The British Business Bank’s financial capacity is being raised to £25.6 billion, allowing it to scale up investments to approximately £2.5 billion annually. The expansion aims to unlock significant private capital and support high-growth, innovation-driven UK firms, particularly those in the life sciences, deep tech, and venture capital sectors.

The move follows confirmation of governance and financial reforms to the Bank, as outlined in the latest government Spending Review. These changes are expected to be implemented by the end of the current financial year.

The Bank has already backed 22 of the UK’s current unicorns through its equity programmes, representing over half of all such firms in the country. With its expanded mandate, the institution is expected to play a pivotal role in delivering the government’s upcoming Industrial Strategy and broader ambitions for regional growth and scale-up funding.

Following the Chancellor Rachel Reeves’ Spending Review – which included announcements of £2bn into AI and £1.2bn into apprenticeships and training, increased investment in housing, nuclear power, the NHS and Defence, and backing for the Midlands Rail Hub – East Midlands businesses and leaders have reacted. East Midlands Chamber director of policy and insight, Richard Blackmore said: “The starting position is that all investment is welcome. However, in what’s been a tough period for businesses, investment in defence, new homes and infrastructure is welcome but it’s essential that spending has been properly costed, so there’s no risk of additional cost burdens for business. “With businesses still absorbing the announcements of the last Budget – which has meant higher staffing bills from things like raised National Insurance contributions and a higher national living wage – any additional cost would be painful. “Rolls-Royce getting backing to build Small Modular Reactors is good news for Derby’s economy, for job creation in the region and for the wider supply chain, as is investment into nuclear fusion in Nottinghamshire. “For businesses looking to recruit, news of investment in apprenticeships and training is encouraging, especially when businesses are finding it so hard to recruit. Nearly 7 out of 10 East Midlands firms told us in our Quarterly Economic Survey that they’ve struggled to fill positions.” With Chancellor Rachel Reeves announcing she is providing funding for the Midlands Rail Hub, Maria Machancoses, chief executive of Midlands Connect, said: “This marks a major milestone in this transformational, nationally significant project. The Midlands Rail Hub is our flagship scheme, and it is the result of years of collaboration and determination by cross-party leaders from all corners of the Midlands. “It will deliver a step change for passengers, for communities and ultimately for Government’s central mission of economic growth. In this region, we need improved transport connections, and Midlands Rail Hub will help make that happen. “The project will create new jobs, improve access to opportunities and boost growth. It will also provide tailored apprenticeship schemes, as well as boosting much-needed house building. We will continue to work with our mayors, leaders and MPs across the region to progress the work on Midlands Rail Hub.” Mayor of the East Midlands, Claire Ward, said: “It’s been a massive week for the region and bringing in more money to invest locally. After many calls and meetings with the Government, I have secured £2bn for transport to get the region moving. There’s also £2.5bn to convert West Burton Power Station into one of the world’s first fusion power plants, creating thousands of skilled jobs. A huge vote of confidence in Rolls Royce, who have been selected to develop small modular reactors, again securing more skilled jobs in our region. “The increase in our defence spending will benefit our local world-leading businesses in manufacturing and engineering, and the smaller traders that supply to them. “On top of that, the largest injection of cash into the NHS will help bring down local waiting lists, along with a boost for housing and schools in the spending review. “Our region rightly got a special mention in the Chancellors speech because Government only invest if you’re a safe bet and can be trusted to deliver. This shows what we are made of and where we’re going. The East Midlands is the best bet in Britain today.” On defence and security, Tom Saunderson, corporate partner at the law firm Browne Jacobson, said: “Raising defence spending to 2.6% of GDP by April 2027 is a clear signal of intent – but it’s only the start. In order to meet the aspirations of the Strategic Defence Review and build a truly resilient defence industrial base, government must go further: unlock private capital, follow through on procurement reform, and create the conditions for long term investment.” Polly Dhaliwal, COO of Enterprise Nation, said: “The Spending Review is a very clear indication of the government’s key priorities, so to see a £2bn commitment to boost AI skills and a £1.2bn boost to apprenticeships and training is excellent to see. “The path to widespread digital adoption and AI use remains critical to our economy if our nation is to remain resilient and compete in a complex global marketplace. “Small businesses need access to a high-aspiration national programme of support to equip SMEs with AI tools, skills and guidelines to boost confidence and productivity, such as Google’s AI Works. It demonstrates the power and expertise that working with private sector can offer in upskilling the nation’s SME community in the digital space, whilst delivering savings to the tax payer. “Extra support for exporting is good to see – but it must not come at the expense of supporting small businesses to succeed at home. “Enterprise Nation believes that a thriving SME sector not only fuels economic growth but also creates more prosperous and resilient communities. The success of small businesses is woven into the fabric of our society, and it is our duty to support them in every way possible. “That’s why we also welcome the Chancellor’s new Trailblazer Neighbourhoods project which offers a boost to deprived high streets and communities – but we’d like to see this rolled out more widely. “We’re pleased to see increases to the