One in four brokers are concerned their business clients will be less willing to borrow under the new Prime Minister, the latest SME Pulse from Atom bank has revealed.
Atom bank, one of the UK’s highest rated banks on Trustpilot, carries out a quarterly poll of commercial brokers, gauging their experiences over the prior three months as well as their expectations for the months and years to come.
The latest SME Pulse** covers Q2 2026, with a quarter (25%) of broker respondents expecting businesses to be somewhat less inclined to look to external funding, compared with 17% of brokers who suggested there may be an increase in demand. The majority (57%) predicted the change of occupant in 10 Downing Street would have no impact at all on lending appetite from UK SMEs, while an even larger majority of brokers (79%) said they had seen no change since Andy Burnham became Prime Minister.
When quizzed on what they thought would have the biggest impact on SME demand over the coming 12 months, interest rate movements came out top (28%), ahead of economic growth and customer demand (21%), inflation and business costs (19%) and government policy (17%).
Improving demand
The latest edition of the SME Pulse revealed demand among business borrowers is growing once more. More than a third (38%) of brokers reported increasing demand among their SME clients, up from 33% in the last edition for Q1. Meanwhile, the proportion reporting a decline in demand dropped from 12% to just 4%.
Behind that recovery is improved business confidence, which was identified as the key driver by more than two thirds of respondents (67%), ahead of more product options (44%) and lender appetite (28%).
This is borne out by studies such as the Growth Indicator Index from the Confederation of British Industry (CBI), which reported the overall outlook among businesses is currently at its least pessimistic level in two years.
However, funding accessibility has become more challenging. One in four brokers (25%) said they were currently finding it difficult to secure funding for their clients, up from 19% in the previous study and more than double the 11% who reported accessibility issues in the Q4 2025 study, which had represented a record low.
Rising interest rates, stricter lender criteria and a preference among lenders for high-value corporate clients were all identified as contributing factors.
Chris Storey, Chief Commercial Officer at Atom bank, explained:
“We are still in the early days of the Andy Burnham government, so it’s perhaps unsurprising that there has been little immediate impact on SME demand. However, it’s notable that brokers are cautious about the months ahead, and what the change in Prime Minister means for borrower appetite. All eyes will be on next month’s Budget, and what impact it may have on the nation’s small businesses.
“While accessibility is good on the whole, it is somewhat of a concern that the proportion of brokers reporting problems in securing funds for their clients has increased for two straight editions of our study.
“Lenders should work closely with brokers to establish which types of business are having the most difficulty in securing funds, and where support can be improved. It’s something we have done consistently at Atom bank. In recent months we have lowered our minimum loan size to £100,000 and introduced a Natural Capital proposition, among other ongoing improvements to our journey to make things faster and easier. If we are serious as an industry about supporting businesses, then we need to understand what they need from funders, and act on that feedback.”
