• Government launches landmark SME Strategy to tackle late payments and unlock £4bn in finance for small businesses
• New laws will give the UK the strongest protections in the G7 for small firms, ending the late payment crisis
• Local entrepreneurs to benefit from 69,000 Start Up Loans and new support to grow and export.

The Government has unveiled its flagship Small to Medium Sized Enterprise (SME) Strategy, a bold plan to unleash the potential of the UK’s 5.5 million small businesses and drive economic growth across every region.

As part of the announcement, the Government will introduce the toughest legislation in over 25 years to end the late payment crisis, which currently costs the UK economy £11bn annually and forces 38 businesses to close every day. The new laws will cap payment terms at 60 days, with a further reduction to 45 days within five years, and give the Small Business Commissioner new powers to fine large firms that fail to pay on time.

Key measures include:

• Stronger legal protections to end late payments and support fairer business practices
• £4bn finance boost, including 69,000 Start Up Loans and a £3bn expansion of the British Business Bank’s ENABLE programme
• New support for high streets, slashing of red tape to boost the hospitality and arts sector through hospitality zones; High Street Rental Auctions to fill vacant high street premises; and Permanent cut to business rates for retail, hospitality and leisure on the high street from 2026.
• Action on personal guarantees, ensuring entrepreneurs are protected when accessing finance
• A revamped Business Growth Service to help SMEs scale, export and innovate

The SME Strategy is a central pillar of the Government’s Plan for Change, working alongside the Industrial and Trade Strategies to deliver long-term, sustainable growth.

Business and Trade Secretary Jonathan Reynolds said: 

 ”This country is home to some of the brightest entrepreneurs and innovative businesses in the world, and we want to unleash their full potential by giving them back time and money to do what they do best – growing our local economies.

“Our Small Business Strategy is the most comprehensive package of support in a generation, slashing unnecessary admin costs, making it easier for businesses to set up shop and giving SMEs the financial backing they need.

“This is our Plan for Change in action, putting more money in people’s pockets, boosting local communities and ensuring Britain is a great place to do business and thrive.”

Manchester Withington MP, Jeff Smith said:

“Small businesses are the backbone of our economy, and as part of the Government’s SME strategy, I particularly welcome the new Hospitality and Night-Time Economy Zones, which will simplify licensing, support al fresco dining, and boost footfall.”