Budget 2026: Healey uses state-backed lenders to ramp up borrowing

John Healey has revealed plans to increase borrowing through the UK s state-owned business lender and infrastructure bank. The Chancellor has allocated an extra £20.4bn to the country s two major state-owned policy banks for the next five-years. The National Wealth Fund will get around £15.4bn, while the British Business Bank will receive £5bn. “I will work with pension providers, asset managers and the wider industry to accelerate more private investment into Britain’s innovative, fast-growth firms,” the Chancellor said. Healey said the new funds will support 140,000 jobs in “strategic sectors”. Later in his speech, Healey confirmed the National Wealth Fund and British Business Bank would “launch a new focus on defence, dual use technology and sovereign capability, deploying up to £5bn of investment and lending over the next four years”. While not a direct breach of the fiscal rules, the government s use of public finance bodies (Pufins) to borrow more cash has become