Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of trends in the level of regional distribution of venture capital investment; and what steps she is taking to increase investment flows to the North East.

The number of equity deals in the North East increased 8.6% year on year in 2024, to 63 deals. Comparatively, London’s dominance of the UK equity market reduced slightly in 2024, with the share of deals in the capital dropping from 50.8% to 47.1% year-on-year, while the proportion of investment was 61.2% in 2024 – a reduction from 61.9% in the previous year, and from 73.3% in 2020.

The Government is addressing regional disparities in access to finance through the Nations and Regions Investment Funds, with businesses in the North East eligible for debt and equity finance from the £660 million Northern Powerhouse Investment Fund II.

North East businesses are also set to benefit from the British Business Bank’s Cluster Champions programme, which will help strengthen financial networks and connect high-potential firms in the eight Industrial Strategy priority sectors to investors, while also providing an additional £100 million of investment.

We have also expanded the Regional Angels Programme, helping improve access to early-stage equity across the UK.