Zarah ChoudharyAccording to The Power of 10: 10 Year Impact Report, published by the British Business Bank, the bank has delivered over £32bn in combined public and private sector funding since 2014, supporting 209,000 smaller businesses across the UK.
This funding has created 250,000 additional jobs and sustained nearly 2.3 million existing positions.
Businesses supported by the Bank are projected to generate £97bn in additional turnover and £43bn in economic output over the lifetime of their finance.
The Bank’s activities, which include commercial and subsidised programmes, have achieved a net 4.2% annual adjusted rate of return.
Over the past decade, the Bank has been an investor in venture and venture growth capital, supporting 11% of all equity deals and accounting for 15% of total equity investment.
In the last three years, £8bn has been deployed, fostering growth in sectors such as life sciences, clean tech, and advanced software.
High-growth businesses backed by the Bank are expected to generate 150,000 new jobs and £29bn in Gross Value Added (GVA).
Since 2018, initiatives like British Patient Capital, the Life Sciences Investment Programme, and Future Fund: Breakthrough have boosted equity flows to several sectors.
The Bank has leveraged over £4 of private sector investment for every £1 of public funding, working with more than 200 delivery partners, including banks, fintech providers, and venture capital funds, to address market gaps.
The Bank has supported businesses across the UK, with 84% of businesses supported located outside London.
This has generated at least £1bn in GVA for each of the 12 UK Nations and regions and sustained over two million jobs, with an additional 250,000 jobs expected to be created.
Programmes such as the Regional Angels Programme and the £1.6bn Nations and Regions Investment Funds have bolstered regional innovation clusters and helped retain high-growth businesses in these areas.
Through its Start Up Loans programme, the Bank has ensured that traditionally under-represented groups gain greater access to finance.
To date, 40% of these loans have been awarded to female founders, while 20% have supported entrepreneurs from Black, Asian, or Other Ethnic Minority backgrounds.
Looking ahead, the Bank aims to expand access to funding for female entrepreneurs by investing £50m into female-led funds through its existing programmes.
This investment will support the aims of the Invest in Women Taskforce, an industry-led, government-backed initiative to increase finance for female entrepreneurs.
In addition, up to 37% of smaller businesses supported by the Bank have used finance to reduce their environmental impact or develop green business models.
The Bank has placed emphasis on net-zero sectors, including clean tech, to support the adoption of sustainable practices.
At the International Investment Summit, it was confirmed that the British Business Bank will establish the British Growth Partnership, subject to regulatory approval, to encourage more UK pension fund and other institutional investment into the UK’s fastest-growing, most innovative companies.
The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.
Additionally, a set of reforms to the Bank’s financial framework will establish its £7.9bn commercial programmes on a permanent footing.
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.
“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 mission to grow the economy and improving living standards by supporting small businesses to flourish.”
Louis Taylor, CEO at British Business Bank, added: “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.
“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”
