UK's Healey to give two state-backed lenders £20 billion capital boost in budget

UK Announces £20 Billion Capital Boost for State-Backed Lenders in Budget

Major Capital Injection Detailed in Upcoming Budget

Oct 23 (Reuters) - Britain will provide £20.4 billion ($27.3 billion) of additional capital to the state's business lender and infrastructure bank in next week's budget, the Financial Times reported on Friday, citing the Treasury.

Breakdown of Capital Allocation

• The Treasury will allocate £15.4 billion ($20.6 billion) more to the National Wealth Fund and £5 billion ($7 billion) more to the British Business Bank over roughly half a decade, according to the report.

National Wealth Fund

• "This additional capital will help more British businesses fulfil their potential, while getting investment behind the industries, infrastructure and places that create good jobs and drive lasting growth across the country," a Treasury spokesperson told the FT.

British Business Bank

• The Treasury did not immediately respond to a Reuters request for comment outside regular business hours.

Economic Impact and Job Creation

Support for Key Sectors

• The Treasury said the funding would help support around 100,000 jobs by 2035 in sectors including artificial intelligence, defence and green energy, the FT said.

Artificial Intelligence, Defence, and Green Energy

• The measures are expected to be announced in finance minister John Healey's budget on Wednesday.

Additional Information

Currency Exchange Rate

($1 = 0.7478 pounds)

Reporting Credits

(Reporting by Carlos Méndez in Mexico City; Editing by William Mallard)