𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The Government-owned British Business Bank has returned to a profit as it pushes forward with efforts to support Chancellor Rachel Reeves’ ambitious growth plans.

The UK’s economic development bank recorded a pre-tax profit of £144 million in the year to March, swinging a £122 million loss a year earlier.

It is the first profit the bank has delivered since 2022 after the valuation of firms it invested in were impacted by challenging economic conditions.

In its latest set of annual accounts, the British Business Bank said its investments and funding activities are expected to have created around 38,000 additional jobs.

The bank, which lends money to and buys stakes in smaller UK businesses to help them start and grow, supported £6.8 billion worth of funding agreements during the latest year.

It said this included £1.2 billion worth of its public funding, £2.6 billion of guaranteed lending and a further £3 billion of private capital.

The return to profitability and increased funding agreements come amid efforts from the Government to accelerate economic growth across the UK.

The Government agreed to increase the bank’s financial capacity to £25.6 billion in order to help it increase annual investments to around £2.5 billion a year and to gather more third-party capital.

Louis Taylor, chief executive of the British Business Bank, said: “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.

“At the same time, we have undertaken a significant reshaping of our organisation to prepare for an expanded mandate and long-term ambitions.

“Having an economic development bank with permanent capital and a consistent risk appetite, underpinning the UK venture and growth market through its cycles, is a powerful and very positive development.”

Stephen Welton, chairman of the organisation, said: “With a proven track record on a nationwide basis in driving economic growth, innovation and jobs, over the next 10 years we expect the British Business Bank to become a far more visible and recognisable institution, firmly embedded in the national narrative of smaller business growth and success.”