Government Launches Small Business Plan
Thursday 31 July
This week, the UK Government launched its Small Business Plan, which outlines its approach and a series of measures to support the 5.5 million SMEs that form the backbone of the British economy.
Key highlights include:
- A major crackdown on late payments
- A new online Business Support service
- A new £4 billion wave of financial support targeted at boosting growth and supporting more small businesses to start up and grow including a £1bn boost for new businesses, with 69,000 Start-Up Loans and mentoring support for entrepreneurs and small business owners
- Support for exporting, technology adoption, and innovation
Considering that smaller businesses have long struggled with late payments, poor access to finance, and the challenge of navigating fragmented business support, these are welcome proposals.
Why It Matters
Late payments remain a persistent and damaging issue for small businesses. Delayed payments can choke cash flow, restrict growth, and even put viable businesses at risk. It is estimated to cost the UK economy £11bn a year and closures of 38 businesses every day.
So, government action to strengthen the Prompt Payment Code, boost transparency, and tie payment practices to public sector contracts is a step in the right direction.
The new online Business Support service also has potential especially if it helps businesses to connect more easily with business networks such as Chambers of Commerce.
What’s Missing?
While the plan includes positive signals, including references to digital and export growth, further action is still needed. Businesses continue to face:
- Complex and inconsistent finance journeys
- Ongoing cost pressures and business rate burdens
We also note the importance of ensuring that consultation and policy design involve real-world insight from SMEs, to avoid a one-size-fits-all approach.
Our Work on Finance Access and Business Support
Through our engagement with Ministers and government consultations (including the recent DBT/HMT inquiry on SME debt finance and the Industrial Strategy), and outreach to members, we have consistently advocated for a more robust business support and policy landscape for businesses including inclusive and accessible funding.
Earlier this year, we supported an event supporting businesses with procurement and also delivered our own event helping entrepreneurs with the insights and networks needed to access finance for their businesses.
Looking ahead, we’ll continue to engage with government and partners to ensure that policies turn into practical support on the ground.
Looking for Support?
We’ve put together resources to help you navigate:
Read our response to the Small Business Plan
Please get in touch with our policy team if you have any questions or to share your thoughts on business support.