British Business Bank

Debate between Lord Londesborough and Baroness Lloyd of Effra

Monday 9th March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

As was said earlier, we are monitoring the situation very carefully. It is unclear at present what exactly the long-term impact on energy prices and energy security will be. We are carefully looking at that. In the meantime, we have taken measures, including through the British energy-intensive industries scheme, to support energy prices for the most intensive users here in the UK.

[Lord Londesborough (CB)]

My Lords, the development bank has some eye-catching five-year targets, including funding the creation of 370,000 new jobs and crowding in some £26 billion of additional private capital. I welcome that ambition, but, for perspective, can the Minister say how the bank has performed over the last five years, particularly in the areas of job creation and gross value added?

[Baroness Lloyd of Effra (Lab)]

I may have to come back on those precise questions. The British Business Bank produces annual reports and has recently published an impact report which addresses some of the questions that the noble Lord specifically asks around job creation. That is an important aspect of its accountability for the funding it gets.

UK Start-up Companies

Debate between Lord Londesborough and Baroness Lloyd of Effra

Wednesday 28th January 2026 Lords Chamber

[Lord Londesborough (CB)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and declare my interests as an adviser and investor in start-ups.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

My Lords, the latest ONS figures highlight the continued resilience of UK entrepreneurship. One-year survival rates have also remained strong, holding at over 93% in recent years. Furthermore, the percentage of adults starting or running a new business in the UK in 2024 was 14%, as opposed to 12% in 2023, remaining above France, Germany and Italy. This underscores the ability of new British firms to establish themselves successfully.

[Lord Londesborough (CB)]

I thank the Minister for her response, but I think it is fair to say that key data on our start-ups is missing in action. Since the enterprise investment scheme was introduced 30 years ago, I have calculated that £40 billion has been invested in EIS start-ups, triggering £12 billion in tax credits. I declare an interest in that I am a beneficiary. And yet what has been the economic impact? What is a true success rate of these start-ups? How many permanent jobs have been created and sustained? What is their net contribution to GDP? And what is the return on investment of that £12 billion from the public purse? If the Minister is unable to answer these questions, can I suggest that her colleagues at the Department for Business and Trade knock heads with the ONS so that they can produce this data?

[Baroness Lloyd of Effra (Lab)]

The evidence from HMRC’s 2022 evaluation shows that 75% of enterprise investment scheme companies strongly agreed that finance led their company to grow. As the noble Lord is aware, in the Budget the Government introduced an entrepreneurship tax package to support innovative young companies, doubling the eligibility of the EIS. At the same time, the Treasury is running a call for evidence to gather evidence on how well existing support is working, including the EIS, and on options for further support. The questions that the noble Lord asked will be addressed, at least in part, by the consultation that the Treasury is launching now.