The Government’s plan ‘Backing Your Business’ was introduced in July 2025 to support the growth and development of small and medium sized enterprises (SMEs).
In particular, the plan has been created to give businesses the ability to realise their maximum potential.
Increased access to financial support
The UK has one of the lowest levels of business borrowing in the G7.
This has prompted change, with the Government increasing the British Business Bank’s financial capacity to £25.6 billion, meaning more funds are available for small businesses.
The small business plan is for all business owners from all backgrounds. The latest financial support reflects this. For example:
- The Start-Up Loans programme has been expanded to provide personal loans, free mentoring, and business support to entrepreneurs looking to start or grow a business that has been trading for less than 3 years.
- The capacity of the ENABLE Guarantee Scheme has been increased by £3 billion to encourage additional lending to smaller businesses.
- A new £400 million Investor Pathways Scheme has been created to attract new and diverse sources of capital into the UK space sector.
- The Regional Angels Programme has been extended to help reduce regional imbalances in access to early stage equity finance for smaller businesses across the UK.
- The Nations and Regions Investment Fund has been created to boost long-term growth in the regions by creating local opportunities for new and growing businesses in the UK.
The increased capacity also includes a mandatory code of conduct for accredited lenders to ensure their personal guarantees are fair.
Improving SME skills
The Government’s plan also includes measures to encourage staff growth and development, as well as a pledge to improve access to artificial intelligence (AI) and digital skills.
A £1.2 billion investment will be made each year by 2028/29 to help small business owners improve the skills of their team.
More apprenticeships are being launched with courses for digital skills, AI and engineering to launch from April 2026.
There will also be an Employer Support Fund set up for SMEs to help with T Level placement costs. The Government hopes to have this available during the 2025/26 financial year.
Ending late payments
Late payments have long been an issue for SMEs, so the plan will give the Small Business Commissioner new powers, including the ability to issue fines against companies that persistently pay their suppliers late.
Additional legislation will also ensure the mandatory payment of interest on all overdue invoices, thereby preventing late payers negotiating better compensation rates than the current statutory rate.
A plan to support growth
The Government’s plan focuses on business development with a determination to kick-start economic growth and grant SMEs more powers to hold late payers to account.
Want to learn more about how this new plan may affect you and your business? Get in touch today.
