'Supporting 140,000 jobs': John Healey gives £20bn boost to Yorkshire-based National Wealth Fund and British Business Bank
An extra £20 billion is to be supplied to the Yorkshire-based financial institutions the National Wealth Fund and the British Business Bank in a move John Healey claimed will support 140,000 jobs.
The Chancellor is providing an additional £15.4bn of capital to the Leeds-headquartered NWF, which is to increase its focus on investing in projects and companies connected to defence, alongside critical minerals and artificial intelligence and its supply chains.
Mr Healey said: “I’m boosting investment through our Public Financial Institutions.
“A further £20.4bn for the National Wealth Fund and the British Business Bank over the coming years, supporting 140,000 jobs.
“And I will work with pension providers, asset managers and the wider industry to accelerate more private investment into Britain’s innovative, fast-growth firms.”
Oliver Holbourn, National Wealth Fund CEO, said: “We look forward to continuing our work with government departments, industry partners and private investors to put this capital to work for the taxpayer, crowding in private investment, driving growth and enhancing the UK's sovereign and strategic capabilities.”
National Wealth Fund analysis suggests that £15.4 billion of planned investment could create or support around 100,000 jobs by 2035/36. The estimate is based on the employment impact delivered by 87 investments already made by the Fund.
Meanwhile, a further £5bn of capital is being provided to the Sheffield-based BBB.
David Hourican, Interim Chief Executive, said: “Today’s measures are a significant boost to the Bank’s firepower, enabling us to unlock more finance for smaller businesses, innovative scale-ups and strategically important sectors across the UK.”
BBB said the extra support would help create an additional 15,800 jobs and support a further 24,600 existing roles.
Business Secretary Jonathan Reynolds said: “Britain is bursting with talent, ideas and ambition that can lead the industries of the future, and this package will help deliver our Industrial Strategy by turning more home-grown potential into jobs and investment.
“By giving the British Business Bank a stronger hand to back ambitious scale-ups, work more closely with devolved governments and mayors, and boost support for defence technologies, we’re helping companies across the UK to take the next step – driving growth and strengthening our security in a more uncertain world.”
Mr Healey also committed £300m to a new ‘Founders’ Relief’ tax break for innovative companies.
The Government is promising to introduce a new Capital Gains Tax Founders’ Relief from April, offering a reduced 10 per cent Capital Gains Tax rate on up to £10 million of lifetime gains.
Budget documents, which said the measure would cost £300m by 2032, said the policy is designed to “support the talented individuals who take risks to build and scale high-growth, innovative companies in the UK”.
It added: “This will further support those with a track record of creativity and resilience in building successful businesses to deliver even more UK jobs, growth and wider economic benefits in future.”
The government will also launch a scale-up women’s programme to support female founders.
Dave Foreman, CEO of regional venture capital firm PXN Group, said: “The new founders’ relief is exactly the right instinct. Every successful exit is a chance to fund the next generation of businesses, and keeping that capital circulating in the regions that produced it is how strong ecosystems are built.”
"The new scale-up programme for women founders will help widen that pipeline too.”