Whether you are a first-time entrepreneur or an experienced investor exploring business setup in Dubai, understanding the Dubai Unified License (DUL) is essential.

Introduced as part of Dubai’s ongoing effort to modernise its regulatory environment, the DUL represents a significant shift in how businesses are registered, identified, and managed across the emirate. It is not just a bureaucratic update — it is a fundamental change in how the government, financial institutions, and businesses interact with one another. For anyone looking to establish or grow a company in Dubai, the DUL is a framework worth understanding thoroughly.

Understanding the Dubai Unified License

The Dubai Unified License is a consolidated business registration system that assigns every legally operating business in Dubai a single, unified identification number. Before its introduction, businesses often had to deal with multiple licenses, permits, and registrations issued by different authorities — from the Department of Economy and Tourism (DET) to various free zone regulators and federal bodies. Each of these came with its own renewal cycle, compliance requirements, and administrative overhead.

The DUL changes this by creating one authoritative number that ties together all of a company’s regulatory touchpoints. Think of it as a digital identity for your business — one that is recognised across government platforms, banking systems, and compliance frameworks simultaneously.

Who Receives a DUL Number and How the System Works

Any business that is legally registered in Dubai — whether on the mainland or within a free zone — is eligible to receive a DUL number. The number is issued as part of the registration process and becomes the primary identifier for the business across all official interactions.

Once assigned, the DUL number links your trade license, business activity classifications, ownership structure, and contact details into a single digital profile. This profile is accessible to authorised government entities and financial institutions, allowing them to verify your business quickly and accurately without requiring repeated submissions of the same documents.

For free zone businesses in particular, the DUL creates a bridge between the free zone authority and mainland regulatory bodies, making cross-jurisdiction operations smoother and more transparent. This is especially valuable for companies that operate in both environments or that have clients and partners across mainland Dubai and the wider UAE.

Why the DUL Matters for Banking and Financial Compliance

One of the areas where the Dubai Unified License has the most immediate and tangible impact is banking. Corporate banking in the UAE has a reputation for being thorough — banks conduct rigorous due diligence before opening accounts, and the process can be lengthy even for legitimate, well-structured businesses.

The DUL addresses this directly. Because it provides banks with a verified, government-backed identifier that consolidates your business information, the due diligence process becomes significantly more efficient. Banks can access your business profile through integrated systems, reducing the volume of documents they need to request independently and speeding up the internal approval process.

This matters enormously for new businesses. Delays in opening a corporate bank account can hold up everything from paying suppliers to receiving client payments. A faster, more reliable banking onboarding process means businesses can become operational more quickly and with less financial strain during the critical early months.

Beyond account opening, the DUL also simplifies ongoing banking compliance. Requirements around anti-money laundering (AML), know-your-customer (KYC) updates, and periodic account reviews are all made easier when the bank can reference a single, up-to-date business identifier rather than piecing together information from multiple sources.

Tax Registration and Staying Compliant in the UAE

The UAE’s tax landscape has evolved considerably in recent years. With VAT introduced in 2018 and corporate tax now in effect, businesses operating in Dubai have real and ongoing obligations to the Federal Tax Authority (FTA). Staying on top of these obligations requires accurate, consistent record-keeping — and this is where the DUL proves its value once again.

The DUL links directly to your FTA tax registration profile, ensuring that your trade license information and your tax records are aligned. This reduces the risk of discrepancies that can trigger audits or penalties, and it makes the process of filing VAT returns and corporate tax submissions more straightforward.

For SMEs and startups that may not have a dedicated finance team, this integration is particularly valuable. Rather than manually reconciling information across different government portals, business owners can rely on the DUL framework to keep key records consistent and current.

It is also worth noting that tax compliance in the UAE is taken seriously. Penalties for late registration, incorrect filings, or failure to maintain proper records can be significant. The DUL does not eliminate the need for professional accounting and tax advisory support, but it does reduce the administrative burden that often leads to errors in the first place.

About Meydan Free Zone

Meydan Free Zone is one of Dubai’s most dynamic and strategically positioned free zones, offering businesses a compelling combination of flexibility, prestige, and efficiency. Located in the heart of Dubai, Meydan Free Zone allows companies to access the UAE market and beyond while benefiting from a straightforward and fully digital licensing process.

Unlike many free zones that cater to specific industries, Meydan Free Zone supports a wide range of business activities — from consulting and media to trading and technology. This makes it an attractive option for entrepreneurs and investors across sectors who want the benefits of a free zone structure without being confined to a narrow set of permitted activities.

Meydan Free Zone is also fully aligned with the Dubai Unified License framework, ensuring that businesses registered there benefit from all the compliance, banking, and tax advantages that the DUL provides. Combined with access to a vibrant business community and the iconic Meydan district, it offers a launchpad that is hard to match anywhere else in the region.

For entrepreneurs looking for business setup in Dubai, Meydan Free Zone represents a smart, future-ready choice — one built for the pace and ambition of modern business.

Read more:
What Is a Dubai Unified License (DUL) and Why Does Your Business Need It?

Marketing reports are good at the beginning of the story. Channel performance, session data, click-through rates, and cost per click.

The traffic arrived, the ad was seen, and the link was followed. What the report rarely tells you is what happened next, specifically, whether any of it converted to revenue, and if so, how.

For businesses where the phone is a primary conversion channel, this gap is not a minor footnote. It is a structural problem in how marketing performance is measured. The click is documented. The phone call that followed it, days or weeks later, is not. That missing chapter is where a significant share of actual revenue lives, and call tracking reveals it.

The post-click blind spot in marketing analytics

Digital marketing analytics platforms are built around online behaviour. They track what happens on the site, which pages were visited, how long a session lasted, and whether a goal was completed. Google Analytics 4 (GA4) captures events, conversions, and engagement with considerable granularity. What it does not capture by default is what a prospect does after they leave the browser and pick up the phone.

For many sectors, that is precisely where the conversion happens. Legal, financial services, healthcare, property, and home improvements. Prospects research extensively online, but they convert by calling. The digital analytics record shows a session that ended without an online conversion. The actual outcome, a phone call, a booked appointment, or a sale, is absent from the data.

The result is a marketing report that accurately describes campaign activity but misrepresents campaign performance. Impressions, sessions, and click-through rates are all present. Revenue attribution is not. The chapter that would connect the marketing spend to the commercial outcome is missing.

How attribution models fail without call data

Attribution modelling attempts to assign credit to the touchpoints that contribute to a conversion. Last-click, first-click, linear, time-decay, data-driven. Each model has its assumptions and its trade-offs. All of them share one limitation: they can only attribute credit to the conversions they can see.

When inbound phone calls are excluded from the conversion dataset, every attribution model produces a distorted output. Last-click models over-credit the final digital touchpoint before a drop-off. Multi-touch models distribute credit across a recorded journey that ends before the actual conversion. Data-driven attribution, however sophisticated, learns from incomplete data and produces correspondingly incomplete conclusions.

The channels, campaigns, and keywords that drove phone calls receive no credit. Those that drove online sessions, even sessions that converted at a lower rate, appear to outperform them. Budget decisions that follow are built on a misreading of which activity is generating returns.

What call tracking adds to the marketing analytics picture

The moment a call is attributed, the post-click story becomes visible. Call tracking connects every inbound call back through the prospect’s journey to the campaign, channel, or keyword that brought them there. That call becomes a conversion event in your analytics stack, sitting alongside form fills and online purchases in your reporting, treated with the same weight as any other commercial outcome.

