04 Aug 2025
by Mia Haffety

Industry-led SME Digital Adoption Taskforce release final report with UK Government response

Last Thursday, 31 July, the UK government released their Small Business Plan alongside the industry-led SME Digital Adoption report. This report sets out an ambition for growth and prosperity for small and medium-sized enterprises (SMEs) through the adoption of digital technology and a 10-step action plan for government.

techUK are delighted to be a part of the SME Digital Adoption Taskforce and to see the publication the final report. View the final report here.

techUK SME Digital Adoption campaign

On behalf of our members, we have long called for better government support for SMEs digital adoption. In September 2023, techUK released our ‘Small Enterprises, Big Impact’ report, working with techUK members including Sage, Xero and Intuit, along with our SMEs to bring this together. This report provided a 12-month roadmap for the Government to incentivise SME digital adoption. Key areas of focus included:  

  • Co-ordinating a cross-departmental and industry led Forum and appoint a Minister responsible for digitisation across the economy. 
  • Delivering a comprehensive digital adoption plan with clearly defined targets by 2030, focusing on the right underpinning infrastructure, regulation and skills needed to succeed.
  • Expanding the Made Smarter Adoption programme to all sectors of the economy. 

During this campaign, we were pleased to bring together key stakeholders including Chair of the SME digital adoption taskforce Phil Smith CBE and many of the SME Digital Adoption Taskforce members (catch-up on the Small Enterprises, Big Impact report release here). Following this, techUK were pleased to have been asked to join the Department for Business and Trade’s SME Digital Adoption Taskforce.

techUK and the SME Digital Adoption Taskforce

Over the past year, techUK have worked with others on the Taskforce and our SME members to understand exactly what the UK Government, and industry should do - looking across the financial incentives, skills needs and regulatory levers needed to drive adoption. We fed into the government’s Tech Adoption Review and supported the development of the Taskforce’s interim (accessible here) and final report.

In this final report, the Taskforce want to see UK SMEs become the most digitally capable and AI confident in the G7 by 2035 and have set out ten recommendations to help achieve this and maximise the productive potential of SMEs.

Ultimately, this is an economic opportunity. There are 5.5 million small businesses who account for 99.8% of the business population and employ two thirds of working people. Yet the UK ranks 25th worldwide for future digital readiness and 18th for overall performance in digital readiness in the IMD 2024 index. Alongside this, UK SMEs invest less in new technology and management that their G7 peers. But small business owners in the UK could get as much as three and a half weeks of productive working time back if they fully embraced even basic technology.

techUK have been impressed by the collaboration in the SME Digital Adoption Taskforce. Together, we have created a report that sets out clear steps for government and industry to boost technology adoption rates in the UK and give SMEs the support they need. This includes appointing a Minister responsible for digital adoption, developing a scalable online CTO as a service, providing AI-powered guidance and support to SMEs, and launching a cross departmental evidence gathering exercise on firm-level financial support for SME digital and AI adoption.

On behalf of our members, we look forward to seeing how we can put this into action as part of the Small Business Plan.


Annex. The UK government has responded to the following recommendations made by the Taskforce. See below or access the policy annex here:

Recommendation 1: No.10 Downing Street should lead an effort to co-create a new public-private initiative to drive up SME digital and AI adoption. 

Government response: We agree that Government should partner with industry on SME digital adoption. We will convene key industry partners with No10 to drive development and delivery of targeted interventions that support SMEs across the UK’s nations and regions. This will build on Taskforce recommendations such as (3), (6) and (9), also coordinated with other initiatives such as the new governmentindustry AI Upskilling partnership harnessing opportunities for SMEs in AI adoption.

Recommendation 2: Appoint a Minister accountable for SME digital and AI adoption.

Government response: We agree that a single point of accountability would help drive digital adoption policy across government – a recommendation also noted by the National Technology Adoption Review. Minister Baroness Jones, Parliamentary Under-Secretary of State for both DBT and DSIT, will be the Minister responsible for adoption of digital technology (including AI). She will provide focus and leadership, driving and coordinating digital adoption efforts across government.

Recommendation 3: Develop a scalable online CTO as a service, providing AI-powered guidance and support to SMEs.

Government response: We agree that AI-powered support can offer tailored digital adoption guidance to SME leaders in a way that is scalable and accessible, any time and any place. DBT will begin work to define requirements for an AI-powered support tool and explore feasibility.

Recommendation 4: Launch cross departmental evidence gathering exercise on firm-level financial support for SME digital and AI adoption.

Government response: Cost is one of the barriers facing SMEs when adopting new digital technologies. We agree that we should build on the evidence gathered by the Taskforce and the National Technology Adoption Review on different firm-level interventions, to further inform and develop the offer to SMEs.

Recommendation 5: Ensure the Government’s Business Growth Service is explicit in its design to enable technology adoption.

Government response: Our goal is for the Business Growth Service to help businesses access all kinds of support, including on digital adoption. As part of this, DBT have launched business.gov.uk, and a series of webinars on topics such as e-commerce and social media. The Business Growth Service will grow iteratively through industry feedback, and we will work to include more advice and support on digital adoption in line with this recommendation.

Recommendation 6: Launch a targeted awareness programme for digital and AI adoption.

Government response: We understand the need to build awareness of the benefits of digital tools for businesses. We will pilot messaging to encourage SME uptake of digital adoption support, and work with industry partners to improve awareness of current offers. As we develop the digital adoption support offer, we will build this into our communications so that it resonates with SMEs and encourages them to take action.

Recommendation 7: Commission new behavioural insights and gather data equivalent to the European Digital Economy and Society Index (DESI) to improve policy design and track progress.

Government response: We agree with the need for data and evidence to drive effective decisionmaking in support of digital adoption, and monitor progress against our ambitions. We will explore possibilities to commission new research and monitoring on digital adoption in the UK in line with international standards, and will provide an update in Spring 2026.

Recommendation 8: Implement economy-wide reforms including e-invoicing standards, Digital ID, business tax digitisation, simplified regulatory frameworks for SMEs, internet infrastructure.

  • Government response: We agree that we need to act across the economy to provide the right environment for SMEs to adopt digital technology. For example:
    • HMRC and DBT conducted a 12-week consultation on e-invoicing and will publish a summary of responses and update on next steps.
    • Making Tax Digital for Income Tax will be introduced for around 2.7m sole traders and landlords through a phased rollout beginning in April 2026.
    • DSIT is continuing work on enabling the use of secure and trusted digital identity services across the UK.
    • DBT will simplify the regulatory framework through the Regulation Action Plan.

Antony Walker

Antony Walker

Deputy CEO, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

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Audre Verseckaite

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Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

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Archie Breare

Policy Manager - Skills & Digital Economy, techUK

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Authors

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Mia joined techUK in September 2023.

Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.

Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.

Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.

Email:
[email protected]

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