The British Business Bank has committed £6.6 billion to back º£½ÇÊÓƵ entrepreneurs and to bolster innovation and industry.
As part of Sir Keir Starmer's unveiling of a 10-year industrial strategy, the government's development bank disclosed its own hefty investment plans.
On Monday, the Prime Minister announced plans to slash electricity costs for thousands of companies under this strategy, aiming to provide an impetus to economic growth.
The bank's total financial capabilities have surged to £25.6 billion following the latest spending review.
This fresh commitment of £6.6 billion from the British Business Bank is expected to particularly support the swift expansion of small businesses throughout the country.
£4 billion of this funding will be injected through the new Industrial Strategy Growth Capital initiative, targeting critical sectors such as advanced manufacturing, clean energy, digital technology, and life sciences.
An additional £2.6 billion is earmarked for entrepreneur support across the nation, with the intention of bridging regional disparities in funding opportunities.
Louis Taylor, chief executive of the British Business Bank remarked: "We welcome today's announcement by the secretary of state to deliver British Business Bank industrial strategy growth capital, as well as the reforms to the Bank's governance and financial framework.
"Using our market expertise and reach, we have a critical role to play in supporting smaller businesses in the eight growth-driving sectors to grow and stay in the º£½ÇÊÓƵ.
"To deliver the Government's growth mission it is also critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter what their background or where they are located across the nations and regions of the º£½ÇÊÓƵ."
The bank is also launching two new Nations and Regions Investment Funds, totalling £350m, in the East and South East of England. It said: "These funds will address regional finance gaps outside traditional hotspots by bringing targeted equity and debt finance to growing businesses and supporting innovation clusters."
The bank also plans to grow innovation through "additional targeted £100m investment into the existing Nations and Regions Investment Funds and embedding dedicated Cluster Champions, using the Bank’s expertise and investment capital to help businesses grow". It will, alongside Innovate º£½ÇÊÓƵ, help connect high-potential firms in the eight Industrial Strategy sectors to investors within ten clusters: Greater Manchester, West Yorkshire, the West Midlands, Liverpool City Region, South Yorkshire, North East, West of England, Glasgow City Region, Cardiff Capital Region, and Belfast City Region.
