Treasury Committee warns UK SMEs finance hurdles could stunt growth

Number of private sector businesses fallen significantly

UK SMEs dealing with limited access to bank loans and ineffective regulation could hinder economic growth and risk appetite, the Treasury Committee warned.

In a report published on Wednesday (8 May), MPs said a "difficult small business environment" is "disincentivising risk-taking, innovation and, potentially, growth" for many UK SMEs looking to expand. As a result, the number of private sector businesses have dropped significantly from 6 million in 2020 to just 5.6 million in 2023, after initially expanding by 1.5 million within a decade from 2010. Treasury Committee 'disappointed' BoE and government have not fully accepted its QT advice According to the report, the government should improve access to finance for SMEs, including aba...