The Government’s plan for small businesses, known as The Backing Your Business Plan, is being introduced to help SMEs grow and thrive.
The initiative is designed to give businesses the tools and support they need to expand and reach their full potential.
Greater access to financial support
The UK has historically had one of the lowest levels of business borrowing among G7 countries.
In response, the Government has increased the financial capacity of the British Business Bank to £25.6 billion, meaning more funding is now available for small businesses.
Alongside this, the Start-Up Loans programme is being expanded, and the ENABLE Guarantee Scheme will see an additional £3 billion injected into its capacity.
This funding boost also comes with a mandatory code of conduct for accredited lenders to ensure personal guarantees remain fair and transparent.
The plan is designed to be inclusive, supporting business owners from all backgrounds.
New financial initiatives include a £400 million Investor Pathways Scheme, an expansion of the British Business Bank’s Regional Angels Programme, and additional investment through the Nations and Regions Investment Fund.
Boosting SME skills
The plan also prioritises workforce development, with a strong focus on enhancing access to digital and AI 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.
New apprenticeship programmes are set to launch in April 2026, offering training in AI, digital technologies, and engineering.
Additionally, an Employer Support Fund will be established to assist SMEs with T Level placement costs, expected to be available in the 2025/26 financial year.
Tackling late payments
Late payments have long been a challenge for SMEs.
Under the plan, the Small Business Commissioner will gain new powers, including the ability to fine companies that consistently pay suppliers late.
New legislation will also make the payment of interest on overdue invoices mandatory, preventing late-paying companies from negotiating rates lower than the statutory requirement.
A plan to support growth
Overall, the Government’s plan is centred on business development, aiming to stimulate economic growth and give SMEs greater leverage to tackle late payments and improve cash flow.
If you want to understand how this plan may affect your business, get in touch with us today.
