The British Business Bank has delivered over £32bn in combined public and private sector funding since its establishment in 2014, supporting 209,000 smaller businesses, report reveals.
The ‘Power of 10: 10 Year Impact Report’, revealed that smaller businesses supported by the bank are projected to generate £97bn in additional turnover and £43bn in economic output over the lifetime of their finance.
Research found that the bank’s activities, including commercial and subsidised programmes, achieved a net 4.2% annual adjusted rate of return.
Equity finance activity has grown significantly, with £8bn deployed in the last three years alone.
This investment has catalysed growth in high-potential sectors such as life sciences, clean tech, and advanced software.
Among these high-growth businesses, 150,000 new jobs and £29bn in Gross Value Added (GVA) are expected to result from rapid expansion.
The launch of British Patient Capital in 2018 and subsequent programmes, including the Life Sciences Investment Programme and Future Fund: Breakthrough have accelerated equity flows to transformative sectors.
The Bank has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed.
Its network of more than 200 delivery partners has been instrumental in addressing structural market gaps and enabling innovation across the UK.
The British Business Bank supported businesses across the UK, with 84% of businesses supported based outside London.
This support is expected to generate significant economic benefits, estimated at least £1bn in GVA to each of the 12 UK nations and regions and sustaining more than two million jobs, with an additional 250,000 jobs expected to be created.
Business Secretary Jonathan Reynolds said: “Over the past decade, the British Business Bank has empowered smaller businesses to thrive, creating opportunities and driving growth across the UK.
“They’ve supported more than 2 million jobs, created £97 billion in additional turnover, and delivered £32 billion in funding – its impact is clear.
Reynolds added: “As part of our Plan for Change, this Government remains committed to building a high-growth economy, and the Bank’s success shows how public investment and private ambition can deliver lasting value for the nation.
“The work of the British Business Bank is essential in our miss
Louis Taylor, CEO of the British Business Bank, said: “The Power of 10: 10 Year Impact Report highlights the transformative role the British Business bank has played in driving economic growth and shaping the financial landscape for smaller businesses across the UK.
“From improving access to finance across the UK’s Nations and regions to backing innovation and championing sustainable growth, we are proud of the impact we’ve achieved over the past decade.
Taylor added: “Looking ahead, we remain committed to supporting smaller businesses, unlocking private sector investment, and helping the UK meet its economic goals.
“The catalytic impact of the British Business Bank and impressive track record crowding in private funding will become even more crucial as we establish the British Growth Partnership, subject to regulatory approval, unlocking the huge potential of UK pension funds and other institutional investors in venture capital funds and the UK’s innovative businesses.”
