Thousands more small business owners are set to gain access to specialist debt support after the government announced an additional £4 million of funding for business debt advice services.
The funding, provided through the Money and Pensions Service (MaPS), will expand the reach of the Business Debtline service and help a further 16,000 small businesses, sole traders and self-employed people over the next three years, bringing the total number supported to around 75,000.
Business Debtline, operated by the Money Advice Trust, has an official partnership with industry charity GroceryAid, which was launched in 2022 specifically to support independent retailers struggling with escalating business costs, energy bills and creditor debt.
Economic secretary to the treasury Rachel Blake said small businesses remain central to the UK economy and deserve support when facing financial difficulties.
"From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough," she said.
"We're building on the success of our expert debt services to help tens of thousands more get back on their feet."
The funding builds on the £3 million a year already allocated by MaPS since 2024 to support Business Debtline, a service designed to help business owners navigate situations where personal and business finances often overlap.
According to the government, the service has already helped around 50,000 people, with more than 90 per cent of clients seeing their debts either reduced or stabilised. Demand for support has continued to grow, prompting the additional investment.
Oliver Morley, chief executive of the Money and Pensions Service, said access to trusted advice can be critical when businesses face mounting financial pressures.
"When financial pressures mount, knowing where to turn can make all the difference," he said.
"This vital funding will help more small business owners and sole traders get trusted advice when they need it, so they can regain control of their finances and plan for the future."
Steve Vaid, chief executive of the Money Advice Trust, added: "This enhanced funding further strengthens the partnership between the Money and Pensions Service and Money Advice Trust and will help Business Debtline offer additional support to over 16,000 small business owners, sole traders and the self-employed – a group that often struggles to find tailored help," he said.
The investment forms part of the government's wider Plan for Small Business, which includes measures to improve access to finance and reforms aimed at tackling late payments.
Alongside the £4 million boost for business debt advice, a further £2 million will be invested in modernising debt advice services, on top of the £4.8 million already committed through the government's Financial Inclusion Strategy. The modernisation funding is intended to help advisers spend more time supporting clients, particularly those with complex financial circumstances.
The funding announcement follows the publication of The Maple Review, an independent government-backed review into entrepreneurship and poverty, which warned that access to finance remains a major barrier for people from disadvantaged backgrounds.
Among its key recommendations was the creation of a National Micro-Capital System offering loans of between £100 and £25,000 alongside budgeting, cashflow and forecasting support, with the review arguing that small amounts of flexible finance can be transformative for entrepreneurs and small business owners struggling to access mainstream lending.