The National Enterprise Network (NEN) has called on Chancellor Rachel Reeves to use this month’s Autumn Statement to unleash a new wave of support for Britain’s micro and small businesses (MSBs) – which are “the bedrock of the UK economy” but are increasingly constrained by rising costs and patchy access to finance.
Representing a nationwide network of local business agencies and business support organizations, which together cover 98% of the UK, the NEN is urging the Treasury to take “decisive action” on four key policy areas: growth and investment, access to finance, skills and support infrastructure, and the transition to net zero.
The filing comes at a time when 5.45 million UK businesses – representing over 99% of all private sector businesses – face increasing pressure from inflation, short-term funding cycles and the costs of digital and environmental adaptation.
“Micro and small businesses are the engine of the UK economy,” said Alex Till, chair of the National Enterprise Network. “But their success depends on the ecosystem that supports them – the business agencies, business hubs and collaborative workspaces that support individuals in their first steps into entrepreneurship. Without urgent action, we risk losing a generation of young entrepreneurs.”
Four key policy priorities
So that small businesses can grow and thrive
NEN is calling for small business growth grants to encourage companies to reinvest their profits in digital technology adoption, upskilling and capital investment, as well as expanded local business grants for rural and underserved areas.
It also proposes a Business Resilience Fund to help companies address energy and climate-related pressures, as well as simplifying access to existing government loans, grants and training programs. The network is urging the Ministry of Finance to extend relief from trade tax rates for the smallest companies in high-cost areas.
A particular focus is on the future of shared and managed workspaces, which NEN describes as “the first rung of the corporate ladder.” Many of these community hubs – often run by nonprofit organizations – are threatened by rising business fees and operating costs.
The group wants the government to review the treatment of co-working and managed spaces with business rates and introduce specific relief for operators of community and not-for-profit workspaces.
Improving access to finance
The NEN is pushing for reforms to the Enterprise Finance Guarantee (EFG) to make smaller loans (under £50,000) more accessible, and the introduction of a tax relief scheme for small investors to encourage local private investment.
It also calls for greater awareness of Community Development Finance Institutions (CDFIs) and the creation of a digital finance support program to help small businesses modernize payment, invoicing and cash flow systems.
Strengthening skills and support networks
The submission recommends funding Enterprise Skills Bootcamps – five-week intensive training programs offered by NEN member agencies – and expanding access to modular apprenticeships and digital skills vouchers in areas such as e-commerce, AI and online marketing.
To ensure long-term stability, the network aims to establish a Support Infrastructure Stability Fund to provide multi-year contracts for local business agencies and economic hubs, as well as a Capacity-Building Grant Fund to support them in modernizing digital systems and impact measurement tools.
Accelerating the net zero transition
NEN’s final proposals focus on helping small businesses manage the costs of decarbonization. It calls for a Small Business Energy Transition Fund and temporary energy cost relief for micro-businesses in energy-intensive sectors.
In addition, targeted funding is earmarked for local business agencies to provide Net Zero Readiness advisory services and help companies meet environmental standards while remaining competitive.
“Without action – particularly around reform of business rates for shared workplaces and sustainable funding of business support infrastructure – the UK risks losing the networks that support entrepreneurship at a local level,” Till added.
At the heart of the NEN’s message is the need for the Government to support supporters – the local business agencies and community economic centers that provide support to Britain’s local entrepreneurs.
By adopting its recommendations, the organization says the Treasury can strengthen both the foundation of small businesses and their underlying infrastructure, helping to secure a “more inclusive, innovative and resilient economic future” for the UK.
