Business Committee chair Liam Byrne has welcomed a strengthened government response to MPs' recommendations on small firms after sustained scrutiny of the Small Business Strategy.
Ministers will personally sign off annual reports on departmental spending with small businesses. Departments missing their targets will have to update action plans and publish their progress, although no automatic penalty has been set.
The proposed Commercial Payments Bill will introduce mandatory interest and penalties for late payment. The Government has not accepted the committee's call for 30-day payment terms across the economy by the end of the Parliament.
Ministers are also considering longer closure orders for premises linked to persistent crime, consulting on employment status and commissioning research into franchising. Those steps remain subject to consultation, legislation or further work.
The committee says major gaps remain on energy costs, business rates and tax administration. The Government has not adopted its proposed 25 per cent reduction in the administrative cost of complying with the tax system.
Byrne said the second response represented movement but that small firms still needed affordable bills, enforceable payment rules and realistic access to public contracts. The gains are commitments to stronger processes; they are not yet evidence that payment times or operating costs have fallen.
