The British Business Bank has reported a return to profit, posting a pre-tax profit of £144million for the 2024/25 financial year. This marks a significant turnaround from the previous year’s loss of £122million, reflecting the Bank’s strengthening role in economic development and support for small and medium-sized businesses across the UK.
Chief Executive Louis Taylor commented on the year as “busy and productive,” emphasising the Bank’s growing influence in driving economic growth and innovation. He highlighted the strategic changes within the organisation to support its expanding mandate and long-term ambitions.
During the last year, the Bank facilitated £6.8billion in finance for small businesses and helped 24,000 enterprises gain crucial funding. These measures are expected to create approximately 38,000 additional jobs and generate £8billion in gross value added (GVA) during the lifetime of these financings.
The Bank notably surpassed several performance targets, including deploying more capital to businesses outside London and launching the Green Growth Guarantee scheme aimed at helping smaller businesses on the journey to net zero.
Owing to its robust performance, the British Business Bank has secured government approval to raise its financial capacity to £25.6billion. This expanded capacity is aimed at increasing annual investments and attracting private-sector capital, which will help stimulate growth in every part of the UK.
The Bank’s initiatives are projected to bring at least £100million in additional GVA to each of the UK’s 12 constituent nations and regions, demonstrating its national economic impact. Following a period of volatility tied to wider economic conditions and portfolio valuations, the Bank’s profitable year and solid operational results are seen as evidence of renewed confidence in its strategy and interventions.
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.”
With more funding, a long-term focus, and continued support for innovation, job creation, and regional development, the British Business Bank stands as a key driver of the UK’s economic recovery and transformation.
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