The government launched its Small Business Plan recently, through which it aims to help small businesses grow and to encourage entrepreneurs to start businesses.

The plan recognises that small businesses make a vital contribution to the economy, employing 60% of the UK’s workforce and generating £2.8 trillion in turnover.

Here’s a breakdown of some of the key measures and how they may impact your business.

Could This Be the End of Late Payments?

Probably not, in reality, but the government is promising the toughest late payment legislation in the G7.

They plan to introduce:

• A legal requirement for large businesses to pay within 60 days, moving to 45 days over time.
• Mandatory interest charges on late payments.
• Greater powers for the Small Business Commissioner, including the ability to fine persistent offenders and carry out spot checks.
• Audit committees to be legally obliged to scrutinise payment practices.

These reforms could ease cashflow pressures for small businesses and reduce the amount of time spent chasing payments.

Better Access to Finance

The plan includes several measures that could increase access to finance, including:

• 69,000 Start-Up Loans, paired with business mentoring.
• A £3 billion boost to the British Business Bank to help more lenders offer loans.
• £340 million in regional equity investment to help entrepreneurs across the UK.
• A new Code of Conduct on personal guarantees for government-backed loans.

These changes could increase the number of routes to affordable finance.

Cutting Red Tape

The plan promises to make a 25% cut in regulatory admin costs, and to make reforms to the tax and customs system to make things simpler and quicker.

Any time saved on compliance and admin would mean more time for business owners to work on their business rather than in it, so we’re hoping this one comes on stream soon!

Other Measures

Other measures included in the plan include targeted support for high street businesses, education and training for the next generation of entrepreneurs, and helping businesses to take advantage of additional opportunities at home and abroad.

You can see the Small Business Plan in full here.