London Daily

Focus on the big picture.
Tuesday, Jul 15, 2025

The Government Should Adopt a Digital-Led Approach to Save Britain’s SMEs.

The Government Should Adopt a Digital-Led Approach to Save Britain’s SMEs.

Last year the world moved from paying lip service to digitisation to relying on it. If we are to fully embrace the benefits of digitisation then we need to leverage technology to implement strategic and sustainable change. This starts at the very top.
Earlier this year, the UK Government confirmed £800 million in funding for its ‘blue-skies’ Advanced Research & Invention Agency (ARIA) which will fund research into cutting edge Artificial Intelligence (AI) and data.

This research has immense potential to solve long-standing issues in how we store, process and harness data across both the Government and industry. However, the UK Government needs to ensure a harmonised, inclusive approach so that practical uses for the research can be identified and built in tandem with innovation across both the private and public sectors. One way for the Treasury to protect SMEs in the long term is by harnessing innovative technology through institutions such as ARIA. Adopting technology-driven solutions can ensure that SMEs build steady cash flow and resilient supply chains. This will support long-term recovery without burdening the taxpayer.

In 2019, late payments to SMEs amounted to over £23.4 billion – this figure has increased since the pandemic to a staggering £50 billion. AI enables corporates to identify and flag the very few problematic invoices while paying the rest straight away. This technology allows SME suppliers to be paid instantly while large corporates pay on their normal terms. Small businesses unlock much-needed liquidity while large corporates strengthen their supply chains at minimal cost. A true win-win for business that doesn’t cost the taxpayer a penny.

The Government has taken some steps to tackle the late payment crisis. Most recently, it appointed a new Small Business Commissioner, Liz Barclay, and strengthened the Prompt Payment Code (PPC), which reduces the time businesses must pay SME suppliers from 60 days to 30. However, its efforts fall short of the change needed to unlock the billions held up in slow payments. Technology makes it possible for all corporates to pay suppliers within 24 hours. If AI was integrated into payment systems at scale, the PPC would be rendered redundant. The Government needs to play its part in bringing about a cultural shift in B2B commerce, where prompt payment matches that of the B2C world. After all, a customer couldn’t go into Starbucks and order a coffee, promising to pay in 30 days. Punitive measures can only go so far to prompt this change. Technology is the key to unlocking a new era of equitable B2B payments.

The Government plainly understands the role of data in the UK’s future but must ensure a coordinated approach to create innovative solutions that truly benefit Britons. ARIA is often dubbed the ‘blue skies’ research agency. Aiming high in pursuit of change should certainly be applauded. However, Government inter-departmental coordination and collaboration with industry remain crucial for the agency to be effective. Harnessing AI to tackle the slow payment problem would allow the Government to stimulate an inclusive recovery without further increasing the taxpayer burden. Giving every small business the option of day one payment is just one instance of how the Government could leverage AI and data to implement genuine change.
Newsletter

Related Articles

0:00
0:00
Close
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
×