The UK Government has announced a new plan to support small businesses, with a wide-ranging set of measures designed to tackle long-standing challenges and drive growth.
The Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Accountants in England and Wales (ICAEW) have welcomed the plan, which addresses key issues facing smaller firms.
A primary focus is on improving cashflow by legislating to stop late payments, which currently cost the UK economy £11 billion each year. The Government also aims to reduce business regulatory costs by 25%.
The start-up loans scheme will be expanded to improve access to finance, providing funding and mentoring to 69,000 new businesses. The British Business Bank’s Growth Guarantee Scheme will also be extended, alongside a £2bn increase in the ENABLE programme’s capacity – from £3bn to £5bn.
The strategy includes permanent reforms to business rates, offering lower multipliers for high street retail, hospitality, and leisure properties. Up to 350 communities will benefit from targeted local funding to boost the everyday economy.
In terms of future planning, the Government will invest £1.2bn in apprenticeships and skills, focusing on helping small businesses adopt new technology.
Finally, the Business Growth Service will be reintroduced to offer tailored support. UK Export Finance’s lending capacity will increase from £60bn to £80bn, broadening international trade opportunities for small firms.
Professional bodies have praised the strategy as a strong signal of support for the UK’s small business sector.
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