UK Government's British Business Bank Announces £25m Investment Amid Criticism of Economic Strategy
The UK government's British Business Bank has announced a £25 million investment in Kraken and £50 million in deep tech funds, amid criticism from Business Secretary Peter Kyle's comments about 'picking winners' in the economy. Critics, including investor Luke Johnson, argue that this approach reflects a socialist agenda and could harm taxpayers, while recent audits have highlighted governance issues within the BBB. Additionally, a proposal from Reform UK suggests acquiring a stake in Rolls-Royce to bolster its small modular reactor program.
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Business Secretary Peter Kyle has faced criticism for stating the government will be 'picking winners' in the UK economy. On Friday, he highlighted the government's investment strategy through the British Business Bank (BBB), which includes a £25m investment in Kraken and £50m in deep tech funds.
Critics, including investor Luke Johnson, labeled Kyle's comments as indicative of a 'socialist government playing at venture capital,' warning of negative consequences for taxpayers. The BBB and National Wealth Fund have come under increased scrutiny following the last General Election, with audits revealing governance and management weaknesses. Additionally, a Reform UK government proposal includes acquiring a stake in Rolls-Royce to support its small modular reactor (SMR) program, suggesting a significant contract and capital support for the company.
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