South West Firms See Growth Boost from British Business Bank Support

DOWNLOAD IPFS

Thousands of small businesses across the South West have received a major boost, as the British Business Bank announced it backed 2,200 more firms in the region over the past financial year, helping drive job creation and economic expansion.

In its second Impact Report for the 2024-2025 fiscal year, the state-owned lender revealed that its financial support is expected to generate an additional £1.2 billion in turnover for businesses in the West of England. That funding is also forecast to help create nearly 3,000 new jobs locally, reinforcing the bank’s role in regional economic development.

Steve Conibear, UK Network Director for the South West at the British Business Bank, said the figures underline how crucial the institution is for small and medium-sized enterprises (SMEs). “These figures highlight the important role the British Business Bank plays in supporting smaller businesses across the South West,” Conibear stated.

Regional Investment

The bank’s £200 million South West Investment Fund drives a significant portion of the growth. Launched in 2023, the fund passed its 150-deal milestone last month and has already delivered nearly £66 million in direct investment. That capital has gone toward both new startups and growing firms throughout the region.

The South West Investment Fund provides financing options ranging from £25,000 in business loans to up to £5 million equity investments. The goal is to make capital more accessible to a broad spectrum of businesses, from early-stage entrepreneurs to more established companies seeking to expand.

“Our South West Investment Fund and Start Up Loans program are delivering real impact on the ground, helping entrepreneurs at every stage of their journey,” Conibear added. “With increased financial capacity, including the recent launch of our Investor Pathways Capital initiative to help diversify the UK equity market, we’re now well placed to scale up our support and work with more partners to unlock finance for even more businesses across the region.”

The British Business Bank, which is owned by the UK government but operates independently of ministerial control, had its financial capacity boosted to £25.6 billion in June’s Spending Review. That increase allows the lender to raise its annual investment output to roughly £2.5 billion and attract more third-party private investment.

On a national scale, the bank supported £6.8 billion in financing for smaller businesses during the 2024–2025 financial year. This figure includes £1.2 billion from public funds, £2.6 billion in lending guarantees, and £3.0 billion in private capital brought in through crowd-in strategies.

The report shows that 24,000 businesses receiving finance during the year were first-time recipients, indicating the bank is helping firms traditionally overlooked by commercial lenders. A further 4,000 had been funded by the bank in previous years and received continued support. Notably, 84 percent of the companies backed were located outside London, further reinforcing the British Business Bank’s emphasis on regional equality.

As economic uncertainty and uneven growth continue to weigh on the UK, institutions like the British Business Bank play a vital role in ensuring capital reaches parts of the country that need it most. With new funding tools and an expanded remit, the bank appears positioned to widen its footprint even further in the years ahead.