Urchin Tracking Module (UTM) parameters carry source and campaign data through to the call record. Multi-channel campaign tagging preserves the full journey across every touchpoint, online and offline. The conversion that previously had no entry in your marketing analytics now has a source, a campaign, a keyword, a channel, and a place in the attribution model.

The effect on campaign performance reporting is significant. Channels that were generating calls but receiving no attribution credit see their conversion data increase. Cost per acquisition (CPA) figures recalibrate. Return on ad spend (ROAS) calculations reflect actual revenue contribution. The report begins to tell a complete story.

Pay-per-click: the channel most affected by the missing chapter

Pay-Per-Click (PPC) campaign management is unusually sensitive to the absence of call data, because every optimisation decision responds directly to conversion signals. Keyword bids, ad group structure, landing page testing, and audience targeting. All of it follows the data.

When phone calls are missing from that data, the optimisation process responds to a corrupted signal. Keywords driving high call volumes from qualified prospects appear to underperform on cost per conversion. Budget shifts away from them. Landing pages that are effective at driving calls do not accumulate the conversion data that would protect them from being deprioritised. Bidding strategies optimise toward the conversions that are recorded, not the ones that matter most.

Adding call attribution restores the signal. Keyword performance reflects actual conversion outcomes. Bidding strategies can be set against real CPA targets that include call conversions. The landing page that was quietly driving your most valuable inbound enquiries gets the data it deserves.

The customer journey does not end at the click

One of the more important things call tracking analytics demonstrates is how long and non-linear the customer journey actually is for high-consideration purchases. A prospect might click a paid search ad, read several organic articles, be retargeted via display, and visit the site directly on three separate occasions before calling. The click that appears in the campaign report is one moment in a journey that lasted weeks.

Multi-touch attribution that includes call data gives a more accurate picture of how each touchpoint contributes across that journey. Early-funnel channels, content-led organic activity, and upper-funnel paid campaigns are credited for the influence they actually had. Budget allocation decisions based on this fuller dataset are more strategic, less reactive, and less likely to cut the activity that was quietly driving the most valuable pipeline.

Write the missing chapter

A marketing report without call data is a report about inputs, not outcomes. It describes what your campaigns did, not what they achieved. For any business where the phone is a meaningful conversion channel, the missing chapter is not a gap in the data that can be tolerated. It is the part of the report that would justify the spend, explain the revenue, and tell you where to invest next. The data to write that chapter is already being generated with every inbound call, it just needs to be captured.

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The missing chapter in every marketing report: what happened after the click

For decades, business property relief has been the mechanism that allowed family businesses to pass from one generation to the next without a crippling tax bill. From April, that protection is being substantially reduced, and for the owners of mid-sized family firms, the consequences could be severe.

Under the current system, qualifying business assets attract 100 per cent relief from inheritance tax, meaning the full value of a business can be inherited without any IHT liability. From 6 April, that full relief will be capped at £1 million of combined business property relief and agricultural property relief per estate. Anything above that threshold will qualify for only 50 per cent relief, leaving the excess exposed to an effective tax rate of 20 per cent.

For a family business worth, say, £2 million, the arithmetic is stark. The first £1 million passes tax-free. The remaining £1 million attracts 50 per cent relief, reducing the taxable amount to £500,000. At the 40 per cent IHT rate, the family faces a bill of £200,000. For a £3 million business, the bill rises to £400,000. These are not theoretical numbers; they represent cash that must be found from somewhere, and for many family firms the options are limited to borrowing, selling assets or, in the worst case, selling the business itself.

The government has offered one concession: the tax can be paid in instalments over ten years, interest-free. But spreading the cost does not eliminate it, and for a business that needs every pound of working capital to operate, even staged payments represent a drain on resources.

The numbers behind the family business sector explain why the reforms have provoked such fierce opposition. There are 5.1 million family businesses in the UK, employing 15.8 million people and generating £2.8 trillion in turnover. They are not a niche; they are the backbone of the economy. More than a quarter of firms surveyed now believe they may not remain family-owned within the next decade, with the tax changes cited as a key factor.

Farmers have been particularly vocal, launching a High Court challenge and arguing that land values push many modest-sized farms well above the £1 million threshold despite generating relatively low incomes. But the issue extends far beyond agriculture. Manufacturing firms, construction companies, professional practices and retail businesses with premises and stock can easily exceed the cap without their owners considering themselves wealthy.

The reforms are expected to raise around £500 million a year by 2027, a figure that the Treasury considers significant but which critics argue is modest compared to the economic damage of forcing family businesses into distressed sales or early closures.

For any family business owner who has not yet taken professional advice on succession planning, the time to act is now. Trusts, lifetime gifts, insurance arrangements and restructuring options all take time to implement and must be in place well before they are needed. Waiting until a health crisis forces the conversation is a recipe for the worst possible outcome.

Read more:
Inheritance tax is coming for family businesses – and the £1 million cap changes everything

A quiet revolution in small business finance has reached what may be a turning point. Challenger and specialist banks now account for 60 per cent of all lending to UK small businesses – a figure that would have seemed implausible a decade ago, when the traditional high street lenders still controlled the market.

The shift has been dramatic. As recently as 2012, Lloyds, NatWest, Barclays, HSBC and Santander between them held 61 per cent of SME lending. Today that share has effectively been inverted, with newer entrants such as Allica Bank, OakNorth, Starling and a growing roster of specialist lenders capturing the ground that the big banks vacated in the years after the financial crisis.

For the first time in more than a decade, however, the challengers’ market share has plateaued. The 60 per cent figure is unchanged from the previous year, raising the question of whether the disruption of the SME lending market has reached its natural ceiling, or whether the high street banks are finally mounting a serious fightback.

There are signs of the latter. Lloyds has announced plans to make £9.5 billion available to small businesses, while a consortium of major banks has committed £11 billion to support SME exporters. Barclays has launched a £22 billion lending fund and made conspicuous moves to revive relationship banking, including bringing back the kind of dedicated business managers that most branches dispensed with years ago.

For small business owners, the competitive dynamic is unambiguously positive. More lenders chasing SME business means better terms, faster decisions and greater choice. The challengers built their market share by doing things the high street banks were not willing to do: lending against commercial property to established businesses that did not fit the big banks’ credit algorithms, offering human decision-makers rather than automated systems, and turning applications around in days rather than weeks.

The question is whether the incumbents’ renewed interest in SME lending represents a genuine strategic commitment or a cyclical response to other parts of their balance sheet becoming less attractive. Small business owners have long memories, and many who were turned away by their high street bank during the credit crunch or the pandemic are unlikely to rush back simply because the same institution is now advertising its enthusiasm for SME lending.

The practical advice for any small business looking for finance is to shop around more aggressively than ever. The lending market is more fragmented and more competitive than at any point in recent memory. A business that approaches only its existing bank is almost certainly leaving better deals on the table.

It is also worth noting that the total stock of SME lending rose to £68 billion in 2025, suggesting that the overall supply of credit to small businesses is increasing even as market shares shuffle. For a sector that has spent years complaining about a lending gap, that trend, if it continues, is the most significant development of all.

Read more:
Challenger banks now hold 60 per cent of small business lending – and the high street wants it back

For a generation of business owners approaching retirement, selling to an employee ownership trust looked like the perfect exit.

The business passed to the people who built it, the founder walked away with a tax-free gain, and everyone involved could feel good about the outcome. Now the picture is more complicated.

Employee ownership trusts were introduced in 2014, modelled on the John Lewis partnership and designed to encourage a form of succession that kept businesses intact and employees invested in their success. The tax incentive was generous: sellers who transferred a controlling stake to an EOT paid no capital gains tax on the proceeds. Over the following decade, the number of EOTs grew from a few hundred to around 2,500, with well-known names including Go Ape, Richer Sounds and The Entertainer among them.

