The UK government has announced a new package of measures to support small and medium sized enterprises, presenting growth as its highest priority. The Backing your Business plan, part of the Government’s wider Plan for Change, is described as the most significant reform programme for SMEs in over two decades. It seeks to address long-standing challenges while creating the conditions for sustainable expansion.
However, some business leaders have voiced concerns that the measures don’t go far enough to support SME’s. Our corporate team are experienced in supporting SME’s throughout every stage of a business’ life cycle, and we have shared our breakdown of the governments new plan.
The Government’s ‘Backing Your Business’ Proposals
The strategy is built around five areas of focus:
- Opening Up Opportunities
A new Business Growth Service and online hub will be created to make advice easier to access. SMEs are to be prioritised in public sector procurement, while additional support is promised for underrepresented entrepreneurs. The government has also confirmed an expansion of UK Export Finance to help firms trade abroad. - Fixing the Fundamentals
The plan commits to reforming late payment practices, modernising the tax and customs system, and reducing regulatory administration costs by a quarter. It also includes initiatives to support decarbonisation and training in retrofit skills. - Unlocking Access to Finance
Measures include an additional £3 billion for the British Business Bank, 69,000 new Start-Up Loans accompanied by mentoring, and £340 million for regional equity investment. A new lender code of conduct is also proposed. - Backing the Everyday Economy
Reforms are intended to simplify licensing for hospitality and create new high street incubators. Permanent reductions in business rates for retail, hospitality, and leisure properties have also been announced. - Future-Proofing Business Skills
The government has pledged £1.2 billion in annual skills funding, alongside digital adoption pilots, leadership training programmes, and a new youth entrepreneurship award.
Benefits Highlighted
Some business leaders have welcomed the breadth of the proposals. Tackling late payments has been seen as a particularly important step for improving cash flow across supply chains. The expansion of finance options, combined with mentoring for start-ups, has also been noted as a positive move for those seeking to scale.
Investment in skills has been described as encouraging, particularly the emphasis on digital capability and management training. In addition, reforms to licensing and business rates are regarded as a potential boost for hospitality and high street businesses.
Concerns Raised
Feedback from recent SME forums suggests there are reservations about whether the plan will achieve its aims. Some business leaders have said that the strategy lacks sufficient detail on delivery, with few clear timelines or measurable outcomes. Others expressed concern that accessibility remains an issue, warning that new services must be straightforward to navigate in order to add real value.
There have also been questions about how effectively a single national framework can address the diverse needs of SMEs operating in both urban and rural environments. Some leaders have pointed out that the smallest firms, particularly sole traders and micro businesses, may find it harder to benefit from the funding streams outlined.
Looking Ahead
The Backing Your Business plan sets out an ambitious vision for supporting SMEs and has been presented as a starting point for ongoing dialogue. Many directors and business owners have emphasised the importance of continued consultation, clearer implementation, and more targeted support for the smallest firms.
Further details on the strategy are available at business.gov.uk.
Get In Touch
Scott Sands is a Partner and the Head of our Corporate team. He advises on a wide range of corporate matters, including acquisitions, disposals, private equity investments, corporate governance, tax-led structures and inheritance tax planning including family investment companies.
Call us on 03301 624 681 or fill out our contact form to arrange a consultation.
