On 31st July, the UK Government unveiled its Small Business Plan aimed at tackling the challenges facing small and medium-sized enterprises (SMEs) across the country. Shaped by extensive consultation with business owners, the plan promises to save firms time and money, boost access to finance, and open up new growth opportunities.
What’s in the Small Business Plan?
The government’s plan, published 31 July 2025, targets key SME challenges—late payments, access to finance, regulatory burdens, skills, digital adoption, procurement, and exports. Key elements are:
Future-Proofing Business Skills: A major focus of the plan is preparing businesses for the future. The government will:
- Launch Digital Adoption pilots and partner with industry to boost SME tech skills.
- Fund leadership and management training and create a Business Mentoring Council.
- Support the next generation of entrepreneurs by expanding enterprise education and introducing a new ‘Youth Entrepreneur’ King’s Award for Enterprise.
- Invest £1.2 billion annually in skills training to ensure SMEs can find the talent they need.
Fixing the Fundamentals: The plan also tackles structural barriers to growth by:
- Ending late payments, a problem costing the economy £11 billion each year.
- Modernising tax and customs systems to reduce administrative burdens.
- Supporting firms to decarbonise and lowering energy costs, with additional training for retrofit jobs.
- Cutting regulatory admin costs by 25%, saving businesses both time and money.
Unlocking Access to Finance: To help businesses grow, the government will:
- Provide 69,000 Start-Up Loans, including new green finance options, each paired with a business mentor.
- Deliver a long-term commitment to the British Business Bank’s Growth Guarantee Scheme and inject £3 billion to expand lending capacity.
- Offer £340 million for regional equity investment, ensuring businesses beyond London have access to capital.
- Introduce a Lender Code of Conduct on personal guarantees for government-backed loans.
Opening Up Opportunities: Finally, the plan aims to open doors for SMEs by:
- Launching the Business Growth Service with a streamlined digital hub at business.gov.uk.
- Making SMEs a national priority in public sector procurement, with government departments setting clear targets.
- Expanding UK Export Finance by £20 billion and improving export support services.
- Collecting better data to support under-represented entrepreneurs.
This comprehensive package, ministers say, represents “a new era for small business,” with a focus on innovation, inclusivity, and growth at the heart of the UK economy.
Composites UK welcomes government strategy, acknowledging composites as a core part of advanced materials and foundational industries essential for aerospace, renewables, construction, transport, and defence. Key elements of the Small Business Plan align with the composites industry’s needs.
Backing your business – 1-page summary
Small Business Plan 2025 – full plan
Government Press Release
SME Digital Adoption Taskforce report
Understanding technology adoption among UK SMEs