Small businesses across the UK are urging the government to prioritise easier access to funding, subsidised AI training, and a more SME-friendly tax system as part of its economic growth strategy, according to a new report from Goldman Sachs.
The report, which draws on input from hundreds of businesses that participated in the investment bank’s 10,000 Small Businesses management training programme, outlines key policy recommendations that entrepreneurs say would accelerate growth. These include:
• Expanding access to growth capital for small and medium-sized enterprises (SMEs).
• Providing publicly subsidised AI training for business leaders to help firms navigate technological advancements.
• Embedding employability skills into the school curriculum to better prepare young people for the workforce.
• Increasing the share of public procurement contracts awarded to SMEs to 40 per cent.
• Reforming business rates to support small retailers and encourage investment in high streets.
The report also proposes a national investment summit to connect small businesses with funding providers and an SME infrastructure taskforce to ensure regional firms’ concerns are heard in Whitehall.
Frustration over rising tax burdens
While many entrepreneurs welcomed the government’s engagement with the Goldman Sachs initiative, they expressed frustration over rising costs, particularly the increase in employer national insurance contributions (NICs) announced in last year’s Autumn Statement.
James Uffindell, chief executive of Bright Network, said the NICs rise had already forced his company to cancel plans to hire two mid-level employees on £60,000 salaries.
Dorian Payne, managing director of Wales-based social housing developer Castell Group, estimated that the increase would cost his business an extra £30,000 per year, while Katie O’Cearbhaill, co-founder of Excelsior Land, warned it was undermining her ability to take on apprentices.
“We want to invest in the future of people, and it is really hard to be incentivised to do that when you’re paying all these extra costs,” she said.
AI training a ‘game-changer’ for SMEs
One of the most popular recommendations in the report is a government-backed AI training programme, which would expand on the existing Help to Grow initiative. Business leaders said AI could be transformative for SMEs but warned that many lacked the knowledge or resources to take advantage of it.
Rana Harvey, managing director of York-based online retailer Monster Group, said AI tools such as ChatGPT had made her business significantly more efficient, from generating multilingual product descriptions to conducting rapid market research.
However, she argued that government intervention was needed to help small firms cut through the hype and access practical, high-quality training. “There is so much fear and lack of knowledge that it is holding businesses back,” she said.
‘Less talk, more action’
Despite recognition that the government has been open to discussions with small businesses, many entrepreneurs now expect tangible action.
“There’s a lot of great noise being made, but that fertile ground that we need—I don’t feel any of it has materialised yet,” said Harvey. O’Cearbhaill agreed: “Less chat, more action.”
Payne, meanwhile, said a dedicated SME taskforce could help address the government’s tendency to focus on larger corporations. “One problem in Birmingham isn’t going to be the same as one in Wales or Bristol,” he noted. “The government says it’s easier to deal with big businesses, but that’s because there’s no structured way for them to engage with small firms.”
‘Don’t clip our wings’
Cooper, whose software-as-a-service businesses are expanding rapidly, warned that the government must tread carefully with policy changes.
“With NICs and employment laws, they just have to be careful that they don’t keep making it harder. Support us to flourish,” she said.
Harvey added that improving trading relations with Europe should be a priority. “Our biggest customers are in Europe, yet there is so much friction. Take away that friction. The government keeps saying it wants a better relationship, but what does that mean?”
With small businesses accounting for three-fifths of UK employment and contributing significantly to GDP, their concerns could shape future government policy. But as the report makes clear, businesses want action—not just rhetoric.
