Small business strategy: Business and Trade Select Committee inquiry

We recognise that the government has made meaningful progress on supporting small businesses in recent years. The strengthening of the Office of the Small Business Commissioner, including enhanced investigatory powers, is a positive step, as is the appointment of Emma Jones CBE to the role. Initiatives such as Help to Grow and skills bootcamps have also provided valuable support to SMEs seeking to improve management capabilities and digital adoption.

However, further action is needed to address persistent barriers to growth for SMEs. Late payments remain a major issue, with 50,000 firms closing each year due to cash flow problems. AAT supports making the Fair Payment Code mandatory for large firms. The closure of Help to Grow: Digital was a missed opportunity, and SMEs continue to face difficulties accessing finance from traditional banks. A more stable and simplified tax system, improved access to digital support, and better promotion of alternative finance and guidance are essential next steps to allow SMEs to thrive.