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The SME Finance Taskforce, comprising leading banks, alternative lenders, fintechs, accountancy software providers, payment schemes, credit reference agencies, and industry bodies, has released an action plan for revitalising the UK economy.

This initiative is expected to expedite lending and financial access for the country’s 5.5 million SMEs, which are critical to the economy, employing 60% of the private-sector workforce and generating over 50% of the nation’s economic turnover.

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The taskforce’s inaugural report, “Smart Data: improving SME lending to drive economic growth,” offers a seven-point action plan which was initiated in April.

The SME Finance Taskforce – chaired by the Centre for Finance, Innovation & Technology (CFIT) with support from an Open Banking Limited (OBL) secretariat – has been tasked with identifying enhanced access to high-quality data as a key factor in enabling SMEs to secure funding, thereby supporting their growth and scalability.

Over the past decade, lending to UK SMEs has decreased by 20% in real terms, creating a funding gap estimated at over £22bn. This shortfall hampers SMEs’ ability to invest in their businesses, improve productivity, and make a more significant contribution to the economy.

To address this issue and enhance SMEs’ contributions to employment, GDP, and tax revenues, the taskforce has proposed the following seven actions:

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  1. Prioritise the Digital Information and Smart Data Bill.
  2. Fund and support an SME “Smart Data Challenge.”
  3. Review and improve HM Treasury’s Bank Referral and Commercial Credit Data Sharing (CCDS) Schemes.
  4. Accelerate reform of Companies House, specifically the standardisation and verification of company information.
  5. Unlock private-sector data by providing digital receipts from HMRC and enhancing access to tax data for approved organisations.
  6. Develop and consult on proposals for a UK e-invoicing scheme to align with international markets.
  7. Enable greater trust and understanding in using new alternative specialist lenders.

Key participants in the SME Finance Taskforce include iwoca, Sage, OakNorth, Allica Bank, Experian, HSBC, Lloyds Banking Group, Mastercard, the Federation of Small Businesses (FSB), and Revolut. In a statement, the group said it is committed to working with the Government to drive economic growth and contribute to policy and legislative development.

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