Press Story

A new British Business investment visa would aim to attract £425m in investment from 100 applicants each year
Additional investment flows at this scale annually could add £900m to the UK economy, supporting around 4,000 jobs
IPPR recommendations include no fast-track to citizenship, strict financial checks and a dedicated anti-money laundering unit

A new, tightly controlled British Business Investment Visa (BBIV) could attract around £425 million in investment in the UK from 100 applicants each year, according to a new report from the Institute for Public Policy Research (IPPR).

Based on evidence from the British Business Bank (BBB), the think tank estimates that additional investment at this level could add £900 million to the UK economy, supporting 4,000 additional jobs and helping innovative and high-growth sectors access the finance they need to grow.

The visa would allow people to live in the UK in return for providing investment which would be deployed by the BBB. Just as skilled worker visas are designed to boost growth through contributing labour and skills, IPPR’s newly proposed British Business Investment Visa is designed to inject new capital into the economy, helping to channel investment into strategically important sectors.

Under the proposal, applicants would invest £5 million over the lifetime of the visa made up of £3 million upfront, £1 million after two and a half years, and £1 million after five years.

The visa would not provide a fast-track route to citizenship or settlement, with applicants required to meet the same residency requirements as other migrants.

The proposal comes as the UK continues to face persistently low levels of business investment, particularly affecting smaller firms and high-growth companies that need capital to expand, create jobs and develop new technologies.

Unlike the UK’s previous investor visas – which often directed funds into low-risk assets with limited economic impact – the new proposal would channel investment through a professionally managed investment vehicle overseen by the British Business Bank. This would ensure capital is directed towards sectors where it can have the greatest impact, including innovative businesses and national and regional priority industries.

To address concerns about past schemes, the report sets out a tightly controlled model with strong safeguards, including:

A specialist Home Office unit to carry out financial and security checks
Robust verification of the source of funds
Restrictions on high-risk jurisdictions, including a ban on applications from Russia
A strict cap of 100-150 main applicants per year
Independent reviews of the scheme’s impact and risks

Marley Morris, associate director for migration, trade and communities at IPPR and co-author of the report, said:

“A new British Business investment visa would aim to channel funds from overseas applicants into innovative businesses looking to scale up, in order to support economic growth and jobs across the UK.

“Our proposal would address the weaknesses of the UK’s former investor visa by ensuring investments are deployed in innovative and strategically important sectors, while putting in place robust safeguards to prevent abuse.”

Aditi Sriram, economist at IPPR and co-author of the report, said:

"The UK has no shortage of ambitious businesses with the potential to grow – the challenge is getting capital to them.

A well-designed investment visa could help unlock hundreds of millions of pounds in new funding, supporting jobs, growth and economic activity across the country."

ENDS

Marley Morris and Aditi Sriram are available for interview

CONTACT

Rosie Okumbe, digital and media officer: 07825 185421 r.okumbe@ippr.org

NOTES TO EDITORS

The IPPR paper, The British business investment visa: A new model for investment migration in the UK, by Marley Morris and Aditi Sriram, will be available for download at: https://www.ippr.org/articles/british-business-investment-visa

Advance copies of the report are available under embargo on request

IPPR estimates assume around 100 successful visa applicants per year, generating approximately £425 million in annual investment flows into an investment vehicle overseen by the British Business Bank once the scheme reaches maturity. IPPR estimates the economic impact of deploying additional capital at this scale based on the British Business Bank's published impact estimates in its Impact Report 2025. Estimates are based on lifetime economic impacts for each new inflow of £425 million annually.

IPPR (the Institute for Public Policy Research) is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the practical ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. As an independent charity working towards a fairer, greener, and more prosperous society, we have spent almost 40 years creating tangible progressive change - turning bold ideas into common sense realities. www.ippr.org