2015 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: 2015 (data is from Sept 2014)
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.
DCA (RAG): Amber/Green
DCA text: There has been significant development and progress of a HR resource plan, Transfer of Undertakings of Employment (TUPE) plan, a comprehensive transition plan and the Go-Live Schedule which tracks critical systems. In addition there was senior engagement at Chief Executive Officer (CEO) and Chief Financial Officer (CFO) levels with suppliers to ensure the integrity of the Finance, HR and Payroll systems ahead of go-live. There has also been an increase in the capacity and capability in the Finance function.
Start date: 2012-09-24
End date: 2014-11-01
Schedule text: The BBB is forecast to go live on as an operationally independent, Government-owned financial institution on 1 November 2014 achieving a major milestone. They are now based on separate premises and are subject to agreed Corporate Governance Frameworks, with ShEx providing Shareholder oversight.
Baseline: £312.00m
Forecast: £322.40m
Variance: 3.00%
Variance text: n/a
Whole Life Cost: £495.70m
WLCost text: The forecast cost for this project include: Operational costs (running BBB programmes whilst in BIS, interim structure and set up of BBB); SULCo and financial guarantees; and all other BBB programmes e.g. Business Finance Partnership (BFP), Enterprise Capital Funds (ECF), Investment programme.
Notes1:
Notes2:
Sourcefile: IPA_2015.csv

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