Supporting talented, first-time venture capital investment fund managers from a wide range of backgrounds, the initiative, which will invest £400m in total, helps businesses scale up as the fund managers provide the catalytic early capital that innovative, early-stage businesses need to drive local growth and create jobs.

Businesses large and small have felt the squeeze amid rising costs and Chancellor John Healey is backing investment outside into businesses outside of London to help tackle this, bolstering efforts to make Britain better off.

“One of my priorities as Chancellor is wealth creation,” he said.

“That means building an economy that helps people live well. I know there is a cost of business and it will not go unnoticed.

“This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country.”

In June, the British Business Bank committed up to £90m to 10 new microfunds as part of the first Investor Pathways Capital cohort. Applications for the next cohort, which is part of this £100m deployment, will open in autumn this year.

Economic Secretary to the Treasury Lucy Rigby said: “We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy.

“Unlocking investment and capital for British businesses, backing firms with practical support and ensuring businesses wherever they are can get the finance they need to grow, innovate and create jobs.”