Just when it seemed like summer strategy season had wrapped up, the long-awaited Small Business Plan—officially titled ‘Backing Your Business: Our Plan for SMEs’—made a very late appearance. Its arrival came earlier than expected, surprising many who thought it would coincide with the launch of the new Business Growth Service later this year and, in some people’s eyes could be the final piece of the government’s business policy jigsaw.
So, what’s in the plan, and will it genuinely move the needle for small business owners who up to now, and as confirmed at our Summer Assembly, remain to be convinced at government’s intent to include them in their growth strategy.
Like its predecessors, the plan outlines key challenges and proposed actions to tackle issues ranging from reducing administrative burdens, revitalising high streets, and improving access to finance, to boosting overseas trade and enhancing skills. And—as is often the case—none of these proposals are particularly controversial. It all makes sense on paper.
Once again though, government has taken a ‘kitchen sink’ approach. The document lists 25 distinct actions it pledges to deliver in support of small and medium-sized enterprises.
Among them, the headline-grabber was a crackdown on late payments. A new consultation is now underway, exploring fresh legislation aimed at curbing this persistent issue. While previous governments have attempted to address it—with seven separate Acts of Parliament since 1996 cited in the report—the current administration clearly believes, rightly, there’s more ground to cover.
Late payments are a source of deep frustration, especially given how straightforward the solution seems. Ethically and practically, invoices should be paid on time. But reality says otherwise: smaller businesses often end up involuntarily financing larger ones. Fixing this will require more rules, more reforms, and possibly more legislation—but the economic stakes are hard to ignore. The plan highlights a staggering £11bn annual cost to the economy, with 38 businesses shutting down every day due to cash flow issues caused by late payments. Hard to argue with the urgency there.
Forget carrot and stick—maybe it’s time for stick, and a bigger stick?
Another standout in the strategy is the renewed push on financial access. The expanded lending capacity of the British Business Bank—now raised to £26.5bn following the latest spending review—signals a serious intent to unblock long-standing issues. When paired with efforts to ease regulatory pressures, it’s aimed squarely at dismantling the barriers small businesses say have only grown in recent years. The message from recent SME roundtables has been loud and clear: access to finance has dried up faster than a reservoir this Summer.
There’s also a welcomed focus on reviving our High Streets, with particular attention given to sectors hit hardest—hospitality and retail. After years of relentless challenges, the government seems to be acknowledging the urgent need for intervention. From April 2026, business rate reductions will come into play, and alongside those, we’ll see targeted financial support and legislative tweaks to simplify license applications and tackle the scourge of empty premises. Here’s hoping we don’t get a proliferation of more Barbers or vape shops!
No government strategy would be complete without mention of skills. This one prioritises key issues identified through the LSIP, such as strengthening basic digital capabilities and bolstering leadership and management skills. Add to that new support for exporting and getting more SMEs involved in local procurement, and you begin to see the breadth of help on offer.
All in all, a solid step forward and, as with the other, recent plans, there is little to argue against.
In over two decades of doing this job, I’ve never seen such a plethora of business-focused government policy documents, strategies, and plans—all delivered within a single month. And believe it or not, there are still more on the way.
So, is the government truly ‘Backing Your Business’? Many would say otherwise. Since the Autumn Budget revealed increased Employer NICs and a raft of tax hikes, the sentiment on the ground feels more like the government is breaking businesses rather than backing them. April brought a tangible blow to the economy, with the real cost of those fiscal decisions starting to bite—on top of an already challenging economic climate. While not all of this is the government’s doing, a significant share certainly is.
The critical question now is: how much of the firepower behind these new strategies will be devoted to undoing the damage—largely self-inflicted by the Treasury—before they begin delivering on their intended purpose?
With businesses facing relentless challenges, it’s no surprise there’s a disconnect between their lived reality and the government’s promises. What we need are quick wins and visible results—not drawn-out legislative marathons. We’ve seen what rapid action looks like: the Budget Responsibility Act, initiated just two weeks after the election, became law within ten weeks. It was a relatively straightforward piece of legislation, but it proves that swift progress is possible.
These new plans deserve the same urgency and decisive attention. The problems are happening now – not in the next few years when most of what is in the various plans and strategies start to take effect. Having ideas about what to do is one thing but getting on and doing them is the critical part.
The Late Payment Consultation can be accessed here. The survey is open till 23rd October.
If you would like a one page summary document of the Small Business Plan, email me at chris.fletcher@gmchamber.co.uk and I will send one to you.