The surge in popularity, applications jumped 40 per cent in 2023-24 alone, with the number of people declaring an EOT sale on their tax return rising 149 per cent, attracted the attention of the Treasury. Ministers became concerned that the relief was being exploited, particularly through offshore structures where EOT trustees would quickly resell the business to another buyer, allowing the original owner to pocket the proceeds entirely tax-free without any meaningful transfer of ownership to employees.

The government’s response has been a crackdown. New rules ban offshore EOT structures and introduce a four-year clawback clause, meaning sellers could lose their capital gains tax exemption if the business is sold on within four full tax years, up from just one previously. The effect has been swift: the Employee Ownership Association reports that EOT sales fell from 550 in 2024 to an expected 350 in 2025, a drop of more than a third.

For the small business owner who was genuinely considering employee ownership as a succession route, not as a tax dodge but as a way of securing the future of the business and rewarding loyal staff, the tightened rules are frustrating but not fatal. The core tax benefit remains intact for genuine transfers. The CGT exemption still applies where the sale is a bona fide transfer of control to employees with the intention of maintaining the business as an employee-owned entity.

What has changed is the level of scrutiny and the consequences of getting it wrong. Advisers report that sellers are now being more carefully questioned about their intentions, that the four-year clawback clause requires a longer-term commitment to the EOT structure, and that the professional fees involved in setting up a compliant trust have risen.

For small business owners exploring their exit options, the message is that employee ownership remains a viable and attractive route, but it is no longer the quick, clean, tax-free transaction that it appeared to be two years ago. Professional advice is essential, the timeline is longer, and the commitment must be genuine. Businesses that approach it on those terms will still find the model works. Those looking for a shortcut will find the door has closed.

Read more:
Employee ownership was booming – then the taxman changed the rules

It is one of the most perverse incentives in the British tax system, and HMRC’s own data now confirms what accountants and small business owners have been saying for years: thousands of firms are deliberately holding back growth to avoid crossing the £90,000 VAT registration threshold.

The numbers are striking. In the year to December 2025, 683,700 businesses reported turnover below the threshold, up from 671,000 a year earlier. Over the same period, the number of firms in the £90,000 to £150,000 bracket fell to 280,400 from 306,300. The bunching effect just below the line is unmistakable.

The reason is simple arithmetic. A sole trader or small business that crosses the £90,000 threshold must register for VAT and begin charging 20 per cent on top of their prices. For a business selling to consumers who cannot reclaim the tax, that either means a sudden price hike that risks losing customers, or absorbing the VAT and accepting a sharp cut to margins. Either way, the jump from £89,999 to £90,001 in turnover can leave a business materially worse off, a cliff edge that punishes growth rather than rewarding it.

The behavioural consequences are playing out across the economy in ways that should alarm policymakers. Industry advisers report that cafés and shops are reducing opening hours or closing on quieter days. Tradespeople are capping their workload or switching to four-day weeks. Some businesses are engaging in “business splitting”, separating activities into distinct legal entities to keep each one below the threshold.

None of this is illegal, but all of it represents productive capacity being left on the table. A plumber who could take on two more jobs a week is deliberately turning them down. A bakery that could open on Sundays is keeping its shutters down. A growing consultancy is declining new clients rather than crossing the line. In aggregate, the effect on employment, output and tax receipts is substantial, and entirely self-inflicted by a system that creates a penalty for success.

The House of Commons business and trade committee weighed in during February, warning that the threshold was “actively discouraging” firms from growing, particularly in labour-intensive sectors where margins are already thin. MPs called for reform, but no concrete proposal has yet emerged from the Treasury.

The policy options are well understood. A smoothing mechanism, gradually phasing in the VAT charge above the threshold rather than imposing it as a cliff edge, would remove much of the disincentive. Raising the threshold itself would take more businesses out of the system entirely, though at a cost to the Exchequer. A flat-rate scheme for the smallest firms already exists but is too complex and too poorly understood to solve the problem at scale.

For now, the choice facing tens of thousands of small business owners remains the same: grow and accept a sudden tax hit, or stay small by design. It is a choice that no sensible tax system should force, and until the Treasury acts, it will continue to hold back precisely the entrepreneurial energy that the government claims to want to unleash.

Read more:
The £90,000 ceiling that is quietly stopping small businesses from growing

The jobs carnage that business groups warned would follow the chancellor’s tax increases is no longer a forecast. It is showing up in the numbers.

New research from Rathbones reveals that one in five UK small and medium-sized businesses cut staff over the past year, with hospitality firms bearing the heaviest burden. More than a third of hospitality SMEs reported making redundancies, well above the average across all sectors, and 69 per cent said increased taxation or regulation now represents one of the biggest threats to their survival.

The principal culprits are not hard to identify. Employer national insurance contributions rose from 13.8 per cent to 15 per cent in April 2025, while the threshold at which the charge kicks in was slashed from £9,100 to £5,000 per employee. Taken together, the changes amount to a £25 billion hit on business payrolls, a burden that falls disproportionately on labour-intensive small firms that cannot easily absorb the cost through automation or scale.

The Rathbones survey paints a picture of businesses that have already exhausted the obvious coping strategies. Seventy per cent cite rising costs as the single biggest threat to their business. Fifty-eight per cent point to taxation and regulatory burdens. Business rates and employer NICs are singled out as the most painful pressure points.

What is particularly telling is how businesses are adapting. Nine per cent have increased their use of freelancers and contractors, a shift that reduces NICs liability but carries its own risks under tightening employment status rules. Another nine per cent have moved towards part-time or flexible roles, restructuring their workforce to manage the per-head cost of employment.

For hospitality and retail businesses, where margins have always been thin and where staff costs represent the largest single expense, the arithmetic has become brutal. A small restaurant employing fifteen people on or around the national living wage will have seen its annual NICs bill rise by several thousand pounds, on top of the minimum wage increase itself. Add business rates, energy costs and food price inflation, and the operating model that worked two years ago may simply no longer be viable.

More than half of SME leaders surveyed, 51 per cent, said that targeted relief on business rates or employer NICs would directly support their ability to grow and invest. That is not a request for handouts; it is a statement of economic reality from the businesses that employ the majority of the UK workforce.

The danger for the wider economy is that small firms respond to the cost squeeze not by cutting once and recovering, but by permanently downsizing their ambitions. A business that lays off two people this year and decides not to replace them next year is a business that has quietly accepted a smaller future. Multiply that across hundreds of thousands of firms and the aggregate effect on employment, productivity and growth becomes significant.

For small business owners navigating these pressures, the immediate priority is honest cash flow planning. Hoping that costs will ease or that relief will arrive in the next Budget is not a strategy. The businesses that come through this period in the best shape will be those that have looked hard at their numbers, made difficult decisions early and found ways to protect the core of their operation, even if that means a leaner version of what they had before.

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One in five small firms have already cut staff – and the worst may not be over

The Employment Rights Act 2025 is no longer something to worry about later. The first wave of changes takes effect from 6 April, and for small employers who have not yet reviewed their contracts, policies and processes, the runway has all but disappeared.

The headline change for most small businesses is the introduction of day-one rights to paternity leave and unpaid parental leave. Until now, employees needed 26 weeks’ continuous service to qualify for paternity leave and a year for parental leave. From April, both become available from the first day of employment. The notice period for paternity leave has also been temporarily reduced from 15 weeks to 28 days, giving new fathers and partners greater flexibility.

