Growth Guarantee Scheme Expanded to Support More SMEs

Small businesses looking to invest and grow could benefit from an expanded government-backed lending scheme following an announcement from Chancellor Rachel Reeves.

The British Business Bank’s Growth Guarantee Scheme (GGS) provides lenders with a 70% government guarantee on eligible loans to SMEs, helping reduce risk and improve access to finance.

The expansion will provide an additional £2 billion of SME lending each year by 2028/29, increasing the total lending supported through the scheme to around £3.35 billion annually — more than double the current level.

Alongside the increased funding, the scheme will also become more flexible:

• Loan terms will increase from a maximum of six years to 10 years for loans up to £1.1 million. 
• The turnover limit for eligible businesses will rise from £45 million to £54 million, allowing more growing businesses to access support.

The British Business Bank estimates that these changes could help an additional 12,000 businesses each year by 2028/29, bringing the total number of businesses supported to around 20,000 annually.

Since launching in 2022, the scheme has already provided more than £3.7 billion in finance to UK SMEs, with a significant proportion reaching businesses outside London and the Southeast.

For SMEs considering expansion, investment, or managing cash flow pressures, increased access to finance could provide a valuable opportunity — although, as always, businesses should consider whether borrowing is right for their circumstances before committing.

Don’t Let A Missed Deadline Leave You Facing A Penalty

Is your second Self Assessment payment ready to go?

With just nine days to go until the second Self Assessment payment on account is due on 31 July, many taxpayers find themselves caught out by a bill they weren’t expecting.

The best way to avoid this in future is to plan ahead. Once you’ve submitted your tax return, you’ll have a clearer picture of what you’ll owe and can start putting money aside throughout the year, rather than scrambling to find the funds before each deadline.

A few simple habits can make a big difference:

• Estimate your tax bill early so you know what to expect.
• Set money aside regularly in a separate savings account as you earn.
• Review your income throughout the year, particularly if you’re self-employed or your earnings fluctuate.
• Speak to your accountant early if you think you’ll struggle to pay – leaving it until after the deadline limits your options.

Planning ahead not only helps you avoid interest and penalties, but also removes the stress of unexpected tax bills.

Companies House Scam Warning

Directors urged to stay alert

Company directors are being warned to watch out for scam emails pretending to be from Companies House and asking them to urgently complete identity verification.

The fraudulent emails often use wording copied from genuine Companies House messages and encourage recipients to click a link to “verify your identity now”. However, these emails are being sent from non-government email addresses, such as Gmail accounts — a key warning sign.

With identity verification requiring sensitive information, including government-issued ID, scammers are attempting to take advantage of directors who may be unaware of the new requirements or feel pressured to act quickly.

All company directors are now required to verify their identity with Companies House, either through the official GOV.UK process or via an authorised corporate service provider (ACSP), such as a registered accountancy firm.

To stay safe:

• Check the sender’s email address — genuine Companies House emails will come from a .gov.uk address.
• Do not click links or open attachments in suspicious emails.
• Do not share personal information unless you are using the official verification process.
• Report suspicious emails to phishing@companieshouse.gov.uk.

If you receive an email urging immediate action, take a moment to check before clicking — scammers rely on creating a sense of urgency.

Categories: Insights