Government plans to tackle late payments, access to finance and provide greater business support for SMEs are a much-needed step in the right direction, according to Somerset Chamber of Commerce Managing Director, David Crew.
Late payments are a well-established barrier to economic and business growth, which hits the smallest companies hardest while lack of finance and support is still holding many back.
The proposals are included in the Government’s Small Business Plan which was published today and aims to give greater powers to fine late-payers, provide a £4bn finance boost, including additional start-up loans and Government-backed guarantees for loans to SMEs. 
Mr Crew said: “This is a much-needed step forward in recognition and support for SMEs, which are the backbone of the Somerset and UK economy.
“Somerset is predominantly a small business economy with 90% of businesses employing fewer than 10 people and almost a quarter have a turnover of less than £50,000.
“Research by the Chamber network shows that three quarters of firms have, at some point, been paid late, with 28% saying that this had an impact on their operations.
“A new online Business Growth Service will also be a valuable signpost to support and advice for firms.
“It will make it easier for them to connect with their local Chambers of Commerce, which play a crucial role in delivering business support and creating opportunities across their communities.”
The Small Business Plan will now be subject to consultation before any new legislation comes into force.
But Mr Crew warned: “Businesses are still struggling with a mounting wall of costs and will want to see longer-term reform of business rates and no further tax increases heaped upon them.
“For the Government to achieve its Growth Mission, people need to stay in work and firms need to invest. The various strategies and plans published by the Government over the last few months have set the strategic direction of travel.
“Now we need to see funding and real-world support to implement these policies, drive growth and reduce the cost of doing business.”
The full Government plan can be found here.
Join Somerset Chamber of Commerce to give your business a stronger voice both locally, regionally and nationally. Combined with local town chambers, we represent over 2,000 businesses across Somerset with a direct line to policy-makers at all levels.
