British Business Bank celebrates 10 years of impact
- Susan Nightingale
The British Business Bank’s The Power of 10: 10 Year Impact Report highlights a decade of achievements in supporting smaller businesses, fostering innovation, and contributing to economic growth across the UK since its formation in 2014.
Since it was established in 2014, the British Business Bank has delivered more than £32bn in combined public and private sector funding, supporting 209,000 smaller businesses which are expected to create 250,000 additional jobs and sustain almost 2.3 million existing positions, cementing its role as a critical driver of growth and employment in the UK since its inception.
Published in January, The Power of 10: 10 Year Impact Report, reveals smaller businesses supported by the Bank are projected to generate £97bn in additional turnover and around £43bn additional economic output over the lifetime of their finance.
The Bank's activities including commercial and subsidised programmes - have also achieved a net 4.2% annual adjusted rate of return -demonstrating that economic impact and financial returns can be delivered simultaneously.
Leveraging private sector investment
Over the past decade, the Bank has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed, demonstrating its ability to act as a catalyst for private funding.
Its network of over 200 delivery partners, which includes banks, fintech providers, and venture capital funds, has been instrumental in addressing structural market gaps and enabling innovation across the UK.
Ensuring access to finance reaches all UK Nations and regions
The British Business Bank has successfully supported businesses across the UK, with 84% of businesses supported based outside London, underscoring its commitment to delivering fair access to finance in all Nations and regions.
This support is expected to generate significant economic benefits, estimated as 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 as a result.
By strengthening regional finance ecosystems, the Bank has fostered growth and innovation in underserved areas, helping to address long-standing disparities in access to finance.
Supporting a modern, green economy through sustainable finance
The Bank has played a pivotal role in supporting the transition to net zero and the UK’s position as a leader in sustainable growth. Up to 37% of smaller businesses supported have utilised finance to reduce their environmental impact or develop green business models.
A significant focus on net-zero sectors, including clean tech, highlights the Bank’s commitment to fostering environmentally sustainable practices and supporting the UK’s transition to a greener economy.
Breaking down barriers in access to finance for under-represented groups
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. This focus on inclusivity reflects the Bank’s commitment to unlocking potential and diversifying access to finance and creating opportunities for underserved groups. Looking to the future, the Bank is expanding access to funding for female entrepreneurs and will invest £50m into female-led funds through its existing programmes. This investment will support the aims of the Invest in Women Taskforce, which is an industry led, government backed initiative committed to increasing finance for female entrepreneurs.
In addition, a set of reforms to the British Business Bank’s financial framework will put the Bank’s £7.9bn commercial programmes on a permanent footing. This means the Bank can flexibly re-invest its investment returns over the long term to increase growth and prosperity across the UK.