Changes in funding provided by the British Business Bank, including support for the UK’s nations and regions, are a ‘major win’ for the economy.
A £6.6 billion boost for start-ups and scale-ups from the BBB was announced in the Chancellor’s Spending Review and the BBB has now unveiled a programme of investment.
The British Business Bank Industrial Strategy Growth Capital is a £4bn fund to be invested through the its existing capabilities across the eight growth-driving sectors – advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services – crowding in another circa £12bn of private capital.
It is committing £2.6bn of capital to help drive the growth of smaller businesses across the UK, partly through the City regions.
Michael Moore, chief executive of the British Private Equity & Venture Capital Association (BVCA), said: “A major capital boost and more freedom for the BBB was the major win from the Spending Review for UK growth.
“It’s great to see the BBB is cracking on with rolling out exciting programmes that can unlock the potential of ambitious businesses in every corner of the UK.
“The changes to the BBB’s remit, enabling a number of strategic large investments in priority sectors represents an important step towards more high growth companies attracting the capital they require, and tackling the scale up gap – something that the BBB’s previous remit wouldn’t have allowed it to do.”
On the announcement of new Nations and Regions investment funds, Mr Moore added: “Specific funding to support high potential businesses across the UK’s nations and regions is particularly welcome as it will help to narrow imbalances in regional investment. “
He also welcomed the Investor Pathway Capital Programme, targeted at diverse and emerging fund managers.
He said: “New programmes that support diverse and emerging fund managers will enable a wider pool of talent to break into the private capital industry.
“Greater diversity of talent and experience will be a huge benefit to the industry and wider economy.”
Louis Taylor, CEO, British Business Bank, said: “To deliver the government’s growth mission it is also 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 across the Nations and regions of the UK.”
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