Backing Small Business: A Welcome Step—But Delivery Must Match the Rhetoric

Business 111 welcomes today’s launch of the UK government’s Backing Your Business plan as a long-overdue step in recognising the central role that small and medium-sized enterprises play in the UK economy.

With smaller businesses accounting for 99.8% of businesses and generating more than £2.8 trillion in turnover, a dedicated and ambitious strategy is vital to unlock their full potential. We are pleased to see the government respond to long-standing concerns around late payments, access to finance, skills gaps, and burdensome regulation.

However, Business 111 urges ministers to remain grounded in the realities facing small firms. The success of this plan will depend not on the scale of the announcements, but on the clarity, consistency and speed with which they are delivered.

Liz Barclay of Business 111 said:

“This is a positive and promising framework, but we know how long consultation and legislation change takes. Small businesses need invoices, need to fill vacancies asap, and need access to cash to grow now. Small business owners are looking for action that cuts through bureaucracy and delivers real change fast. We urge the Government to move at pace on delivering these proposals”.

We particularly welcome:

· Legislative action on overdue payments and unfair payment terms, which remains a daily threat to small business cashflow.

· Expansion of British Business Bank programmes to support growth and innovation.

· Investment in digital skills and local infrastructure, which are essential to competitiveness.

· The move to simplify procurement and expand export support, especially for first-time traders.

But we caution that:

· Reductions in “red tape” must not result in confusion through inconsistent or rapidly changing requirements.

· Access to finance remains hampered not only by availability, but by trust, complexity, and regional disparities and lack of practical support firms need to make themselves fundable.

· Commitments to safety and local high street revitalisation need to be backed by sustained policing, not one-off funding rounds.

· Support must be inclusive of underrepresented founders and accessible to micro-businesses, not just high-growth potential firms.

This plan sets a useful direction of travel. Business 111 will continue to work constructively with government and industry partners to ensure small businesses are not backed in name only, but in practical, deliverable, measurable outcomes.