SME Finance

Treasury Committee Closed Inquiry
Opened: 29 Jun 2023 Closed: 28 May 2024 Parliament page
In this inquiry, the Treasury Committee will examine the accessibility of finance and lending to SMEs, by considering the key challenges SMEs face when seeking finance, the regulation of SME lending and the role Government can play in enhancing lending to SMEs. Read the call for evidence to find out … Read more
5 Recommendations
17 Conclusions
1 Report
5 Letters
4 Events
Activity timeline 11 events
12 Dec
2024
Report published
8 May
2024
Report published
24 Apr
2024
Correspondence
28 Feb
2024
Correspondence
28 Feb
2024
Correspondence
28 Feb
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
27 Feb
2024
Correspondence
27 Feb
2024
Correspondence
23 Jan
2024
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
6 Dec
2023
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
8 Nov
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Title HC No. Published Items Response
Eighth Report - SME Finance HC 27 8 May 2024 22 Responded
Recommendations & Conclusions
5 results
Clear
1 Conclusion Accepted
Eighth Report - SME Finance
SMEs face narrow access to finance, rising costs, and apathy about seeking funds
Small and medium-sized enterprises make a large contribution to the UK economy, accounting for over half of total business employment and turnover. SMEs are struggling with narrow access to finance in the face of rising cost pressures and higher interest … Read more
Government Response
The government welcomes the report on SME finance, recognising their significant contribution and challenges, and commits to a range of actions including launching consultations by Spring 2025, extending the SME Digital Adoption Taskforce, announcing a £4m pilot package for tech adoption, and bringing forward a Small Business Strategy Command Paper next year.
HM Treasury
View details
5 Recommendation Accepted
Eighth Report - SME Finance
Continue dialogue with FOS and review resourcing to serve the SME community
HM Treasury and the FCA should continue their dialogue with the FOS and keep resourcing under active review, to ensure that it has the prerequisite capacity and capability to serve the majority of the SME community.
Government Response
The government accepts the recommendation, stating it will continue engagement with the FCA and FOS, addressing relevant resourcing issues, and aligning FOS rules. It also outlines broader measures announced by the Chancellor to modernise the FOS framework and improve its operational effectiveness.
HM Treasury
View details
10 Recommendation Accepted
Eighth Report - SME Finance
Continue active review of FOS resourcing to ensure SME community capacity
HM Treasury and the FCA should also continue to the keep resourcing of the FOS under active review to ensure that it has the prerequisite capacity and capability to serve the majority of the SME community. (Paragraph 62) Business debanking
Government Response
The government commits to continuing engagement with the FCA and FOS to address resourcing issues, referencing a package of measures announced at Mansion House, including a Call for Input, an updated Memorandum of Understanding, and a strengthened Wider Implication Framework to modernise the FOS and enhance its operational effectiveness.
HM Treasury
View details
11 Conclusion Accepted
Eighth Report - SME Finance
SME bank account closures for 'risk appetite' reasons lack transparency and consistency
Any SME with a legal business should be able to access a bank account. Banks may need to close business accounts because of regulatory requirements and concerns around financial crime, but thousands of accounts are being closed for vaguely defined … Read more
Government Response
The government agrees that account closure requirements need improving and intends to bring forward legislation to ensure customers receive detailed explanations and longer notice periods when accounts are closed, except in financial crime situations.
HM Treasury
View details
16 Recommendation Accepted
Eighth Report - SME Finance
Consult with BBB to raise awareness and implement annual criteria for assessing SME engagement.
Government, including HM Treasury and the Department for Business and Trade, should consult with the BBB on an ongoing basis to ensure that everything possible is being done to raise awareness and increase engagement from the SME community. This should … Read more
Government Response
The government agrees with the recommendation and commits to working with the British Business Bank (BBB) to improve SME access to finance, providing over £1 billion in funding for the BBB. It notes that the BBB has already published an SME Impact Report addressing the assessment of its reach.
HM Treasury
View details
Government Response AI assessment · 22 of 5 classified
Accepted 5
Acknowledged 10
Deferred 6
Not Addressed 1
Total 5 recs + 17 conclusions
Correspondence 5 letters
24 Apr 2024 Correspondence between the Financial Ombudsman Service and the Financial Conduct Authority, relating to SME Finance, dated 6 February 2024
Parliament page
28 Feb 2024 Letters from the Chair to Barclays, HSBC, TSB, Lloyds, Santander, NatWest, Metro, Handelsbanken and Paragon, relating to the debanking of business customers, dated 7 December 2023
Parliament page
28 Feb 2024 Letters from Barclays, HSBC, TSB, Lloyds, Santander, NatWest, Metro, Handelsbanken and Paragon, to the Chair, relating to the debanking of business customers, dated 21 December 2023 - 22 February 2024
Parliament page
27 Feb 2024 To committee Letter from Louis Taylor, Chief Executive, British Business Bank, following oral evidence on the 'SME Finance' inquiry, dated 12 February 2024
Parliament page
27 Feb 2024 To committee Letter from Mark Grimshaw, British Banking Resolution Service, following oral evidence on the 'SME Finance' inquiry, dated 5 February 2024
Parliament page