logo
British Business Bank returns to profit amid further investments

British Business Bank returns to profit amid further investments

Independent6 days ago
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.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US and EU clinch trade deal to avert prohibitive US tariffs, Trump says
US and EU clinch trade deal to avert prohibitive US tariffs, Trump says

Reuters

time8 minutes ago

  • Reuters

US and EU clinch trade deal to avert prohibitive US tariffs, Trump says

TURNBERRY, Scotland, July 27 (Reuters) - The United States has struck a framework trade deal with Europe, U.S. President Donald Trump announced on Sunday, averting a spiralling row between two allies who account for almost a third of global trade. The deal, that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment, will bring welcome clarity for EU companies. However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate. The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with U.S. President Donald Trump to push a hard-fought deal over the line. Trump, who is seeking to reorder the global economy and reduce decades-old U.S. trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." Trump has periodically railed against the European Union saying it was "formed to screw the United States" on trade. His main bugbear is the U.S. merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to U.S. Census Bureau data. The EU points to the U.S. surplus in services, which it says partially redresses the balance.

UK could save £5bn if Bailey changes course on debt sales
UK could save £5bn if Bailey changes course on debt sales

Telegraph

time9 minutes ago

  • Telegraph

UK could save £5bn if Bailey changes course on debt sales

Taxpayers would save up to £5bn next year if Andrew Bailey overhauls the Bank of England's controversial programme of bond sales, analysts have calculated. Deutsche Bank has said Rachel Reeves would be spared from transferring billions of pounds to Threadneedle Street if it stopped selling long-term debt amid a dramatic drop in bond prices. The Bank is currently unwinding the stockpile of gilts it amassed during the financial crisis and lockdown, when it created almost £900bn to boost the economy. When interest rates were at record lows of 0.1pc during the pandemic, the Bank earned far more on its returns from government bonds than it had to pay in interest to commercial banks. However, this reversed dramatically once interest rates started to rise. The Bank is now also actively selling gilts back to the market as part of so-called quantitative tightening (QT), crystallising billions of pounds of losses for the taxpayer.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store