Small and medium-sized enterprises (SMEs) in Britain are currently repaying debt at over twenty times the pre-pandemic level, indicating a pressing issue in access to finance. The government initiated a review of SME debt finance due to a lack of competitive pressure on loan prices. Data shows net lending to SMEs fell by £7 billion recently, exacerbating risk aversion and hindering growth. Only 43% accessed external finance, notably lower than in 2023. The focus will be on underserved groups while seeking ways to lower borrowing costs for SMEs dominated by larger banks.
For small businesses, getting off the ground is one of the hardest parts of scaling up and central to that is the ability to access finance. That's why this call for evidence will be important to allow us to see what more can be done.
The government and the British Business Bank (BBB) fear that lingering risk aversion is stifling much-needed business expansion and contributing to Britain's ongoing productivity issues.
Collection
[
|
...
]