Elsewhere, 33% of SMEs who took part in the survey cited reducing productions outside of their own emissions – such as inside their supply chains, for example – and low return on investment as key barriers to their Net Zero success.
The agriculture sector in particular is crucial in this area, which is why we’ve stepped up support for our agriculture clients too. Our partnership with Soil Association has resulted in a pilot called The Soil Association Exchange.
Launched in October last year, the scheme is designed to help British farmers speed up their transition to a Net Zero economy by identifying financial and environmental opportunities for their land. We will fund the service for up to 1,000 of our largest agriculture customers, helping them to improve the ecological footprint and overall sustainability of their operations. Moreover, we offer discounted finance for initiatives that make farms more sustainable, with one percentage point margin discount lending available on loans of up to £50,000.
What’s next for UK SMEs?
The positive impact that the UK’s 5.6 million SMEs have on the UK economy cannot be overstated. A strong performance from them is, quite frankly, essential. The good news is that while much uncertainty remains, our data shows that the vast majority of our business customers are showing resilience. And we will continue to offer our support to help small businesses, including supporting initiatives from the UK Government and providing extra finance facilities for any that do get into difficulty.
Looking ahead, with pay prospects softening, trade expectations set to improve, and energy price support in the form of the new Energy Bill Relief Scheme – a discount on wholesale gas and electricity for non-domestic consumers – which is due to be renewed from April 1st 2023, should give SMEs even more confidence in the year ahead.7 In any case, whether they are embarking on their next stage of growth or managing through a tough patch, they can be sure we will continue to be by their side.
