British Business Bank
{{short description|UK state-owned economic development bank}}
{{Use dmy dates|date=June 2020}}
{{Use British English|date=June 2020}}
{{Infobox company
| name = British Business Bank plc
| logo = British Business Bank logo.svg
| logo_caption =
| type = State owned public limited company
| industry = Financial services
Investments
| fate =
| founded = {{start date|df=yes|2014|11|1}}
| predecessors = {{ubl|Capital for Enterprise|parts of the Department of Business, Innovation and Skills}}
| hq_location_city = Sheffield
| hq_location_country = United Kingdom
| area_served = United Kingdom
| key_people = {{Unbulleted list|Stephen Welton (Chair of Board)|Louis Taylor (CEO)}}
| products =
| owner = HM Government
(Department for Business and Trade)
| num_employees =
| num_employees_year =
| parent =
| subsid = {{Unbulleted list|British Business Investments|British Financial Services|British Patient Capital|Capital for Enterprise|National Security Strategic Investment Fund|The Start-Up Loans Company}}{{cite web|title=Corporate information and subsidiary companies – British Business Bank|url=https://british-business-bank.co.uk/corporate-information/|website=British Business Bank|access-date=3 February 2018|archive-date=4 February 2018|archive-url=https://web.archive.org/web/20180204000615/https://british-business-bank.co.uk/corporate-information/|url-status=live}}
| website = {{Official URL}}
}}
British Business Bank plc (BBB) is a British state-owned economic development bank established by the UK Government. Its aim is to increase the supply of credit to small and medium enterprises (SMEs) as well as providing business advice services. It is structured as a public limited company and is owned by the Department for Business and Trade (DBT, formerly known as the Department of Business, Innovation and Skills or BIS). The bank has its headquarters in Sheffield.
History
The intention to create a business bank was first announced by the Secretary of State for Business, Innovation and Skills, Vince Cable, in September 2012 with an initial £1 billion of government funding.{{cite news |url=https://www.bbc.co.uk/news/uk-politics-19691162 |title=Lib Dem conference: Cable promises £1bn 'business bank' |date=24 September 2012 |publisher=BBC News |access-date=10 February 2014 |archive-date=14 July 2023 |archive-url=https://web.archive.org/web/20230714144734/https://www.bbc.co.uk/news/uk-politics-19691162 |url-status=live }} The aim was to bring a number of government financial schemes, advice services and expertise together, creating a one stop shop for small and medium enterprises (SMEs) to go to. From 1 October 2013, Capital for Enterprise Limited (CfEL), BIS SME policy teams and private sector expertise were brought together within BIS to start the British Business Bank programme. On 2 December 2013 the Deputy Prime Minister, Nick Clegg, announced that the bank would be based in Sheffield, as well confirming an extra £250 million of government funding.{{cite web |url=https://www.theguardian.com/business/2013/dec/02/british-business-bank-small-firms |title=Government's British Business Bank gets another £250m |work=The Guardian |date=2 December 2013 |access-date=10 February 2014 |archive-date=23 February 2014 |archive-url=https://web.archive.org/web/20140223010737/http://www.theguardian.com/business/2013/dec/02/british-business-bank-small-firms |url-status=live }} On 15 October 2014, the bank was granted state aid clearance from the EU Commission{{cite web |url=http://uk.reuters.com/article/uk-britain-businessbank-eu-idUKKCN0I414820141015 |title=European Commission approves British Business Bank |publisher=Reuters |access-date=3 November 2014 |archive-date=5 March 2016 |archive-url=https://web.archive.org/web/20160305203953/http://uk.reuters.com/article/uk-britain-businessbank-eu-idUKKCN0I414820141015 |url-status=dead }} and the programme was subsequently transferred from BIS to British Business Bank plc on 1 November 2014.{{cite web |url=http://british-business-bank.co.uk/lending-already-reaching-smaller-businesses-british-business-bank-day-1/ |title=Lending already reaching smaller businesses for the British Business Bank on day 1 |date=3 November 2014 |publisher=British Business Bank |access-date=3 November 2014 |archive-date=4 November 2014 |archive-url=https://web.archive.org/web/20141104005924/http://british-business-bank.co.uk/lending-already-reaching-smaller-businesses-british-business-bank-day-1/ |url-status=live }}
Under her manifesto for the 2017 general election, Prime Minister Theresa May announced that the bank would take over from the European Investment Bank, after Brexit, receiving the UK funds hitherto earmarked for the European Investment Fund.{{cite web|url=https://www.iod.com/news/news/articles/Economic-interventions-sometimes-justified-but-Tories-must-remember-government-has-limitations|title=Economic interventions sometimes justified, but Tories must remember government has limitations|date=18 May 2017|publisher=Institute of Directors|accessdate=4 June 2020|archive-date=4 June 2020|archive-url=https://web.archive.org/web/20200604223812/https://www.iod.com/news/news/articles/Economic-interventions-sometimes-justified-but-Tories-must-remember-government-has-limitations|url-status=live}} To support this expansion the bank would open new offices in Edinburgh, Manchester, Birmingham, Cambridge, Newport, and Bristol.
In 2018 the National Security Strategic Investment Fund (NSSIF) was created to provide long-term equity in advanced technologies relevant to national security, partly modeled on In-Q-Tel in the U.S.{{cite news |url=https://www.telegraph.co.uk/technology/2020/07/18/secretive-uk-fund-behind-governments-500m-investment-oneweb/ |title=The secretive UK fund behind the government's $500m investment in OneWeb |last=Cook |first=James |newspaper=The Daily Telegraph |url-access=subscription |date=18 July 2020 |access-date=24 July 2020 |archive-date=24 July 2020 |archive-url=https://web.archive.org/web/20200724133623/https://www.telegraph.co.uk/technology/2020/07/18/secretive-uk-fund-behind-governments-500m-investment-oneweb/ |url-status=live }}{{cite news |url=https://www.civilserviceworld.com/in-depth/article/what-the-uk-can-learn-from-the-us-about-national-security-innovation |title=What the UK can learn from the US about national security innovation |last=Long |first=Alexis |website=Civil Service World |publisher=Dods Parliamentary Communications |date=28 February 2020 |access-date=24 July 2020 |archive-date=24 July 2020 |archive-url=https://web.archive.org/web/20200724140846/https://www.civilserviceworld.com/in-depth/article/what-the-uk-can-learn-from-the-us-about-national-security-innovation |url-status=live }} The UK intelligence and security agencies, led by the Secret Intelligence Service (MI6), will provide guidance to the investments. The kind of technologies previously developed within government have now often been commoditised and are produced in the private sector.{{cite news |url=https://www.ft.com/content/6126584c-bfde-11e8-8d55-54197280d3f7 |title=Tech companies targeted in mission to develop new spy tools |last=Bond |first=David |newspaper=Financial Times |url-access=subscription |date=25 September 2018 |access-date=24 July 2020 |archive-date=24 July 2020 |archive-url=https://web.archive.org/web/20200724135519/https://www.ft.com/content/6126584c-bfde-11e8-8d55-54197280d3f7 |url-status=live }}{{cite web |url=https://www.british-business-bank.co.uk/national-security-strategic-investment-fund/ |title=The National Security Strategic Investment Fund |publisher=British Business Bank |access-date=24 July 2020 |archive-date=14 July 2023 |archive-url=https://web.archive.org/web/20230714144612/https://www.british-business-bank.co.uk/national-security-strategic-investment-fund/ |url-status=live }}
Operations
The bank has taken on all financial schemes previously controlled by Capital for Enterprise Limited (CfEL), such as Enterprise Capital Funds, the Enterprise Finance Guarantee, Business Angel Co-investment Funds and the Small Firms Loan Guarantee. In addition, the bank ran the assessment process to select Bizfitech, Funding Xchange and Funding Options as designated finance platforms for the bank referral scheme.{{cite web|url=http://british-business-bank.co.uk/finance-referral-platforms-policy/|title=Finance platform referrals policy|accessdate=5 November 2016|archive-date=6 November 2016|archive-url=https://web.archive.org/web/20161106061857/http://british-business-bank.co.uk/finance-referral-platforms-policy/|url-status=live}}
The bank mainly targets its assistance to companies with a turnover of up to £25 million. The bank does not lend to SMEs directly, but instead works with other financial institutions to increase access to funding, such as by providing part-guarantees for loans.{{cite web |url=http://www.ft.com/cms/s/0/8fe98c74-6969-11e3-89ce-00144feabdc0.html#axzz2sv5tXqUW |title=British Business Bank to target SMEs with potential |publisher=Financial Times |accessdate=10 February 2014 |archive-date=9 February 2014 |archive-url=https://web.archive.org/web/20140209055221/http://www.ft.com/cms/s/0/8fe98c74-6969-11e3-89ce-00144feabdc0.html#axzz2sv5tXqUW |url-status=live }}
The bank came under criticism from lender Rebuildingsociety.com in 2014 for its execution of the Funding for Lending scheme, saying it created unfair competition in the UK peer-to-peer lending industry by concentrating financial support via the largest platforms.{{cite web |url=http://www.ft.com/cms/s/0/feb9bc5e-5afa-11e4-8625-00144feab7de.html |title=Government interference risks distorting UK P2P market, say lenders |date=26 October 2014 |publisher=Financial Times |accessdate=15 December 2014 |archive-date=8 December 2014 |archive-url=https://web.archive.org/web/20141208113827/http://www.ft.com/cms/s/0/feb9bc5e-5afa-11e4-8625-00144feab7de.html |url-status=live }}
