On 27 October 2025, HM Treasury (HMT) published a consultation and call for evidence inviting views on issues and proposals in relation to the Bank Referral Scheme (BRS).

Background

The BRS requires major lenders to refer SME customers, who have been rejected by that lender and have agreed to be referred, to finance platforms that can match the SME with alternative finance providers. In this paper, HMT explains that it intends to explore whether the BRS could be enhanced to better support SMEs’ access to finance and is seeking feedback in relation to this.

Key proposals and requests for feedback

HMT has asked for feedback on whether there should be amendments made in relation to the following aspects of the BRS:

  • Designations and scope of the BRS: Whether the current size of SME businesses and types of finance products in scope of the BRS are still appropriate, whether the current approach to designating finance providers as being within scope of the scheme should be changed, whether more lenders should be designated to better reflect the market, whether more products should be in scope e.g. bank accounts, and whether there are any barriers to voluntary participation.
  • Improving SME participation: What improvements could be made in relation to when and how SMEs should be made aware of the scheme, whether the circumstances triggering an SME referral should be broadened in legislation, how SME’s chances of successfully accessing finance under the scheme could be improved, and how the referral and onboarding process could be streamlined.
  • Monitoring performance: Whether the current data collected and published in relation to the scheme should be expanded, and whether respondents have any reflections on the interaction between the BRS and open finance initiatives.

Next Steps

The consultation will close at 11.59pm on 22 December 2025.

HMT has set out that, depending on the feedback, it will consider whether the existing BRS legislative framework needs to be amended or whether new designations or guidance under the scheme ought to be issued.