SMEs play a critical role in meeting national climate targets, yet many still struggle to understand what net zero means in practice and how to implement decarbonisation strategies. The recent British Bank Survey shows that 76% of SMEs are at an early stage of their net zero transition, and only 57% are aware of the UK’s commitment to reach net zero by 2050. This knowledge gap, combined with sector-specific barriers, poses a significant challenge for local authorities seeking to support business decarbonisation.
Our research examined practical models for SME decarbonisation support and gathered insight via discussions with business support programmes and agencies to understand gaps and opportunities for enhancing existing SME support. We produced a baseline review of SME services across North Somerset to identify good practices and gaps in existing services.
We worked with the council to develop evaluation criteria to prioritise and rank potential support interventions. This structured approach has given North Somerset Council a clearer view of where their resources can have the greatest impact.
Our research helped uncover the enablers and barriers preventing SMEs from acting – noting some barriers are more pronounced in certain sectors. The most pressing barriers cited by survey respondents included feasibility (32%) and cost (35%), with upfront capital costs a particular obstacle. By pairing local insights with national evidence, this provided North Somerset Council council with a deeper understanding of the practical, behavioural, and financial enablers to support SMEs in taking steps towards decarbonisation.
Our findings also show that cost savings alone are not always a sufficient catalyst for action, with later-stage barriers often limiting investment in decarbonisation measures. We present key recommendations to strengthen and enhance the role of local and national support mechanisms. This evidence gives the council a strong foundation to advocate for additional funding, refine local partnerships, and build a more coherent support ecosystem for SME decarbonisation.
By providing a clear evidence base and actionable support framework, our research is helping North Somerset Council design targeted interventions that will enable local SMEs to reduce emissions, build resilience, and seize opportunities to decarbonise.
For local government organisations and networks interested in supporting SMEs to decarbonise, we also offer climate action workshops designed to support SMEs taking their next steps towards net zero.
To access the full report, please email Victoria.Barvenova@n-somerset.gov.uk.