Committee publication · Correspondence · 2 September 2025
Letter from the Minister for Services, Small Businesses and Exports relating to the plan for small and medium sized business, 31 July 2025
From: Business and Trade Committee
Inquiry: Small business strategy
Summary
The Minister for Services, Small Businesses and Exports outlines the Government's Plan for Small Businesses, a long-term support framework targeting 5.5 million SMEs. The plan comprises five pillars: fixing fundamentals (late payment legislation, regulatory cost cuts, tax modernisation); unlocking finance (expanded loans and equity schemes); backing high streets (business rates reform, rent clause bans); skills development (digital adoption, mentoring); and opening export opportunities. The letter invites committee feedback and promotes constituency-level engagement.
Key findings
- Late payment legislation will be enacted—the most significant in 25 years—addressing £11bn annual cost and 38 daily UK business closures, with strongest G7 legal framework.
- Administrative regulatory costs for business to be cut by 25%; ENABLE finance programme expanded by £3 billion (to £5 billion total); Start-up Loans expanded to 69,000 new businesses.
- Business rates transformed with permanently lower multipliers for high street retail, hospitality, and leisure properties below £500,000 rateable value, effective April 2026.
- Upward Only Rent Review clauses in commercial leases to be banned; UK Export Finance capacity expanded by £20 billion (to £80 billion total) with new Small Export Builder insurance product.
- £1.2 billion additional annual investment in skills and apprenticeships by 2028-29; new Business Growth Service to centralise access to advice; 13,000 additional police officers to tackle shoplifting and tool theft.
Tone
SupportiveTopics
Key actors
Gareth Thomas MP, Liam Byrne MP, Department for Business and Trade, British Business Bank, HMRC, Intellectual Property Office, Innovate UK, UK Export Finance
Notable line
“… every day. This will be the most significant legislation to tackle late payments in over 25 years and will give the UK the strongest legal framework on late payments in the G7.”
Key Quotes
“Economic growth is the number one mission of this government. The 5.5 million small and medium sized businesses are the engine room for growth in every community across the UK.”
“We will legislate to end the scourge of late payments which costs the UK economy £11bn per year and closes down 38 UK businesses every day.”
“This will be the most significant legislation to tackle late payments in over 25 years and will give the UK the strongest legal framework on late payments in the G7.”
“We will continue to hardwire the voice of small business into everything we do, as we deliver for them throughout this parliament.”
Source · parliament.uk record ↗