The Small Business Plan, Simplified

Earlier this month, the UK Government released its new Small Business Plan. It covers everything from how quickly you get paid to the way you can access funding, training, and advice. The government says it aims to tackle long-standing problems that hold small businesses back – with late payment at the top of the list.

Here’s a breakdown of what’s changing, what it could mean for you, and why it matters.

Cracking down on late payments

Late payment has been a problem for UK SMEs for years. Chasing overdue invoices costs the UK economy around £11 billion a year and forces an estimated 38 businesses to close every day.

The new plan brings what the government describes as the toughest set of late payment reforms in the G7. Here’s what’s in it:

• Statutory maximum payment term – Large firms will have to pay SMEs within 60 days, reducing to 45 days in the next few years.
• Mandatory interest charges – If large firms miss the deadline, they’ll have to pay interest on what they owe.
• Stronger enforcement powers – The Small Business Commissioner will be able to fine persistent offenders, carry out spot checks, and audit payment practices.
• More accountability – Audit committees in large companies will be legally required to review payment practices.

For many small businesses, this could mean healthier cash flow and less time spent chasing money. That means more time for actually running the business and less stress about when invoices will be paid.

Skills and training boosts

Another focus of the plan is helping SMEs develop the skills they need to thrive, both now and in the future. This includes:

• More training support – The government says it will expand initiatives that help SMEs adopt digital tools and improve workplace skills.
• Employer Support Fund for T Level placements – SMEs will be able to claim back costs when hosting T Level students, giving them access to fresh talent while helping young people gain real-world experience.

This could be especially useful for small firms that want to grow but struggle to find – or afford – the right talent. By covering placement costs, the plan could remove one of the biggest barriers to taking part in student training schemes.

Cutting red tape

If you’ve ever felt bogged down by admin, you’ll enjoy this next part. The government has set a target to cut regulatory admin costs for SMEs by 25%.

Changes include:

• Simpler tax and customs processes – Less paperwork, faster processing.
• Hospitality zone and licensing reforms – Easing restrictions for retail, hospitality, and leisure businesses.
• Support for innovation and exporting – More streamlined rules to help businesses expand into new markets.
• Modernising tax systems - AI-powered tech to help SMEs avoid common tax mistakes and find the information they need.

For sectors that have been hit hard in recent years, like hospitality and high street retail, these changes could mean a lighter compliance burden and more focus on customers.

High street and sector support

The plan also sets out measures for high street revival and sector-specific support. For hospitality and arts businesses, new licensing reforms and “hospitality zones” aim to make it easier to trade and attract customers.

Local councils will be able to hold rental auctions to fill vacant high street units, while retail, hospitality, and leisure firms will benefit from permanently lower business rates.

The new “one-stop shop” for business support

One of the more ambitious parts of the plan is the launch of the Business Growth Service in 2025.

Right now, small business owners spend an average of 33 hours a month on government admin. The new service aims to cut that down by bringing everything into one place.

It will:

• Provide central access to funding opportunities, expert advice, and expansion support.
• Be available UK-wide but delivered locally for tailored guidance.
• Take inspiration from successful models abroad that have simplified business support.

In short, it should hopefully mean fewer forms, less confusion, and faster answers when you need help.

More ways to access funding

Access to finance can still be tough for SMEs, especially start-ups, regional businesses, and founders from under-represented backgrounds. The Small Business Plan includes measures designed to help:

• More government-backed finance – Expanding Start-Up Loans, the Growth Guarantee Scheme, and other initiatives to increase available funding.
• Easier access and guidance – Upgraded Finance Hub and Business Growth Service to help SMEs find the right funding.
• Fairer lending – A new Code of Conduct ensures personal guarantees are used appropriately.
• Support for diverse founders and regions – Schemes like Investor Pathways and Regional Angels expand access to finance outside London.
• Funding for innovation and growth – Programs to support high-growth and innovative businesses at all stages.

While these options provide new opportunities, every business is different. That’s why it’s important to explore all your options – from traditional lenders to alternative finance providers – and choose the route that works for your goals, timelines, and cash flow.

At Fleximize, for example, we work with SMEs across the UK to offer fast, flexible business loans that adapt to your plans, including growth, new opportunities, and more.

Why this matters for SMEs

Taken together, these measures aim to create:

• Better cash flow: Stronger protection against late payments could make running your business less risky and more predictable.
• Easier access to finance: More ways to get loans and investment mean you have the flexibility to grow, innovate, or ride out slower periods.
• Less red tape: Streamlined rules give you more time to focus on your products, customers, and growth – not paperwork.
• Support for your sector and local area: If you’re in retail, hospitality, or on the high street, expect new tools and targeted rate relief to help you thrive.
• Future-ready skills: Training, digital adoption, and mentoring programs aim to help businesses stay competitive as the economy changes.
• A fairer playing field: SME-friendly policies, like improved government procurement, are designed to level the field when competing with larger firms.

The Small Business Plan is a step towards making the UK a more supportive environment for SMEs – but like any government initiative, its success will depend on how it works in practice.

Turning the plan into action for your business

The Small Business Plan lays out a lot of positive changes – but the real impact will come from how you respond. Here are a few simple steps to start making the most of it:

• Stay informed – Keep an eye on official updates from GOV.UK, local business groups, and trusted industry sources. The more you know, the faster you can take advantage of new opportunities.
• Get ahead of the curve – If your sector is affected by reforms (like late payment rules or licensing changes), review your processes now so you’re ready when they kick in.
• Strengthen your network – Connect with other business owners, trade bodies, or local chambers of commerce to share knowledge and resources.
• Review your funding options – Whether it’s preparing for growth, upgrading equipment, or riding out a slow season, make sure you know where to find finance that fits your needs and have a plan in place before you need it. Find out how Fleximize can help.