The British Business Bank has pledged to deliver a “step change” in finance for smaller firms following the government’s new strategic direction, announced yesterday.

The Statement of Strategic Priorities, unveiled by the Secretary of State for Business and Trade at the Regional Investment Summit, sets out the Bank’s remit for the next five years. It confirms its central role in supporting the government’s growth mission by helping smaller businesses secure the funding they need to start, scale and remain in the UK.

Building on the Bank’s track record since its launch in 2014, and following the Spending Review commitment to raise its total financial capacity to £25.6bn, the new strategy calls for a major expansion in lending and investment for small and medium-sized enterprises.

The four priorities outlined are to support high-potential firms in key industrial strategy sectors; make finance markets work better for smaller businesses; unlock potential across regions and communities; and mobilise institutional capital at scale.

Louis Taylor, chief executive of the British Business Bank, said: “We welcome the Business Secretary’s Statement today and look forward to delivering against the Bank’s new mandate and strategic priorities.

“Building on the Bank’s scale, networks, and track record, we will mobilise institutional capital at scale by unlocking billions of pounds of domestic investment so the UK can capture the full commercial potential of its world class breakthrough technology companies.”

He added that the Bank would “continue to increase the availability and diversity of finance for smaller businesses across the UK’s nations and regions,” while also backing “our most promising scale up businesses in the eight growth-driving sectors of the UK’s modern industrial strategy.”

The British Business Bank said it will publish its five-year strategic plan in the coming weeks, setting out in detail how it intends to deliver on the government’s new priorities.