For a small business employing ten or twenty people, this is not merely an administrative adjustment. It changes the calculation around hiring. A new employee could, in theory, start on a Monday and give notice of paternity leave on the Tuesday. While the practical likelihood of that scenario may be slim, the legal entitlement will exist, and employment contracts and staff handbooks need to reflect it.

Statutory sick pay also changes from 6 April, with the three-day waiting period abolished and the lower earnings limit removed, as covered in detail elsewhere. But there is another April change that small employers should pay particular attention to: the maximum protective award for failure to properly consult on collective redundancies doubles from 90 days’ pay to 180 days’ pay. For any small business contemplating restructuring, the cost of getting the consultation process wrong has just increased significantly.

The bigger changes, the ones that business groups lobbied hardest against, are coming later. Protection against unfair dismissal from day one, subject to a new statutory probation period of nine months, is expected to take effect from January 2027. The ban on fire-and-rehire practices, which will make it automatically unfair to dismiss someone for refusing worse contractual terms, is also scheduled for early 2027. From October 2026, dismissing someone for refusing certain contract changes covering pay, pensions, hours, shift patterns or holiday will become automatically unfair except where the employer faces genuine financial difficulty.

Small employers should not make the mistake of thinking the 2027 changes are somebody else’s problem. The preparatory work, reviewing probation clauses, tightening performance management processes, ensuring dismissal procedures are robust, needs to begin now. Employment tribunals do not look kindly on businesses that claim ignorance of legislation that has been on the statute book for months.

The government has published guidance to help businesses prepare, and Acas has updated its advisory materials. For small firms without in-house HR expertise, a conversation with an employment solicitor or HR consultant before April is money well spent. The cost of compliance is modest. The cost of getting it wrong, in tribunal claims, protective awards and reputational damage, is not.

Read more:
The Employment Rights Act lands today – here is what small employers must do now

Ambitious smaller companies hunting for a route onto the national stage have been handed an unusually tangible incentive.

ITV has struck a media partnership with the Lloyds British Business Excellence Awards that will hand one winning British business £500,000 of airtime across the broadcaster’s channels and its ITVX streaming service in 2026.

Organisers believe the package, christened the ITV Growth Accelerator Award, is the most commercially valuable prize ever attached to a single company by a UK business awards programme. Rather than simply recognising achievement with a trophy, the new category is pitched as a working growth tool: a half-million-pound marketing budget that most scaling firms could not ordinarily contemplate.

The award is aimed squarely at companies that have built strong momentum regionally and are now straining against the limits of their local reach. Judges will be looking for evidence of rapid growth, credible leadership and a clear appetite to expand at pace, with the winner gaining access to audiences numbering in the millions across ITV’s linear schedule and on-demand platform.

Kate Waters, director of client strategy and commercial marketing at ITV, said television remained one of the quickest ways for an emerging brand to build recognition, win customers and establish credibility. The prize, she added, was intended to strip away the cost barrier that typically keeps smaller firms off the nation’s screens.

For the awards programme, the tie-up marks a deliberate shift in philosophy. Sarah Austin, the awards director, said British companies were operating in a difficult economic climate and that the partnership was designed to reward performance with practical commercial firepower rather than applause alone. The aim, she said, was not only to celebrate success but to help manufacture it, giving one standout business the chance to reset its growth trajectory through mainstream television exposure.

The Lloyds British Business Excellence Awards has long been regarded as a bellwether for the health of UK enterprise, spanning leadership, innovation, customer experience and sustainable growth across firms of every size. The 2026 ITV partnership suggests that business awards are increasingly expected to do more than hand out silverware, and that for owner-managed companies with ambitions beyond their postcode, the prize on offer this year may be worth taking seriously.

Read more:
ITV dangles £500,000 TV advertising prize for Britain’s fastest-growing smaller firms

NatWest has announced plans to grow its entrepreneur Accelerator community to 50,000 members by the end of the year, a fivefold increase on its 2025 target and a signal that the bank sees small business support as central to its commercial strategy.

The ambition is not as fanciful as it sounds. In 2025, NatWest exceeded its own goal by building the community to around 12,000 members, surpassing in a single year the total number it had supported over the previous decade. The programme, which provides mentoring, workspace, peer networks and access to specialist advice, has become one of the more substantive bank-backed support schemes available to UK founders and early-stage businesses.

The numbers behind the programme are worth paying attention to. Companies that completed the Accelerator grew their turnover by an average of 104 per cent year-on-year, compared with 20 per cent growth among a control group. Perhaps more strikingly, nine out of ten Accelerator businesses were still trading three years later, compared with fewer than half of comparable firms that did not participate.

The expansion includes a push into universities, with hubs already established at Manchester, Oxford, York, Brighton and Warwick, and plans to open at up to ten universities over the next three years. The aim is to catch potential founders earlier, embedding entrepreneurial thinking alongside academic study and giving student businesses access to the same networks and resources as more established firms.

For small business owners who are past the start-up phase but still growing, the programme offers something that many find harder to access than capital: structured peer support and expert guidance. Running a small business can be an isolating experience, and the evidence consistently shows that founders who have access to mentors and a community of peers make better decisions, avoid common pitfalls and grow faster.

The Accelerator forms part of NatWest’s broader “Growing Together” plan, a five-point framework that includes backing regional economies, supporting mid-market businesses, strengthening infrastructure investment and improving financial confidence among families and young people. Whether the plan amounts to more than a branding exercise will depend on execution, but the Accelerator itself has a track record that suggests it delivers tangible results.

For any small business owner or aspiring founder who has not yet explored what the programme offers, it is worth a look. The entry point is free, the bank does not take equity, and the practical benefits, workspace, mentoring, access to investors and a network of fellow founders, are the kind of support that most small businesses struggle to find on their own.

Applications are open through the NatWest website, and the bank says it is particularly keen to hear from founders outside London and the South East, reflecting a broader push to support entrepreneurship across every region of the UK.

Read more:
NatWest wants 50,000 entrepreneurs in its accelerator

New sustainability reporting standards are bearing down on UK businesses, and the vast majority of small firms have done next to nothing to prepare.

That is the blunt conclusion of research showing that only 13 per cent of SMEs have put in place the formal measurements and commitments needed to cut their carbon emissions to net zero by 2050.

The figure is all the more concerning because it has not improved since the same survey was carried out in 2024. Two years of headlines about climate targets, supply chain pressure and green procurement, and the needle has not moved.

From 2026, a growing number of firms will be required to comply with new UK Sustainability Reporting Standards, expected to align closely with international climate disclosure frameworks. While the mandatory requirements initially fall on larger companies, the effects are already cascading down the supply chain. Big businesses that need to report on their Scope 3 emissions, those generated by their suppliers, are increasingly asking smaller firms for data, evidence of carbon reduction plans and, in some cases, making sustainability credentials a condition of continued contracts.

For the average small business, this creates an uncomfortable gap between what the market is beginning to demand and what most firms are able to provide. The research found that 82 per cent of SMEs see sustainability requirements as a barrier rather than an opportunity. More than three-quarters are either at an early stage of thinking about their environmental impact or have not engaged with the issue at all.

Yet the same data points to a significant commercial opportunity being missed. SMEs surveyed estimated that improving their sustainability credentials could generate an additional £52,000 in revenue each year, through winning contracts with sustainability-conscious buyers, attracting environmentally minded customers and accessing green finance products that offer preferential terms.

The barriers holding small firms back are familiar: a lack of knowledge about what is required, limited resources to invest in measurement and reporting, and difficulty accessing the capital needed to make physical changes such as improving energy efficiency or switching to lower-carbon suppliers.

