Public bodies mobilise £50bn to drive UK economic growth and support over 802,000 jobs
Four of Britain’s key public finance institutions (PuFins) that are backing businesses and projects across the UK have made at least £50bn of investments over the last two years, supporting or sustaining around 802,000 jobs.
Business secretary Peter Kyle outlined the major economic impact today at an event in Central London organised by UKEF to mark one year since the launch of the Modern Industrial Strategy. It was attended by chief secretary to the Treasury Lucy Rigby, business leaders and leaders of the four institutions: UKEF, British Business Bank, National Wealth Fund and Innovate UK.
Since July 2024, the government has unlocked an additional £80bn of financial capacity across the four organisations, increasing their combined firepower to £193bn to support long-term investment and economic growth.
PuFins work to provide businesses with a coherent and complementary package of support throughout their growth journey. By combining expertise and capabilities across innovation, access to finance, investment and exports, they help businesses start, scale, invest, innovate and reach international markets.
UKEF CEO, Tim Reid said: “UK Export Finance plays a central role alongside our fellow public finance institutions in supporting British exporters of all sizes, unlocking investment and driving long-term economic growth.
“Over the last two years, UKEF committed over £25bn in financing and has increased its lending and guarantee capacity to £130bn.
“With our refreshed mandate, we will work even more closely with our partners to combine our expertise and financing, helping deliver the Industrial Strategy and create new opportunities for businesses in every part of the country.”
British Business Bank CEO, Louis Taylor said: “Over the last two years we’ve made a huge impact; backing new specialist fund managers, co-investing in early-stage companies and supporting strategically important businesses to help priority sectors scale and succeed in the UK.
“We are the largest investor in UK venture and venture growth capital funds and our direct equity portfolio is backing more than 50 high-growth companies, investing over £600m into some of the UK’s fastest-growing science and technology scale-ups.”
National Wealth Fund CEO, Oliver Holbourn said: “We are committed to making it easy for businesses and projects to succeed, ensuring they receive timely help, guidance and finance by working with our partner public finance institutions to identify and develop the best opportunities. So far we have committed over £10bn to unlock the UK’s future, and we will build on that momentum by driving investment across the breadth of the UK.”
Innovate UK CEO, Tom Adeyoola said: “The UK is one of the best places in the world to innovate, and the increased capacity across the Public Financial Institutions creates a significant opportunity for ambitious businesses. By bringing together expertise in innovation, investment, finance and exports, we are helping companies access the support, partnerships and capabilities they need to turn breakthrough ideas into commercial success and scalable businesses.
“Together, we are building belief in the UK as a world-leading place to start, scale and stay, helping innovative businesses unlock investment, reach new markets and drive growth across the economy.”
One year on from the launch of the Modern Industrial Strategy, Britain has attracted more than £380bn in private sector commitments and £38 billion of export announcements have been secured across key sectors.
The event follows the announcement of a new joint business support scheme by UKEF and the BBB that will significantly increase access to finance for thousands of small and medium-sized businesses so they can grow their exports.
Launching in spring next year, it will target support at the many SMEs with genuine export ambitions who too often struggle to access the finance they need to act on them.