Government Outlines New Plan to Support Small Businesses
The UK Government has announced a wide-ranging plan to support small businesses, outlining a series of measures aimed at tackling long-standing challenges and helping smaller firms to grow.
The plan has been welcomed by leading professional bodies, including the Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Accountants in England and Wales (ICAEW), as an important step toward strengthening the UK’s small business economy.
Tackling Late Payments and Improving Cashflow
One of the key priorities in the plan is to tackle late payments, which are estimated to cost the UK economy £11 billion every year. The Government intends to legislate to stop delayed payments, improving cashflow for small firms and helping to maintain financial stability.
In addition, the plan includes a commitment to reduce business regulatory costs by 25%, easing the administrative burden that many small firms face.
Expanding Access to Finance
To help new and growing businesses access the capital they need, the Start-Up Loans Scheme will be expanded, offering both funding and mentoring to around 69,000 new businesses.
The British Business Bank’s Growth Guarantee Scheme will also be extended, while the ENABLE programme — which helps banks lend to smaller businesses — will increase its capacity from £3 billion to £5 billion.
Business Rates and Local Investment
Permanent reforms to business rates are also on the way, introducing lower multipliers for retail, hospitality, and leisure properties. This will help high street businesses facing rising costs and provide much-needed relief for local employers.
To further support local economies, up to 350 communities will benefit from targeted funding designed to strengthen everyday trade and encourage long-term growth.
Investing in Skills and Technology
The Government will invest £1.2 billion in apprenticeships and skills, with a focus on helping small businesses adopt new technology and improve productivity.
The Business Growth Service — which previously provided one-to-one advice and tailored support — will be reintroduced, alongside an increase in UK Export Finance’s lending capacity from £60 billion to £80 billion. This expansion will help small firms take advantage of international trade opportunities.
A Positive Step Forward
Professional bodies have praised the announcement as a strong signal of support for small businesses, particularly those balancing growth plans with rising costs and regulatory challenges.
At Exchange Accountants, we welcome any measures that help small firms grow and prosper. From cashflow planning to digital transformation and tax strategy, we work alongside business owners to turn opportunity into progress.
If you’d like to discuss how these changes could benefit your business — or explore ways to strengthen your financial position — our team would be delighted to help.
Let’s Grow Together.
