British Business Bank back in black with £144 million profit
The British Business Bank, established in 2014 to improve the flow of finance to private companies, generated a pre-tax profit of £144 million in its last financial year — after two consecutive years of losses, including a £131 million loss in the 12 months to March 2024 — boosted by the performance of its investments.
The bank provides wholesale finance to equity and debt providers but can also invest up to £60 million directly in individual companies.
• British Business Bank marks tenth anniversary of doing deals
After the government's recent five-year spending review and industrial strategy, the agency's role has been significantly increased. The government committed £6.6 billion of new capital to the British Business Bank in June, taking its financial capacity to £25.6 billion.
Ministers are seeking to stimulate investment in promising UK companies to help drive economic growth and productivity and enable companies to scale up at home rather than overseas, particularly in the US.
The annual report for the bank, which has its headquarters in Sheffield, shows that its investment portfolio has increased in value by 19 per cent to £4.7 billion.
It supported a total of £6.8 billion of finance for smaller businesses, made up of £1.2 billion deployed by the agency, £2.6 billion of lending guaranteed and £3 billion of private sector capital that it 'crowded in'.
As a result, it said, 24,000 businesses that haven't previously been supported by the bank received funding, plus 4,000 that have previously benefited.
Louis Taylor, chief executive of the British Business Bank and a former boss of UK Export Finance, the government's export credit agency, said its activities from the last year were forecast to create 38,000 extra jobs and £8 billion of gross value added 'over the life of the finance'.
Taylor, 58, whose total pay was £460,800, added: '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.'
Despite the market volatility generated by President Trump's tariffs war, the agency said it did not expect 'any direct impact' on its investment portfolio given its UK focus and it not being concentrated in sectors most exposed to US tariffs.
• Keir Starmer unveils 'targeted, long-term' industrial strategy
The bank's expanded role includes the British Growth Partnership, an investment vehicle seeking to raise hundreds of millions of pounds from UK pension funds and other institutions to back British venture capital. For the first time, it will be managing capital on behalf of pension funds together with other institutional investors. Aegon UK, NatWest Cushon and London CIV, a grouping of local government pension schemes, have expressed interest in working with it.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
18 minutes ago
- The Sun
We are taking REAL steps to tackle illegal migration that WILL deliver results & ensure fairness for Brits
WE will stop at nothing to tackle illegal migration. So this week we have delivered a world first: a new sanctions regime to target the vile people-smuggling gangs. The first sanctions are hitting these criminals today. 2 2 We will go after the gang leaders, those supplying boats and fake passports, and the moneymen. Their assets will be frozen. Their bank accounts will be closed. And they will be banned from the UK. For too long, governments have offered nothing but expensive gimmicks – like the Rwanda scheme which achieved precisely zero. Instead, we're taking real, practical steps that will deliver results. We've already returned 35,000 people with no right to be here – way up on the year before. We're working with Germany to close a legal loophole in their system, allowing police to seize small boats being stored and transported in their country. By working with France, we have agreed to a totally unprecedented returns pilot. Now, for the first time, migrants arriving by small boat can be sent back to France. Other governments tried to do this and failed. We're also taking a zero-tolerance approach to the illegal jobs which gangs promise – and which undercut honest businesses. Under our nationwide crackdown, raids and arrests are already up 50%. The Sun has rightly put the spotlight on migrants working illegally as food delivery riders. And we're tackling the problem. A new agreement announced today will see us share asylum accommodation locations with Deliveroo, Just Eat and Uber Eats. If a rider is staying at this accommodation, the companies will know and can close down the rider's account. Our message to the gangs is clear. We will be more aggressive than ever to smash your business model and hold you to account. We will do what it takes to uphold the law and to ensure fairness for the British people.
Telegraph
18 minutes ago
- Telegraph
The mountainous public debts we are running up will crush our children's futures
In 1928 the banker Gaspard Farrer anonymously established The National Fund, a charity dedicated to paying off the national debt. In 2025, Britain finally smashed open the piggy bank, with £586 million in funds put to use buying up Government bonds. It offset a little less than a day's borrowing. June may have been a particularly poor month to choose, with Chancellor Rachel Reeves overseeing £20.7 billion of public sector net borrowing – the second highest level for the month since records began in 1993, with only the chaos of 2020's pandemic exceeding it – but it is still a potent illustration of the sheer scale of Britain's indebtedness. Despite repeated warnings from the Institute for Fiscal Studies and rising signs of alarm in the bond markets, the Government appears set to continue in its path of high taxes and even higher spending, crushing the life out of the economy even as it piles up debts to be repaid. The obsession with meeting the Government's short-run fiscal rules notwithstanding, there is no seeming attention paid to the long term position of this country, and no appetite for the sort of changes needed to rein in current spending: reforming benefits or reshaping the NHS. It is hard to think of a better illustration than the cavalier treatment of Mr Farrer's bequest: consuming the inheritances given to us by our ancestors in order to fund lifestyles we will not always be able to afford. And with each month of staggeringly high borrowing, the end of the track creeps nearer. If nothing else, this is a poor way to treat our descendents, who will find themselves footing the bill.
The Sun
18 minutes ago
- The Sun
Insurance firms slammed for adding up to £51 a year to bills paid in monthly instalments
INSURANCE firms have been slammed for adding up to £51 a year to bills paid in monthly instalments. Customers may also pay more for the initial premium in a practice called 'double dipping'. The Financial Conduct Authority said monthly bill payers face APRs of 20-30 per cent, adding £19-£28 to home insurance and £35-£51 to car insurance costs. With about half of such policies paid monthly in 2023, many customers are hit with these extra costs simply because they can't afford annual payments. Consumer group Which? director Rocio Concha urged the FCA to crack down on 'bad practice'. She said too many customers are forced into higher costs out of financial necessity. Insurers claim the charges reflect the cost of the agreements. But the FCA's rules state that premiums must not be increased without a 'reasonable basis'. The Association Of British Insurers insists its members follow 'fair and transparent' principles. Earlier this year Which? revealed that some firms charge APRs comparable to credit card rates, with One Insurance Solution and The Insurance Factory imposing above 30 per cent. The FCA also found motor insurance claims were subject to delays, lack of oversight on outsourced services and high complaint levels. It is taking action against the companies involved. FOOD CRUNCH GROCERY bills are biting harder as food prices rise at their fastest rate in 18 months. Inflation hit 5.2 per cent this month, adding an average £275 to annual spending, Worldpanel data showed. Grocery spending rose 4.6 per cent in the 12 weeks to July 13, with online grocer Ocado leading growth at 11.7 per cent. Lidl grew 11.1 per cent while leader Tesco saw a 7.1 per cent sales increase. RANSOMS BAN PUBLIC sector organisations including the NHS, schools and councils will be banned from paying ransoms to cybercriminals. Security Minister Dan Jarvis pledged to 'smash the cybercriminal business model' and safeguard essential services. Businesses outside the ban must now tell authorities before paying ransoms. The new rules come after attacks on Marks & Spencer and the Co-Op. GOOD WORKS PAY OFF THE WORKS is celebrating success in its turnaround strategy as profits surged 20 per cent to £8.3million. The books and stationery retailer saw 6.4 per cent growth in like-for-like sales in its final quarter, driven by improved store standards and new products, despite a 2 per cent dip in annual revenues. Online sales struggled but store sales led the charge. Boss Gavin Peck highlighted strong trading in the new financial year, with sales up 5 per cent. Shares jumped 9.4 per cent yesterday
