The UK government has always recognized the importance of small businesses and their contribution to the economy. With over 5.9 million small and medium-sized enterprises (SMEs) in the UK, accounting for 99.9% of all businesses, it is clear that they play a vital role in driving economic growth and creating jobs.
In light of this, the government has recently revealed its Small Business Plan, which aims to provide support and resources for SMEs to thrive and succeed. This plan comes at a crucial time, as small businesses have been hit hard by the COVID-19 pandemic and need all the help they can get to recover and rebuild.
So, what exactly is in the government’s Small Business Plan and how will it benefit SMEs? Let’s take a closer look.
1. Financial Support
One of the key components of the Small Business Plan is the financial support that the government is offering to SMEs. This includes the extension of the furlough scheme until the end of September 2021, which will provide much-needed relief to small businesses struggling to retain their employees during these challenging times.
In addition, the government has also announced a new Recovery Loan Scheme, which will replace the existing COVID-19 loan schemes. This scheme will provide loans ranging from £25,000 to £10 million to help businesses of all sizes recover and grow.
2. Tax Relief
The government has also introduced various tax relief measures to help small businesses. This includes a temporary increase in the Annual Investment Allowance (AIA) from £200,000 to £1 million, allowing businesses to claim tax relief on qualifying capital expenditure.
Moreover, the government has extended the business rates holiday for retail, hospitality, and leisure businesses until the end of June 2021, with a 66% discount for the remaining nine months of the year. This will provide much-needed relief to small businesses in these sectors, which have been hit the hardest by the pandemic.
3. Digital Support
The Small Business Plan also includes measures to help SMEs adapt to the digital age. This includes a new Help to Grow scheme, which will provide small businesses with access to discounted software and expert advice to help them improve their digital skills and boost their productivity.
In addition, the government has also announced a new Digital Markets Unit, which will be responsible for ensuring fair competition in digital markets and promoting the growth of small businesses in the digital economy.
4. Infrastructure Investment
The government has committed to investing £1.6 billion in infrastructure projects, such as roads, railways, and broadband, to support small businesses across the UK. This will not only create jobs but also improve connectivity and make it easier for small businesses to operate and grow.
5. Support for Startups
The Small Business Plan also includes measures to support startups and entrepreneurs. This includes the continuation of the Start Up Loans programme, which provides loans and mentoring to entrepreneurs looking to start their own business.
Moreover, the government has also announced a new Future Fund Breakthrough scheme, which will provide funding to innovative startups in sectors such as life sciences, quantum computing, and clean energy.
In conclusion, the government’s Small Business Plan is a much-needed boost for SMEs in the UK. It provides a comprehensive package of financial support, tax relief, digital support, infrastructure investment, and support for startups, all aimed at helping small businesses recover and grow in the wake of the pandemic.
As a small business owner, it is important to stay updated on the latest developments and take advantage of the support and resources available. With the government’s backing, there is no doubt that small businesses in the UK will emerge stronger and more resilient than ever before. So, let’s embrace the Small Business Plan and work together towards a brighter future for SMEs in the UK.