HM Treasury has published a consultation and call for evidence on possible changes to the United Kingdom's Bank Referral Scheme, under which designated major lenders must, with a small and medium-sized enterprise's consent, refer rejected finance applications to designated finance platforms that can match them with alternative providers. The review asks whether the scheme should be updated to cover a wider set of large lenders, including non-bank providers, and whether its referral, consent, information and reporting arrangements should be redesigned to improve take-up and outcomes. The consultation follows a post-implementation review that found the scheme has helped some firms but has had modest overall impact. Up to Q3 2024 it had generated 5,387 approved deals worth more than GBP 128 million, with an average deal size of around GBP 24,000, but only about 5% of businesses initially rejected for finance secured funding through the scheme. HM Treasury is therefore seeking views on broadening designation criteria beyond banks and current lending market share, potentially taking account of business current account provision and allowing smaller lenders to opt in voluntarily. It is also consulting on earlier and more standardised information for SMEs, possible referral rights where no lending decision is communicated within a set period, requiring lenders to explain rejections where lawful, signposting unsuccessful applicants to business advice services, simplifying consent and data sharing, and collecting more performance data from designated firms. The consultation will run from 27 October 2025 to 22 December 2025. Depending on responses, the government may pursue changes through secondary or primary legislation, or seek to meet the policy objective through guidance or other non-legislative measures.
HM Treasury 2025-10-01
United Kingdom's HM Treasury publishes consultation on widening the Bank Referral Scheme to more lenders
HM Treasury has launched a consultation and call for evidence on reforms to the UK’s Bank Referral Scheme, including expanding designated lenders and redesigning referral, consent, information and reporting arrangements to improve outcomes for SMEs. Following a review showing only about 5% of initially rejected businesses secured funding, the consultation seeks views on broader designation criteria, earlier and more standardised information, possible referral rights where no decision is communicated, enhanced explanations and signposting, simplified consent and data sharing, and expanded performance data collection.