From AI to red tape: What the UK’s 2026 business priorities mean for SMEs

The House of Commons Business and Trade Committee has set out seven priorities it believes are key to strengthening the UK economy over the next year.

While this cross-party group of MPs doesn’t set policy itself, it plays a key role in scrutinising the Department for Business and Trade, holding ministers to account, and influencing future legislation and reforms.

And that’s why its latest consultation is worth paying attention to. 

Over the past year, the Committee has gathered evidence from more than 1,000 businesses, trade unions, and consumer groups across seven cities, exploring issues from AI and productivity to entrepreneurship, employment rights, and regulation.

The resulting priorities highlight the areas that could have the biggest impact on the day-to-day realities of running a small business, from costs and compliance to hiring and growth.

Here’s what each priority could mean in practice.

1. AI, productivity and the future workforce

The Committee plans to examine how the UK can embrace AI while ensuring workers have the right skills and protections. For small businesses, this isn’t theoretical. AI tools are already helping firms automate admin, improve customer service and cut back-office costs. The challenge is often time, training and budget.

If the government responds with practical support, such as skills programmes, grants or incentives to adopt digital tools, smaller firms could benefit from the same productivity gains as larger competitors, without the same level of investment.

2. Fostering entrepreneurship and micro-businesses

Removing the hurdles for micro-businesses and aspiring entrepreneurs is one of the most effective ways to boost the UK economy. SMEs make up 99% of all UK businesses, which means even small, practical changes can have a massive impact.

Simpler tax processes, easier access to finance, and clearer compliance rules might not sound exciting, but they are essential. For a sole trader or a new startup, these aren’t just admin tasks, they represent wasted time and money. Every hour spent navigating complex rules is an hour taken away from actually growing the business.

We know from speaking to small business owners that convoluted processes can be a major sticking point. That’s why we created our business loan eligibility journey. It’s designed to give SMEs a clear, quick and transparent view of relevant funding options, allowing them to explore what’s available without the worry of their credit score being impacted.

3. Inward investment and UK economic security 

The Committee will scrutinise how the UK balances attracting foreign investment, particularly from China, with protecting critical national infrastructure and strategic industries. For small businesses, this could influence access to funding, partnerships, and supply chains. Clear rules and safeguards may help reassure companies, investors, and customers, while protecting the UK’s long-term economic stability.

4. Delivering the Industrial Strategy

The Committee will also scrutinise how the government plans to rebuild UK competitiveness, including tackling high operating costs such as energy. That’s a pressing issue for many small firms, as energy prices and supply chain pressures have hit margins hard across sectors like retail, hospitality and manufacturing. Policies that help stabilise costs or improve long-term certainty could make it easier for businesses to plan investment, hire staff and expand with confidence.

5. Employment rights enforcement

Ensuring that employment rights work in practice, not just on paper, is another focus. For small employers, clarity is essential. Straightforward guidance and proportionate enforcement help businesses stay compliant without having to spend long hours navigating complex rules. When done well, this can create a fairer workplace for staff, while also keeping admin manageable for smaller teams.

6. Regulatory reform

Regulation remains one of the most common pain points for small business owners. The Committee says it wants to cut red tape “that stifles enterprise” while also maintaining standards that protect consumers and workers. If this results in simpler processes or fewer overlapping requirements, the benefits could be immediate. Even small reductions in paperwork could make a noticeable difference.

7. Consumer protection and economic security

Stronger consumer protections and a focus on secure, stable investment may also help level the playing field. Clear rules build trust with customers and discourage unfair practices, which can only benefit reputable, reliable small businesses. Greater economic stability can also support confidence among both consumers and investors.

Why this matters

Taken together, these priorities centre on familiar themes: improving productivity, lowering barriers to starting and running a business, and creating a more predictable operating environment.

The real impact will depend on how recommendations translate into policy. For small businesses, even incremental changes in regulation, employment rules, or access to support can have a significant day-to-day effect, making it worth watching what turns into concrete action over the coming months.