- Intention to invest £100 million through British Business
Bank's Investor Pathways Capital Initiative to boost growth in
every postcode
- As many as 10 new venture capital funds to be launched across
the UK expanding access to venture capital beyond London
- Economic Secretary to the Treasury visited Sheffield and
Leeds to meet businesses, lenders and investors supporting
regional growth
Investors in early-stage companies across the UK can access a
multi-million-pound investment boost as the Chancellor backs
growth in every postcode through the next £100m phase of the
British Business Bank's Investor Pathways Capital Initiative.
Supporting talented, first-time venture capital investment fund
managers from a wide range of backgrounds, the initiative, which
will invest £400m in total, helps businesses scale up as the fund
managers provide the catalytic early capital that innovative,
early-stage businesses need to scale up drive local growth and
create more good British jobs.
Business large and small have felt the squeeze as the cost of
business has risen. The Chancellor is backing investment outside
of London into businesses to help tackle this, bolstering efforts
to make Britain better off.
Chancellor of the Exchequer MP said:
One of my priorities as Chancellor is
wealth creation. That means building an economy that helps people
live well. I know there is a cost of business and it will not go
unnoticed.
This must involve stepping up our support for the businesses who
invest in people, and this £100m boost will help provide the fuel
to drive new life into local economies up and down the country.
In June, the British Business Bank committed up to £90m to 10 new
microfunds as part of the first Investor Pathways Capital cohort.
Applications for the next cohort, which is part of this £100m
deployment, will open in Autumn 2026.
Economic Secretary to the Treasury said:
"We want growth in every postcode and businesses are integral to
that as the absolute backbone of our economy.
"Unlocking investment and capital for British businesses, backing
firms with practical support and ensuring businesses wherever
they are can get the finance they need to grow, innovate and
create jobs."
Separately, the Economic Secretary to the Treasury yesterday met
with businesses, lenders and investors from across Yorkshire in
Sheffield and Leeds. They discussed how government will support
the British Business Bank and industry to work together to ensure
the most ambitious of British firms can access the finance they
need to invest, create jobs and drive growth in every postcode.
The visits came as the Government continues to deliver on
commitments made at Mansion House to strengthen the UK's business
finance ecosystem. This approach is centred on ensuring growth
reaches every part of the country ensuring firms have the finance
and support they need a at every stage of their growth journey
from start-up through to scale-up.
Recent reforms to the Growth Guarantee Scheme will increase
lending capacity by a further £2 billion per year by 2028/29,
helping an additional 12,000 smaller businesses access finance
each year while extending loan terms and broadening eligibility.
These changes are designed to ensure more businesses can secure
the funding they need to invest, expand and create jobs.
The British Business Bank is playing a central role in helping
deliver this ambition, supporting businesses throughout their
growth journey through debt finance, venture capital and targeted
investment programmes. Recent activity has included investments
supporting innovative technology businesses, new venture capital
funds and underserved communities across the UK's Nations and
regions.
