Breaking down the government’s Small Business Plan
In July 2025, the UK government unveiled its Small Business Plan, outlining a long-term strategy aimed at supporting the growth, resilience, and sustainability of small and medium-sized enterprises (SMEs).
Branded as the ‘Backing Your Business’ plan, this initiative recognises the critical role SMEs play in the UK economy - from job creation to innovation - and seeks to address both immediate challenges and long-term opportunities.
Plan overview: A 5-part strategy for SME growth
The plan is structured around five key pillars:
1. Opening up opportunity
This pillar focuses on breaking down barriers to entry and growth, particularly for startups, scale-ups, and underrepresented groups. Initiatives may include simplifying procurement processes, improving market access, and increasing opportunities for small businesses to work with government and larger corporates.
2. Fixing the fundamentals
Aimed at creating a more stable, predictable, and supportive business environment, this includes efforts to:
- Simplify regulations
- Improve access to public services
- Streamline taxation and compliance processes
- Enhance infrastructure critical to business operations (e.g., transport, broadband)
3. Unlocking access to finance
Recognising that finance remains a key barrier to growth, this area focuses on:
- Expanding access to traditional and alternative funding options
- Encouraging private investment
- Strengthening financial support for innovation and research & development (R&D)
- Enhancing financial literacy among small business owners
4. Backing the everyday economy
Support for the sectors and local businesses that form the backbone of everyday life - including retail, hospitality, construction, and care. The plan outlines targeted help such as:
- Reducing regulatory burden
- Encouraging local procurement
- Supporting digital adoption in traditionally offline sectors
Future-proofing business skills
To ensure SMEs are equipped for the evolving demands of the future economy, this pillar includes:
- Investment in skills development
- Expanding digital and green skills training
- Promoting apprenticeships and lifelong learning
- Supporting business leadership and management capability
What’s next?
Businesses will be watching closely – not only to see whether promises around reducing “red tape” are delivered in practice, but also that measures provide meaningful relief at a time when rising employment costs, higher taxation and increasing compliance pressures are making it harder than ever to plan and grow.
We’re here to help
We know that for many business owners the current financial and regulatory pressures can feel overwhelming. That’s why our specialist team is here to provide practical support - whether you’re looking to navigate immediate challenges, explore opportunities for growth, or simply get a clearer view of your current position. Please get in touch with us via the form below to start the conversation.
