Government Launches Small Business Plan: What It Means for You

In August, the government unveiled its Small Business Plan, a package of measures designed to support growth, improve cashflow, and reduce barriers for small businesses. With small businesses employing around 60% of the UK workforce and generating £2.8 trillion in turnover, these reforms could have a significant impact across the economy.

So, what’s included – and how could it affect your business?

Tackling Late Payments

While late payments are unlikely to disappear overnight, the government has pledged to introduce the toughest payment rules in the G7. Proposals include:

• Large businesses required to pay invoices within 60 days, reducing to 45 days over time.

• Mandatory interest charges on overdue invoices.

• Greater enforcement powers for the Small Business Commissioner, including the ability to fine repeat offenders.

• Audit committees legally obliged to review payment practices.
  

If delivered effectively, these changes could ease pressure on small business cashflow and reduce the time wasted chasing payments.

Improving Access to Finance

The plan also aims to make funding more accessible, with initiatives such as:

• 69,000 Start-Up Loans, paired with business mentoring.

• A £3 billion boost for the British Business Bank to expand lending opportunities.

• £340 million in regional equity investment to support entrepreneurs across the UK.

• A new Code of Conduct on personal guarantees for government-backed loans.
  

Together, these measures could give small businesses more routes to affordable finance and growth opportunities.

Cutting Red Tape

Another key focus is reducing the burden of compliance. The government has promised to:

• Cut regulatory administration costs by 25%.

• Reform the tax and customs system to make processes quicker and simpler.

For business owners, this could mean less time on paperwork – and more time focused on strategy and growth.

Additional Support

The plan also highlights:

• Targeted support for high street businesses.

• Greater emphasis on entrepreneurship education and training.

• Initiatives to help small businesses tap into new opportunities both at home and abroad.

What’s Next?

The Small Business Plan represents an ambitious commitment to reducing barriers and supporting growth. Whether these measures deliver real, practical benefits remains to be seen – but for many small businesses, the proposals could provide welcome relief.

At SJC, Chartered Accountants we’ll continue to monitor the rollout of these changes and advise our clients on how they can take advantage of the opportunities.

If you’d like to discuss how these reforms could impact your business, please get in touch with our team.