The UK government has announced plans to temporarily suspend import tariffs on more than 120 products for two years starting April 2026. The aim is to help small and medium-sized enterprises (SMEs) improve their global competitiveness.
From 11 April until June 2026, import duties will be waived on goods commonly used as inputs in domestic industries, These include a wide range of agricultural products, such as juices and starches, as well as a number of non-agricultural products, including ceramics, leather and key automotive parts. The full list of products set to benefit from this tariff suspension will be disclosed on Monday.
Benefits of the Removal of Import Tariffs for UK Businesses
The removal of tariffs is expected to benefit UK importers from all countries, driving down import costs for SMEs and delivering better value for consumers. SMEs represent approximately 99.9% of all UK businesses, highlighting the importance of ensuring their ability to grow and thrive.
On Monday, Business Secretary Kemi Badenoch will announce a £660 million Northern Powerhouse Investment Fund at a small business conference in Warwickshire. The event will be attended by Technology Secretary Michelle Donelan, Education Secretary Gillian Keegan, and Prime Minister Rishi Sunak. They will meet with over 150 SMEs and business groups from across the UK.
The conference will provide guidance on regulations, technology, finance, skills, and education, specifically tailored for the SME sector. Technology Secretary Michelle Donelan, Education Secretary Gillian Keegan, and Prime Minister Rishi Sunak will also make appearances and engage directly with attendees. This initiative demonstrates the Government's commitment to actively engaging, not just addressing, the challenges and opportunities facing UK SMEs.
Catalysing Development of SMEs in the North of England
Alongside the tariff suspensions, one of the highlights of the forthcoming SME Connect event will be the announcement of a new route to finance for SMEs, particularly those in the North of England. Backed by the Government, the British Business Bank is set to launch a fund aimed at improving access for businesses in this region to crucial financial resources such as loans and equity. This initiative comes as part of a wider government drive to address regional disparities and stimulate economic growth across the UK.
This announcement comes at a critical time, as the government faces increasing scrutiny over its commitment to 'levelling up' and tackling regional inequalities. Recent assessments by the Public Accounts Committee have highlighted significant delays in the delivery of key projects aimed at achieving this objective, calling into question the effectiveness of the government's strategies.
Bringing together around 150 SMEs and business associations to engage directly with government representatives and gain insights into harnessing regulation, artificial intelligence and financial strategies for growth, the SME Connect event aims to address these gaps.
Anticipated reforms, as stated by Prime Minister Sunak, are expected to further strengthen support for small businesses, underlining the government's commitment to fostering an environment conducive to innovation, growth and equitable economic development.