The UK Government has introduced a range of initiatives designed to strengthen small businesses and stimulate economic growth, aligning with Small Business Saturday.
The measures address critical issues such as late payments, expanding opportunities for disabled and female entrepreneurs, and combatting retail crime, reaffirming the government’s commitment to supporting the foundation of the British economy.
As of January 1, 2023, the UK had approximately 5.6 million private sector businesses, reflecting a 0.8% increase from 2022. Among these, small and medium-sized enterprises (SMEs) accounted for around 5.5 million, making up over 99% of the total business population.
Tackling Late Payments with the Fair Payment Code
In the introduced initiatives, a new Fair Payment Code has been introduced to combat the persistent issue of late payments, which research shows costs small and medium-sized enterprises (SMEs) an average of £22,000 annually. Overseen by Small Business Commissioner Liz Barclay, the code incorporates a gold, silver, and bronze rating system to reward good payment practices and guide SMEs toward reliable business partners.
The initiative seeks to improve cash flow for small firms, which is vital for their survival and growth. Businesses can register for the code starting today. The move builds on the government’s earlier consultation to address late payments and provide solutions to strengthen SMEs.
Small Business Commissioner, Liz Barclay commented, “The Fair Payment Code is a robust approach to fostering a culture of timely payments, benefiting businesses of all sizes and ensuring vital supply chains are protected.”
Empowering disabled entrepreneurs and boosting female-led businesses
Recognising the untapped potential of disabled entrepreneurs, the government has launched the Disability Finance Code for Entrepreneurship in collaboration with major banks, including Barclays, HSBC UK, Lloyds Banking Group, and NatWest. This initiative aims to improve access to financial products, mentoring, and representation for disabled business owners.
According to the Lilac Review, improving opportunities for disabled founders could unlock an additional £230 billion for the UK economy. Banks involved in the scheme have committed to showcasing disabled success stories and providing tailored support to entrepreneurs.
Additionally, a new partnership between Female Founder Finance and UK Export Finance has also been announced to support women-led businesses. This initiative will provide free services to help female entrepreneurs access finance, grow their networks, and scale their ventures.
Addressing retail crime and supporting growth and stability
To support high street businesses, the Home Office convened the first Retail Crime Forum today, bringing together senior law enforcement officials, trade associations, and retailers to tackle threats against retail workers and crime on high streets.
The government has committed to introducing a specific offence for assaulting retail workers and removing immunity for theft under £200. A £7 million investment in policing over three years will further support efforts to curb retail crime.
With small businesses accounting for 99.8% of UK enterprises and employing over 60% of the workforce, the government has prioritised measures to ensure their resilience. The Budget has protected a million small firms from National Insurance increases, extended business rates relief, and permanently lowered taxes for the retail, hospitality, and leisure sectors. Additionally, the Employment Allowance has been increased to a record £10,500.
In the lead-up to the Autumn Budget, Asian Voice had spotlighted the concerns of small businesses across the UK, many of which sought stability from Labour’s first budget. Small and medium-sized enterprises (SMEs) called on the government to tackle pressing challenges, with 33% prioritising relief from high energy costs. Additionally, 28% urged reductions in regulatory red tape, while 27% advocated for increased tax incentives to drive innovation.
As businesses continue to navigate challenges like inflation and rising costs, these initiatives create a supportive environment for entrepreneurs and small firms across the UK. Small Business Minister Gareth Thomas said, “Unleashing the potential of entrepreneurs is key to driving economic growth. These measures remove barriers and provide targeted support for small businesses to thrive.”
