British Business Bank marks decade of ‘transformative impact’ on economy and smaller businesses across the South West
Since it was established in 2014, the British Business Bank has backed 19,000 businesses in the South West, supporting 193,000 jobs, expected to create 16,000 new ones and expected to generate £7bn of additional business turnover.
The result is expected to be more than £3bn of additional economic activity (Gross Value Added or GVA) generated in the region, cementing the Bank’s role as a critical driver of growth and employment in the UK since its inception.
The figures are contained in a new report, The Power of 10: 10 Year Impact Report, published today by the British Business Bank, which is the UK Government’s economic development bank. Its mission is to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy, by improving access to finance for smaller businesses.
In the South West the Bank has recently marked a number of significant milestones, including the 100th deal completed by its £200m South West Investment Fund, which offers finance to businesses across the region from £25k loans to £5m equity, and hitting the £100m lending milestone for its Start Up Loans programme, which has helped more than 10,000 start-ups across the region. It has also supported the launch of the Cornwall Angel Network, bringing more potential funding options to South West entrepreneurs.
Nationally, the report says that the British Business Bank 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.
Smaller businesses supported by the Bank are projected to generate £97bn in additional turnover, and through their growth estimated to boost UK economic output by around £43bn over the lifetime of their finance, contributing significantly to long-term economic value and innovation.
The Bank’s activities have also achieved a 4.2% annual combined commercial, mandated and service arm adjusted rate of return, demonstrating that economic impact and financial returns can be delivered simultaneously.
Louis Taylor, CEO, 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. 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.”
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 two million jobs, created £97bn in additional turnover, and delivered £32bn 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.”
