British Business Bank delivers £6.8bn for SMEs in 2024/25

The British Business Bank has announced it supported £6.8 billion in finance for smaller businesses during the 2024/25 financial year, while returning a statutory profit before tax of £144 million. The Bank also projects that its activities over the year will lead to the creation of approximately 38,000 new jobs and generate £8.0 billion in gross value added to the UK economy over the lifetime of the finance.

Publishing its Annual Report and second annual Impact Report, the UK’s economic development bank detailed significant progress in expanding its reach and effectiveness. In 2024/25, the Bank supported more than 28,000 smaller businesses, of which 24,000 were receiving Bank-supported funding for the first time. Notably, 84% of these businesses were located outside London, highlighting the Bank’s strong regional impact.

Louis Taylor, Chief Executive Officer of the British Business Bank, described 2024/25 as a “busy and productive” year that saw the Bank “amplify its role” in delivering economic growth and innovation across the UK.

He said, “The Bank returned a pre-tax profit of £144 million this year. Our activities in 2024/25 are expected to produce an impact of 38,000 additional jobs and £8.0 billion of gross value added over the life of the finance.

“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,” he added.

The Bank reported strong performance against its core strategic objectives. It committed £385.8 million in debt finance, slightly exceeding its £382.5 million target, and delivered £2.0 billion in guarantee commitments, ahead of its £1.8 billion target. Its support for innovative businesses reached £881.8 million in equity commitments, close to the targeted £895.7 million. In a push to unlock growth across all regions, the Bank deployed £707.1 million outside London, surpassing its target of £649.8 million.

The year also saw the launch of a pilot Green Growth Guarantee Scheme, aimed at supporting the UK’s transition to a net zero economy by financing climate-focused small businesses.

Financially, the Bank achieved a five-year adjusted return on capital employed of 4.2%. Realised gains for the year reached £83.6 million, contributing to a lifetime Multiple on Invested Capital (MOIC) of 2.3x. Operating efficiency also improved, with underlying costs as a proportion of Assets Under Management reduced to 1.22%. The Bank’s investment portfolio grew by 19% to £4.7 billion, comprising £3.2 billion in equity and £1.5 billion in debt investments.

Stephen Welton, Chair of the British Business Bank, said the institution’s progress confirms its national importance in supporting entrepreneurship and innovation.

“With a proven track record on a nationwide basis in driving economic growth, innovation and jobs, over the next ten 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.

“A rise in our total financial capacity to £25.6bn will enable us to increase annual investments to around £2.5bn a year and to crowd in even more third party capital.”

The Bank estimates that the finance delivered in 2024/25 will contribute to £18.0 billion in additional business turnover, equating to £8.0 billion in UK economic output. Every nation and region of the UK is expected to benefit from a boost of more than £100 million in gross value added, underscoring the Bank’s role in fostering inclusive and widespread economic development.