UK Finance has submitted its response to HM Treasury’s consultation on the Bank Referral Scheme, advocating for a comprehensive reform of the current system. While the scheme was introduced to improve access to finance for small and medium-sized enterprises (SMEs), we believe it no longer effectively meets the needs of today’s dynamic market.

Our position is clear: the existing model is outdated and no longer fit for purpose in today’s fast-evolving market. It fails to provide timely, proactive support for SMEs, often leaving them ill-prepared after a rejection and disillusioned with the process. Instead, we are advocating to replace this scheme with a modern, government-led Access to Finance Hub. This revamped platform could serve as a comprehensive one-stop centre of financial expertise and valuable resource, offering continuous support and guidance throughout the entire business and financial lifecycle, rather than just a reactive referral process.

The proposed hub could offer tailored education, financial readiness assessments, and guidance, empowering SMEs to strengthen their applications and improve their chances of securing funding. By encouraging greater financial literacy and early engagement, this initiative could create a more effective ecosystem for businesses, in support of the government’s growth strategy.

As the Government considers consultation responses from across the market, we will continue to advocate for a smarter, more proactive approach – one that ensures SMEs are supported from the outset – ensuring more SMEs are finance-ready and able to access the finance they need to grow and develop.