Government announces plan for small businesses: here’s what it means for nail & beauty pros

The UK government has unveiled a Small Business Plan, which hopes to support small and medium enterprises (SMEs) by giving them ‘the most comprehensive support package in a generation’. Many measures within the plan will directly affect the nail, hair and beauty sectors, which comprise thousands of salons and self-employed professionals.

As part of its Plan for Change, the Government’s Small Business Plan seeks to give SMEs the tools to thrive and drive economic growth via:

• Tackling late payments with its ‘most significant legislative reforms in 25 years – an issue that costs the UK economy £11bn a year and shuts down 38 businesses every day’.
• Enforcement of the toughest late payments laws in the G7.
• £4bn finance boost, including 69,000 Start-Up Loans to inspire the next generation of entrepreneurs and small business owners.

Small and medium sized firms employ 60% of the country’s workforce and generate £2.8 trillion in turnover.

A statement on the UK Government website reads:

“Late payments are one of the biggest barriers to small business growth, causing cashflow problems that stop firms from scaling up and investing in their future. Every day, hardworking businesses close their doors because they aren’t paid on time.

“The Small Business Commissioner will be given new powers to carry out spot checks and enforce a 30-day invoice verification period to speed up resolutions to disputes. The legislation will also introduce maximum payment terms of 60 days, reducing to 45 days, giving firms certainty they’ll be paid on time.”

Prime Minister, Sir Keir Starmer comments: “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.”

Financial support

The Government is also tackling another barrier for small businesses: access to finance. Financial support to the sum of £4 billion will be used to boost growth and help more small businesses start up and grow. This includes a £1bn boost for new businesses, with 69,000 Start-Up Loans and mentoring support to inspire the next generation of entrepreneurs and small business owners.

The remaining £3 billion funds will be assigned to the British Business Bank, to help lenders offer more small business loans through the ENABLE Guarantees Programme. Under the scheme, the British Business Bank provides a Government-backed guarantee to help lenders feel safer when lending to smaller or newer businesses, enabling them to offer better loan terms including with lower interest.

Accelerating SME growth by just one percentage point per year could deliver £320bn to the UK economy by 2030.

Of the plan, Millie Kendall OBE, CEO of the British Beauty Council comments: ‘The beauty industry contributes more than £30bn to the UK GDP and is made up of entrepreneurial, successful and inspiring SMEs. The British Beauty Council welcomes the Government’s Small Business Plan, which sees policy-makers put our businesses first.

“For years, the beauty sector has faced unique challenges when it comes to growth, this plan is a much needed step towards ensuring our industry – which bolsters social mobility and opportunities for underrepresented communities – can sustain growth.”

Caroline Larissey, chief executive of the National Hair & Beauty Federation (NHBF), adds: “We welcome this plan as a starting point. NHBF will be engaging directly with Government to ensure our members and the hair and beauty sector’s voice is heard by championing policies that support, not strain, this vital part of the economy.”

If you’re a small business seeking access support, advice and funding, visit the Government’s dedicated resource website: business.gov.uk.