Bank of Scotland launches £500m fund to help plug UK's productivity gap


27th October 2017

A new UK-wide fund to help businesses improve productivity through investment in technology and equipment has been launched today by Bank of Scotland.

The £500m asset finance fund will allow companies to spread the cost of investment over the lifetime of the machinery, rather than squeezing working capital by paying the whole upfront.

It is expected to be of particular benefit to small and medium-sized businesses in the manufacturing, construction, agriculture and transport industries.

The launch comes amid mounting evidence the companies are cutting back on capital investment .

This includes new research from the Bank of Scotland which has identified inadequate investment as one of the key obstacles preventing improvements to productivity. The report, Understanding the Puzzle , found that manufacturing firms in particular believe new machinery is a key way in which to boost productivity.

Fraser Sime, regional director at Bank of Scotland, said the fund is geared to support sectors where high-spec machinery and innovations like automation can boost growth in a competitive marketplace.

"The UK's low level of productivity compared with its G7 peers remains a challenge, and it's crucial we work closely with businesses to ensure they have the tools they need to make efficiencies and grow," Sime said.

"This asset finance fund shows our commitment to helping businesses in Britain prosper."

Bank of Scotland

The Bank of Scotland in Tayside offers a full banking service, and because the teams in the key business areas of Commercial, Private and Retail Banking are based locally, we can ensure customer needs are fully satisfied.

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