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‘Backing your business’: A summary of the government’s SME support plan

by | Oct 15, 2025 | Accounting Services, Economy, Employees, Finance, SMEs, Tax

On the 1st of August 2025, the government launched ‘Backing your business’ – a strategy setting out a long-term support plan for small and medium-sized businesses. Key focus areas include growth and productivity potential, as well as improving the operating environment to start and run a business.

Let’s take a look at the current state of play and the key areas set out by the plan so you know what opportunities to look out for.

Small businesses need support

Microbusinesses rule the UK economy, making up 90% of all enterprises. Yet around half of all startups fail within three years, contributing to a motivation to ‘sell, sell, sell’ instead of ‘grow, grow, grow’. Ideally, with the government’s support in place, new and small companies will get what they need to build profitable, sustainable businesses that last.

Here’s a breakdown of the five key areas of the government’s plan:

1. Opening up opportunities

Making it easier for businesses to grow and expand into new markets, including by:

  • Launching the new Business Growth Service to simplify finding advice and support, including a new streamlined digital offer
  • Making SMEs a national priority for public sector and government contracts
  • Supporting under-represented entrepreneurs, building on the success of initiatives like the Invest in Women Taskforce and Lilac Review
  • Supporting small businesses to trade abroad and expanding UK Export Finance’s capacity by £20bn

2. Fixing the fundamentals

Making it simpler and fairer to run a business, including by:

  • Tackling late payments with the most significant legislative reforms in over 25 years – an issue that costs the UK economy £11bn per year
  • Modernising the tax and customs system to make it easier to use and save time
  • Supporting firms to decarbonise, alongside lowering energy costs and increasing training for retrofit jobs
  • Reducing regulatory admin costs by 25%, saving businesses time and money

3. Unlocking access to finance

Providing more routes to finance, including through:

  • 69,000 Start-Up Loans that come with a business mentor
  • Longer-term commitment to the British Business Bank’s Growth Guarantee Scheme, helping more businesses access the finance they need to grow and invest
  • A £3bn boost to the British Business Bank to help lenders offer more small business loans
  • £340m for regional equity investment, improving access to capital in every part of the country
  • Delivering a lender Code of Conduct on personal guarantees for government-guaranteed loans

4. Backing the everyday economy

Revitalising high streets through tailored support for local businesses, including:

  • Creating a consistent national approach to licensing, making it easier to set up or modify cafes and bars, and establishing hospitality and night-time economy zones to cut red tape and support outdoor dining and late-night venues
  • New High Streets and Growth Incubators to back local businesses
  • Transforming Business Rates, with permanently lower rates for retail, hospitality and leisure properties with rateable values below £500,000 from April 2026

5. Future-proofing business skills

Help to lead, adapt and grow, including through:

  • Launching new Digital Adoption pilots and working in partnership with industry to drive SME tech skills, led by the needs of SMEs
  • Funding leadership and management training, and creating a new Business Mentoring Council
  • Backing the next generation of young entrepreneurs, including boosting access to enterprise education and launching a new ‘Youth Entrepreneur’ King’s Awards for Enterprise award
  • £1.2bn more a year for skills, ensuring more of the skills needs of SMEs are met

Seize growth opportunities with Nabarro Poole

This long-awaited blueprint bodes well for the future of SMEs, but it remains to be seen how and when much of this strategy will come to fruition with tangible support. Our advice? Keep an eye on future budget announcements and an ear to the ground for any opportunities that emerge in the coming months.

For help identifying any relevant opportunities and planning your finances to make the very most of them, partner with an accountant that has specialist experience in growing small businesses – like Nabarro Poole. Get in touch with our friendly team today.