UKSE increased the average size of its investments in West Midlands businesses by 22% during its latest reporting year.
The figures form part of UKSE’s 2025-26 responsibility reporting. The organisation, which is the regeneration arm of Tata Steel, provides finance of up to £1m to companies where investment can support growth and employment.
Across the UK, businesses backed by UKSE created 197 jobs during the period, with 42 located in the West Midlands. Its regional team covers Birmingham, the Black Country, Coventry, Staffordshire and Telford from a base in Cannock.
A 22% increase in average deal size means the organisation committed more capital per transaction in the region. Larger individual investments can give SMEs greater scope to buy equipment, move premises, recruit staff or absorb the working capital demands created by a new contract.
UKSE operates in a funding market where smaller growth companies can struggle to secure conventional bank finance. Businesses may lack sufficient collateral, have uneven cash flow or require funding for expansion that sits outside a lender’s normal risk appetite.
The organisation provides debt and equity funding, placing it between mainstream business lending and higher-risk venture investment. Its regional development role also means employment and wider economic outcomes form part of the case for committing capital.
One West Midlands company supported during the year was recruitment business KC Group, which received backing after winning a significant contract. New client work can create an immediate cash requirement where companies need to recruit or increase delivery capacity before customer payments arrive.
That type of financing pressure is common among growing service businesses as well as manufacturers. Profitable expansion can still create short-term cash constraints if expenditure rises before additional revenue is collected.
The West Midlands contains large manufacturing and professional services clusters alongside a broad SME base. Access to growth capital remains important as borrowing costs and cautious lending conditions influence which projects companies are able to finance.
Job creation provides one measure of the effect of UKSE’s activity, although the longer-term value of the investments will also depend on revenue growth, productivity and whether backed companies continue expanding after the original finance has been deployed.
The latest reporting year shows UKSE increasing the amount committed to an average West Midlands transaction while supported businesses created 42 jobs across the region.
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