The government has officially launched its Small Business Plan.
A list of measures have been included, with varying levels of detail. The government believes that accelerating SME growth by even 1 per cent a year could deliver £320 billion to the UK economy by 2030.
Some things have already been announced such as raising the threshold for employer national insurance payments from £5,000 to £10,500 and extending a business rate reduction for hospitality, retail and leisure businesses.
Plans to modernise tax were also laid out in HMRC’s Transformation Roadmap last month, as mentioned in our article, Making Tax Digital for corporation tax scrapped.
Below is a further snapshot of what’s to come – subject to consultation, of course.
Dealing with late payments
One of the headline reforms is the plan to tackle late payments, using the ‘toughest laws on late payments in the G7’.
This includes:
- Giving strong powers to the Small Business Commissioner to fine large firms who consistently choose to pay late, potentially into the millions of pounds
- The Small Business Comissioner will also be able to carry out spot checks and enforce a 30-day invoice verification period
- Large companies will have to pay suppliers in 45 days, down from the current 60 days
- Audit committees will be required to scrutinise payment practices at board level, with greater pressure for larger firms to show that they’re treating small firms fairly
- From October 2025, the government said it will take further steps such as tightening rules to exclude suppliers who fail to pay promptly from large contracts
Reducing business rates and making it cheaper to run commercial properties
- Permanently lower business rates multipliers for retail, leisure and retail properties with rateable values below £500,000, starting in 2026/27
- Banning upward only rent review clauses on commercial leases
Unlocking access to finance
- A Business Growth Service will launch make it easier to find business advice and support, delivered in partnership with public bodies and devolved governments and the private sector
- Expanding Start Up Loans to 69,000 new businesses with over the next four years
- Expand British Business Finance’s Regional Angels programme, as well as the Nations and Regions Investment Fund
- Work with lenders on ‘appropriate use’ of personal guarantees and introducing a mandatory code of conduct for lenders
- Increasing the total financial capacity of British Business Bank to £25.6 billion
- Committing to British Business Bank’s Growth Guarantee Scheme until April 5, 2030
- Expanding the capacity of ENABLE programme from £3 billion to £5 billion
- Exploring mutual and co-operative banks to open up business investment
- An Open Finance Roadmap will be launching in Spring 2026 which will set out practical steps towards SME Access to Finance
Cut administrative costs of running a business by 25 per cent
- A host of measures for hospitality businesses including the ability to make it easier to extend hours, introduce outdoor seating and turned disused shops into hospitality venues. Read more in Hospitality red tape cut – what small businesses could see next
- Increasing entitlement maximum for temporary event notices, resulting in £10 million – £25 million in extra revenue and for smaller businesses
- High street and growth incubators to be introduced in Greater Manchester, West Yorkshire and the West Midlands
Help with exports
SMEs are responsible for 25.6 per cent of total UK exports and the government is looking to help small businesses to export even more. To do this, it plans to:
- Provide more advice and support integrated through the Business Growth Service
- Possible financial support in future
- Expand UK Export Finance’s capacity from £20 billion to £80 billion and include a Small Business Export Builder insurance product
More updates on support will be provided during International Trade Week (11-15 November 2025).
More support for training
- New shorter apprenticeships and foundation apprenticeships from August 2025
- Introduce short courses in England in areas such as digital, artificial intelligence and engineering from April 2026
- More support for smaller employers to get involved with T-Levels and new talent by offering industry placements
- Employer support fund for businesses in England for the financial year 2025-26 to help them host placements
Read more
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