What does the Government’s plan for small businesses mean for you?

The Government’s plan for small businesses, also known as The Backing Your Business Plan, is being introduced to support SMEs growth and development.

The plan has been created to give businesses the ability to grow and help them realise their maximum potential.

Increased access to financial support

The UK has one of the lowest levels of business borrowing in the G7.

This has prompted change, with the Government increasing the British Business Bank’s financial capacity to £25.6 billion, meaning more funds are available for small businesses.

In addition to this, they are expanding the Start-Up Loans programme and increasing the capacity of the ENABLE Guarantee Scheme by £3 billion.

The increased capacity also includes a mandatory code of conduct for accredited lenders to ensure their personal guarantees are fair.

The small business plan is for all business owners from all backgrounds and the latest financial support reflects this.

The plan also includes creating a new £400 million Investor Pathways Scheme, an extension to the British Business Bank’s Regional Angels Programme and the Nations and Regions Investment Fund.

Improving SME skills

The Government’s plan also includes measures to encourage staff growth and development, as well as a pledge to improve access to artificial intelligence (AI) and digital skills.

A £1.2 billion investment will be made each year by 2028/29 to help small business owners improve the skills of their team.

More apprenticeships are being launched with courses for digital skills, AI and engineering to launch from April 2026.

There will also be an Employer Support Fund set up for SMEs to help with the T Level placement costs. The Government hope to have this available during the 2025/26 financial year.

Ending late payments

Late payments have long been an issue for SMEs, so the plan will give the Small Business Commissioner new powers, including the ability to issue fines against companies that persistently pay their suppliers late.

Additional legislation will also ensure the mandatory payment of interest on all overdue invoices, thereby preventing late payers negotiating better compensation rates than the current statutory rate.

A plan to support growth

The Government’s plan focuses on business development with a determination to kick-start economic growth and grant SMEs more clout to hold late payers to account.

Want to learn more about how this new plan may affect you and your business? Get in touch today.