Glenn Collins, head of technical and strategic engagement, ACCA, said: “ACCA applauds the government for acknowledging the vital contribution that small and medium sized business (SMBs) make to the UK economy. We look forward to seeing the detail in the new small business strategy.

 

“We also welcome that this recognition of the challenges facing small businesses is being backed up by action – action that ACCA and its members have been calling for loudly and consistently over many years.

 

“Late payment is a persistent problem that is crippling SMBs, so more robust action is warmly welcome. ACCA previously called for stronger powers for the Small Business Commissioner in addition to greater corporate responsibility for prompt payment. However, we recognise that this is a complex issue and further detailed discussions will be required to ensure new legislation is both practical and effective for businesses.

 

“Access to finance is a demonstrable barrier to growth and a source of constant frustration for growing enterprises. Therefore, boosting start-up loans looks like welcome news. We know as key advisers to small firms, our members will be working hard with the business community to access the finance they need at the time they need it. In particular, we welcome the Bank’s flagship Growth Guarantee Scheme, established in August 2022, which has been extended through the Spending Review period to 5 April 2030. This puts the scheme on a long-term footing and gives finance providers and smaller businesses certainty about its future. We know our members are integral to making sure that this scheme works as intended.

 

“At a time when our ongoing research shows business confidence is at a low ebb, we hope that this positive action to tackle longstanding barriers to small business growth will provide a much-needed boost of confidence.”