This month saw the release of the UK Government’s Plan for Small Business. Whilst the Prime Minister met businesses in Swindon, the Small Business Commissioner joined Minister for Small Business, Gareth Thomas, to visit a prompt paying butcher, Flock & Herd, in Peckham.
This is because at the heart of the plan is a significant package of reforms to tackle late payments, which cause cashflow problems that stop firms from scaling up and investing in their future.
The proposed changes will help ensure businesses are paid on time and tackle an issue which, according to newly published figures, costs the UK economy £11bn per year and closes down 38 UK businesses every day.
See below for a summary of the Government’s 5 point plan:
1. Fixing the fundamentals through new legislation on late payment and making it easier for small firms to deal with HMRC and manage regulation, plus speeding up planning for smaller house builders.
2. Unlocking access to finance with an extra £4bn to the British Business Bank including to fund a further 69,000 StartUp Loans, plus looking at the appropriate use of Personal Guarantees.
3. Backing the everyday economy by energising high streets through measures such as High Street Rental Auctions that enable the community to take over empty shops and a commitment to permanently lower business rates multipliers for high street retail & hospitality properties with rateable values below £500,000, starting in April 2026.
4. Future-proofing business skills with a focus on AI and digital adoption, continuation of the acclaimed Help to Grow: Management programme and small businesses being able to benefit from shorter apprenticeships.
5. Opening up opportunities at home and overseas through announcement of an SME Education programme for small firms bidding for public sector contracts, increased export finance, and a Business Growth Service directing businesses to local and relevant support.
See the full plan and the latest research from the Office of the Small Business Commissioner and the Department for Business and Trade by clicking the buttons below.
