The Willow Review issues new recommendations for UK small businesses

Ten new recommendations have been issued by the new government-backed Willow Review to help UK small businesses unlock the ‘transformative’ growth opportunity from embracing sustainability.

At the heart of these recommendations are calls to simplify small business sustainability action plans, champion a more positive, solutions-focused narrative and improve access to finance, as well as pooling best-practice expertise and resources. The Willow Review is a new independent review which aims to show how sustainability is financially beneficial for the UK’s 5.5 million small businesses, by demonstrating how adopting sustainable practices can drive profitability, innovation, and long-term growth. The Review is designed to provide small business owners with the tools, insights, and evidence needed to integrate sustainability into their operations while boosting profitability.

SMEs account for approximately 50% of all UK business-driven emissions, according to the British Business Bank[1], yet uptake of sustainability initiatives across small businesses remains limited due to perceived lack of financial advantages, and concerns about upfront costs.[2] Since launching in November 2024, The Willow Review has undertaken comprehensive research into the factors driving this. Ahead of a final report in June 2025, it is initially proposing ten far-reaching recommendations across financial service institutions, government and the UK’s small business community, to encourage a ‘mass shift’ in small business sustainability adoption over the next five years.

Following these initial recommendations The Willow Review will continue further research, driven by specific Taskforces to be established ahead of the publication of a final report in June 2025. This will include fuller recommendations and outline the financial case for sustainability, supported by real-world data and practical insights.

Recommendations for Small Businesses

To help smaller firms easily identify cost savings and adopt changes that will boost their growth, The Willow Review will develop a recommendation to create a simple ‘five-point sustainability plan for small businesses’. Further recommendations also include how action by government, financial services and business support organisations can facilitate SME Sustainability Networks to help small firms share best practice through mentoring programmes and peer networks.

Recommendations for Financial Service Institutions

The Willow Review is exploring the role for financial institutions to boost support for small businesses to help them understand the commercial advantage of going green, including the role for greater sustainable business planning and education around green finance, as well as exploring future financing innovations in this area as SME demand grows.

Recommendations for Government

Government is also being called upon to support access to finance by improving visibility, accessibility and provision of sustainability grants. This includes simplifying existing application processes and signposting, as well as considering adapting current funding initiatives, such as extending ‘Start-Up Loans’ to encompass new ‘Green-Up Loans’ to support small businesses to make necessary transitions.

In addition, The Willow Review also recommends the government reframes current sustainability messaging to better engage SMEs, with a more positive focus on growth, competitiveness, and profitability rather than compliance, as well as encouraging uptake of existing resources, such as the UK Business Climate Hub. Greater grassroots support is also proposed to provide tailored support for SMEs, with suggestions to establish local council sustainability champions to help forge local connections, such as around funding. This would also include supporting SMEs in transitioning to green energy usage by engaging landlords as facilitators.

The Willow Review highlights the importance of Government developing long-term consistency and clarity around policy and regulation as it impacts SMEs, ensuring that they can have confidence in their sustainability efforts. Jointly chaired by the Minister for Small Business, Gareth Thomas, Nick Stace OBE, Global Head of Sustainability Engagement for Barclays, and Michelle Ovens CBE, Founder, Small Business Britain, The Willow Review is supported by a steering board of industry experts. This includes representatives from the Department of Energy Security and Net Zero, British Chambers of Commerce (BCC), BT, Business Climate Hub, Federation of Small Businesses (FSB), Startup Discovery School and Planet Mark, as well as academics from Glasgow University.

Michelle Ovens CBE, Founder of Small Business Britain and co-chair of The Willow Review said: “Sustainability is great for the small business bottom line and brings tremendous potential to transform growth for small firms and the wider UK economy, as well as being vital for the planet too. These new recommendations by The Willow Review are a critical step forward in supporting small businesses on this journey to unlock the opportunity of green growth. We look forward to working with businesses, government, and financial institutions to drive positive change.”

Gareth Thomas, Minister for Small Business and co-chair of The Willow Review, said: Small businesses are the engine of the economy helping to drive growth, which is why this review is an important step towards providing the right support for smaller businesses looking to expand and thrive. Through our Plan for Change, this government is committed to further and faster growth, with SMEs at the heart of that, and sustainable initiatives can help get us there.”

For more information visit https://willowreview.com