Government Unveils Small Business Plan: What It Means for Your Business
The UK government has published its highly anticipated Small Business Plan, designed to give small and medium-sized enterprises (SMEs) the tools and support they need to grow and succeed.
Small businesses employ 60% of the UK workforce and generate an impressive £2.8 trillion in turnover, yet for too long, many have faced challenges that hold them back. This new plan aims to change that.
Tackling Late Payments: Helping SMEs Get Paid on Time
Late payments are a significant problem in the UK economy, costing an estimated £11 billion every year and causing 38 businesses to close daily. The government is committing to the toughest laws on late payments in the G7, with measures aimed at protecting small businesses from being paid late by larger firms.
Key changes include:
Stronger powers for the Small Business Commissioner: New authority to impose substantial fines on large companies that persistently delay payments.
Mandatory 30-day invoice verification: To speed up dispute resolution.
Maximum payment terms: Setting a legal maximum of 60 days for payment, reducing to 45 days over time.
Increased board-level accountability: Audit committees at large firms must scrutinise their payment practices to ensure fairness.
Mandatory interest on late payments: Penalties to discourage late payments.
These reforms will help businesses save time and money by reducing the need to chase late invoices and provide greater certainty over cash flow.
Improved Access to Finance
Access to finance remains a critical challenge for many SMEs, despite the strength of the UK’s financial sector. To tackle this, the government is launching a £4 billion package of financial support:
£1 billion dedicated to new businesses: Helping startups access the funding they need.
69,000 Start-Up Loans and mentoring opportunities: Supporting entrepreneurs with capital and guidance.
£3 billion boost to the British Business Bank: Raising total guarantees to £5 billion to help lenders offer more loans with better terms and lower interest rates.
This financial support aims to empower small businesses to invest, expand, and thrive.
Other Support Measures
Streamlining regulations for hospitality and the arts through hospitality zones and licensing reforms.
Launching High Street Rental Auctions to reduce empty premises and support local retail.
Revamping the Board of Trade to promote exports by smaller businesses.
Introducing a new Business Growth Service to provide tailored support for SMEs.
Plans to permanently lower business rates for retail, hospitality, and leisure sectors to help businesses recover and grow.
What This Means for Your Business
Whether you run a start-up or an established SME anywhere in the UK, the new Small Business Plan offers real opportunities:
Faster, fairer payments to improve your cash flow.
Greater access to finance to fuel growth and innovation.
Reduced red tape in key sectors.
Enhanced export support for reaching new markets.
Targeted help and advice through government-backed services.
Industry Reactions
Michelle Ovens CBE, Founder of Small Business Britain, said:
“This plan puts the nation’s smallest businesses at the heart of government strategy. It provides a vital boost in funding, skills, and legal protections, especially around getting paid on time. Economic growth depends on small business growth.”
Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB), commented:
“Making sure businesses get paid on time and that high streets thrive are crucial priorities. This plan shows the government is taking small business concerns seriously.”
How Zyla Accountants Can Help
At Zyla Accountants, we understand the challenges facing small businesses today. Whether you need support with cash flow management, navigating funding options, or planning for growth under the new Small Business Plan, our expert team is here to guide you every step of the way.
Stay informed and prepared to take advantage of the opportunities ahead with Zyla Accountants by your side.
Ready to grow your business with confidence?
Contact Zyla Accountants today to find out how the new Small Business Plan could benefit your business.