National Enterprise Network welcomes chancellor’s spending plans but calls for actions now to support small and micro businesses
The National Enterprise Network (NEN) highlights the parts of the chancellor’s Spending Review and how they will impact micro and small businesses, as well as the associations that support them.
In her Three Year Spending Plan she revealed the key priorities that will impact small businesses, startups, and enterprise support organisations.
But at the same time, the NEN calls on the chancellor to act now in providing funding if the growth plans set out in last November’s Get Britain Working Programme are to be delivered.
Commenting from the National Enterprise Network, chairman Alex Till said, “This Spending Review provides a strong signal that innovation, skills and community regeneration will remain central to the UK’s economic strategy.
We welcome the increased support for access to finance, digital adoption, and local leadership.
But what is more critical than anything is that funding is made available now and the plans turn into actions rather than rhetoric.
The “Get Britain Working Programme” was introduced in November 2024, as a government initiative focused on reducing economic inactivity and increasing employment rates with an aim to achieve an 80% employment rate and including various reforms to employment support. We are calling on the chancellor to see that translate into actions now with the long awaited budgets to enable the support agencies to deliver the goals.
Our network stands ready to ensure these investments reach the small businesses and entrepreneurs who will power inclusive growth.”
The measures most relevant to the enterprise community are:
Department Budgets
• The Department for Business and Trade will see a 1.8% budget reduction, while the Department for Culture, Media and Sport faces a 1.2% cut.
• In contrast, the Department for Science, Innovation and Technology receives a 7.4% funding boost, signalling strong support for innovation.
Access to Finance
• The British Business Bank’s total capacity will rise to £25.6bn, a two-thirds increase, enabling up to £2.5bn in annual investments to support small business funding through programmes like Start Up Loans.
Skills and Training
• An annual investment of £1.2bn by 2028–29 will support training for 1.3m 16–19-year-olds, creating 65,000 additional learning opportunities per year.
• £625m is earmarked to train up to 60,000 skilled construction workers, boosting capacity in a critical sector.
Artificial Intelligence
• A £2bn AI Action Plan includes support for small business adoption, “AI growth zones”, AI partnerships, and a UK Sovereign AI Unit working with the British Business Bank.
• A new £187m digital skills programme includes £18m targeted at small businesses.
Research and Development
• R&D investment will total £22.6bn annually by 2029–30, including:
o £500m for a new R&D Missions Accelerator Programme
o £410m for a Local Innovation Partnership Fund
o Minimum of £30m per region for each UK nation and major English city regions, with a national competition for others
Digital Infrastructure
• £1.9bn is committed to broadband expansion, aiming for 99% gigabit coverage by 2032 and improved 4G in remote areas.
Sector-Specific Support
• The government’s upcoming industrial strategy will focus on eight key sectors:
o Advanced manufacturing: over £3bn
o Clean energy and creative industries: “significant increases”
o AI and digital technologies: over £2bn
o Life sciences: up to £600m
o Financial services and professional business services will receive tailored support under upcoming strategies.
HMRC Modernisation
• £500m will support digital transformation at HMRC to improve user experience and integrate AI for efficiency.
Trade and Investment
• The Department for Business and Trade will continue to prioritise high-growth international markets, with a leaner, more agile approach to trade promotion and business support.
Transport and Regeneration
• £15.6bn for transport outside London includes extending the £3 bus fare cap to March 2027.
• A new regeneration programme will provide £20m each over ten years to 25 ‘trailblazer’ neighbourhoods across the UK to support community renewal.