We have a plan

Yesterday saw the release of a Plan for Small Business, with the Prime Minister meeting businesses in Swindon and I joined Minister for Small Business, Gareth Thomas, to visit a prompt paying butcher, Flock & Herd, in Peckham.

This is because prompt payment featured large in the plan and its release. Newly published figures show small businesses are spending 86 non-productive hours chasing debt and 38 businesses have to close each day due to unpaid bills. We want to take action on this and a consultation is now live looking at powers for my Office to penalise repeat late paying offenders and move the UK towards first 60 days and then 45 day maximum payment terms. If we achieve this, we free up time and cash that can be spent on going for growth.

And growth is very much the theme of the plan. It comes with five key sections which, in summary are:

1. Fixing the fundamentals through new legislation on late payment and making it easier for small firms to deal with HMRC and manage regulation, plus speeding up planning for smaller housebuilders.

2. Unlocking access to finance with an extra £4bn to the British Business Bank including to fund a further 69,000 StartUp Loans. plus looking at the appropriate use of Personal Guarantees.

3. Backing the everyday economy by energising high streets through measures such as High Street Rental Auctions that enable the community to take over empty shops and a commitment to permanently lower business rates multipliers for high street retail & hospitality properties with rateable values below £500,000, starting in April 2026.

4. Future-proofing business skills with a focus on AI and digital adoption, continuation of the acclaimed Help to Grow: Management programme and small businesses being able to benefit from shorter apprenticeships.

5. Opening up opportunities at home and overseas through announcement of an SME Education programme for small firms bidding for public sector contracts, increased export finance, and a Business Growth Service directing businesses to local and relevant support.

As in business, it’s good to have a plan. It gives a sense of purpose and end destination which, in this case, is a 1% increase in SME performance that will add £320bn to the UK economy in the next 5 years.

I know that starting and growing a business can be tough but this plan is, I believe, a step in the right direction in that it recognises the incredible role small businesses play in the economy and it gathers, in one place, the measures being worked on to ensure a positive and profitable trading environment. I hope it’s a plan that works for your business.