The British Business Bank has been granted an additional £10.3bn of total financial capacity that will help support businesses across the UK, in the government’s spending review that was unveiled today.
The state development bank was given an additional £7.1bn of capacity for loans and equity, and £3.2bn for guarantees, bringing total capacity up to £25.6bn.
The bank said that this will enable a two-thirds increase in investments to around £2.5bn each year, and will crowd in tens of billions of pounds of private capital.
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The bank also said that reforms to its governance and financial arrangements have been confirmed and will be implemented by the end of this financial year.
These will place the bank in a position to deliver the increased level of investment activity and ensure the bank has a permanent capital base, it said, with greater flexibility to re-invest returns over the long term to boost UK growth.
“As the public financial institution with responsibility for supporting the growth of smaller businesses across the UK, the British Business Bank will play a critical role in delivering the UK’s upcoming modern Industrial Strategy,” said Louis Taylor, chief executive of the British Business Bank.
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“We welcome today’s announcement by the government, which is a strong endorsement of the British Business Bank’s 10-year track record, market access and capabilities, including our position as the largest investor in UK venture and venture growth capital funds and the most active late-stage investor in UK life sciences and deeptech.
“To deliver the government’s growth mission it is critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter what their background or where they are located.”
Further details about the new measures supported by the increase in capacity will be announced over the coming weeks.
UK Chancellor Rachel Reeves’ spending review included a £29bn annual boost for the NHS while other areas of public spending have faced cuts.
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