Small businesses across the UK will benefit from the most comprehensive support package in a generation, as the government on Wednesday (July 30) launched a new plan to give small businesses the tools to thrive and drive economic growth as part of its Plan for Change.
Small and medium sized firms employ 60 per cent of the country’s workforce and generate £2.8 trillion in turnover. However, for too long, the odds have been stacked against small businesses.
From tradespeople and shopkeepers to start-up founders and family-run firms, too many work hard but don’t get the backing they deserve - held back by late payments and not getting the financial backing they need within a wider system that hasn’t worked in their favour.
"That’s why the Government is taking serious action to back small businesses and give them the tools they need to grow.
"This builds on the solid foundation of certainty and stability this government has already delivered through the trade deals we’ve secured, four interest rate cuts, and a long-term industrial and trade strategy that’s helping businesses plan ahead with confidence," stated the announcement by Department of Business and Trade.
At the heart of the plan is a the most significant package of reforms in a generation to tackle late payments, with plans to introduce the toughest laws on late payments in the G7.
A new legislation will introduce maximum payment terms of 60 days, reducing to 45 days, giving firms certainty that they’ll be paid on time. These changes will also save small businesses valuable time, freeing up hours currently spent chasing overdue invoices so they can focus on growing their business instead.
Additional measures set out in the Small Business Plan include:
- Transforming business rates in this Parliament, introducing permanently lower business rates multipliers for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, starting in April 2026
- Creating safe places to do business with 13,000 more police officers to provide visible community policing to crack down on shoplifting and rolling out the Safer Streets initiative this Summer
- Creating a consistent pro-growth national approach to licensing and establishing hospitality and night-time economy zones to cut red tape, support al fresco dining and late-night venues, in response to the Licensing Taskforce
- Cut the administrative costs of regulation for business by 25%, to save businesses time and money so they can focus on running successful businesses
Association of Convenience Stores has welcomed the publication of the Government’s new Small Business Plan, which aims to tackle late payments, increase access to finance, and accelerate small business growth potential.
ACS chief executive James Lowman said, “Local shop owners will be pleased to see the government’s small business strategy identify many of the issues that matter most to them: crime that blights retailers and communities, illegal traders that undermine responsible retailers, the unfair burden of business rates, and the growth-limiting potential of regulation and licensing regimes.
“The reality for our members is that crime continues to rise, the illicit market is rampant and unregulated, business rates are increasing with fears of more to come next year, and fear of new licensing regimes that will make it harder to open and operate a local shop.
"We will engage wholeheartedly in helping to turn this strategy from words to action and removing the barriers to growth that retailers face on a regular basis.”
The introduction of a new small business multiplier for business rates, which could be up to 20p lower than the standard rate, is currently being considered through the Non-Domestic Rating Bill.
ACS has called on the Government to lower the rate for businesses under £500,000 rateable value by the full 20p so that it can have a tangible impact and save retailers thousands on their rates bills.
Lowman continued: “Retailers have had very little to look forward to recently, with increases in employment costs and reductions in their business rates discounts putting pressure on stores across the country.
"We urge the Government to ensure the new multipliers use the full powers of the Non-Domestic Rating Bill to offset the cost of reduced business rates relief and unlock investment in villages, parades, and high streets.”