The British Business Bank has underwritten £4bn in loans to smaller businesses through its Growth Guarantee Scheme over four years, according to its annual report. Nearly 23,000 loans have been supported, with an average value of £172,742. However, default rates have risen to 2.26% of loan value, up from 0.54% in December 2024, triggering £90mn in taxpayer payouts. The bank collects a 1.5% annual guarantee fee from lenders, which has so far offset default costs.

Outgoing chief executive Louis Taylor received £629,000 in total pay, a third more than the previous year. Incoming interim chief executive David Hourican saw his pay rise 40% to £523,000. Both received long-term incentive payments of £149,000 and £125,000 respectively. The scheme relies on 69 accredited lenders, including HSBC and Atom Bank, with a 70% government guarantee on unrecoverable losses.

Critics question the scheme's value. Lord Prem Sikka warned of "corporate welfare" without proper monitoring. Labour MP Noah Law asked whether it supports new business or pads bank profits. Chancellor Rachel Reeves recently increased the BBB's annual investment capacity by two-thirds to £2.5bn, targeting £25.6bn in supported finance by 2030. Profits surged to £426mn in the year to March, reversing prior losses.