After the January 2018 liquidation of Carillion threatened thousands of suppliers, particularly SMEs, £100 million of lending was offered by the British Business Bank{{cite news|title=Carillion collapse: UK puts up £100m to back Carillion contractor loans|url=https://www.bbc.co.uk/news/business-42925155|accessdate=5 February 2018|work=BBC News|publisher=BBC|date=3 February 2018|archive-date=4 February 2018|archive-url=https://web.archive.org/web/20180204164936/http://www.bbc.co.uk/news/business-42925155|url-status=live}} alongside a fund established by HSBC, Royal Bank of Scotland and Lloyds Bank.{{cite news|last1=Gill|first1=Oliver|title=Government sets up Carillion task force|url=http://www.cityam.com/279034/government-sets-up-carillion-task-force|accessdate=5 February 2018|work=City AM|date=18 January 2018|archive-url=https://web.archive.org/web/20180122001203/http://www.cityam.com/279034/government-sets-up-carillion-task-force|archive-date=22 January 2018|url-status=dead}}
In 2020 the NSSIF was involved in the British Government decision to invest £400 million for a 45% stake in OneWeb, a struggling low Earth orbit satellite communications business. It was reported that the UK would repurpose the satellites for the United Kingdom Global Navigation Satellite System,{{cite news|url=https://www.bbc.co.uk/news/science-environment-53279783|title=UK government takes £400 million stake in satellite firm OneWeb|publisher=BBC News|date=3 July 2020|access-date=30 March 2024|archive-date=17 May 2022|archive-url=https://web.archive.org/web/20220517015315/https://www.bbc.co.uk/news/science-environment-53279783|url-status=live}} but by September 2020 that strategy was being reconsidered.{{Cite web |last=Foust |first=Jeff |date=2020-09-25 |title=U.K. to revise strategy for satellite navigation system |url=https://spacenews.com/u-k-to-revise-strategy-for-satellite-navigation-system/ |access-date=2022-08-03 |website=SpaceNews |language=en-US}} The government's stake in OneWeb was diluted in July 2022 when the company was merged into French rival Eutelsat.{{Cite web |last=Makortoff |first=Kalyeena |date=2022-07-24 |title=Satellite firm bailed out by UK to be taken over by French rival |url=https://www.theguardian.com/business/2022/jul/24/oneweb-satellite-firm-bailed-out-by-uk-to-be-taken-over-by-french-rival |access-date=2022-08-03 |website=the Guardian |language=en |archive-date=8 October 2023 |archive-url=https://web.archive.org/web/20231008183120/https://www.theguardian.com/business/2022/jul/24/oneweb-satellite-firm-bailed-out-by-uk-to-be-taken-over-by-french-rival |url-status=live }}
In January 2022, as a result of a loan to the club being translated into shares, the bank became a minority interest in Bolton Wanderers F.C..
In February 2022, the bank launched its Sustainability Hub which aimed to alert smaller businesses to the commercial benefits of investing in decarbonisation.{{Cite web |title=Sustainability |url=https://www.british-business-bank.co.uk/finance-hub/business-guidance/sustainability/ |access-date=2022-08-03 |website=British Business Bank |language=en-US |archive-date=19 January 2024 |archive-url=https://web.archive.org/web/20240119171446/https://www.british-business-bank.co.uk/finance-hub/business-guidance/sustainability/ |url-status=live }} The Hub's resources include articles on topics such as creating action plans, sustainable logistics, and how to a build a green supply chain.
See also
References
{{reflist}}
External links
- {{Official website}}
{{Department for Business and Trade}}
{{Department for Business, Energy and Industrial Strategy}}
{{authority control}}
Category:British companies established in 2013
Category:Department for Business, Energy and Industrial Strategy
Category:Department for Business and Trade
Category:Government-owned companies of the United Kingdom