Government boost for SMEs ahead of Small Business Saturday 

4 Dec 2024

Small Business Saturday takes place this week, and this year it comes with exciting news for small business owners.  

The Government has announced a new package of measures designed to support small and medium-sized enterprises (SMEs), making this the perfect time to take stock of your business and plan for growth. 

These measures include the launch of the Fair Payment Code, aimed at tackling the £22,000 in late payments SMEs are owed annually, and a Disability Finance Code, designed to improve access to funding for disabled entrepreneurs.  

Both initiatives highlight a growing commitment to creating a fairer, more supportive business environment, helping small firms thrive and contribute to the UK’s economic recovery. 

What the new measures mean for your business 

Late payments are one of the biggest challenges small businesses face, with research showing they can push many firms into financial difficulty.  

The Fair Payment Code introduces a gold, silver, and bronze rating system, rewarding businesses with excellent payment practices and helping SMEs identify trustworthy partners. 

If your business has struggled with cash flow due to delayed payments, this initiative could be a game-changer, boosting financial stability and enabling you to focus on growth rather than chasing overdue invoices. 

Disability Finance Code 

Disabled business owners often face additional hurdles when trying to access funding.  

The Disability Finance Code, backed by major UK banks like Barclays and NatWest, aims to change that.  

By improving access to finance, mentoring opportunities, and showcasing disabled success stories, the initiative promises to unlock £230 billion in untapped potential within the economy. 

For SMEs, this code offers a pathway to greater financial support and opportunity. 

Other key measures to fuel SME growth 

• Extended business rates relief and Employment Allowance – The increased Employment Allowance, now at a record £10,500, and lower taxes on retail, hospitality, and leisure sectors aim to ease the financial strain on small businesses. 

• Focus on female entrepreneurship – A new partnership between Female Founder Finance and UK Export Finance will offer no-cost services to help female-led businesses access finance and expand their networks. 

How to make the most of these opportunities 

While these measures provide a fantastic foundation, their impact depends on how you use them. Consider these steps to maximise the benefits: 

• Get ahead with cash flow management – Sign up for the Fair Payment Code and implement best practices to ensure prompt payments. 

• Explore funding options – Disabled entrepreneurs can take advantage of the new financial products and mentoring schemes offered under the Disability Finance Code. 

• Claim your allowances – Make sure you are claiming the extended Employment Allowance and any other reliefs available to your business. 

Contact us today to learn more about the Government’s new initiatives and how we can help your business make the most of these opportunities.