Unlocking Growth and What the Leeds Reforms Mean for UK Manufacturing’s Access to Finance

IF WE are to take some encouragement as business owners here in the UK, it’s that these reforms aim to rewire the system by giving banks more flexibility, encouraging retail investment into UK businesses, and channelling capital into areas of innovation and regional growth.

For UK manufacturing this represents an exciting opportunity. According to a 2024 report by the Manufacturing Technologies Association (MTA) in partnership with Oxford Economics - The True Impact of UK Manufacturing, the total impact of manufacturing on UK GDP was £518bn, which equates to 23.1% of total GDP. It also supports 7.3 million jobs across the manufacturing and UK supply chain - 22.4% of the UK’s total.

However, I’m all too aware that we always have an eye on the bottom line, on our own balance sheets and that of our bank accounts, and investing for growth can be a worry, even when the figures add up.

However, I see the Leeds Reforms as the opening of a new chapter for entrepreneurs and business leaders. While the above figures are encouraging, access to capital has long been one of the greatest barriers to growth. But with smarter regulation and more funding routes, business owners nd manufacturers now have more tools than ever to build resilience, expand, and compete on a global stage.

Overcoming traditional obstacles

Commenting on Make UK’s “Executive Summary for 2025”, Stephen Phipson, CEO of Make UK said that “Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive.”

This is interesting because historically, UK manufacturing businesses have faced three consistent challenges when seeking finance. The first is that many have defaulted to traditional bank loans, often unaware of the wider range of financial tools available to them, which has limited their choice of funding. In addition, bureaucracy and regulation have created lengthy processes and requirements that frequently curb ambition. And thirdly, regional imbalances have meant that too much capital is concentrated in London, leaving promising businesses in other parts of the country underserved.

These new reforms tackle these head-on. By freeing up banks from certain EU-era capital rules, lenders will have more freedom to support high-potential businesses. At the same time, government measures to encourage retail investment should increase the overall pool of funds available. 

Importantly, by locating the National Wealth Fund (formerly the UK Infrastructure Bank) in Leeds and focusing reforms outside of the capital, the government is signalling a genuine commitment to regional growth. 

One of the most exciting aspects of the new funding environment is the opportunity to think more strategically about how they finance growth. Too often, businesses overlook tools that could give them flexibility and stability, or even competitive advantage.

Here are some of the key financing options worth considering:

1. Asset finance and hire purchase

Ideal for businesses needing vehicles, equipment, or machinery. Rather than tying up precious working capital, asset finance allows you to spread the cost, align payments with revenue, and preserve liquidity for other investments.

2. Invoice finance

For businesses with long payment cycles, invoice finance can be transformative. By unlocking cash tied up in invoices, you can maintain healthy cash flow without taking on additional debt. This is particularly useful in sectors such as manufacturing, logistics, and recruitment.

3. Growth and expansion loans

With the reforms encouraging banks to lend more freely, traditional loans remain a strong option - especially now the approval processes should become more streamlined. Used wisely, these can fuel expansion, acquisitions, or large-scale projects.

4. Trade and export finance

For those considering international markets, trade finance can reduce the risk of overseas transactions and support export strategies. This is increasingly important as UK businesses look to expand beyond domestic competition.

5. Green finance

With sustainability high on the agenda, new incentives are emerging for businesses investing in green technologies, energy efficiency, or low-carbon operations. Not only do these funds support compliance, but they can also enhance brand reputation.

Crucially, the new reforms don’t just increase the volume of capital in the system, they also make it easier to access diverse types of finance, tailored to their specific growth stage and sector.

Navigating a new landscape

While the opportunities are expanding, accessing finance still requires strategic thinking, and we advise clients to approach funding as a planned part of their growth strategy, not as a last-minute necessity. 

Businesses must be clear on their objectives, as funding is most effective when aligned to a clear purpose. Are you looking to smooth cash flow, invest in new equipment, expand overseas, or hire staff? Different objectives require different financial structures.

Headline rates can be misleading, so it's just as important to understand the true cost of capital. Businesses should assess the total cost of borrowing - including fees, penalties, and opportunity costs - before committing, to ensure finance enhances profitability, not erode it. 

Relying solely on one type of finance can expose businesses to risk, too. A balanced approach which combines invoice finance for cash flow with asset finance for equipment, for example, offers greater resilience.

Finally, seek expert advice. The range of options is broader than ever, but navigating them can be time-consuming and complex. A finance partner who understands both your sector and the funding landscape will structure the right mix of solutions to support you, and your needs.

The bigger picture

While the immediate benefits will be felt locally and nationally, the longer-term vision is global. UK manufacturers will now be better equipped to scale internationally and penetrate new markets.

By simplifying regulation and expanding the investment pool, the UK is positioning itself as one of the most manufacturing-friendly economies in the world, which is good news for job creation, skills development, and long-term economic strength.

With all finance, however, there’s always risk, hence the need to partner with an advisor that will offer not only advice, but who will lay down all options, including the pros and the cons, and stress-test cash flow for higher inflation, or slower sales, and guard against risk. Also, markets may change, policy may adapt and even a business’ own proposition may come under pressure or become outdated.

But where we sit today, there’s an opportunity to unlock growth by removing barriers and increasing available capital. At Jones and Co, our role is to help navigate this new landscape, structure the right mix of funding, provide clarity on the best options, and ensure businesses are equipped to seize the opportunities ahead.

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