Small Business Plan a ‘much-needed step forward’ in helping SMEs - Chamber

The government's new Small Business Plan, designed to protect suppliers and low level firms from being mistreated by large corporations, has been welcomed by business leaders.

Sir Keir Starmer and Business and Trade Secretary Jonathan Reynolds visited Swindon yesterday to reveal their Plan for Change, which includes £4bn more funding for business support and new powers for a Small Business Commissioner.

Under the plan, the commissioner will be able to fine larger firms which repeatedly fail to pay their suppliers on time.

Government says the planned legislation will include the “toughest laws on late payments” of any G7 nation, and multimillion-pound fines for big companies that treat suppliers unfairly.

Maximum payment terms of 60 days will also be introduced - eventually dropping to 45 days.

And big companies that are late paying bills are set to be hit with mandatory interest charges.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “This is a much-needed step forward in recognition and support for SMEs.

“Challenges such as late payments, limited access to finance, and insufficient, difficult to navigate business support have long constrained smaller firms.

“Late payments, in particular, are a persistent barrier to both economic and business growth, with the smallest companies bearing the brunt.

“Research by the British Chambers of Commerce shows that three quarters of firms have, at some point, been paid late. 28 per cent report that this had an impact on their operations.

“The forthcoming consultation on the proposed changes will be important to ensure the balance of responsibility is right and the proposed changes are practicable.

“The online Business Growth Service will also be a valuable tool to signpost to support and advice for firms - including that available via local Chambers of Commerce.

“It is encouraging to see export support included in the plan, along with recognition of the importance of helping businesses adopt new technologies.

“However, many businesses continue to grapple with rising costs.

“To achieve its Growth Mission, the government must commit the necessary funding to bring this Small Business Plan into fruition, whilst reducing the cost burdens firms are facing.

“This must include delivering a long-promised reform of business rates and providing a commitment to not implement further taxes on businesses in the Autumn.”

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