FSB leader welcomes 'bold and ambitious measures' as government pledges new laws and finance boost to support SMEs and drive growth

Northern Ireland business leader and Federation of Small Businesses (FSB) policy chair, Tina McKenzie, has praised the UK Government’s new Small Business Plan, unveiled as part of its “Plan for Change”, which promises sweeping reforms aimed at supporting small and medium-sized enterprises (SMEs).

Following a meeting with Prime Minister Keir Starmer, McKenzie welcomed the government’s commitment to tackling one of the sector’s biggest issues – late payments – describing it as a vital move to help small businesses, local communities, and the wider economy.

“Making sure businesses are paid on time, that our high streets thrive, and creating conditions in which everyone can start and succeed in business are crucial priorities for small businesses, communities and the economy. It’s very welcome that the Prime Minister has today made them his government’s priorities.

“I’m pleased that FSB and the government have been able to work in lockstep on the bold and ambitious measures needed to tackle the scourge of late payment through legislation, and other pro-growth, pro-small business measures.

“Today’s plan is an encouraging commitment from the government to take the side of small businesses in the great growth challenge ahead.”

At the heart of the government’s strategy is a bold package of reforms to address the £11 billion-a-year cost of late payments – an issue responsible for shutting down 38 businesses a day across the UK.

The new measures are set to deliver the toughest late payment laws in the G7, with powers enabling the Small Business Commissioner to impose fines, carry out spot checks, and enforce payment term reductions from 60 to 45 days.

In addition to tackling payment delays, the plan includes a £4 billion finance package, featuring 69,000 Start-Up Loans to inspire a new wave of entrepreneurship.

Prime Minister Keir Starmer explained: “From builders and electricians to freelance designers and manufacturers—too many hardworking people are being forced to spend precious hours chasing payments instead of doing what they do best – growing their businesses.

“It’s unfair, it’s exhausting, and it’s holding Britain back. So, our message is clear: it’s time to pay up.

“Through our Small Business Plan, we’re not only tackling the scourge of late payments once and for all, but we’re giving small business owners the backing and stability they need for their business to thrive, driving growth across the country through our Plan for Change.”

Small and medium-sized businesses currently employ 60% of the UK workforce and generate £2.8 trillion in turnover. The reforms aim to create a more equitable environment for these businesses, many of which have long felt unsupported by the existing system.

The new laws will also mandate audit committees to scrutinise payment practices and impose mandatory interest charges on late payments—an effort to drive cultural change across large corporations.

This wide-ranging support package is being hailed as the most comprehensive in a generation, designed to give UK SMEs the tools they need to thrive, innovate, and lead the nation’s economic recovery.