SME Digital Adoption Taskforce: final report
Source: gov.uk (2025-07-31)

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.

The Department for Business and Trade (DBT) set up the industry-led SME Digital Adoption Taskforce (https://www.gov.uk/government/groups/sme-digital-adoption-taskforce) in April 2024 to explore how SMEs can be supported to adopt basic, productivity-enhancing digital technology. This includes tools such as cloud computing, customer relationship management and resource planning software.

The taskforce provided its interim report in February 2025 and has now completed its work, setting a clear ambition for growth and prosperity for SMEs through the adoption of digital technology.

View the interim report (https://assets.publishing.service.gov.uk/media/6862665f1c735341c2111ac9/sme-digital-adoption-taskforce-interim-report.pdf).

In its final report, the taskforce has outlined its ambitions for SME digital adoption in the UK:
- the UK should be the most digitally capable and artificial intelligence (AI) confident in the G7 by 2035
- to seize the UK’s already leading global position in the tech and AI sector
Ministerial and Chair comments

Minister Thomas commented:

“Helping SMEs utilise new digital technologies can benefit everyone – employees, customers and the wider economy. I would like to thank the taskforce for sharing their expertise on how we can do this and achieve ambitious change for the UK.

“I have considered these recommendations in detail and am pleased to provide our government response as part of the SME Strategy. I look forward to continuing to work in partnership with these dedicated industry experts to drive our Growth Mission.”

Phil Smith, Chair of the SME Digital Adoption Taskforce, commented:

“Guiding small businesses to utilise technology provides benefits to employees, customers and the wider economy. SME support is therefore essential for competitiveness and national productivity. I’d like to thank the taskforce and all supporting organisations for strengthening our knowledge of the challenges that businesses face, as well as providing solutions to tackle these.

“This report provides a 10-step action plan for government to consider, which could be impactful for maximising the productive potential of SMEs and driving economic growth.”

Recommendations for government

The taskforce has made the following recommendations for government:
- No.10 Downing Street should lead an effort to co-create a new public-private initiative to drive up SME digital adoption and AI adoption.
- Appoint a single minister accountable for SME digital adoption and AI adoption.
- Develop a scalable online Chief Technology Officer (CTO) as a service, providing AI-powered guidance and support to SMEs.
- Launch a cross-departmental evidence gathering exercise on firm-level financial support for SME digital and AI adoption.
- Ensure the government’s Business Growth Service (BGS) is explicit in its design to have a focus on technology adoption.
- Launch a targeted awareness programme for digital and AI adoption.
- Commission new behavioural insights and gather data equivalent to the European Digital Economy Society Index (DESI) to improve policy design and track progress.
- Implement economy-wide reforms.
- Partner with trusted local and industry stakeholders.
- Embed a ‘test and learn’ approach to digital adoption.
The government has provided its formal response to the SME Digital Adoption Taskforce as part of the Small Business Plan (https://www.gov.uk/government/publications/backing-your-business-our-plan-for-small-and-medium-sized-businesses).

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