Government launches Small Business Plan to support access to finance
The government has launched its Small Business Plan, supporting the UK’s smaller firms by unlocking access to finance, enhancing business skills, and opening up opportunities for entrepreneurs.
Within the plan, start-up loans will be expanded to offer 69,000 businesses the chance of finance and mentoring, investing in the British Business Bank’s Growth Guarantee Scheme to support smaller businesses looking to grow, and expanding the capacity of the ENABLE programme from £3bn to £5bn.
The government outlined that accelerating the growth of small and medium businesses by 1 percentage point each year could deliver £320bn to the UK economy by 2030.
Tackling late payments forms a flagship aspect of the plan, with the government legislating to ‘end the scourge’ of late payments, which costs the UK economy £11bn each year and closes down 38 UK businesses every day.
It will also modernise the tax and customs systems to include AI-powered technology that makes it easier for small businesses to handle their tax affairs.
Sachin Agrawal, managing director for Zoho UK commented: “We welcome the UK government’s Small Business Plan as a vital and long-overdue commitment to backing the 5.5 million small businesses and self-employed individuals that drive the UK economy. Tackling late payments, improving access to finance, and reducing administrative burdens are all crucial steps toward enabling small firms to grow and thrive.”
“As part of the wider digital push and supporting access to finance, it is essential to ensure initiatives like Making Tax Digital for Income Tax Self Assessment (MTD ITSA) are implemented with care. With the April 2026 deadline fast approaching, many self-employed individuals and landlords may not be aware of the upcoming requirements, or may be unsure of how to prepare.”
“The success of the Small Business Plan will depend not just on its policy ambitions, but on practical delivery and collaboration which includes providing the education and infrastructure needed for digitisation efforts like MTD to succeed. This is a great opportunity to increase financial transparency and drive productivity to help small businesses unlock their full potential in a fairer, more resilient economy.”
The government has also pledged a new Business Growth Service, designed to improve access to advice and support for entrepreneurs, as well as supporting under-represented entrepreneurs through better data collection and support for initiatives like the Lilac Review.
Policy chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Making sure businesses are paid on time, that our high streets thrive, and creating conditions in which everyone can start and succeed in business are crucial priorities for small businesses, communities and the economy. It’s very welcome that the prime minister has today made them his government’s priorities.”
“I’m pleased that FSB and the government have been able to work in lockstep on the bold and ambitious measures needed to tackle the scourge of late payment through legislation, and other pro-growth, pro-small business measures.”
“Today’s plan is an encouraging commitment from the government to take the side of small businesses in the great growth challenge ahead.”