PM reveals small firms help during Swindon visit

Sir Keir Starmer said during his visit there is a "strong feeling" big businesses are not paying their bills

The Prime Minister has unveiled a new plan which he says will help small businesses "thrive", by ensuring they receive payments on time.

Sir Keir Starmer and Business and Trade Secretary Jonathan Reynolds visited Swindon on Thursday to reveal their Plan for Change, which includes £4bn more funding for business support and new powers for a Small Business Commissioner.

Under the plan, the commissioner will be able to fine larger firms which repeatedly fail to pay their suppliers on time.

Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), said the announcement is "very welcome".

Sir Keir said: "From builders and electricians to freelance designers and manufacturers, 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."

Of the £4bn of new funding being announced, £1bn will go towards 69,000 start-up loans.

The other £3bn will go to the British Business Bank, which offers small business loans through a scheme called ENABLE.

Loans provided through the scheme come with a government-backed guarantee, the Prime Minister said.

The PM met with small business leaders at Workshed in Swindon

One of those who met the Prime Minister in Swindon was Craig Duff, who owns a sustainable facility management company.

Mr Duff said he does currently struggle to get paid by some of his clients.

"For us, especially in the industry that we're in which is a service-led industry, our average payments [take] 53 days for clients," he said.

"When you're given 30-day terms, when you're waiting 53 days, it hurts.

"He [Sir Keir] said things that look appealing. Hopefully those things will be put into practice and for people like us, we'll see the fruits of that, because at the minute we're not.

"We struggle as a small business."

Jen Smith, a freelance business mentor, said she struggles partly because of a recent rise in National Insurance contributions, introduced by the government.

"I mentor a lot of small businesses who are looking to get more help and they want to grow their business and they want to contribute more, but they can't afford to take on more staff."