Larkspur International

Backing Your Business: How the UK’s New SME Plan Creates a Decade of Opportunity

Larkspur International
Aug 18, 2025By Larkspur International

The UK Government’s Backing Your Business strategy is more than a policy announcement it’s a signal of intent. For the first time in years, SME priorities are at the heart of the national growth agenda.

The plan spans five pillars tackling late payments, unlocking finance, revitalising local economies, future-proofing skills, and opening new markets. Together, they represent a rare alignment of government policy with the practical needs of small and medium-sized enterprises.

For Larkspur International’s clients, this alignment means one thing: the next few years will be defined by those who move quickly to secure funding, contracts, and skills while the conditions are favourable.

Fixing the Fundamentals
SMEs have been held back for years by the same persistent barriers chronic late payments, regulatory red tape, and costly compliance processes. The plan addresses these head-on:

  • Mandatory interest on overdue invoices, maximum payment terms, and fines for repeat offenders.
  • A 25% cut in regulatory admin burden.
  • AI-powered HMRC tools to simplify tax and customs.
  • Planning reforms to make brownfield development easier.
  • Green start-up loans and Net Zero training to help firms cut costs and meet sustainability goals.

For SMEs, these changes aren’t just about making life easier they’re about creating space to grow.

Unlocking Access to Finance
The financing landscape is shifting significantly:

  •  The British Business Bank’s capacity rises to £25.6bn.
  • Start-up Loans will reach 69,000 new businesses.
  • The ENABLE scheme expands to £5bn to de-risk SME lending.
  • £340m for early-stage equity and £400m for diverse founders will boost inclusivity.
  • A Code of Conduct will make Personal Guarantees fairer.

This is capital at a scale not seen for over a decade.

Backing the Everyday Economy
High streets and local economies have taken a battering in recent years. The government’s plan invests in their revival:

  • High Street & Growth Incubators in key city regions.
  • Permanent business rates cuts from 2026.
  • A ban on Upward Only Rent Review clauses in commercial leases.
  • Safer trading environments with 13,000 new police officers.

For SMEs in retail, hospitality, and local services, these changes lower operating costs and improve trading conditions. We help clients secure places in incubators, access regeneration funding, and negotiate leases that support long-term stability.

Future-Proofing Business Skills
Skills gaps remain a major growth barrier. The plan channels £1.2bn per year into apprenticeships and T-Levels by 2028, expands the Made Smarter programme, and launches a new Business Mentoring Council.

Opening Up Opportunities
Perhaps the most exciting pillar is about market access:

  • A new Business Growth Service to streamline SME support.
  • UK Export Finance increased to £80bn, plus new insurance for small exporters.
  • SME Procurement Education Programme and Defence SME Support Centre.

These initiatives directly open up routes into public contracts and global markets.

Why This Matters Now
This plan represents a convergence:

  • Capital availability is rising.
  • Regulatory and contractual hurdles are being dismantled.
  • Sustainability is being funded, not just mandated.
  • Government procurement is actively shifting towards SMEs.

For ambitious businesses, these conditions won’t last forever. The first movers will lock in funding, contracts, and market share leaving slower competitors to catch up.

At Larkspur International, we specialise in turning policy change into commercial advantage. This is one of those moments when the policy window is wide open. The question is whether you’ll step through it.

Contact us to discuss how to position your business for growth under the Backing Your Business strategy.