The UK government has announced new measures to support small businesses, focusing on two key issues: late payments and access to finance. These initiatives aim to help small businesses thrive by improving cash flow and removing barriers that many entrepreneurs face.
Small businesses are the lifeblood of our communities and play an essential role in delivering growth - 99.8% of businesses in the UK are small businesses and they employ over 60% of the British workforce.
Late payments are a major problem for small businesses, with many owed an average of £22,000 per year. To address this, the government has introduced the Fair Payment Code, a system designed to ensure businesses are paid on time and fairly.
Here’s how it works:
✅ Recognition for Good Practices: Businesses that pay their suppliers promptly can receive gold, silver, or bronze awards.
✅ Faster Payments: The goal is for businesses to pay suppliers within 30 days, reducing financial strain and helping small firms maintain healthy cash flow.
✅ Sign Up Now: Businesses can register for the code starting 3 December 2024.
This initiative is overseen by Small Business Commissioner Liz Barclay, who emphasised the importance of creating a culture where late payments become rare and businesses of all sizes commit to paying on time.
Access to finance is a common challenge for entrepreneurs, especially those with disabilities. To address this, the government has partnered with leading banks—including Barclays, HSBC UK, Lloyds Banking Group, and NatWest, to launch the Disability Finance Code for Entrepreneurship.
This initiative aims to:
✅ Improve Access to Finance: Helping disabled entrepreneurs secure the funding they need to start and grow their businesses.
✅ Offer Mentorship and Support: Providing mentorship and showcasing success stories to inspire and guide aspiring entrepreneurs.
✅ Boost Economic Growth: Research from the Lilac Review suggests that unlocking opportunities for disabled founders could add £230 billion to the UK economy.
Joseph Williams, CEO of Clu, highlighted the broader impact of this initiative:
“When disabled entrepreneurs are given equal access to finance, society benefits in ways that go far beyond individual success.”
The government is also introducing other initiatives, including:
Small businesses are essential to the UK economy. They represent 99.8% of all businesses and employ over 60% of the workforce. By improving cash flow and removing barriers to finance, these initiatives aim to help small businesses grow, create jobs, and contribute to the economy.
Small Business Minister Gareth Thomas summed it up:
“These measures will help remove barriers that are holding our small businesses back and ensure everyone has the backing they need to succeed.”
These new initiatives mark a positive step forward for the UK’s 5.5 million small businesses. By ensuring fair payments and improving access to finance, the government is helping small firms overcome key challenges, unlock new opportunities, and build a stronger, more inclusive economy.
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