The government has published a one-year-on update to its Small Business Plan, which is intended to support small and medium-sized business to start, scale and grow.
Key highlights from the report include:
Late payment
The Small Business Protections Bill was laid before Parliament in May 2026. The new legislation includes stricter maximum payment terms, mandatory interest upon late payments, increased board-level scrutiny of large company payment practices, and stronger powers for the Small Business Commissioner.
The report reveals that the Small Business Commissioner recovered £1.5m in late payments for small businesses, a significant increase on previous years.
Tax administration
Various reforms were introduced as part of Tax Update 2026 which are expected to reduce administrative burdens on business. The government also cites Making Tax Digital (MTD) as a time-saver, and notes that all VAT invoices will have to electronically by April 2029.
Whether businesses see these changes as easing their administrative burden may be another story.
Access to finance
The British Bank’s financial capacity was increased to £25.6 billion at Spending Review 2025, allowing it to boost access to finance for SMEs.
The Growth Guarantee Scheme is also being expanded so that by 2028-29, total SME lending supported through the scheme will increase to £3.35 billion per year.
The Start Up Loans Programme is being expanded to deliver at least 85,000 loans over the next five years and broaden eligibility so that businesses trading for up to five years are included. This will be a considerable step up from existing lending. Between August 2025 and May 2026, the programme has made 9,551 loans.
Apprenticeships
The apprenticeship system is being simplified to make it simpler and easier for small businesses in England to take on apprentices. UK businesses can now access the new Youth Jobs Grant that pays £3,000 for every eligible young person they hire.
To review the report in full, see: https://assets.publishing.service.gov.uk/media/6a564b609e63154454413662/backing-your-business-small-business-plan-one-year-on.pdf