None of this is straightforward for a business owner already juggling rising costs, staffing pressures and an uncertain economic outlook. But the firms that are moving, even modestly, are finding that the first steps are neither as expensive nor as complicated as they feared. Measuring energy use, waste and basic carbon output can often be done with free or low-cost tools. Setting a simple reduction target and communicating it to customers and suppliers signals intent, even before significant investment is made.

The risk for small businesses that continue to do nothing is twofold. They miss out on the commercial advantages that sustainability credentials increasingly unlock, and they leave themselves exposed when mandatory reporting requirements eventually extend to smaller firms, as most experts believe they will within the next few years.

Getting ahead of the curve now, even with modest steps, is considerably easier than scrambling to comply under pressure later.

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Most small firms are nowhere near ready for net zero reporting – and the deadline is closing in

Barclays is returning to the high street. After shutting roughly four in five of its branches since 2019, the lender has confirmed it will open new sites, expand existing ones, and bring back a title that many small business owners will remember fondly: the bank manager.

The shift, outlined by Barclays UK chief executive Vim Maru in his first interview since taking the helm in 2024, represents a sharp break from the cost-cutting orthodoxy that has thinned Britain’s branch network for the best part of a decade. It also lands at a moment when app-based challengers, Revolut and Wise among them, are pushing harder into the current account market that has long been Barclays’ bread and butter.

Maru told The Times that pausing branch closures was one of his “early decisions” at the top, and confirmed the lender would grow beyond its current estate of 206 sites. He said he believes the future of banking lies in combining “great digital and great human touch” — a pitch squarely aimed at customers, particularly smaller firms, who tire of being routed through chatbots.

For Britain’s 5.5 million small businesses, the move could prove significant. Owner-managers have long complained that the retreat from physical branches left them without a familiar face to call on for cash handling, lending conversations, or the sort of judgement calls that algorithms struggle with. Maru acknowledged as much, saying innovative businesses in particular “love a bit of human touch”.

Barclays has gone further than any of its major rivals in culling branches, and Maru stopped short of conceding the bank moved too fast. But he said lenders should periodically reassess how they serve customers, and restoring recognisable job titles was part of that. Most customers, he suggested, still want to sit down with a bank manager from time to time.

The new branches will sit alongside the shared banking hubs run through the Post Office, where the big lenders pool services under one roof. Maru did not put a number on the planned openings.

Barclays UK, which employs roughly a third of the group’s 90,000 staff, covers personal accounts and small business banking, and now includes the Tesco credit card arm bought in 2024 and Kensington Mortgages, acquired in 2023 and since doubled in size. The division is central to chief executive CS Venkatakrishnan’s pledge to plough an extra £30 billion into the UK between 2024 and this year.

Maru played down speculation linking Barclays to bids for Santander UK, TSB or wealth manager Evelyn, insisting the focus is on organic growth. He pointed to record mortgage applications last year and faster processing, brokers can now submit an application in 15 minutes, down from 45.

Artificial intelligence is being folded into back-office processes to free up staff time for customer conversations. Asked whether jobs would go, Maru drew a parallel with the arrival of the ATM, which did not wipe out cashiers but instead saw staff redeployed into fraud prevention as scams proliferated.

On the economy, Maru said Barclays’ spending data showed “a bit more anxiety” since the start of the Iran conflict, but that households were largely carrying on. Fuel spending spiked in the first week of the war as drivers filled up ahead of feared price rises, before normalising. Hospitality spending, he added, has “held up”, a modest but welcome signal for small operators across the country.

For small firms weighing up where to bank, the message from Canary Wharf is that the branch is no longer a relic. Whether rivals follow, or leave Barclays to reclaim the high street on its own, will shape the shape of British business banking for years to come.

Read more:
Barclays reopens the high street door as digital-only rivals circle

A few weeks ago, the outlook for small business borrowing costs looked encouraging.

Markets were pricing in an 86 per cent chance of a Bank of England rate cut at the March meeting, with further reductions expected through the year. Business owners who had been waiting to refinance loans, take on new premises or invest in equipment had good reason to feel that relief was on its way.

That optimism has evaporated with remarkable speed. Military escalation between the United States and Iran, drone strikes on Gulf energy infrastructure and the spectre of a wider regional conflict have sent gas prices climbing, gilt yields rising and inflation expectations surging. Within days, the probability of a March rate cut collapsed to less than five per cent. The chance of a move in April is now below even odds.

For small businesses, this is not an abstract macroeconomic story. It is the difference between an affordable loan and an unaffordable one, between expanding and standing still, between managing cash flow and scrambling to cover interest payments.

The Bank of England held its base rate at 3.75 per cent at the March meeting, and the Monetary Policy Committee’s language offered little comfort to those hoping for swift easing. The direction of travel, the Bank indicated, now depends less on domestic economic data and more on developments in the Middle East. If tensions subside and energy prices retreat, the easing cycle could resume. But if the conflict deepens or spreads, expectations of multiple rate cuts in 2026 may quickly disappear.

New survey data from the Bank suggests that businesses themselves are already adjusting their expectations. Firms now anticipate inflation reaching 3.5 per cent over the next twelve months, up from three per cent previously and the highest year-ahead forecast since late 2023. Most now believe there will be at most one rate cut in the next twelve months.

For the 1.8 million mortgage holders facing renewals in 2026, many of them small business owners whose personal and commercial finances are intertwined, the shift is particularly unwelcome. Fixed-rate deals that were beginning to edge downward have stalled or reversed, and lenders are repricing products to reflect the changed outlook.

The practical advice for small business owners is to avoid planning around rate cuts that may not materialise. Anyone sitting on a variable-rate loan or approaching the end of a fixed term should consider locking in now rather than gambling on cheaper rates arriving later in the year. Cash flow forecasts built on the assumption of falling borrowing costs need revisiting.

For businesses that were planning capital investment contingent on cheaper finance, the calculation has changed. That does not necessarily mean shelving plans altogether, but it does mean stress-testing them against a scenario where rates stay at or near current levels for the remainder of the year.

Read more:
The rate cuts small businesses were counting on may not arrive this year

If anyone in your business has used ChatGPT to draft a client email, asked an AI tool to generate a social media image, or fed customer data into an automated system, your firm is already exposed to a set of legal risks that most small business owners have not yet thought about.

Legal experts are warning that 2026 is the year when AI-related liability stops being a theoretical concern and starts showing up in real disputes. The risks range from the obvious, copyright infringement when AI tools reproduce protected material, to the subtle, such as data privacy breaches triggered by employees pasting sensitive information into third-party AI platforms without realising where that data ends up.

Copyright sits at the heart of the problem. Generative AI systems are trained on vast quantities of text, images and code, much of it protected by copyright. When those systems produce outputs that closely resemble the material they were trained on, the question of who is liable, the AI provider, the user, or both, remains legally unresolved. The Getty Images case against Stability AI brought the issue into sharp focus, and while the UK government decided in March to step back from a broad copyright exception for AI training, the legal grey areas have not gone away.

For a small business using AI to produce marketing copy, design assets or website content, the practical risk is real. If an AI-generated image turns out to contain elements of a copyrighted work, it is the business that published it, not the AI tool, that is most likely to face a claim.

Data privacy is equally treacherous territory. Every time an employee enters customer details, commercial data or personal information into an AI chatbot, that data may be processed and stored by a third party in ways that breach UK data protection rules. The Data (Use and Access) Act 2025 has relaxed some requirements around automated decision-making, but the core obligations around consent, transparency and data minimisation remain firmly in place.

