The government has announced a wide-ranging plan to support small businesses, and if you’re running a hospitality or retail business, it could offer some much-needed breathing space.
While the plan covers many areas, here’s a look at the key changes that matter most for our high streets, shops, cafés, pubs, restaurants and local venues.
Business rates are here to stay
Business rates have long been a major burden for hospitality and retail, especially for small, bricks-and-mortar businesses.
As part of the new strategy, the government is making permanent reforms to the business rates system, including lower multipliers for retail, hospitality and leisure properties. This means that, even after temporary relief schemes end, many businesses will continue to benefit from reduced rates.
Why this matters: This isn’t just a short-term fix. It gives businesses more predictability around costs and makes running a physical location more sustainable.
On her return, she was placed in a much lower-paid job with a £24,000 salary, and when she raised concerns, she was allegedly shouted at in front of other.
Tracking late payments
Late payments don’t just affect B2B businesses. Many hospitality suppliers, wholesalers and service providers are small businesses themselves, and delays in payment can cause real knock-on effects across the supply chain.
The government is introducing new legislation to address late payments, aiming to ensure small firms get paid faster. With late payments currently costing the UK economy £11 billion a year, this is a key step.
Why this matters: Whether you’re waiting on an invoice or managing relationships with suppliers who are, this could bring more stability across the board.
Targeted local funding for 350 communities
Up to 350 towns and local areas will receive funding aimed at boosting economic activity. Though details will vary by region, this could include investment in town centres, high streets and local infrastructure, which all have a direct impact on footfall for hospitality and retail businesses.
Why this matters: If your business depends on local trade, this is about investing in your environment.
Permanent reductions in regulatory costs
The plan includes a commitment to cut business regulatory costs by 25%, which could include streamlining licensing, reporting or compliance processes that particularly affect hospitality and retail.
Why this matters: Less paperwork means more time to focus on your team, your customers and your service.
Tailored business support is coming back
The Business Growth Service – a previously scrapped programme – is being brought back to provide hands-on advice and tailored support to small businesses.
Why this matters: Running a small business often means figuring things out on your own. Getting access to actual, personalised guidance could help with hiring, finances, compliance or digital adoption.
Your next steps
This plan isn’t a silver bullet, and the real impact will depend on how quickly and effectively the measures are rolled out. But for hospitality and retail – two of the hardest-hit sectors in recent years – it’s a signal that the government is finally trying to create a more stable, supportive environment.
If you run a small business in these sectors, now’s the time to:
- Keep an eye out for updates from your local council on funding or rate changes
- Talk to your accountant or business adviser about new financing or relief schemes
- Explore training or tech opportunities through government-backed programmes
