The Master Key: A practical fix for the admin that holds small firms back

This week, we're publishing The Master Key, a policy paper we've co-developed with Xero and The Entrepreneurs' Network.

It starts with a familiar frustration. You give government the same business details again and again, in different places, with different log-ins and different rules.

It wastes time, slows down access to finance and creates openings for fraud. If you've ever uploaded the same PDF twice, this paper is for you.

The report's core point is simple. The UK has treated "digital identity" as a sign-in issue. But for small firms, the problem is everything that comes after you sign in.

That's proving the same facts repeatedly, granting access safely and getting verified quickly when you need to open an account, apply for finance or bid for work.

• Read the full paper now

What we mean by "Master Key"

We propose two building blocks that work together.

1. A Unique Business Identifier (UBI): Not necessarily a new number. Think of it as a reliable way to link the IDs you already have, so government can recognise your business consistently. Update a core detail once, and you can reuse the UBI across services.

2. Reusable verified credentials: A digital "keyring" for your business. Instead of re-uploading documents, you hold verified facts, such as company status, VAT status, or director verification, and share them when needed, with permission and a clear audit trail.

Why your business should care

There are several reasons!

• You get time back. If every small firm saves even one day every year, the UK could unlock £4.8 billion by 2030 through scalable digital verification.

• You can delegate safely. The report proposes "Guest Passes" – time-limited access you can grant, narrow and revoke – without sharing passwords.

• Finance can move faster. Verified business information can cut onboarding from weeks to minutes in many cases, because evidence is already trusted and portable.

• Cash flow and fraud both improve. Fewer identity gaps means fewer opportunities for impersonation, and fewer payment delays caused by verification and admin errors.

Why this is important now

The government is already bringing together a number of ways to sign in, and has already moved Companies House WebFiling to GOV.UK One Login (from 13 October 2025).

And two major reforms are approaching fast.

• First, The Data (Use and Access) Act 2025 creates a framework for digital verification services and Smart Data schemes.

• Second, mandatory e-invoicing for VAT invoices is due to come into effect from 2029.

Without a coherent way to identify and verify a business, those shifts risk becoming making things more complicated, rather than simplifying them.

What we're recommending to government

• Forge the key. Make it so if you update a core business detail once, every government service recognises it, without asking you to re-enter it elsewhere.

• Make delegation work for real businesses. Strengthen One Login (including Guest Passes) for business use, so owners can grant safe, auditable access without sharing passwords.

• Make verified business information portable. Set standards so government-issued credentials can be reused with banks and other services, with consent.

• Build it with SMEs, not for SMEs. Set up an SME Industry Council and publish a roadmap that overlays existing ID, rather than forcing a major switch.

Views from the experts

The accountant's view – David Sellick, director, Sidgrove

"Less admin, less box-ticking – I'm for it.

"It's not just a case of improving things like financing, efficiency and security. I often lose weeks onboarding and helping new SME clients because they're strangers to HMRC, Companies House and their bank, despite providing who they are three times over.

"Australia and New Zealand have proved the single identifier works. We should've had this yesterday."

Expert insight – Kate Hayward, managing director, Xero

"The digital drag on small British businesses is real, but solvable. International examples show that when you get the digital identity layer right, you unlock a wave of automation – from instant supplier verification to seamless e-invoicing.

"For the UK, a Unique Business Identifier isn't just about better bureaucracy. It's a critical infrastructure project for getting small businesses paid faster and growing again."

 Read the policy paper in full