New Grants, Loans, and Digital Reforms Here's what's changing for entrepreneurs

The UK government has rolled out a series of practical, high-impact reforms in 2025 to support small businesses. Small businesses are finally receiving targeted support after years of navigating economic uncertainty. Your Company Formations says in 2024 alone, over 5.5m UK SMEs faced rising operational costs and administrative burdens, with 68% citing compliance as a major growth barrier.

Now, with the rollout of new government reforms, including regulatory simplification, digitised filing systems, and a £500m expansion to the Growth Guarantee Scheme, there's a clear shift toward cutting red tape and empowering SME growth. These changes are especially significant for high-demand sectors like home improvement and design, which saw a 14% year-on-year increase in new business registrations.

Four Key UK Reforms Every Business Should Know
1. Less Paperwork, More Progress: Companies House Goes Digital
Starting in autumn 2025, small business owners will benefit from a more streamlined and digital-first approach at Companies House. A key change is that businesses will no longer be required to maintain certain statutory registers, reducing red tape and simplifying compliance. Plans to introduce more complex reporting rules have also been paused, meaning simplified accounts will remain the norm for smaller companies. Combined with faster, clearer online services, these changes aim to cut administrative burdens and free up valuable time for owners to focus on what matters most: growth.

2. Easier Access to Finance: Growth Guarantee Scheme Gets a £500M Boost
Need a loan to manage cash flow or fund new opportunities? The Growth Guarantee Scheme (GGS), managed by the British Business Bank, is offering loans of up to £2m with 70% of each facility backed by the government. In April 2025, the government injected an additional £500m into the programme to help more viable businesses access funding. With a growing network of nearly 50 accredited lenders, the scheme has already delivered over £2.1bn across 13,000+ loan facilities. Whether you're facing import/export challenges or simply need working capital to expand, GGS is designed to reduce lender risk and improve access to finance for SMEs.

3. Business Growth Service: One-Stop Platform for SME Support
Launching later this year, the Business Growth Service is a digital platform that brings together everything an SME might need in one place: from funding information and regulatory guidance to export support and skills training. The aim is simple: to eliminate the frustrating, time-consuming process of navigating fragmented advice channels. The platform will also connect business owners to regional and local authorities, ensuring support is tailored to each company's specific needs. In short, this is your new digital HQ for business development.

4. £500m in New Funding to Back Diverse Entrepreneurs
In a bold move to close the gap in venture funding, the UK government has announced a £500m commitment to boost underrepresented entrepreneurs. That includes:

• £400m via the British Business Bank to support diverse fund managers and micro-funds.
• £50m to double backing for female-led VC funds.
• A goal for 50% of investments to go to female fund managers.

This initiative forms part of the broader Plan for Change, aimed at correcting long-standing inequalities in business funding, where, for example, women still receive just 2p of every £1 of venture capital.

How these reforms affect home improvement businesses
Whether you're a local tradesperson, a family-run supplier, or a growth-stage home interiors firm, these reforms unlock new advantages:

• Faster registration and compliance saves precious time on administrative tasks.
• Government-backed loans offer affordable capital to invest in new tools, hires, or inventory.
• Diversity-focused funding means more inclusive growth for women and minority-led businesses in construction and design.
• A single digital support hub ensures you can find grants, advice, and training, without bouncing between agencies.

These policies translate into more time on-site, more margin for investment, and less friction when scaling your business.

"In 2025, the UK small business landscape is seeing long-awaited and meaningful reforms. The government's recent SME-focused measures are practical changes that will impact how entrepreneurs start, run, and scale their companies. The £500m cash boost to the Growth Guarantee Scheme, for instance, is a welcome development.

It offers access to growth capital without the traditional friction of complicated application processes or limited eligibility. We're also seeing changes to statutory filing requirements that make compliance easier, especially for micro-businesses that don't have in-house legal or accounting teams.

One of the biggest wins this year is the launch of the new Business Growth Service: a single digital platform that consolidates guidance, funding information, and regulatory advice. This kind of centralisation is exactly what time-strapped founders need. Equally important is the government's £500m commitment to backing women-led, minority-owned, and underserved businesses, groups that have historically faced barriers in accessing venture capital. It's a signal that inclusivity and economic growth can, and should, go hand in hand.

We've seen a noticeable uptick in clients taking action, registering businesses faster, and accessing support with more clarity. For entrepreneurs, 2025 feels different. It feels like the system is finally catching up to their needs," says Business Expert, Robert Carter from Your Company Formations.