them 'unlock their ambitions' as part of an £18bn pot to help British businesses.

The Bank of Scotland owner has unveiled the plans for Scottish firms as part of an £18bn pot to help British businesses. Picture: Carl Court/Getty Images.

The £1.6bn is available to firms across Scotland and will support entrepreneurs looking to start up a new business, micro-businesses seeking to scale up, and small businesses considering trading globally for the first time. It will also support established mid-sized businesses and large, multinational corporations seeking further growth.

Philip Grant, Lloyds’ ambassador for Scotland, said: “Lending up to £1.6bn will go some way in helping businesses across Scotland unlock their ambitions for the year ahead. The next 12 months will be of particular interest to Scottish businesses as they seek more clarity over the UK’s future international trading relationship. That’s why as part of our plan to help Scotland prosper, we’ll be by the side of business offering advice and practical support on how to capitalise on opportunities.”

The lender pointed out that it last year helped Aberdeenshire housebuilder Castle Homes secure a six-figure funding package to build a new housing development specifically for first-time buyers.

The move is part of the lender’s three-year strategy, having already pledged to grow its lending to start-ups, small and medium sized enterprises (SMEs) and mid-sized firms by £6bn by 2020.

The bank said that since the start of 2011, it has increased net lending to SMEs by 34 per cent. It announced a plan last February to transform itself into a low-risk digital lender after it returned to private ownership following its government bailout at the height of the financial crisis.

The lending commitment builds on the £500 million growth fund it announced last year to help companies invest in equipment to improve productivity and £5m to help fund 3,500 manufacturing apprenticeships.

Lloyds also noted the “swift” creation of a £50m fund to support small businesses in the Carillion supply chain.

Chief executive Antonio Horta Osorio said: “In 2019, we will lend up to £18bn to businesses across the UK.

“During these uncertain times, it is important that our customers have financial support and expert guidance to navigate the challenges they may face. Whatever the future brings, we will continue to support UK businesses as part of our commitment to help Britain prosper.”

In addition, the group said it reinforced its support to the UK housing sector by launching a £500m fund for housing associations last year.

Lloyds Banking Group in October unveiled a 7 per cent fall in third-quarter profits to £1.82bn after it was hit by increased restructuring costs. In November it confirmed it was to axe 6,240 jobs as part of a digital overhaul.