The Government has today 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.
- The 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 in Portsmouth to benefit from 69,000 Start Up Loans and new support to grow and export
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.
Commenting on the announcement, Amanda Martin, Member of Parliament for Portsmouth North, said: “This is a game-changer for small businesses in Portsmouth. From tackling late payments to unlocking billions in finance, this strategy gives our local entrepreneurs the tools they need to grow and thrive.”
“This strategy will mean that it will be easier to fill vacant highstreets and that there will be less red tape once new business owners move in, bringing new life to places like North End and Cosham thanks to permanent cuts to business rates on high streets, better access to funding, lower costs to businesses and more support.
“Small businesses are the backbone of our economy, employing 60% of the workforce. This strategy shows that Labour is serious about backing them with real action – not just words.”
“It’s proof that we are delivering on our Plan for Change and building an economy that works for every part of the UK.”
“I’m getting out and talking to local businesses to find out what makes them tick. In November I ran a small business awards where over 500 local people nominated their best local businesses. I’ll continue to champion local businesses, If you or someone you know run a business, please reach out to my office, I would love to hear from you”.
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.”
Small Business Minister Gareth Thomas said: “I want the UK to be the best place in the world to start a business, grow and succeed – and that’s why we’ve taken bold steps today.
“Too many small firms go under each year because they aren’t paid on time – that is completely unacceptable.
“I hear all too often about businesses who just don’t have the cash needed to start up or grow. Today, we’ve announced measures as part of our Plan for Change to tackle all of those issues and beyond. This is the government listening to businesses, working with them, and delivering real change.”
