Update on government’s Small Business Plan

The government has published a one-year-on update to its Small Business Plan, which is intended to support small and medium-sized business to start, scale and grow.

The Business Growth Service exists to back businesses to succeed. The UK's national business support service, they help businesses to find the advice, guidance, and opportunities they need to start and grow, bringing together government-backed support in one place, connected locally, making it easier and quicker for businesses to get the right help at the right time. 

Key highlights from the report include:

Late payment

The Small Business Protections Bill was laid before Parliament in May 2026. The new legislation includes stricter maximum payment terms, mandatory interest upon late payments, increased board-level scrutiny of large company payment practices, and stronger powers for the Small Business Commissioner.

The report reveals that the Small Business Commissioner recovered £1.5m in late payments for small businesses, a significant increase on previous years.

Tax administration

Various reforms were introduced as part of Tax Update 2026 which are expected to reduce administrative burdens on business. The government also cites Making Tax Digital (MTD) as a time-saver, and notes that all VAT invoices will have to electronically by April 2029.

Whether businesses see these changes as easing their administrative burden may be another story.
 
Access to finance

The British Bank’s financial capacity was increased to £25.6 billion at Spending Review 2025, allowing it to boost access to finance for SMEs.

The Growth Guarantee Scheme is also being expanded so that by 2028-29, total SME lending supported through the scheme will increase to £3.35 billion per year.

The Start Up Loans Programme is being expanded to deliver at least 85,000 loans over the next five years and broaden eligibility so that businesses trading for up to five years are included. This will be a considerable step up from existing lending. Between August 2025 and May 2026, the programme has made 9,551 loans.

Apprenticeships

The apprenticeship system is being simplified to make it simpler and easier for small businesses in England to take on apprentices. UK businesses can now access the new Youth Jobs Grant that pays £3,000 for every eligible young person they hire.

To review the report in full, see: https://assets.publishing.service.gov.uk/media/6a564b609e63154454413662/backing-your-business-small-business-plan-one-year-on.pdf 

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