British Business Bank welcomes package of Budget measures to back growth and support smaller businesses across the UK
Press release
- Uplift in the Bank’s total financial capacity by £5bn, taking it to £30.6bn
- £2bn expansion to back innovative and growing businesses across the UK, including:
- £1.4bn additional capacity for the Bank to invest in equity funds, backing high-growth innovative businesses
- £450m to establish a new venture debt product, filling a gap in the UK’s scale-up financing landscape
- £165m expansion of support for Community Development Finance Institutions across the UK’s Nations and regions
- Develop a new generation of the Nations and Regions Investment Funds, to be designed with Mayoral Strategic Authorities and devolved governments
- A further £100m commitment next financial year to support women-led businesses and funds, building on £100m planned for this year
- Expanded support for defence, security and dual-use technology businesses.
The British Business Bank welcomes the package of measures announced in today’s Budget which significantly enhance the Bank’s ability to support innovation, address emerging market gaps and crowd in billions of pounds more in private capital, helping to shape the UK’s future economy. The measures will increase the flow of capital into strategically important sectors, including defence, security, deep tech and dual-use technologies.
The package will back growing businesses across every part of the UK and is expected to support more than 24,600 existing jobs and create more than 15,800 new jobs over the lifetime of the finance.
Business Secretary Jonathan Reynolds said:
Britain is bursting with talent, ideas and ambition that can lead the industries of the future, and this package will help deliver our Industrial Strategy by turning more home-grown potential into jobs and investment.
By giving the British Business Bank a stronger hand to back ambitious scale-ups, work more closely with devolved governments and mayors, and boost support for defence technologies, we’re helping companies across the UK to take the next step – driving growth and strengthening our security in a more uncertain world.
David Hourican, Interim Chief Executive, British Business Bank, said:
Today’s measures announced by the Chancellor are a significant boost to the Bank’s firepower, enabling us to unlock more finance for smaller businesses, innovative scale-ups and strategically important sectors across the UK. This increased capacity will help more ambitious businesses start, scale and stay in the UK, driving economic growth and creating jobs across the country.
£1.4bn additional capacity to invest in equity funds: giving the Bank greater flexibility to back specialist funds that invest in high growth UK companies in the eight Industrial Strategy sectors including defence and dual-use technologies, and to cornerstone growth-stage funds that are capable of making large investments into the UK’s fastest-growing scale ups.
By responding to strong market demand, this will enable the Bank to strengthen the UK venture capital sector, helping UK funds to reach scale and create the conditions to attract greater institutional investment.
£450m of capacity to establish a new venture debt product: helping to fill a gap in the UK’s financing landscape for innovative scale-ups where venture debt has historically been focused on smaller ticket sizes. This will support high-growth companies operating in Industrial Strategy sectors, including defence and dual-use technologies, that are seeking growth finance without giving up equity. The Bank will work with commercial lenders to unlock facilities for these companies.
£165m Community ENABLE Funding programme expansion: building on the success of the first stage of the Bank’s Community ENABLE Funding programme, which has allocated £123m to eight Community Development Finance Institutions (CDFIs), the Budget announces a £165m expansion. This uplift in capacity will support additional lending to underserved businesses and communities in most in need of support.
A new generation of Nations and Regions Investment Funds: building on the Bank’s investment funds in every Nation and region of the UK outside of London, the successor funds will strengthen this regional provision by developing their approach in partnership with Mayoral Strategic Authorities and devolved governments.
As part of our ongoing commitment to support women-led businesses and funds: the Bank has committed more than £130 million this year, which includes a £30m anchor investment into the Invest in Women Taskforce’s “Women Backing Women” Fund of Funds. Building on this progress, we will invest a further £100 million next year, reinforcing our backing of female founders and increasing the flow of capital to women-led businesses.
Supporting defence, security and dual-use technologies: expanding the Bank’s support for defence, security and dual-use technology companies, helping UK businesses in these strategically important sectors to access the finance they need to scale and remain in the UK.
Supporting UK AI hardware companies: the government will work with Public Financial Institutions, including the Bank, and Sovereign AI, to provide coordinated financing for strategically important UK AI hardware companies. Businesses will have a clear route to public finance and bespoke solutions, with referrals ensuring access to the most appropriate support regardless of which institution they contact first.
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Notes to editors
Estimated UK employment impact of Budget measures
| Measure | Additional jobs created | Existing jobs supported |
|---|---|---|
| CDFIs | 800 | 14,500 |
| Equity funds | 14,500 | 8,900 |
| Venture debt | 500 | 1,200 |
| Total | 15,800 | 24,600 |
Note: figures are estimated over the lifetime of the finance.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
In 2025/26, the Bank supported UK smaller businesses to access £9.4bn of finance, made up of £1.3bn of public funding, £4.3bn of private capital crowded in by the Bank and £3.7bn of lending the Bank guaranteed. The funding benefited 38,000 UK businesses, including around 30,000 businesses the Bank had not previously helped to fund.
British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such.
With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.