Then there is the problem of AI hallucinations, the tendency of large language models to produce confident-sounding but entirely fabricated information. A Microsoft-powered chatbot was recently found to have given incorrect legal guidance to business owners. If a small firm relies on AI-generated advice to make a commercial or regulatory decision and that advice turns out to be wrong, the consequences could be severe.

The common thread running through all of these risks is governance, or rather the lack of it. Many small businesses have adopted AI tools on an ad hoc basis, a staff member signs up for a free trial, another starts using a chatbot for research, without any formal policy on what is and is not acceptable use. Legal advisers describe this as a ticking time bomb.

The fix does not have to be elaborate. A short, clear AI usage policy that sets out which tools staff may use, what data they may input, and what human review is required before AI-generated content is published or acted upon will cover the vast majority of risks. For businesses in regulated sectors, a more detailed governance framework may be needed, but for most small firms, common sense and a written policy will go a long way.

The pace of regulatory change makes this a moving target. New rules can apply across jurisdictions and, in some cases, retrospectively to systems already in use. Small businesses that fail to keep an eye on developments risk falling foul of laws they did not know existed. Staying informed, or having an adviser who is, has become a necessary cost of doing business in the AI age.

Read more:
Your business is probably already using AI – and that is exactly where the legal risk starts

The government has published the names of 389 employers caught underpaying their staff below the national minimum wage – and the list should serve as a sharp warning to every small business owner who assumes the rules are straightforward.

The firms collectively failed to pay 60,000 workers a total of £7.3 million. Financial penalties imposed by HMRC amounted to £12.6 million, with fines of up to 200 per cent of the underpayment, capped at £20,000 per worker. Among the names are household brands including Costa, KPMG and Bupa Care Services, but the list also includes dozens of smaller operators, the kind of businesses that may not have a dedicated payroll or HR function and where errors creep in without anyone noticing.

That is the uncomfortable truth about minimum wage compliance: most breaches are not deliberate. They happen when a uniform deduction accidentally drags an hourly rate below the threshold. They happen when unpaid working time, travel between sites, mandatory training, cashing up after a shift, is not properly accounted for. They happen when rates change in April and payroll is not updated quickly enough.

The timing of this latest naming round matters. It is the final publication before the Fair Work Agency, a new enforcement body created under the Employment Rights Act, begins its work on 7 April. The agency will consolidate the enforcement powers currently spread across HMRC, the Gangmasters and Labour Abuse Authority and the Employment Agency Standards Inspectorate, creating a single body with broader reach and, the government hopes, sharper teeth.

For small employers, that means the compliance landscape is about to become more joined-up. Where previously a small firm might have fallen through the gaps between different enforcement bodies, the Fair Work Agency is designed to close those gaps.

The national living wage itself rises in April, from £12.21 to £12.71 an hour for workers aged 21 and over, equivalent to an annual full-time salary of roughly £24,785. Rates for younger workers and apprentices are also increasing. Any business that has not already updated its pay scales is running a risk that grows with every week of delay.

Employment lawyers advise small firms to conduct a minimum wage audit at least annually, and always when rates change. That means checking not just the headline hourly rate but also whether any deductions, salary sacrifice arrangements or unpaid working time could bring the effective rate below the legal floor. It is a tedious exercise, but considerably less costly than a £20,000 fine and having your business name published on a government website.

The reputational damage of being named may, for many small businesses, matter even more than the financial penalty. Customers, prospective employees and suppliers all notice. In a world where a quick search can surface a naming-and-shaming list, the stain is not easily washed off.

Read more:
Nearly 400 employers named and shamed for underpaying staff – and small firms are not immune

The annual ritual of stuffing receipts into a shoebox and scrambling to file a self-assessment return by 31 January is, for hundreds of thousands of self-employed people, about to become a thing of the past. What replaces it will be considerably more demanding.

From April 2026, sole traders and landlords with income above £50,000 will be required to submit quarterly updates to HMRC through Making Tax Digital-compatible software. Rather than one annual return, they will need to keep digital records throughout the year and file summaries every three months.

The penalty regime is sharp enough to concentrate minds. Miss a quarterly deadline and HMRC will issue an immediate £100 fine. If the return is still outstanding after three months, daily penalties of £10 begin to accumulate, up to a maximum of £900. Leave it longer than six months and the charge rises to £300 or five per cent of the outstanding tax, whichever is greater.

For the self-employed plumber, freelance designer or buy-to-let landlord who has managed their own tax affairs for years, this represents a fundamental change in habit. The days of reconstructing a year’s finances from bank statements and memory in late January are over. HMRC wants near-real-time visibility of trading income and expenses, and it is prepared to fine people who cannot keep up.

The practical burden falls heavily on smaller operators. Larger businesses already running cloud accounting packages such as Xero, QuickBooks or FreeAgent may find the transition relatively painless, most of these platforms are already MTD-compatible or will be by April. But the sole trader who tracks income on a spreadsheet, or worse still on paper, faces a steeper learning curve and the cost of new software subscriptions.

Accountants report that awareness among their smaller clients remains patchy. Many assume the change applies only to VAT-registered businesses, which have been filing quarterly under MTD since 2019. It does not. This is a separate obligation covering income tax, and it will eventually extend to those earning above £30,000 from April 2027 and £20,000 from April 2028.

The advice from tax professionals is consistent: do not wait until April to act. Choose MTD-compatible software now, start recording income and expenses digitally from the beginning of the new tax year, and build the quarterly filing into your routine before the first deadline arrives. The cost of software, typically between £10 and £35 a month, is tax-deductible, which takes some of the sting out.

For small business owners who also hold rental property, the picture is more complex still. Income from self-employment and property lettings may need to be reported through the same MTD system, and the interactions between the two can catch people out.

HMRC has positioned Making Tax Digital as a modernisation programme that will reduce errors and close the tax gap. For the self-employed, it feels more like an administrative step change that demands better record-keeping, better software and, for many, a closer relationship with their accountant than they have been used to.

Read more:
Quarterly tax returns are coming – and the fines for getting it wrong start at £100

If you run a small business with staff who work from home for part of the week, expect some awkward questions in the coming months.

From 6 April, HMRC is scrapping the homeworking tax relief that has been available to employees since 2011,  and many of your team may not yet realise it is going.

The relief, which was worth £6 a week and could be claimed without receipts, allowed employees who were required to work from home to offset a small amount against their income tax. For basic-rate taxpayers that meant a saving of around £62 a year; for higher-rate taxpayers, roughly £124. It was not a fortune, but it was simple to claim and widely taken up, particularly after the pandemic normalised remote working.

The Treasury’s reasoning is blunt. Officials say that more than half of all claims fail verification checks, suggesting that large numbers of people have been claiming the relief despite not meeting the qualifying conditions. By removing the entitlement entirely, HMRC expects to claw back around £30 million a year, a modest sum in Whitehall terms but one that tells a story about the scale of non-compliance.

For small employers, the direct impact is limited. This was always a tax relief claimed by individual employees on their personal returns, not a cost borne by businesses. But the knock-on effects are worth thinking about.

Staff who have been quietly pocketing the relief may look to their employer to make up the difference, particularly if hybrid working was the company’s decision rather than the employee’s preference. Some may push for a formal homeworking allowance or ask for expenses to be reimbursed directly, heating, broadband, the cost of a decent desk chair.

Employers are not obliged to provide any of this, but in a tight labour market where retention matters, ignoring the conversation entirely is a risk. A number of larger firms already pay a flat-rate homeworking allowance as part of their benefits package. For smaller businesses without deep pockets, the smarter move may be to review what is already being provided informally and decide whether to formalise it.

