UK Government Shares Latest Update on Small Business Support

The UK Government has published a one-year progress update on its Small Business Plan, highlighting measures designed to help small and medium-sized businesses start, scale and grow.

The update covers several areas that matter to business owners, including late payments, tax administration, access to finance and apprenticeships.

Here are some of the key developments.

Stronger Action on Late Payments

Late payments can put significant pressure on small businesses, particularly when they rely on regular cash flow to cover wages, suppliers and other costs.

In May 2026, the Government introduced the Small Business Protections Bill to Parliament. The proposed legislation includes:

• Stricter maximum payment terms
• Mandatory interest on late payments
• Greater board-level scrutiny of payment practices by large companies
• Stronger powers for the Small Business Commissioner

The Government’s report also states that the Small Business Commissioner recovered £1.5 million in late payments for small businesses.

Changes to Tax Administration

The Government has also highlighted changes aimed at making tax administration easier for businesses.

Reforms introduced through Tax Update 2026, together with the continued rollout of Making Tax Digital (MTD), are expected to reduce some administrative work and make tax reporting more efficient.

The Government also reports that VAT invoices are expected to be required electronically from April 2029.

For businesses, staying up to date with these changes will be important as digital tax requirements continue to develop.

More Support for Business Finance

Access to finance remains an important issue for businesses looking to invest and grow.

The British Business Bank’s financial capacity was increased to £25.6 billion at the 2025 Spending Review. This is intended to help increase access to finance for small and medium-sized businesses.

The Growth Guarantee Scheme is also being expanded. By 2028–29, annual SME lending supported through the scheme is expected to reach £3.35 billion.

Start Up Loans Programme Expanding

The Government is also expanding the Start Up Loans Programme.

The programme aims to provide at least 85,000 loans over the next five years, while eligibility is being extended to businesses that have been trading for up to five years.

Between August 2025 and May 2026, the programme provided 9,551 loans.

Apprenticeships and Support for Young Workers

The Government is also taking steps to make the apprenticeship system simpler for small businesses in England.

In addition, businesses can now access the Youth Jobs Grant, which provides £3,000 for each eligible young person they hire.

These measures are intended to make it easier for small businesses to recruit young people and develop new skills within their workforce.

What Should Small Businesses Do Next?

The latest update highlights changes across several areas that can directly affect small businesses, from cash flow and tax administration to finance and recruitment.

Business owners should keep track of upcoming changes and consider whether new funding schemes, tax requirements or employment support could apply to their business.

You can read the full Small Business Plan: One Year On report here.

If you need support with accounts, tax, VAT, payroll or business financial planning, the Makesworth team is here to help.