In a keynote speech at one of the IFB’s main events, the Santander SME Summit, Osborne said: "When I travel round the world meeting foreign governments and investors I am selling Britain as a brand and events like the International Festival for Business make that job easier.
"It’s a shop window for global markets and a reminder that we can be proud of the stamp that reads ‘Made in Britain'.
"So, today I am backing this initiative, committing the funding requested by the Mayor [of Liverpool] Joe Anderson and Liverpool city council for another festival here in Liverpool in 2016."
The IFB, which takes place across 50 days hosting more than 250 business events, is Britain’s biggest business festival for more than 60 years.
Mayor of Liverpool Joe Anderson added: "As we reach the half-way stage of what has already been an inspiring and diverse programme of superb business events, I am delighted that its impact has been seen by government and that they have chosen Liverpool to reprise the international festival for business in 2016."