Zoe Alexander: Yesterday’s spending review represents a statement of intent that is welcomed by the pension fund trustees
The government is set to increase the total financial capacity of the British Business Bank to £25.6bn.
The UK government's economic development bank said the increase in capacity – announced as part of chancellor Rachel Reeves' spending review yesterday (11 June) – will enable a two-thirds increase in investments to around £2.5bn each year.
It said this investment is expected to crowd in tens of billions of pounds of private capital and will support the most innovative UK businesses to access the capital they need to scale in the UK.
British Business Bank chief executive Louis Taylor said: "As the public financial institution with responsibility for supporting the growth of smaller businesses across the UK, the British Business Bank will play a critical role in delivering the UK's upcoming modern Industrial Strategy.
"We welcome today's announcement by the government, which is a strong endorsement of the British Business Bank's 10-year track record, market access and capabilities, including our position as the largest investor in UK venture and venture growth capital funds and the most active late-stage investor in UK life sciences and deep tech.
"To deliver the government's growth mission it is critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter what their background or where they are located."
Further details of new measures supported by the increase in capacity will be announced over the coming weeks.
The Pensions and Lifetime Savings Association (PLSA) welcomed the investment commitments announced in the spending review – noting it is positive the government is taking forward crucial investment in the economy and increasing the investment capability of the British Business Bank.
PLSA director of policy and advocacy Zoe Alexander said: "Pension funds have recently committed to invest more in productive assets in the UK. In return, the PLSA has asked the government to play an increased role in creating a pipeline of investment opportunities for pension funds to support UK growth.
"Yesterday's spending review represents a statement of intent that is welcomed by the pension fund trustees who, on behalf of millions of UK savers, will weigh up the opportunities this additional public investment presents."
