The government’s plan for small and medium sized businesses begins with a foreword, starting with the quote:

 

‘Through our Plan for Change, we will make the UK the best place to start and grow a business, with a culture that supports businesses in every community and high street. This government is determined to remove the barriers that have held back Britain’s risk-takers for too long.’ 

 

If you are one of Britain’s risk-takers, this is likely welcome news. A plan that promises to improve the daily lives of SME owners, remove obstacles, and increase support could change the entire trajectory of a business. We understand the different difficulties faced by SMEs and are happy to see that the government is stepping in to help. 

 

However, what does this plan for change actually look like? Who does the UK Small And Medium Sized Businesses Plan benefit? And, how does the UK Small And Medium Sized Businesses Plan benefit businesses? 

 

Read on to find out more…

 

What Does The UK’s Small And Medium Sized Businesses Plan Actually Do?

 

The plan has 5 core promises, quoted for your convenience below!

 

'1. Fixing the fundamentals by legislating to end the scourge of late payments, modernising the tax and customs system to make it easier to navigate, and reducing regulatory burdens

2. Unlocking access to finance through a stronger British Business Bank and fairer lending 

3. Backing the everyday economy by revitalising high streets, supporting local enterprise and tackling crimes like tool theft and shoplifting that hurt small businesses 

4. Future-proofing business skills by giving businesses the skills to make the most of digital technologies and AI, and develop their leadership and management, alongside improving access to the right staff 

5. Opening up opportunities through international trade, boosting exports, giving smaller firms a fair chance at winning government contracts, and launching a new Business Growth Service’

 

All of these points are expanded upon and detailed in the report itself, which is available to read here. However, it is also 62 pages long and, as a small business owner, you may not have the time to read it. So, here’s an overview of what you need to know, keeping the bulk of the information without all the specifics. 

 

How Does The UK Small And Medium Sized Businesses Plan Help?

 

UK small business owners can expect to see…

 

- A Change To Late Payments 

Legislation is being introduced to tackle late payments. It is the most significant legislation to do so in the last 25 years, giving the UK the strongest framework to tackle late payments in the G7. Legislative proposals include stricter maximum payment terms, stronger powers for the small business commissioner, mandatory payment of interest on late invoices, and fines against large companies who persistently pay suppliers late. Since late payments cost the UK economy £11 billion a year, this legislation cannot come quick enough. Improving cash flow and increasing stability is sure to be welcome news to any UK small business. 

 

- Access To Increased Financing 

Access to finance for small businesses is being improved across a variety of measures. Firstly, the total financial capacity of The British Business Bank will be increased to £25.6 billion. Secondly, the Start-up Loans programme will be expanded to offer 69,000 loans, with mentoring over the next four years and with increased capacity for the ENABLE Guarantee scheme by £3 billion and the provision of a long-term commitment to the Growth Guarantee Scheme. Thirdly, access to information about the right place and ways to find finance will be simplified, making it easier to find finance with an upgraded Finance Hub alongside the Business Growth Service. Improvements to finance access are not limited to these, with more information available in the longer government plan layout. This increased access to finance and finance advice is sure to assist in the initial stages of starting a business, alongside periods of growth. 

 

- Changes On The High Street 

Sometimes, it’s the day-to-day restrictions and realities of running a business that can cause the most strife. The UK Small Business Plan promises to help with some of the issues holding back small businesses. There will be a change to venue licensing for hospitality businesses, aiming to shorten, simplify, and improve the process of opening a new hospitality venue. There is a hope this measure will assist in another goal: bringing back footfall to the high street and addressing the reasons why high street footfall has fallen. This will be addressed with investment in local communities, the council having more control over empty high street spaces, lowering business rates, and an improvement to renters’ rights, giving renters more control over their lease. 

 

- SME Skills Support & Celebration 

Support for SMEs in identifying and adopting digital technologies will be increased, with the improvement of government initiatives to assist. There will also be increased access to training for leadership and management skills and the creation of an industry-led Business Mentoring Council. Young people with skills for entrepreneurial success will be assisted with access to enterprise education, increased engagement with employers to improve skill gaps, and a boost of awareness of existing schemes. 

 

Entrepreneurs will be recognised for their contributions in driving economic growth and delivering better standards of living for working people. There will be a new Youth Entrepreneur category of the King’s Award For Enterprise. SMEs and entrepreneurs will continue to be engaged with and championed via business events. 

 

- Increased Opportunities

Opportunities for SMEs will be developed by removing barriers such as difficulties in accessing support. The business support landscape will be improved via the launching of The Business Growth Service and an updating of all related-web pages and online advice. The owners of fast-growing businesses will be assisted with specialised support and services. Inclusion is taking a priority, with support for under-represented groups being prioritised and improved. Overall, the support system will be made less fragmented, easier to navigate, and more beneficial to users. 

 

Will The UK Small And Medium Sized Businesses Plan Make A Difference?

At this point, the impacts of the UK Small And Medium Sized Businesses Plan are unknown. A fuller understanding of how exactly this will help small businesses in the UK will become clearer with time. However, there is reason to believe that this plan will change things for the better. 

 

If you want to get ahead of the curve, see how other like-minded individuals feel about the small business plan, and figure out your next best business steps, The Business Show UK could be just the opportunity you need. Join us this year at Excel London on the 12th & 13th of November. Network, connect, make an impression, and generate leads, find out more about what The Business Show can do for you here. 

 

Do you think the UK Small And Medium Sized Businesses Plan will help or hinder your business? Let us know what you think.