The Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Accountants in England and Wales (ICAEW) have expressed their support for the small business plan recently unveiled by the UK Government.
The plan includes measures to fix fundamentals by legislating to end late payments, which cost the UK economy £11bn per year, and cutting regulatory costs by 25%.
It also aims to unlock access to finance by expanding start-up loans to offer 69,000 new businesses finance and mentoring, boosting access to finance through the British Business Bank’s Growth Guarantee Scheme and increasing the capacity of the ENABLE programme by £3bn to £5bn.
Commenting on the plan, CIMA management accounting chief executive Andrew Harding said: “The small business plan published today is a welcome addition to the wider UK Industrial Strategy, and incorporates numerous measures that CIMA has consistently advocated for on behalf of our members and the SMEs [small and medium-sized enterprises] they work for and assist.
“To unlock the full growth potential of the SME sector, it is vital that we establish clear and measurable indicators of success. The next phase must involve translating this strategy into actionable, multi-year business plans that are realistic, properly resourced and aligned with the UK’s Industrial Strategy. These plans should be underpinned by metrics that capture the distinct characteristics and contributions of SMEs to the wider economy.”
Additionally, the strategy will back the everyday economy through community funding for up to 350 places and business rate reforms including permanently lower business rates multipliers for high street retail, hospitality and leisure properties.
The plan also focuses on future-proofing business skills through technology adoption and investing £1.2bn in skills and apprenticeships.
Furthermore, it aims to open opportunities through a new Business Growth Service and by expanding UK Export Finance’s capacity by £20bn to £80bn.
ICAEW chief executive Alan Vallance stated: “Small businesses are key to growth, and it is important that they can operate in the best environment to propel them into the business stars of the future, creating more growth, employment and prosperity for all parts of the UK.
“Chartered accountants are central to this story. As trusted business advisers, they provide expertise and acumen to allow small businesses to thrive and scale up, and often set up small businesses of their own.
“The publication of the Small Business Strategy is an important development to help small businesses realise their potential. With its ambition on entrepreneurship, business advice, late payments and export potential, as well as its close links to the UK Modern Industrial Strategy and Professional and Business Services Sector Plan, it is clear that chartered accountants will make a strong contribution to its success.”