We work closely with small businesses every day. We know how tough it can be out there. Whether you’re a builder, engineer, consultant, or creative freelancer, running a business in the UK isn’t always straightforward. The rules change, red tape grows, cash flow is tight, and support can feel miles away. With this in mind, the government recently announced their plans for Small Businesses.
The UK Government recognises that small businesses are the backbone of the economy and has been working to offer more incentives to support economic growth. At the same time, accountants like us remain a valuable and important source of guidance and advice for small businesses like yourselves.
So why has the Government recently announced a comprehensive new plan aimed at supporting small and medium-sized businesses, including the self-employed? It’s to drive the economy.
We’ve taken a close look at this plan. Let’s examine what it means for you in practical terms and in everyday life.
-
Fixing the Fundamentals
Let’s start with the basics because that’s where many of the biggest headaches lie.
The top priority on the list is addressing late payments. This plan introduces significant legislation aimed at preventing large companies from delaying payment on your invoices.
With an annual loss of £11 billion and 38 businesses shutting down every day due to late payments (quoted in the report), this change is essential. The new law will establish the strongest legal framework for late payments among the G7 countries.
They are also promising to reduce regulatory red tape by 25%. This means fewer administrative tasks and more time to focus on running your business. We often hear from clients, “I didn’t start my business to spend hours filling out forms,” and this initiative directly addresses that frustration.
On the tax front, HMRC’s updated roadmap introduces advanced digital tools and AI systems to simplify tax and customs processes for small businesses. Making Tax Digital is part of this overall plan.
Other big wins include:
- Faster planning approvals (especially helpful for small developers and builders),
- Support for going green, including help with energy efficiency and advice for firms wanting to decarbonise.
-
Unlocking Access to Finance
Cash is king, and without it, even the best businesses can struggle. Here are our top tips for healthy cash flow
As part of the new plans, the government announces Start-Up Loans. Some 69,000 new businesses will get access to finance and mentoring. If you’re just starting or planning a pivot, this could be a valuable route.
For established businesses looking to grow, the British Business Bank’s Growth Guarantee Scheme is getting long-term support. The ENABLE programme is being boosted from £3 billion to £5 billion, allowing lenders to offer more financing options to businesses like yours.
There’s also:
- £340 million in early-stage equity funding for innovative businesses,
- New rules on Personal Guarantees to ensure lenders are fair and transparent, something we’ve seen cause real stress for clients in the past.
-
Backing the Everyday Economy
This part of the plan stood out to us. It’s focused on the shops, trades, cafés, and community businesses that keep our towns and cities alive.
A few key points:
- New hospitality and night-time economy zones to cut red tape for restaurants, pubs, and venues.
- High Streets and Growth Incubators to bring new life to empty commercial spaces.
- Up to 350 communities will get funding to drive their local regeneration.
- There are also plans for safer high streets and tackling crime in the community with more visibility from the police.
And a big one for those in retail, leisure, or hospitality: business rates reform is on the way. From April 2026, there’ll be permanently lower rates for properties under £500,000, which is a huge win for smaller businesses.
-
Future-Proofing Your Skills
As accountants, we often see businesses held back not by ideas, but by a lack of digital skills or overall capacity. This plan tackles that directly.
There’s support to help small businesses adopt AI and digital tools, with expanded pilot programmes and the Made Smarter Adoption initiative, which provides advice and funding.
They’re also backing leadership training and mentoring, helping you grow your confidence, network, and know-how.
If you are planning to employ or currently have employees, an additional £1.2 billion will be available each year for skills training by 2028/29. There will also be efforts to make apprenticeships and T-Levels more accessible for smaller companies. The Business Growth Service will serve as your central hub to access this support.
-
Opening Opportunities Abroad
This strategy enables small businesses to expand globally and secure government contracts and opportunities that may previously have seemed unattainable.
Here’s what’s coming:
- A new Business Growth Service to help you find the right advice quickly.
- Improved export support and better access to UK Export Finance, which is being expanded from £60bn to £80bn.
- A Small Export Builder insurance product to make selling overseas safer and easier.
- Simplified processes to help SMEs win government contracts (including defence),
- A new SME Procurement Education programme, and
- More support from the Intellectual Property Office to help you protect your ideas and grow securely.
Final Thoughts
These are early days, and the announcements are made to reflect the government’s vision for providing long-term support to small businesses.
We will need to wait and see what happens next. However, anything aimed at reducing red tape and revitalising our high streets should be positive news for everyone.
You can find the details of the full announcements here.
As accountants, we will closely monitor how this unfolds and how to assist clients like you in maximising the available support.
We are serious about you and your ambitions. If you are not yet working with us, please email enquiries@myersclark.co.uk or explore how we work. If you are working with us, please don’t hesitate to contact your normal manager if you require assistance with your business, whether it is for additional support with your financial function or to reassess the direction of your business. We are here for you.