Business News Round Up (10/08/2026)
Small businesses divided on whether to use AI for growth
31% of small business owners are already using AI, while 27% have no plans to use it and 21% do not see it as relevant, according to new research from Novuna Business Finance. Whilst some small businesses see efficiencies that AI can deliver, many small business owners view AI as being at odds with enterprises that are built on the principle of strong human relationships. At a time when the Prime Minister’s new AI Taskforce has been created to accelerate the adoption of AI across government and to drive economic growth, the new research reveals mixed feelings towards AI from UK small businesses. Enterprises based in London (41%) and the West Midlands (38%) are most likely to already be using AI – but in the other nine UK regions, a larger percentage of small businesses said they didn’t plan to use it or didn’t believe AI was relevant to their business.
VC access expanded for early-stage companies in UK
Investors in early-stage companies across the UK can access a multi-million-pound investment boost as the Chancellor backs growth in every postcode through the next £100m phase of the British Business Bank’s Investor Pathways Capital Initiative. The initiative, which will invest £400m in total, aims to help businesses scale up as the fund managers provide the catalytic early capital that innovative, early-stage businesses need to scale up drive local growth and create more good British jobs. Business large and small have felt the squeeze as the cost of business has risen. The Chancellor is backing investment outside of London into businesses to help tackle this, bolstering efforts to make Britain better off. “One of my priorities is wealth creation. That means building an economy that helps people live well. I know there is a cost of business, and it will not go unnoticed,” Chancellor of the Exchequer John Healey MP said.
https://www.digit.fyi/vc-access-expanded-for-early-stage-companies-in-uk
British Business Bank to boost support for investors in UK start-ups
The British Business Bank will support investors in UK start-ups through a next £100 million phase of its Investor Pathways Capital Initiative. The initiative, which will invest £400 million in total, helps fund managers provide the catalytic early capital that innovative, early-stage businesses need to scale up, drive local growth and create jobs. In June, the British Business Bank committed up to £90 million to 10 new micro-funds as part of the first Investor Pathways Capital cohort. Applications for the next cohort, which is part of this £100 million deployment, will open in Autumn 2026. The announcement follows a number of recent reforms to other British Business Bank schemes to help more businesses access government-backed finance. These include an increase in lending capacity for the Growth Guarantee Scheme by a further £2 billion by 2028/29 that could reach an additional 12,000 small businesses each year.
Recruitment business founder named as FSB’s interim national chair – “Small businesses and the self-employed are at the heart of the economy and communities in every part of the UK”
The founder of a successful recruitment business has been named as the interim national chair of the Federation of Small Businesses (FSB). Tina McKenzie will take up the role as Martin McTague steps down to become a member of the House of Lords. McKenzie has been part of FSB’s board of directors since 2021, and for the last four years has been national vice chair, policy and advocacy. She has led engagement with senior figures in both the UK Government and opposition parties on key issues including the cost of doing business crisis, employment rights changes, international trade, and tackling late payments by big businesses to their smaller suppliers. Martin McTague has been an FSB volunteer for more than 20 years at local and national level, becoming national Chair in 2022 having previously been national vice chair, policy and advocacy.