UK Small Businesses Call for Funding, AI Training, and Tax Reforms in Growth Push

Small businesses across the UK are urging the government to expand access to funding, subsidise AI training, and reform the tax system to foster economic growth, according to a new report by Goldman Sachs.

The report, based on feedback from entrepreneurs participating in the investment bank’s 10,000 Small Businesses management programme, outlines key recommendations that small and medium-sized enterprises (SMEs) believe would accelerate growth and investment.

Key Proposals for Business Growth

Among the policy recommendations highlighted in the report are:

• Easier access to capital for SMEs to fuel expansion.
• Government-subsidised AI training to help businesses adapt to technological advancements.
• Reforming business rates to support small retailers and high street investment.
• Embedding employability skills into school curriculums to better prepare young people for the workforce.
• Increasing public procurement contracts awarded to SMEs to 40%, ensuring small businesses benefit from government spending.

Additionally, the report suggests hosting a national investment summit to connect SMEs with funding providers and creating an SME infrastructure taskforce to represent regional concerns in Whitehall.

Frustration Over Rising Tax Burdens

While many business leaders appreciate the government’s willingness to engage with the Goldman Sachs initiative, frustration is growing over rising costs and tax burdens—particularly the recent increase in employer national insurance contributions (NICs).

James Uffindell, CEO of Bright Network, said the NICs hike had already forced his company to cancel hiring plans for two mid-level employees on £60,000 salaries.

Dorian Payne, managing director of Castell Group, a Welsh social housing developer, estimated that the increase would cost his business £30,000 per year, while Katie O’Cearbhaill, co-founder of Excelsior Land, warned that higher costs were discouraging firms from hiring apprentices.

“We want to invest in people’s futures, but it’s becoming harder when extra costs keep piling up,” she said.

AI Training: A ‘Game-Changer’ for SMEs

One of the most widely supported recommendations in the report is a government-backed AI training programme to help SMEs leverage new technology.

Rana Harvey, managing director of Monster Group, said AI tools like ChatGPT had transformed her company’s efficiency, from automating product descriptions to conducting rapid market research.

However, she warned that many small firms lack the knowledge and resources to adopt AI effectively. “There’s so much fear and uncertainty, and it’s holding businesses back,” she said, calling for practical, high-quality training to bridge the gap.

‘Less Talk, More Action’

While business leaders acknowledge that government engagement has improved, many are now calling for concrete action.

“There’s been a lot of promises and discussions, but nothing tangible has materialised yet,” said Harvey. O’Cearbhaill echoed the sentiment: “Less chat, more action.”

Payne suggested that a dedicated SME taskforce could ensure that small businesses aren’t overlooked in policymaking. “Issues in Birmingham, Wales, or Bristol aren’t the same. The government focuses on big corporations, but only because there’s no structured way to engage with SMEs,” he said.

A Warning to Policymakers

Some entrepreneurs are also urging the government to be cautious with policy changes that could further burden small businesses.

“With NICs and employment laws, they have to be careful not to make it harder for us. Support us so we can flourish,” said one business owner.

Harvey also called for improved trade relations with Europe, arguing that post-Brexit friction remains a major challenge. “Our biggest customers are in Europe, yet there’s so much red tape. The government says it wants better relations, but what does that actually mean?”

With SMEs accounting for three-fifths of UK employment and a significant share of GDP, their concerns could influence future government policy. But as the report makes clear, businesses want action—not just words.