There is also a communication point. If your employment contracts or staff handbook reference the HMRC relief as part of the rationale for hybrid working arrangements, those documents may need a quiet update.

The change is relatively small in financial terms, but it lands at a moment when many employees already feel squeezed. Small businesses that get ahead of the conversation, rather than waiting for the first confused payslip query, will handle the transition more smoothly.

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HMRC scraps homeworking tax relief – and your staff will want to know why

The biggest shake-up to statutory sick pay in a generation lands on 6 April, and for small employers already stretched by rising costs, the changes demand immediate attention.

From that date, the three unpaid “waiting days” that have been a feature of the SSP system for decades will be abolished. Staff who fall ill will be entitled to statutory sick pay from their first day of absence rather than their fourth, a shift that the government says will benefit around 1.3 million additional workers but which business groups warn will land squarely on the shoulders of small firms.

The weekly SSP rate itself rises modestly, from £118.75 to £123.25. But the real sting for smaller employers lies in the structural changes. The lower earnings limit, the threshold below which workers were previously ineligible for SSP, is being scrapped altogether. In its place, a new formula will calculate SSP at 80 per cent of average weekly earnings, or the flat rate, whichever is lower. That means part-time staff, casual workers and those on lower hours who were previously outside the system will now qualify.

The government’s own impact assessment puts the additional cost to employers at roughly £450 million a year across the economy. For a small business employing a dozen people, even a handful of extra short-term absences paid from day one can make a noticeable dent in the monthly wage bill, particularly in sectors such as hospitality, retail and care where sickness absence rates tend to run higher.

HR advisers are urging small firms to review their absence policies now rather than scramble in April. Businesses that currently offer enhanced company sick pay from day one may already absorb SSP within their existing schemes, but those relying on the waiting-day buffer to manage costs will feel the difference immediately.

Payroll systems will also need updating. Any firm still running manual calculations or older software should check with their provider that the new rates and rules are reflected before the first April pay run.

There is a practical wrinkle for absences that straddle the changeover date, too. The government has published transitional guidance confirming that where a period of sickness began before 6 April but continues beyond it, the old rules, including waiting days, will still apply for that particular absence.

For many small employers, this is not simply a payroll tweak. It is a prompt to look again at how absence is managed, how return-to-work conversations are handled, and whether occupational health support could reduce the frequency and length of sickness spells. The firms that treat this as a compliance exercise alone may find themselves absorbing costs that smarter absence management could mitigate.

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Sick pay from day one: what every small employer needs to know before 6 April

More than five thousand small business owners have put their names to an open letter warning the chancellor that the looming business rates revaluation could be the blow that finishes them off.

The letter, signed by 5,500 firms and sent directly to Rachel Reeves, calls on the Treasury to reassess the impact of the revaluation due to take effect on 1 April and introduce meaningful relief measures before it is too late. The language is unusually stark for a business lobbying exercise. Several signatories describe the changes as nothing short of apocalyptic.

Their argument is straightforward: small businesses operating from premises on high streets and in town centres have already absorbed years of compounding cost increases. Rising rents, soaring energy bills, higher insurance premiums, inflation, staffing pressures, Covid-era debt that has never fully been repaid, and successive tax increases have each taken their toll. Many owners say they have cut their own wages, borrowed to stay afloat and worked punishing hours simply to keep the doors open.

Now, with the 2026 revaluation recalculating rateable values to reflect current market conditions, a significant number of small businesses in areas where property values have risen face sharp increases in their rates bills, in some cases by thousands of pounds a year. For a small independent retailer or café already operating on thin margins, the sums simply do not add up.

The concern is particularly acute outside London, where the revaluation is expected to shift a greater share of the overall rates burden onto smaller commercial properties in towns that have seen modest property price growth. Meanwhile, some larger retailers in high-value locations may actually see their bills fall or remain stable, a perverse outcome that the letter’s signatories say makes the system fundamentally unfair.

The government has pointed to transitional relief arrangements designed to phase in the sharpest increases over several years, but business groups argue that these measures are insufficient for the smallest firms. A phased increase is still an increase, and for a business already running at or near its overdraft limit, even a modest annual rise can tip the balance from survival to closure.

What the signatories want is a proper review of business rates for small firms, not tinkering with transitional relief but a structural reassessment of how the system treats the kind of independent, premises-based businesses that give high streets their character and employ local people.

Whether the Treasury listens is another matter. Business rates generate roughly £25 billion a year for local government, and no chancellor willingly gives up revenue on that scale. But the political cost of presiding over a wave of high street closures is not negligible either, and with local elections in sight, the letter may carry more weight than its authors expect.

Read more:
5,500 small firms tell the chancellor that business rates could finish them off

Barclays is pulling back from lending to smaller businesses and private credit firms after suffering losses linked to the collapse of high-risk lenders, in a move that signals a broader shift towards caution across the banking sector.

The bank is understood to be reducing its exposure to asset-based lending for smaller borrowers while redirecting capital towards larger, more established corporate debt providers. The change in strategy follows the failure of firms such as Market Financial Solutions and Tricolor Holdings, which have exposed vulnerabilities in the fast-growing private credit market and triggered losses for multiple financial institutions.

In response, Barclays has reportedly withdrawn from a number of lending deals and increased pricing on others to reflect the heightened risk environment. The move reflects a wider reassessment of private credit, a sector that has attracted investors with returns often quoted between 8 and 10 per cent, but which relies heavily on leverage to generate those yields.

Recent events have highlighted structural weaknesses in private credit, including concerns around transparency, asset valuations and the sustainability of returns in a higher interest rate environment. As borrowing costs rise, pressure on borrowers has increased, leading to higher default risks and a reassessment of the sector’s resilience.

The collapse of Market Financial Solutions has been particularly damaging. The lender entered administration earlier this year after a High Court judge ordered an investigation into alleged fraud and financial mismanagement. Insolvency practitioners have since pointed to “compelling evidence” of serious irregularities, including the possibility that some loans may be entirely unsecured.

Central to the investigation are allegations of “double pledging”, where the same asset is used as collateral for multiple loans, a practice that can leave lenders exposed to significant losses if borrowers default.

Barclays chief executive C.S. Venkatakrishnan acknowledged the issue, describing the bank’s exposure as “disappointing”, although he indicated that total losses are expected to remain below £500 million.

The bank’s actions in the lead-up to the collapse have also come under scrutiny. Barclays froze Market Financial Solutions’ accounts in November, a move that insolvency practitioners suggested may have been prompted by concerns over potential money laundering or other financial irregularities. Investigations are ongoing, including oversight from the Financial Conduct Authority.

The fallout has extended beyond the UK, with the collapse of Tricolor Holdings adding to concerns about the stability of private credit markets globally. The US-based lender’s failure has reinforced fears that the sector may be entering a more challenging phase after years of rapid expansion.

Investor sentiment has also shifted, with some private credit funds restricting withdrawals amid growing uncertainty. Analysts say this reflects the sector’s first meaningful stress test since its post-financial crisis boom.

Barclays’ decision to pivot away from smaller borrowers raises concerns about access to finance for small businesses, particularly those reliant on asset-based lending and alternative credit providers.

As banks tighten lending criteria and reassess risk exposure, smaller businesses may find it more difficult, and more expensive, to secure funding, potentially slowing investment and growth.

The move underscores a broader recalibration within financial markets, where the pursuit of higher returns is increasingly being balanced against the need for stronger risk management.

For Barclays, the shift towards larger corporate clients reflects a more conservative stance in an environment marked by economic volatility and rising credit risk.

