Small Businesses: Finance
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the adequacy of access to finance for small and medium-sized enterprises.
Answered by Blair McDougall
The British Business Bank’s Small Business Finance Markets Report 2026 found that around half of SMEs used external finance in 2025. SME lending increased between 2024 and 2025 – reaching £68 billion in nominal terms – but remains below pre-pandemic levels in real terms. The SME finance market has become significantly more diverse, with challenger and specialist banks accounting for 60% of gross SME lending. Challenges in accessing finance persist, particularly for some under-represented groups and in certain geographic areas.
We are addressing these issues through the Growth Guarantee Scheme (GGS) which helps unlock finance for SMEs, and the Community ENABLE Funding scheme with £150m of finance available to Community Development Finance Institutions (CDFIs) helping them expand.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →