UK government increases British Business Bank’s total financial capacity to £25.6bn

Delivering the UK Spending Review today, the Chancellor of the Exchequer, Rachel Reeves, has announced that the British Business Bank’s financial capacity will be increased to £25.6bn (€30.2bn).

This will enable a two-thirds increase in investments to around £3.5bn each year. This investment, according to the bank, is expected to crowd in “tens of billions of pounds” of private capital and will support the most innovative UK businesses to access the capital they need to scale in the UK.

The British Business Bank is the largest investor in UK venture and venture growth capital funds. It highlighted that its equity programmes have supported more than half of the UK’s current unicorns – 22 UK unicorns have been supported by the bank’s equity programmes, representing 56% of all current UK unicorns.

The government has also confirmed reforms to the British Business Bank’s governance and financial arrangements, which will be implemented by the end of this financial year. These, the bank said, will position it to successfully deliver the increased level of investment activity and will mean it has a new permanent capital base, with greater flexibility to reinvest returns over the long term to increase growth and prosperity in the UK.

Louis Taylor, chief executive officer of British Business Bank, said: “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.

“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 deep tech.”

Taylor added that to deliver the government’s growth mission, it is “critical” that the UK’s “most promising entrepreneurs can access the finance they need to grow their businesses, no matter what their background or where they are located”.

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