Cheshire East named as potential net zero cluster in North West

The British Business Bank has identified Cheshire East as a potential net zero cluster in the North West as part of its Nations and Regions Tracker of the equity finance market.

The report found the borough had attracted £175 million across 12 net zero equity deals since 2011 (including a single £150 million deal). The sum represents over half (51%) of the region’s net zero investment.

The tracker also identified promising signs in the region’s finance market, despite adverse economic trends.

Across the region, the number of smaller firms using external finance rose slightly – with 44% of SMEs used external finance in the second quarter of 2022, up one per cent from 43% a year earlier. The slight boost marks the North West as one of only three UK regions and nations to see a rise in the use of small business finance, with core debt products remaining the most popular choice.

The North West also saw a 210% increase in the value of equity deals in 2021 to £863 million, a 25% increase in the number of deals. Q2 2022 data suggests that, despite the current global economic conditions, equity investment in the North West held up in the first half of the year, with deal numbers slightly above and investment seven per cent below H1 2021 levels. Initial data suggests the second half of the year will likely see a slowdown in equity markets.

Dr Sophie Dale-Black, UK Network Director for the North of England at the British Business Bank, said:

“The British Business Bank is committed to reducing regional imbalances in access to finance. We are seeing promising signs in the North West’s equity finance markets and data suggests equity investment overall in the UK is holding up in the first half of the year. It is encouraging to see evidence of a potential net zero cluster of investment emerging in the North West, which is already known as a hotbed of innovation and technology.”