The UK government’s SME plan to boost access to finance includes a range of measures including the expansion of the Growth Guarantee Scheme through to increasing the capacity of the ENABLE programme.

Commenting on the enduring finance blockage, Greig McKnight, regional managing director in Scotland for Azets, said: “With interest rates still well above pre-pandemic levels, SMEs are finding that the capital they need to invest in growth remains expensive and slow to secure, particularly for those without extensive trading history.

“Without reform to the speed, cost, and complexity of SME finance, there is an ongoing risk that innovation and job creation will be affected.”

The UK government’s “Backing Your Business” strategy aims to strengthen SME access to finance, committing £25.6bn through the British Business Bank and supporting 69,000 Start-Up loans. Azets supports these commitments but believes their effectiveness should be judged on the real-world experience of SME borrowers.

Greig McKnight added: “Although finance is the oxygen of growth, for many SMEs it remains rationed, difficult to access and too expensive.

“The real test of these initiatives will be whether they make funding cheaper, faster and simpler for ambitious businesses – not just available in theory. Until then, the UK risks seeing great SME ideas stall for want of capital.”