Unlock British investment
encourage pension savings to back UK assets, including start-ups, scale-ups and AIM companies, by linking tax relief on new contributions to a minimum UK investment allocation.
Helping British SMEs to prosper
Prosper UK’s report, Helping British SMEs to prosper , sets out practical reforms to unlock capital, lower the cost of doing business and give entrepreneurs the confidence to invest and employ more people.
99.9%
Of UK private businesses are SMEs
380,000
British businesses want external finance to grow but cannot access it
38
Small businesses close every day because of late payments
Helping British businesses grow
Small and medium-sized businesses are central to the British economy. They generate £2.8 trillion in turnover and employ 16.9 million people. But too many promising firms struggle to secure the investment they need, face high fixed costs and are unable to grow into major British companies.
Prosper UK’s report, Helping British SMEs to prosper, sets out practical reforms to unlock capital, lower the cost of doing business and give entrepreneurs the confidence to invest and employ more people.
The UK has recorded the lowest investment rate in the G7 in 24 of the last 30 years. Around 380,000 businesses, including SMEs, want loans or investment to expand but cannot access them. Too many high-potential businesses are acquired before reaching maturity, often by overseas buyers.
Our recommendations
Back family firms
reverse the cuts to Business Property Relief and restore relief for AIM shares to help founders retain and grow their businesses.
End the tax on ambition
undertake root-and-branch reform of business rates so investment in premises is not penalised.
Improve access to finance
expand investor partnerships, innovation accelerators and support for university spin-outs; raise Growth Guarantee Scheme lending to £4 billion a year sooner.
Help SMEs adopt AI
direct practical training and a meaningful share of government AI adoption support to smaller businesses in every region.
Tackle late payments
introduce 30-day default payment terms and automatic interest when payments are late.
Cut energy costs
remove Renewables Obligation and Feed-in Tariff costs from business electricity bills, funding them through carbon pricing revenue.
Support employment and reduce red tape
halve employers’ National Insurance contributions for workers aged 21–24 and target a 40% reduction in SME regulatory burdens.
