British Business Bank fuels UK growth with significant support in 2024/25
The British Business Bank has announced a highly successful 2024/25 financial year, providing substantial financial backing to thousands of businesses across the United Kingdom. The bank’s second annual Impact Report reveals a total of £6.8bn in finance supported, significantly boosting regional economies and job creation.
Key takeaways
- The British Business Bank supported £6.8bn of finance for smaller businesses in 2024/25.
- 84% of businesses supported were located outside of London, promoting nationwide growth.
- The bank’s activities are expected to create 38,000 additional jobs and boost business turnover by £18.0bn.
- Each UK nation and region is set for an economic output boost of over £100m.
Regional economic boosts
The Bank’s commitment to nationwide support is evident in its regional impact. The North East economy received a £200m boost, with 800 businesses benefiting from the Bank’s funding, which is expected to generate £400m in additional turnover and support 900 new jobs. Similarly, the East of England saw an £800m economic uplift, with 2,200 businesses receiving support. Northern Ireland also experienced a significant impact, with 600 firms backed, leading to an expected £100m boost in economic output and the creation of 1,100 jobs.
The West Midlands economy was bolstered by £300 million, supporting 2,200 smaller businesses. Yorkshire and the Humber received a £500 million boost, with 2,000 businesses securing support. The North West saw a £700 million boost, benefiting 2,900 businesses, while Wales received a £200 million boost, supporting 900 businesses.
National impact and future outlook
Across the UK, the Bank’s support enabled £1.2bn of public funding, £2.6bn of lending guaranteed, and attracted £3.0bn of private capital. This financial activity is projected to create 38,000 additional jobs and add £8.0bn to the UK’s gross value added. The Bank’s financial capacity has been increased to £25.6bn, allowing for annual investments of around £2.5bn and further crowding in of third-party capital.
Louis Taylor, CEO of the British Business Bank, commented on the year’s achievements, stating, "In a busy and productive 2024/25, the British Business Bank amplified its role, delivering significant impact in driving economic growth and innovation and playing its part in the economic transformation of the UK’s Nations and regions." The Bank reported a statutory profit before tax of £144m for the year, exceeding most of its targets.
Investment and job creation
The Bank’s investment portfolio grew by 19% to £4.7bn. Key initiatives like the Northern Powerhouse Investment Fund II (NPIF II) have been instrumental, driving significant investment into businesses across the North of England. The Bank’s strategy focuses on improving access to finance for smaller businesses, thereby driving growth and prosperity throughout the UK.
Sources
- British Business Bank Supports 600 Northern Ireland Firms In 2024/25, Business Eye.
- North East economy gets £200m from British Business Bank funding in one year, Business Live.
- British Business Bank supports £6.8bn of finance for smaller business in 2024/25 – The Intermediary, The Intermediary.
- British Business Bank boosts East of England economy by £800m as 2,200 businesses secure support in 2024/25 –
Essex Magazine, Essex Magazine. - British Business Bank boosts North East economy by £200m as 800 businesses secure support in 2024/25, Hartlepool Mail.
