RBS uses cheap funds to boost 'gazelle' companies

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Royal Bank of Scotland said today it will use the Bank of England's Funding for Lending scheme to offer UK manufacturers cheaper funds to boost growth.

For the first time, the bank's manufacturing fund will be targeted specifically at mid-sized manufacturing businesses with turnover of between £25m and £500m.

The firms – often referred to as "gazelles" – are seen as a key source of future growth for the economy, with the CBI predicting a £50bn boost to the UK's annual gross domestic product if more of them realise their potential.

Matthew Fell, CBI director for competitive markets, said: "Support for medium-sized companies continues to be an important issue as they represent 30 per cent of the UK's manufacturing base."

Peter Russell, head of manufacturing at RBS, said: "These are the most competitive terms that we have been able to offer manufacturers for several years."