Small business across the north of England could benefit from funds of over £400 million thanks to a new wave of European funding, Chancellor George Osborne has announced.

Just days after delivering his Summer Budget, where he set out the next steps in building the Northern Powerhouse, Mr Osborne visited a number of local businesses to discuss how the government is delivering for the whole of the north.

While there, he announced that government is working with Local Enterprise Partnerships and local authorities to secure fresh funding for small businesses in the north from EU Regional Funds, which would be made available for northern SMEs later this year.

The new funding would come on top of £382.5 million already being invested in the region through an existing similar scheme.

Chancellor of the Exchequer George Osborne said: “Small business are the lifeblood of the Northern Powerhouse and this funding has the potential to make an enormous difference to hundreds of SMEs right across the north.

“From supporting thousands of northern companies through increasing the Annual Investment Allowance and giving businesses an extra £1,000 with an increase in the Employment Allowance, my Budget last week backed businesses across the north and this funding has the potential to do even more.”

The plans would form the next round of JEREMIE (Joint European Resources for Micro to Medium Enterprises) funding for the Northern Powerhouse.

The funding provides equity and loan finance to start-ups, growing early stage companies and larger companies with ambitions for strong growth.

There are three existing JEREMIE projects covering the North East, North West and Yorkshire and Northern Lincolnshire.