British Business Bank total financial capacity increased to £25.6bn

The Government today unveiled a major expansion of the British Business Bank (BBB), increasing its total financial capacity to £25.6 billion in a move designed to significantly boost access to finance for UK small and medium-sized enterprises (SMEs) and turbocharge the delivery of the country’s modern Industrial Strategy.

Described as a “step change” in the UK’s approach to business finance, the expanded capacity will enable the Bank to increase its annual investments to £2.5 billion, representing a two-thirds increase from current levels. Crucially, the uplift is expected to crowd in tens of billions of pounds in private capital, helping fast-growth, innovative businesses to scale in the UK.

The British Business Bank is already the largest investor in UK venture and venture growth capital funds. Its equity programmes have backed 22 of the UK’s current unicorn companies, accounting for 56% of all UK unicorns. The expanded capacity builds on this track record and is intended to cement the UK’s position as a hub for innovation across sectors such as life sciences, deeptech, and AI.

“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, CEO of the British Business Bank.

“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.

“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.”

Alongside the funding boost, the government also confirmed a package of governance and financial reforms, to be implemented by the end of the financial year. These changes will provide the Bank with a permanent capital base and greater flexibility to reinvest returns, ensuring that it can deliver sustainable, long-term support for the UK economy.

The reforms are designed to enable the Bank to scale its operations efficiently, deliver on its expanded mandate, and drive prosperity across all UK regions.

The announcement has been warmly welcomed by the finance industry and SME advocates.

Stephen Haddrill, Director General of the Finance & Leasing Association (FLA), said: ““We’re very pleased to see that funding for the British Business Bank has been prioritised as we had recommended.

“This is great news for the thousands of SME businesses that have investment ambitions this year,” he added.

The announcement comes as part of the wider 2025 Spending Review, which prioritises capital investment and private sector growth as key levers for economic renewal.

More details on specific programmes and partnerships supported by the British Business Bank’s expanded capacity are expected in the coming weeks.