2014 Report details for project: Business Bank Project

Project name: Business Bank Project - there are 2 reports for this project: 2014, 2015
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Organisation: BIS (D3) - see all reports for this organisation
Report year: 2014 (data is from Sept 2013)
Category: Transformation - see all reports for this category
Description: In September 2012 the Government announced the creation of a business bank to address long-standing structural gaps in the supply of finance to SMEs and mid-sized corporates. The bank, which has been allocated £1bn of Government funding, will be tasked with supporting the development of diverse finance markets for business, tackling market failures in the provision of finance, and ensuring that businesses are aware of and can access the support provided by Government. The new institution will operate through the wholesale markets in order to unlock institutional investment to benefit small to medium sized businesses; it will not have any retail presence. Rather, it will facilitate the provision of loans, including long-term patient capital, to UK firms through banks and other financial institutions. The 'Business Bank' will be the single public identity and centre of expertise in government on all commercially-minded finance schemes for small and mid-sized businesses. These services will be managed as a single portfolio with operational and budget flexibility. The bank will commercially-focused, employing finance, investment, business and public sector professionals to pool the expertise of the relevant markets and efficiently build up and manage the bank's operations. It will be able to determine its own priorities, subject to high level objectives, budgets and operating principles set by Ministers. The 'Business Bank' will not seek to replace or compete with existing and future finance providers, but rather to ensure that there is a greater range of providers and products on offer to businesses. By harnessing the power of capital markets, it has the potential to transform business finance in the UK.
DCA (RAG): Amber/Green
DCA text: A total of £660m of new financing reached small businesses in 2013 as a result of the BBB programmes - a 70% increase on the previous year. We continue to engage with the European Commission and hope to receive state aid approval to enable the BBB to go live in Autumn 2014
Start date: 2012-09-24
End date: 2014-11-15
Schedule text: No departmental narrative
Baseline: £237.92m
Forecast: £185.57m
Variance: -22.00%
Variance text: Since the original budget was set there has since been a reallocation of budgets to reflect spending profiles of investments. The underspend 2013/14 will be rolled forward for investment in future years
Whole Life Cost: £1,567.45m
WLCost text: No departmental narrative
Sourcefile: IPA_2014.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.