RACHEL REEVES is set to announce plans to help small businesses grow in what is likely to be one of her last acts as chancellor.

Ms Reeves will unveil a £6.5 billion “uplift” to the Growth Guarantee Scheme in tomorrow’s Mansion House speech which provides a 70 per cent government guarantee on loans to small businesses.

The British Business Bank says the expansion will help 33,000 businesses over the next three years, with loan terms extended from six to 10 years and eligibility widened to businesses with turnover up to £54 million.

Ms Reeves said: “We know that small businesses are the backbone of this economy and growth in all our regions, and for too long they have heard ‘No’ when trying to raise the funds they need to grow and create jobs.”

The announcement comes as Ms Reeves conceded she will no longer be chancellor when Andy Burnham takes over as prime minister, expected as soon as July 20.

Energy Secretary Ed Miliband and Foreign Secretary Yvette Cooper are among those floated as her potential successors.

British Business Bank chief executive Louis Taylor said: “This growth package is great news for smaller businesses across the UK.

“[It] has the potential to transform UK economic performance and international competitiveness.”

The Office for National Statistics will publish May’s gross domestic product figures on Thursday, with economists expecting rates to have flatlines or declined.

Ms Reeves told the BBC today that Mr Burnham must have a “worked-through plan” for governing Britain when he walks through the door of No 10  “because governing is hard in Britain, and lots of challenges and shocks will come his way.”