King's Speech - Small businesses told help is coming… but so are more rules

13 May 2026

By Liz Barclay

13 May 2026

Liz Barclay

Britain’s small businesses have spent years being battered by soaring costs, late payments, tax rises and endless red tape — and now the King’s Speech has landed with a fresh mix of hope and anxiety. Hidden behind the royal ceremony and political soundbites is a legislative bombshell that could finally force big firms to pay invoices on time, shake up unfair markets and ease exporting headaches — while also piling new rules, levies and compliance costs onto already exhausted small business owners fighting simply to stay afloat.

Photo by Liliana Moraru on Unsplash

Small and micro businesses across Britain were left reeling today as the Background Notes to the King’s Speech revealed a raft of new laws that could shake up how they trade, hire, get paid and survive.

Buried inside the Government’s 129‑page briefing document are the real details and they show just how much is about to change for the UK’s 5.5 million small firms.

1. At last: A Crackdown on Late Payment

Small Business Protections (Late Payments) Bill

The Government is finally taking aim at big firms that treat small suppliers like free credit lines with:

Tougher rules on late payment
Stronger enforcement powers
A legal framework to protect small businesses from cash‑flow chokeholds

What it means: Small firms could finally get paid in a maximum of 60 days and on time, instead of waiting 90 or even 120 days while bigger companies sit on their cash.

2. RED TAPE CUTTING (OR SO THEY SAY…)

Regulating for Growth Bill

The Government promises to “reduce regulatory friction” and make it easier for businesses to invest and grow. If delivered properly, this could slash admin time for micro‑firms drowning in compliance. But small businesses have heard this before so the jury’s out.

3. FAIRER MARKETS: BIG FIRMS IN THE CROSSHAIRS

Competition Reform Bill

This bill aims to modernise competition rules and stop dominant companies squeezing out smaller rivals. This could mean better protection for independent retailers, manufacturers and service providers who struggle to compete with giants.

4. FINANCE SHAKE‑UP: COULD IT HELP SMALL FIRMS BORROW?

Enhancing Financial Services Bill

The Government wants a more competitive financial sector. Potentially that could make for easier access to finance for small firms, but details are thin on the ground as yet. It could mean new lending products, but there won’t be miracles overnight.

5. CLOSER EU ALIGNMENT: GOOD NEWS FOR SMALL EXPORTERS

European Partnership Bill

The plans include aligning UK rules with the EU in areas like food standards, carbon trading and electricity markets. This could mean:

Easier exporting for small manufacturers
Fewer border headaches
More predictable standards

However, food producers may face new compliance costs.

6. BIG INFRASTRUCTURE SPEND: BOOST FOR REGIONS

Northern Powerhouse Rail Bill & Highways (Financing) Bill

Major transport upgrades are back on the table which means better connectivity, more customers, more footfall and more trade, especially for small firms outside London.

7. CLEAN WATER BILL: GOOD FOR TOURISM, TOUGHER FOR MANUFACTURERS

The Government is tightening rules on water pollution which means:

Boost for hospitality, tourism and coastal businesses
Possible new compliance costs for small manufacturers and food producers

8. LEASEHOLD & GROUND RENT REFORM: RELIEF FOR HIGH STREET TRADERS

Commonhold and Leasehold Reform Bill

There are to be major changes to leasehold rules. Small shops, salons, cafés and studios could see lower ground rents and fairer lease terms which would be a lifeline for struggling high streets.

9. OVERNIGHT VISITOR LEVY: TOURISM FIRMS WORRY

Overnight Visitor Levy Bill

Councils may be allowed to charge tourists a small nightly fee which means more funding for local services but small B&Bs and guesthouses fear extra admin and higher prices for guests.

THE BOTTOM LINE

The Background Notes which outline some of the details behind the headlines of the King’s Speech show the Government is trying to look pro‑business. However, small firms will be watching closely to see if the end results amount to real change. The ingredients that go into any proposed bill may not all survive the parliamentary process, and the result could be Acts that bears little resemblance to the first drafts of the Bills.

If there are winners, they should be small suppliers (late payment crackdown), exporters (EU alignment), High‑street tenants (leasehold reform) and regional businesses (transport investment).

In other cases, there are risks and there could be losers: manufacturers (environmental compliance); tourism micro‑firms (visitor levy admin); anyone relying on “red tape cuts” that may or may not materialise.

Key Measures in the King’s Speech (2026)

The 2026 King’s Speech set out 35 bills covering economic security, business regulation, housing, energy, and public services. Several of these have direct implications for small and micro businesses.

The most relevant measures for SMEs are drawn from the official Lobby Pack and press coverage. Sources:

1. Small Business Protections (Late Payments) Bill

What it does:

Strengthens rules on late payment
Introduces tougher enforcement
Supports the Government’s wider small business plan

This should result in small & micro businesses:

Faster payments, improved cashflow, fewer disputes
Critical for survival: Late payment is the No.1 cause of SME failure
Likely to reduce admin burden by standardising payment practices

2. Regulating for Growth Bill

What it does:

Reforms regulation to support economic growth
Aims to simplify compliance and reduce burdens

Small & micro businesses:

Potentially positive: Could reduce red tape and compliance costs
Depends on implementation: SMEs need genuine simplification, not new layers of rules

3. Competition Reform Bill

What it does:

Updates competition rules
Strengthens protections against unfair market practices