What was behind the massive boost for the British Business bank?

And is Rachel Reeves finally speaking the language of business growth?

Hello Rainmakers,

There was some detail in the Chancellor’s statement that may have got lost amidst the noise and haste.

The British Business Bank’s total financial capacity will be increased to £25.6 billion, a direct response to a direct lobbying plea.

This week’s Rainmakers looks into what was behind the decision and asks what might emerge from an industrial strategy at the end of the month.

Will an army of underfunded would-be unicorns emerge from the forests now that scale up money is available?

Amidst the blizzard of funding commitments in Rachel Reeves’ Chancellor’s Spending Review was a commitment to increase what it described as the “resources and capabilities” of the British Business Bank (BBB), marking a major step change in financing companies to start and scale in the UK and supporting the Industrial Strategy.

The BBB’s total financial capacity will be increased to £25.6 billion, supporting a sizeable two-thirds increase in support for UK innovative businesses compared to 2025-26 and crowding in tens of billions of pounds more in private capital. This expansion will take BBB investments to around £2.5 billion each year and has been enabled by the changes to the fiscal rules made at Autumn Budget 2024.

In theory, this additional capital, and what the government document tantalisingly refers to as “greater flexibilities” and “a set of strategic reforms”, the BBB will be able to continue with the flagship programmes it runs, such as Start-Up Loans and the Nations and Regions Investments Fund.

One thesis emerging is it’s much harder to deploy than government economists appreciate, which is what I wanted to ask Louis Taylor (no relation) the Bank’s chief executive.