The current UK government came in promising to “put small business at the heart” of its growth strategy and to make Britain “the best place in the world to start and grow a business. In anticipation of the UK Budget 2025, many are eager to see how these promises will be addressed and fulfilled.”

Here’s an overview of:

  • what was promised for entrepreneurs and SMEs
  • what has actually happened so far
  • what’s in the pipeline
  • and what we know (and don’t yet know) about the forthcoming Autumn Budget 2025 for SMEs

1. What the government promised SMEs and entrepreneurs

Pre-election and manifesto promises

Before and during the 2024 election, Labour’s small business documents and manifesto made several headline commitments:

a. Make the UK “the best place in the world to start and grow a business”
Labour’s small-business plan The Beating Heart of Our Economy set out an explicit aim to put entrepreneurs and small firms at the centre of economic policy, promising a “genuine, reliable partnership” with business.The Labour Party+1

b. Tackle late payments
Labour pledged to legislate against the “scourge of late payments” so that small firms and the self-employed get paid on time, including stronger reporting and board-level scrutiny of payment practices in large companies.

c. Overhaul business rates for high streets
Keir Starmer repeatedly pledged to “rip up” or overhaul the business-rates system to help small high-street firms compete with online giants, alongside revitalising town centres.

d. Improve access to finance
The manifesto and accompanying commentary promised reforms to the British Business Bank (BBB) and wider finance ecosystem so more capital flows to SMEs, with a specific mandate to support smaller firms and exporters.

e. Better rights and support for the self-employed
Labour signalled stronger protections for the self-employed (written contracts, tackling late payment, health & safety protections) and a more supportive environment for freelancers and micro-businesses.

f. A national industrial strategy and new investment funds
Alongside SME-specific policies, the government promised a new industrial strategy and a National Wealth Fund to crowd in private investment (with the British Business Bank involved), seen as part of the wider environment for innovative, growth-oriented SMEs.

The post-election “Backing Your Business” plan

In July 2025, the government published Backing Your Business: Our Plan for Small and Medium-Sized Businesses, which is effectively the core SME strategy for this Parliament.

It organises SME policy around five pillars:

  1. Fixing the fundamentals – cutting red tape, reforming regulation, modernising tax and customs, and ending late payments
  2. Unlocking access to finance – expanding BBB guarantee schemes, regional funds and start-up loans so more entrepreneurs can access capital.
  3. Backing the everyday economy and high streets – supporting retail, hospitality and local services, with business-rates reform and targeted relief.
  4. Future-proofing business skills – improving leadership, management and digital/AI skills through programmes like Help to Grow and new digital adoption initiatives.
  5. Opening up opportunities – helping SMEs export, win public contracts and supporting under-represented founders.

2. What has actually been done so far?

We’re still relatively early in the Parliament, but there has been concrete movement in several areas. Some actions are fully in place; others are “announced and in progress”.

Late payment crackdown – legislation on the way

This is one of the clearest areas where promises have turned into detailed policy:

  • The government has announced what it calls the “toughest late payment laws in the G7”, with a new legal framework limiting payment terms and empowering the Small Business Commissioner.
  • Key features of the planned law include:
    • Maximum payment terms initially capped at 60 days, reducing to 45 days over time.
    • A mandatory 30-day invoice verification period.
    • Large companies (250+ employees) required to disclose payment performance in annual reports, with audit committees responsible for monitoring it.
    • The Small Business Commissioner given powers for spot checks and fines for persistent late payers.

Where we are now, pre UK budget 2025 (Nov 2025):

  • The crackdown has moved from promise to a concrete legislative package and draft law. Some measures (like strengthened reporting and Fair Payment Codes) are already in effect; the full statutory regime (45-day maximum terms and large fines) is being legislated and will phase in over the coming years.

Access to finance – large funding boost and expanded schemes

On finance, the government has put significant money behind its rhetoric:

  • A £4.5 billion funding package for SMEs was announced as part of the Backing Your Business plan, expanding several BBB programmes and guarantee schemes – described by some commentators as one of the most comprehensive SME support packages in years.
  • This includes a £3 billion boost to the British Business Bank, raising the total guarantee to £5 billion, to support more lending via the ENABLE programme and other schemes.
  • The plan also references tens of thousands of start-up loans and expanded regional investment funds to support new and growing businesses across the UK.

In practice, this should mean more available loan finance and guarantees for smaller firms, though day-to-day experiences will still depend on banks’ risk appetites and how quickly the expanded schemes are deployed.

Business support and advice – Business Growth Service and business.gov.uk

Another promise was to simplify the support landscape:

  • A Business Growth Service (BGS) is being rolled out as a centralised hub for funding, advice and export support, billed as a “game-changer” for SMEs that struggle to navigate multiple schemes.
  • The business.gov.uk platform has been rebuilt with curated guides for pre-start, start-up and established businesses, with government reporting a 315% increase in engagement with support content versus earlier GOV.UK pages.

This is one area where delivery is visibly underway: the digital entry points now exist and are being scaled.

Digital & AI adoption – long-term plan taking shape

The government has also moved on the digital adoption pledge:

  • The SME Digital Adoption Taskforce published its final report in July 2025, setting a 10-year ambition for UK SMEs to be the most digitally capable and AI-confident in the G7 by 2035, with a 10-step action plan.
  • Recommendations include appointing a dedicated minister for SME digital/AI adoption, creating an online “CTO-as-a-service” integrated into the Business Growth Service, targeted financial incentives, and an awareness campaign.
  • The government’s formal response is incorporated into the Small Business Plan, meaning at least some of these measures are being taken forward as policy rather than remaining purely advisory.

The implementation is early-stage, but if delivered, this framework has potential to affect everyday SME operations (e-invoicing, CRM, digital ID, AI tools, etc.).

