Referral of the proposed subsidy to British Business Bank by the Department for Business and Trade
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department of Business and Trade (DBT) concerning its proposed subsidy to British Business Bank.
Administrative timetable
| Date | Action |
|---|---|
| 20 March 2026 | SAU’s report to be published |
| 20 February 2026 | Deadline for receipt of any third-party submissions |
| 6 February 2026 | Beginning of reporting period |
Request from DBT
6 February 2026: The SAU has accepted a request for a report from DBT concerning the proposed subsidy to British Business Bank. This request relates to a Subsidy of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by DBT
The Department for Business and Trade (DBT) is expanding its existing subsidy for the British Business Bank (BBB), one of the Government’s economic development banks.
The BBB was established in 2014 to address market failures in debt and equity markets and gaps in loan and equity finance markets. The BBB’s policy objective, set by DBT, is to drive economic growth by helping smaller businesses access the finance they need to start, scale and stay in the UK. It operates at arm’s length from Government, working through private-sector lenders and investors to deliver Government policy objectives.
From April 2026, the BBB’s total financial capacity will increase by two thirds to £25.6 billion, including £8 billion of guarantee capacity. This subsidy relates to the full £25.6 billion capitalisation of the BBB. The BBB is itself subject to the Subsidy Control Act 2022 and would be obliged to refer any subsidies it provides to the Subsidy Advice Unit when required to by the Act. The subsidy will be provided to the BBB as sole beneficiary, enabling it to expand its activities, both across funded and guarantees activities. There is no fixed duration for deployment of this financial capacity. The majority of the Bank’s products are Commercial Market Operator (“CMO”) operations; the minority of its programmes that are priced below market rate are operated in a way that minimises distortions to the market.
The BBB is operationally independent, with flexibility to deploy its capital responding to market conditions and the needs of individual sectors, within its delegated authority. The BBB will administer the subsidy in line with the Statement of Strategic Priorities set out by the Secretary of State for Business and Trade and the Chancellor of the Exchequer and its own Five-Year Strategic Plan.
The BBB’s governance structure is set out in a Shareholder Framework Document agreed between DBT and the BBB. The BBB’s Chief Executive Officer is also the Bank’s Accounting Officer and is personally accountable to Parliament for the Bank’s spend.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to British Business Bank, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-britishbusinessbank2026@cma.gov.uk copying the public authority: bg.hub@businessandtrade.gov.uk.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-britishbusinessbank2026@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk