FLA says specialist lenders are ready to back Government's SME growth plans

The Finance & Leasing Association (FLA) has welcomed the Government’s renewed focus on economic growth, saying the UK’s specialist finance sector stands ready to help deliver the Chancellor’s investment ambitions by supporting businesses, consumers and households across the country.

The comments follow the Government’s announcement of a £6.5 billion expansion of the British Business Bank’s financial capacity, designed to increase access to finance for smaller businesses and unlock private sector investment. The FLA said achieving sustainable economic growth will require not only public investment but also a competitive financial services sector capable of channelling finance into the real economy.

Ahead of the Chancellor’s Mansion House speech this evening, the trade body highlighted the contribution specialist lenders already make to UK investment, pointing to its recently published report, The Hidden Engine Behind UK Growth.

According to the report, FLA members provided a record £163 billion of new lending to businesses and households during 2025, funding investment in machinery, vehicles, technology and home improvements while supporting productivity, employment and economic activity across every region of the UK.

Shanika Amarasekara MBE, Chief Executive of the Finance & Leasing Association, said investment sits at the heart of economic growth.

“The Government is right to focus on growth because growth begins with investment – when a business invests in new machinery, when a family buys a more efficient vehicle, or when a company adopts new technology to improve productivity.

“Our members are the hidden engine behind UK growth. As specialist lenders, they finance those decisions every day, turning ambition into investment, and investment into jobs, productivity and prosperity.”

Amarasekara welcomed the Government’s recognition of the financial services sector’s role in supporting economic growth and said closer collaboration between government, regulators and industry would be essential.

“The Chancellor’s speech recognises the importance of a competitive financial services sector in delivering the Government’s growth ambitions. We welcome that recognition and stand ready to work alongside Government, regulators and industry partners to turn today’s ambitions into investment that benefits businesses, consumers and communities in every region in the UK.

“With the right regulatory and policy environment, the UK’s specialist finance sector can do even more to unlock investment, support innovation and deliver sustainable growth in every nation and region of the country.”

The FLA said the Mansion House speech presents an opportunity to reinforce the UK’s position as a globally competitive financial centre while recognising the vital role specialist lenders play in financing the real economy.

The association noted that its members provide finance every day that enables businesses to invest in productive assets, supports consumers purchasing vehicles and other essential goods, and helps households spread the cost of major investments. It believes this financing ecosystem will be critical if the Government is to translate its investment agenda, including the expanded role of the British Business Bank, into higher productivity, stronger regional growth and long-term economic prosperity.