Published this week by the British Business Bank, its second annual Impact Report highlights the positive effect of the Bank’s activities across Wales in 2024/25. Over the past year, the Bank supported 900 Welsh businesses that had not previously received its backing, supporting 10,800 existing jobs and expected to help create 900 new jobs over the lifetime of the finance.
This activity is expected to help Welsh businesses earn £500 million in additional business turnover over the lifetime of their finance, equivalent to £200 million in economic output to the Welsh economy.
One of the key drivers of this impact is the Bank’s £130m Investment Fund for Wales (IFW), which last month reached its £18m milestone, following 71 investments into over 67 businesses located across Wales and includes an additional £3m of private sector co-investment which has been leveraged as a result of the IFW’s support. The fund offers loans from £25,000 up to equity investment of £5m, throughout the region.
The Impact Report comes as the Bank gears up to deliver a step change in financing support to smaller businesses after its financial capacity was increased to £25.6bn in June’s Spending Review, enabling it to increase annual investments to around £2.5bn a year and to crowd in more third party capital.
The report underlines the Bank’s continued commitment to Wales and wider Nations and regions. 84% of the businesses supported by the Bank in 2024/25 were based outside of London – helping to deliver more than a £100m boost to economic output in each and every UK Nation and region.
Susan Nightingale UK Network Director at the British Business Bank, said: “Delivering impact is why we exist. By improving access to finance for smaller businesses, we help drive growth and prosperity across the UK, measured in the creation of new jobs and increased economic output.
“The data in the new Impact Report reflects the growing role we play in supporting entrepreneurs and business owners, something that is underpinned by over a decade of proven delivery. It’s through this work that we ensure smaller businesses right across Wales, can realise their full potential.”
The national picture
Nationwide, the Bank facilitated £6.8 billion of finance for smaller businesses, including £1.2 billion in public funding, £2.6 billion in lending guaranteed, and £3.0 billion in private capital crowding in.
This enabled the Bank to support 24,000 businesses that hadn’t received Bank-supported funding before, as well as 4,000 that were first funded by the Bank before 2024/25. 84% of the businesses supported were outside of London. The expected impacts over the life of this finance are:
- The creation of 38,000 additional jobs
- £18.0bn of additional business turnover, equivalent to an extra £8.0bn of economic output
- A more than £100m boost in economic output in each and every UK Nation and region