  • Help to Grow: Management has continued, with official data showing over 10,000 SME leaders enrolled and thousands completing the programme by late 2024.
  • The 2024 Autumn Budget also committed to ongoing funding for Help to Grow and Growth Hubs into 2025–26.

This area is more evolution than revolution – expanding and sustaining existing initiatives that aim to boost leadership and productivity.

Business rates and tax – partial delivery, mixed picture

On costs, the picture is more mixed for SMEs:

  • Business rates:
    • The government has set out a “business rates forward look”, signalling multi-year reform, with changes planned in and beyond Autumn Budget 2025 and an emphasis on permanent relief for smaller high-street properties and shifting more of the burden to high-value sites.
    • However, full structural reform (the “ripping up” of the system) has not yet happened; instead we have gradual, staged changes.
  • Employer National Insurance and other taxes:
    • The Autumn Budget 2024 significantly increased employer National Insurance from 13.8% to 15% and lowered the earnings threshold from £9,100 to £5,000 from April 2025 – a substantial extra cost for employers, including SMEs.
    • To soften the blow for smaller firms, the Employment Allowance was expanded to £10,500 and eligibility caps removed, and some business-rates and relief measures were introduced.

So while support schemes and funding have expanded, many SMEs are also managing higher labour costs through employer NI and rising wage floors.

3. What’s in the pipeline for SMEs?

From government plans and official “forward looks”, several streams of SME policy are clearly still in progress:

  1. Late-payment legislation – the bill to enforce 60/45-day maximum terms, mandatory interest, and tougher enforcement is moving through the legislative process. Implementation dates and transitional rules will be key for SMEs to watch.
  2. Business rates reform – the business-rates forward look confirms that the system will be reshaped over this Parliament, with further reforms after Autumn Budget 2025 and changes phased in over several years.
  3. Business Growth Service roll-out – BGS and the business.gov.uk overhaul are still being developed and scaled, with planned integration of digital/adoption tools, finance signposting and export support.
  4. Digital/AI adoption measures – the SME Digital Adoption Taskforce has given ministers a long menu: CTO-as-a-service, new incentives, a ministerial lead, e-invoicing, digital ID and more. The government has signalled agreement “in principle” with many of these, but the specifics (funding, timings, who is eligible) are still to be detailed.
  5. Access to finance reforms – beyond more money for the BBB, the government is looking at personal-guarantee practices, alternative finance (mutual/co-operative banks) and enhancements to schemes like the Bank Referral and credit-data-sharing programmes to help SMEs find finance more easily.

4. Forthcoming UK Budget 2025 – what might affect SMEs?

The UK Budget 2025 has been scheduled for 26 November 2025, and will be the government’s second full Budget.

Important caveat: as of today, measures are not yet finalised – what we have are informed predictions and signals. But several themes keep coming up in expert previews and press coverage.

Business rates reform

Business-rates changes look almost certain to feature:

  • Pre-Budget commentary notes strong pressure from retailers and small-shop groups to deliver significant relief for smaller high-street properties, warning that up to 60,000 small shops could close without urgent business-rates reform.The Sun+1
  • The government has previously trailed permanent relief for smaller retail and hospitality premises, with higher rates on properties over a certain value, affecting only the largest 1% of retail locations.The Sun+1

For SMEs, the Budget is likely to clarify exactly who qualifies for enhanced relief, and how quickly any shift of burden onto larger sites is phased in.

SME finance and guarantees

UK Budget 2025 previews suggest:

  • Enhanced guarantee schemes and continued expansion of BBB programmes as part of the Backing Your Business funding package – effectively confirming and detailing how the previously announced £4.5 billion will flow through the system.
  • Potential announcements on alternative finance (e.g. regional banks, co-operatives) and streamlined access to start-up loans and export finance.

Tax and allowances

Analysts expect a careful balancing act between raising revenue and avoiding further pain for SMEs:

  • After the 2024 Budget’s rise in employer NI (which already hits SMEs from April 2025), professional advisers are watching for whether the Chancellor tweaks NI or reliefs further, but most previews suggest the government has limited headroom for tax cuts.
  • A high-profile campaign (backed by eBay, Etsy, Vinted and the FSB) is calling for the trading allowance to be tripled from £1,000 to £3,000 for side-hustle and micro-business income; commentators think it might be on the table but far from guaranteed, given the cost.

Digital transformation and e-invoicing

Several budget previews expect digitalisation themes to appear:

  • Commentators highlight proposals around e-invoicing and digital reporting, aligning with the SME Digital Adoption Taskforce’s recommendations and the wider rollout of Making Tax Digital.Debitam+2GOV.UK+2
  • SMEs could see incentives or requirements to adopt digital tools (for example, aligned with tax or procurement rules), plus potential funding for digital-adoption support via the Business Growth Service.

Overall direction for SMEs

Taken together, expert previews paint this picture:

  • No great tax bonanza for SMEs (fiscal space is tight and last year’s Budget already raised significant business tax, particularly via employer NI).Grant Thornton UK+1
  • A Budget likely to focus on:
    • locking in previously announced late-payment and finance reforms
    • taking the next steps on business-rates reform
    • pushing digital transformation and e-invoicing
    • and possibly modest tweaks to allowances or targeted reliefs, rather than broad tax cuts.

How to read this as an SME or entrepreneur

Putting it all together:

  • On the support side, there has been real movement: a long-term SME plan, major funding for the British Business Bank, a new Business Growth Service, digital-adoption strategy and concrete late-payment legislation.
  • On the cost side, you’re facing higher employer NI and ongoing wage and cost pressures, with business-rates reform still in progress rather than fully delivered.
  • The Autumn UK Budget 2025 is likely to be more about locking in and refining this agenda than unveiling an entirely new one.