Committee publication · Correspondence · 6 January 2026

Letter to the Minsters for Investment and for Small Business and Economic Transformation relating to the evidence session on 9 December on financing the real economy, 18 December 2025

Summary

The Business and Trade Committee writes to the Ministers for Investment and Small Business following their 9 December 2025 evidence session on financing the real economy. The committee requests detailed follow-up information on seven areas: SME funding gaps, Net Zero Teeside steel procurement, pension fund consolidation, FCA regulation's impact on retail investors, tax relief design, AIM regulatory reform, and the financial capacity and fiscal implications of the British Business Bank and National Wealth Fund.

Key findings

Ministers promised updated estimates on the SME funding gap and clarification on how guarantee schemes will address it, challenging Allica Bank's £65 billion estimate as potentially inflated
Committee seeks confirmation of reports that a large steel contract at Net Zero Teeside was won by an overseas company, apparently breaching public procurement commitments to prioritise British products
Ministers committed to reviewing scope for tax regime changes to incentivise UK equity investment and explaining why share stamp duty relief applies only to newly-listed UK companies
Committee requests comprehensive financial breakdown of British Business Bank and National Wealth Fund capacity over the spending review period, including loans, equities, guarantees, and fiscal impact assumptions
Committee seeks government assessment of pension fund consolidation drivers, proposed minimum UK investment weightings for defined contribution schemes, and AIM regulatory reform scope

Tone

Procedural

Topics

public-financesme-supportgreen-energypensionsfinancial-regulation

Key actors

Lord Stockwood, Blair McDougall MP, Business and Trade Committee, Department for Business and Trade, British Business Bank, National Wealth Fund, Allica Bank, Office of Budget Responsibility

Notable line

“… you suggested that Allica Bank's £65 billion estimate may be an overestimate, as new lending providers have started filling this gap”

Key Quotes

“… you suggested that Allica Bank's £65 billion estimate may be an overestimate, as new lending providers have started filling this gap”
— Business and Trade Committee · SME funding gap discussion

“… can you confirm media reports that a large steel contract has been won by an overseas company, in apparent contravention of promises made to prioritise British products in the public procurement notice”
— Business and Trade Committee · Net Zero Teeside construction inquiry

“… it can now be cheaper to invest abroad than in the UK”
— Business and Trade Committee · share stamp duty relief applied only to newly-listed UK companies

“… the OBR notes that their valuations are subject to uncertainty and we would appreciate a full explanation of how these assets will be classified in the accounts and the possible future impacts on the UK fiscal position”
— Business and Trade Committee · British Business Bank and National Wealth Fund fiscal impact

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Source · parliament.uk record ↗