The Government’s plan for small businesses, also known as the ‘Backing Your Business Plan’, is being introduced to support SMEs growth and development, and to help them to realise their maximum potential.
Increased access to financial support
The UK has one of the lowest levels of business borrowing in the G7, which has prompted change.
The Government has increased 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 development within the workforce, 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 2028/9 to help small business owners improve the skills of their team, which includes more apprenticeships with a focus on digital skills, AI and engineering launching from April 2026.
There is an Employer Support Fund set up for SMEs to help with the essential costs to deliver a T Level placement, which is available until 31st March 2026.
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 cloud to hold late payers to account.
Want to learn more about how this new plan may affect you and your business? Get in touch with our friendly team of professionals today.
