In August, the Government launched its Small Business Plan, setting out measures it believes will encourage entrepreneurship and help small businesses grow.
Small businesses make vital contributions to the economy and together they employ 60% of the UK workforce, generating £2.8 trillion in turnover. The question is, will the proposals really move the dial for business owners?
Tackling late payments
For many small businesses, late payments are one of the biggest headaches. While the government’s plan won’t end the problem altogether, it does set out what it calls the toughest rules in the G7.
The measures include:
- A legal obligation for large businesses to pay invoices within 60 days, reducing to 45 days over time
- Automatic interest charges on late payments
- Stronger powers for the Small Business Commissioner, including spot checks and fines for repeat offenders
- Audit committees legally required to examine payment practices
These reforms could ease cashflow pressures and give business owners back some of the time they currently spend chasing invoices.
Making finance more accessible
Another focus is funding. The government is promising more routes to affordable finance through:
- 69,000 Start-Up Loans, paired with business mentoring
- A £3 billion increase in the resources of the British Business Bank
- £340 million of regional equity investment to back entrepreneurs across the UK
- A new Code of Conduct on personal guarantees for government-backed loans
This should, in theory, give small businesses a wider choice of lenders and funding options.
Cutting down on red tape
The plan also targets regulation and compliance, promising:
- A 25% cut in the cost of regulatory administration
- Reforms to the tax and customs system, aiming to make compliance faster and simpler
Beyond finance and regulation
The plan also includes wider support, such as targeted help for high street businesses, investment in education and training for future entrepreneurs, and initiatives to open up further opportunities both at home and abroad.
To review the Small Business Plan in full, see here. And, if you’re a small business ready to unlock growth, sharpen your strategy or get total clarity on your finances—let’s talk.
