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
6 results
Clear
6 Conclusion Deferred
Eighth Report - SME Finance
Business Banking Resolution Service eligibility criteria and limited scope restrict effectiveness
The BBRS has seen a far smaller number of cases than some expected. This could be due to low demand, but is also likely to be due to the nature of the eligibility criteria attached to it, as shown by … Read more
Government Response
The government notes the committee's conclusions and the BBRS's decision to close, stating that further decisions about the service are a matter for the independent BBRS in discussion with relevant parties.
HM Treasury
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8 Conclusion Deferred
Eighth Report - SME Finance
Close the Business Banking Resolution Service as it is not fit for purpose
The BBRS is not fit for purpose in providing alternative dispute resolution to the 55,000 SMEs who fall outside of the FOS’ thresholds and this service should close as originally planned.
Government Response
The government did not address the recommendation to close the BBRS, instead highlighting the role and importance of the Financial Ombudsman Service (FOS) for dispute resolution.
HM Treasury
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17 Conclusion Deferred
Eighth Report - SME Finance
Recovery Loan Scheme successful, with welcome extension and rebranding to Growth Guarantee Scheme.
The Recovery Loan Scheme appears to have been successful in supporting SMEs with access to finance throughout the pandemic and beyond. We welcome HM Treasury’s decision to extend and rebrand it into a “Growth Guarantee Scheme”, which can provide support … Read more
Government Response
The government responded with a general statement about the importance of banking services and financial inclusion, rather than directly acknowledging the Committee's welcome for the new Growth Guarantee Scheme.
HM Treasury
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20 Conclusion Deferred
Eighth Report - SME Finance
FOS remit for business lending personal guarantees reveals an unfair, inconsistent support gap.
We agree with the FOS that the current approach to personal guarantees on business lending represents a gap in its remit that fails to provide the kind of support to 38 SME Finance SMEs that the service exists for. The … Read more
Government Response
The government notes that the committee's conclusion regarding the FOS's inconsistent support for SMEs on personal guarantees is primarily for the independent Financial Conduct Authority (FCA) to consider.
HM Treasury
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21 Recommendation Deferred
Eighth Report - SME Finance
Provide FOS with powers to address SME personal guarantees and investigate other identified remit gaps.
The FCA should provide the FOS with the necessary powers to address personal guarantees for SMEs, so that their service is consistent with consumers. The FCA should also investigate widening the FOS’s remit to cover the other gaps they identified … Read more
Government Response
The government notes these recommendations for widening FOS powers regarding personal guarantees for SMEs and investigating other gaps are primarily intended for the independent Financial Conduct Authority (FCA) to consider.
HM Treasury
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22 Conclusion Deferred
Eighth Report - SME Finance
Unfair use of personal guarantees constrains growth and investment for SMEs.
Unfair use of personal guarantees has the potential to constrain growth and investment for SMEs, particularly the smallest businesses. We welcome HM Treasury’s review on this matter, and look forward to seeing what it will do to ease the burden … Read more
Government Response
The government completely changed the subject, welcoming the FCA's work on bank account rejections and closures and generally discussing access to banking services, instead of addressing the recommendation about personal guarantees for SMEs.
HM Treasury
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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