British Business Bank budgets – but we also note a chunky decrease in day-to-day spending for the Department for Business and Trade (DBT). We hope this won’t mean a decrease in support for small businesses at the time when they need it the most. Understanding more about the impact of these cuts will hopefully be clarified when the Industrial Strategy and the Small Business Strategy are published later this year.” David Morris, central region market lead, PwC, said: “The Chancellor’s announcements today underscore the critical shift towards empowering regions with more control and decision-making tailored to local needs, executed by local leaders. Notably, the research and development package, which includes up to £500 million for regions across the UK, will significantly bolster the robust manufacturing sector and ‘innovation cluster’ in the Midlands. This funding will facilitate ongoing development, upskilling, and rapid scaling of operations. “The infrastructure updates, particularly the advancements in the Midlands Rail Hub, promise to enhance connectivity from Birmingham throughout the West Midlands and beyond. This is encouraging news, as it will further fuel regional growth. To fully realise these benefits, a sustained emphasis on equipping our young people with the right skills is essential – the announced additional investment in training and upskilling is vital in achieving this goal.” David Watson, principal consultant at energy consultancy BFY Group, said: “Rachel Reeves has just delivered her first Spending Review as Chancellor, announcing £30bn for the UK’s largest deployment of nuclear infrastructure in 50 years. This, alongside the backing of GB Energy, and carbon capture projects in Merseyside and Teesside, represent a key step to achieving the government’s energy and climate commitments. It’s also been confirmed that the £13.2 billion fund for the Warm Homes Plan hasn’t been cut. “While increasing pressures on defence and public services could have signalled a risk of short-term trade-offs, we’re glad to see the government back investment in the transition to clean energy. Striking the right balance between short-term budget constraints and long-term benefits, like future-proof jobs, lower energy bills and reduced emissions, has never been more crucial. “The real challenge now is delivery – turning ambition into impact through clear timelines, private investment, and local action. The government’s announcement today will focus minds on the question of how quickly the UK can now accelerate towards delivering a net zero.” Andrew Redfern, CEO, Framework, said: “We welcome the additional investment in social and affordable housing, which should increase the range of options for those who are ready to move on from supported housing. However, the spending review has ignored the crisis in supported housing itself, which is very disappointing. So is the lack of resourcing for prevention work. It seems the government’s intention is to continue trying to regulate supported housing out of existence, rather than choosing to fund it properly. “In this context the proposed de-criminalisation of rough sleeping is a distraction. Whilst it is obviously absurd to arrest someone for being homeless, what’s really needed is a national strategy, with accompanying resources, to get people off the streets and into accommodation with the support they need. We will continue to make the case for this; in the meantime, as more services close we expect to see ever higher levels of homelessness, both visible and hidden, with all its adverse consequences.” Gabor Taller, partner and co-head of social housing, Browne Jacobson, said: “A new £39bn 10-year Affordable Homes Programme is being described as ‘transformative’ and a ‘watershed moment’ by the housing sector, providing a potentially once-in-a-generation opportunity to boost the provision of social housing in England. “Coupled with the 10-year rent settlement, a pledge to consult on how social rent convergence can be implemented and giving housing associations equal access to building safety funding, this package of measures provides housing associations – and their partners – with the certainty they have been severely lacking in recent years. “Details are still to come on aspects such as the types of homes to be prioritised, the ratio between social rented and shared ownership, the role of modern methods of construction and the involvement of SME developers – while there’s also plenty of work to do in practically closing construction skills gaps despite separate funding pledges. “The government’s manifesto said it would deliver the biggest increase in supply of social and affordable homes in a generation – and these announcements signal a transition from policy to practice.”

After seeing better growth than expected in the first quarter of 2025, the UK economy has shrunk. According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have fallen by 0.3% in April, following growth of 0.2% in March. It reflects, across key sectors, services output dipping by 0.4%, production output falling by 0.6%, and construction output conversely growing by 0.9%.

Ashby-de-la-Zouch is set to gain a new banking hub following the planned closure of the town’s NatWest branch this September. The hub will be delivered by Cash Access UK and is scheduled to open in June 2026.

Designed to serve customers of any bank, the facility will provide counter services operated by Post Office staff, enabling cash withdrawals, deposits, bill payments, and other basic banking functions. It will also feature a rotating schedule of bank representatives from various institutions, offering face-to-face services on designated days.

The initiative follows a recommendation from Link, the UK’s cash access and ATM network, and comes in response to the ongoing decline of traditional bank branches. The Ashby site will become the fourth such hub in Leicestershire, joining existing locations in Lutterworth, Syston, and Market Harborough. Nationwide, there are currently 160 operational banking hubs.

Before the hub’s launch, Cash Access UK will conduct community consultations and location scouting. The move aims to maintain cash access and in-person banking for businesses and residents despite the accelerating shift toward digital transactions.