HM Treasury has published a joint ministerial letter setting investment priorities for the British Business Bank (BBB) following a GBP 2 billion funding uplift at Budget 2026. The bank is asked to sharpen its focus on regional growth, reindustrialisation and the United Kingdom's security and strategic capabilities, particularly through direct investments. The funding includes a new venture debt capability, greater support for Community Development Finance Institutions and increased commercial fund investment. Within this allocation, up to GBP 900 million is expected to support defence and dual-use technologies, nearly doubling the BBB's capacity to back businesses critical to Britain's security and strategic capabilities over the next five years. The government is identifying technologies, capabilities and subsectors where BBB investment would have the greatest impact, working with other public financial institutions, the National Security Strategic Investment Fund and SovereignAI. The BBB is asked to contribute its market, sector and investment expertise to this work. It must continue investing commercially, retain responsibility for individual investment decisions and maintain operational independence.
United Kingdom's HM Treasury sets British Business Bank investment priorities following GBP 2 billion funding uplift
HM Treasury has asked the British Business Bank to sharpen its focus on regional growth, reindustrialisation and Britain's security and strategic capabilities following a GBP 2 billion Budget 2026 funding uplift. Up to GBP 900 million is expected to support defence and dual-use technologies. The bank must continue investing commercially while retaining operational independence and responsibility for individual investment decisions.