Bradford businesses will benefit from a £1 billion package of support launched by Yorkshire Bank for new and growing firms.

The Growing Business package will provide new and additional support for businesses looking to start up, expand or switch banks. Business bankers from Yorkshire Bank’s Bradford office will be among those targeting businesses.

Meanwhile, Chancellor George Osborne has praised new bank Aldermore, whose regional office is in Cleckheaton, for lending more than £1 billion to small and medium-sized firms since its launch in 2009.

Yorkshire Bank has launched its initiative under the Government’s Funding for Lending scheme to provide various options for businesses at different stages of development. These include removing arrangement fees, which on a £500,000 loan could save a business up to £10,000.

Its £1 billion Business Expansion Fund, aims to help firms looking to expand their operations through investment in new or improved machinery, more space, or through diversification.

The bank, which has eight business banking centres across Yorkshire and the North East, will also maintain its current free banking offer for start-up businesses. This provides free day-to-day banking for 24 months, saving an average of £720 a year.

The package will also see Yorkshire Bank’s current account switching offer, which provides 18 months’ free day-to-day banking for businesses with a turnover up to £1 million extended and improved.

Yorkshire Bank’s latest push comes as Government figures show that 80 per cent of SMEs are planning for growth over the next three years.

Paul Shephard, director of business and private banking, said: “In the last year we have seen an increasing number of growing businesses coming to us with plans to invest in better or more equipment and machinery, or for support involving new or extended premises.

“Our business managers have the flexibility to work with businesses on pricing of their borrowing, so that it is competitive and reflects all the relevant factors, including funding costs. We have continued to support businesses throughout the economic downturn and this commitment is undiminished. ”

While visiting Aldermore Bank, the Chancellor said: “It’s great to see new banks like Aldermore entering the market and shaking up the competition. They are rightly proud of what they have accomplished on SME lending over the last three years, and I hope their support for this important sector will continue to grow strongly.”