Recommendation 15

HM Government · verbatim extract Acknowledged

Government, including HM Treasury and the Department for Business and Trade, should consult with the BBB on an ongoing basis to ensure that everything possible is being done to raise awareness and increase engagement from the SME community. This should include assessing whether the BBB has sufficient resources to publicise its services effectively. Government should subsequently implement criteria by which they can assess the effectiveness of the BBB in reaching SMEs, which they should publish annually. (Paragraph 88) 26. The Government agrees with the Committee that the British Business Bank (BBB) plays an important role in providing support for SMEs. We will work with the BBB to improve the access to finance landscape for SMEs, stimulating supply and demand through targeted interventions. We plan to build on the work the BBB has done to date as it strives to create the opportunity for smaller businesses to invest and grow, generating additional jobs and elevated economic activity. 27. To the question of assessing the effectiveness of the BBB’s reach, the BBB published its first SME Impact Report earlier this year which sets out the impact of BBB’s activity on smaller businesses across the UK’s Nations and regions. The report shows that BBB deployed £3.5bn of public funding into UK smaller businesses in 2023, funding around 23,100 UK smaller businesses, 84% of which were outside of London. The expected impacts over the life of this finance are the creation of 39,400 additional jobs and £19.8bn of additional business turnover, equivalent to £8.4bn of Gross Value Added (GVA) 1 . 28. The BBB improves access to finance to help businesses invest and grow, generating additional jobs and economic activity. Its programmes are designed to bring benefits to businesses that are start-ups, businesses with high growth potential that are looking to scale up, and those looking to stay ahead in their market. 29. We also agree with the Committee that BBB’s finance hub is an important resource that helps smaller businesses understand the finance landscape and provide information on the options available based on their needs. This information is key in assisting SME access the finance they need, and we would like to see more SMEs utilising this service. 30. The Government wants to empower BBB and ensure that it has sufficient resources to support the SMEs it serves. This is why at Autumn Budget, to help support the Government’s mission to kickstart economic growth, the Department for Business and Trade’s (DBT) settlement will allow them to invest over £1 billion across 2024–25 and 2025–26 for the BBB to enhance access to finance for small businesses, including over £250 million each year for small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.