In August, the government launched its new Small Business Plan, aimed at helping small businesses grow and encouraging more people to start their own ventures.

Small businesses are a huge part of the UK economy, employing 60% of the workforce and generating £2.8 trillion in turnover. Here are the key measures in the plan:

Tackling late payments

Late payments are one of the biggest issues for small businesses. While the problem won’t disappear overnight, the government is introducing the toughest late payment rules in the G7, including:

• Large businesses have to pay within 60 days, moving down to 45 days in the future.
• Mandatory interest charges on late payments.
• New powers for the Small Business Commissioner, including spot checks and fines.
• Audit committees are legally required to review payment practices.

These changes are designed to ease cashflow pressures and reduce the time you spend chasing invoices.

Easier access to finance

The plan includes several measures to open up finance, such as:

• 69,000 new Start-Up Loans, with business mentoring included.
• £3 billion for the British Business Bank to support more lending.
• £340 million in regional equity investment.
• A new Code of Conduct on personal guarantees for government-backed loans.

This could mean more options for affordable funding for small businesses and start-ups.

Cutting red tape

The government has pledged to cut regulatory admin costs by 25% and simplify tax and customs systems, making compliance quicker and less time-consuming. 

Other measures

The plan also includes targeted support for high street businesses, new training for future entrepreneurs, and help for UK businesses to access opportunities at home and abroad.

You can read the full Small Business Plan here.