As investigations continue and the full extent of losses becomes clearer, the consequences are likely to be felt across both the banking sector and the wider economy, particularly for smaller businesses navigating an increasingly constrained funding landscape.

Read more:
Barclays retreats from small business lending after private credit shocks

The UK government has set out plans to channel more than £7.4 billion a year directly to small businesses by 2028, in a major push to rebalance public spending and drive economic growth across local communities.

For the first time, individual government departments have been given specific targets for how much they must spend directly with small and medium-sized enterprises (SMEs), marking a significant shift in procurement strategy.

The move forms a central pillar of the government’s Plan for Small Business and is designed to increase access to public contracts for smaller firms, which have historically struggled to compete with larger suppliers.

Under the new system, departments will be required to publish annual progress reports detailing their small business spending, with those falling short expected to outline corrective measures.

Targets vary across departments, with some of the highest commitments including 40% for the Department for Science, Innovation and Technology, 33% for the Department for Culture, Media and Sport, and 30% for the Cabinet Office. Nearly half of all departments have set targets above 20%, meaning that at least one in every five pounds of public spending in those areas will go directly to SMEs.

The initiative is expected to unlock significant opportunities for businesses across sectors such as manufacturing, cyber security, finance and science.

Cabinet Office minister Chris Ward said the policy represents a clear commitment to supporting British enterprise.

“These ambitious spending targets will help ensure more government contracts go to SMEs, keeping more money, jobs and opportunities in local communities,” he said.

The headline £7.4 billion figure relates to direct spending, but officials note that the total benefit to SMEs will be significantly higher when indirect spending through supply chains is taken into account.

In addition, the Ministry of Defence is set to increase its SME spending by a further £2.5 billion, reaching £7.5 billion by May 2028, further boosting the overall impact.

The policy is intended to stimulate regional economies, support job creation and strengthen the UK’s private sector by ensuring that smaller firms can access stable, long-term revenue streams through government contracts.

Small Business Minister Blair McDougall said the changes would open up “lucrative opportunities” for thousands of firms.

“Increasing procurement spend with SMEs is a national priority to drive growth across the UK,” he said.

Business groups have broadly welcomed the announcement, particularly the introduction of clearer transparency and accountability measures.

Federation of Small Businesses policy chair Tina McKenzie said the targets were a necessary step to reverse a decline in SME participation in government contracts since 2022.

“Understanding exactly how much central government spends directly with small businesses is essential for holding departments to account,” she said, adding that the new framework should serve as a foundation for even more ambitious commitments in the future.

Industry leaders also highlighted the broader benefits of engaging SMEs, including increased innovation, flexibility and value for money in public procurement.

Rob Levene, chair of procurement platform Constellia, described the move as a “pivotal moment” for smaller firms that have historically been excluded from government contracts due to complexity and cost barriers.

The spending targets build on a series of recent measures aimed at strengthening the SME ecosystem, including legislation to tackle late payments and a £4 billion funding package to improve access to finance.

Together, these initiatives reflect a more interventionist approach to economic policy, with the government seeking to use procurement as a lever to support growth and rebalance the economy.

For SMEs, the changes could represent a significant expansion of opportunity, provided departments meet their targets and procurement processes become more accessible.

As the policy is rolled out, the key test will be whether increased spending translates into tangible outcomes for businesses on the ground, helping them scale, innovate and contribute to long-term economic resilience.

Read more:
Government sets £7.4bn small business spending target to boost local growth and jobs

Large UK companies could face multimillion-pound fines for persistently paying suppliers late under sweeping new legislation designed to protect small businesses and improve cashflow across the economy.

The Department for Business and Trade has confirmed that the Small Business Commissioner will be granted new enforcement powers to investigate poor payment practices and penalise companies that fail to meet required standards.

At the heart of the reforms is a mandatory 60-day payment deadline for all commercial contracts involving businesses with revenues above £54 million. The measure aims to set a clear upper limit on payment terms, which have often stretched far beyond this in practice.

Suppliers will also gain stronger financial protection, with a statutory right to charge interest on late invoices at a rate of 8 per cent above the Bank of England base rate.

Ministers say the changes represent the most significant overhaul of payment laws in a generation.

Business Secretary Peter Kyle said late payments were a major cause of business failure and described the reforms as “simply unacceptable” to delay.

“We are unveiling the strongest, most robust changes to payment laws in over a generation,” he said, adding that the measures would transform the outlook for small firms and reduce time spent chasing overdue invoices.

In addition to financial penalties, companies found to be persistently late payers will be required to publicly explain their behaviour in annual reports, including detailing corrective actions.

The government is also consulting on tighter rules around retention payments in the construction sector, a long-standing issue where funds withheld by large contractors can be lost entirely if a company collapses.

Business groups have broadly welcomed the move, though some argue the reforms do not go far enough.

Federation of Small Businesses policy chair Tina McKenzie said the measures would help end the practice of large firms effectively using smaller suppliers as a source of “free credit”.

However, she noted that a 60-day payment window still falls short of what many consider “prompt payment”, suggesting the ultimate goal should be a 30-day standard.

Emma Jones said the enhanced powers would allow her office to act more effectively, reducing the administrative burden on small businesses.

“Less time chasing debt means more time focusing on growth,” she said.

Late payments have long been identified as a structural problem within the UK economy, particularly for smaller firms with limited cash reserves.

Government data suggests that dozens of businesses close each year directly as a result of delayed payments, with the ripple effects extending across supply chains and local economies.

The new legislation is intended to address this imbalance by shifting both the financial and reputational cost of late payment onto larger companies.

The reforms will be introduced through legislation “as soon as parliamentary time allows”, with ministers also assessing the readiness of businesses to adapt to the new rules.

If implemented effectively, the measures could mark a turning point in how commercial payment practices are enforced in the UK, and provide much-needed stability for small businesses operating in an increasingly challenging economic environment.

Read more:
Big firms face multimillion-pound fines under crackdown on late payments

The Government has announced it will launch a 12-week consultation on whether the Engineering Construction Industry Training Board (ECITB) and the Construction Industry Training Board (CITB) should merge to form a single statutory training body for the construction and engineering construction sectors.

The consultation, expected to begin in March, follows an independent review published in January 2025 which examined the effectiveness and future role of the two Industry Training Boards (ITBs). While the review reaffirmed the importance of both organisations in addressing chronic skills shortages, it recommended strengthening their role and increasing collaboration, including the option of operating as a unified body.

The proposal comes at a pivotal moment for the sector, with the Government placing construction and engineering construction at the heart of its economic growth agenda and its ambition to become a clean energy superpower by 2030.

Andrew Hockey, chief executive of the ECITB, said the industries are central to delivering the Government’s missions around growth, good jobs and decarbonisation.

“Construction and engineering construction are critical to meet the Government’s missions for growth, good jobs and for the UK to become a clean energy superpower by 2030,” he said.

Hockey emphasised that while closer collaboration between the boards is already under way, any structural change must safeguard the specific workforce needs of the engineering construction industry (ECI), which spans heavy industrial sectors including oil and gas, nuclear, renewables, chemicals, hydrogen, pharmaceuticals and water treatment.

Research commissioned by the ECITB forecasts that the ECI alone will require an additional 40,000 workers by 2030 to meet project demand across energy transition and infrastructure programmes.

“Whatever the outcome of this consultation, it is important the distinct skills and workforce needs of the engineering construction industry continue to be supported,” Hockey said. “Any changes to how the ITBs are structured should not detract from the urgent need to attract, develop, qualify and retain skilled workers now.”

He added that while preliminary transition planning has begun with the Department for Work and Pensions and the CITB, no final decision has been made. The existing ECITB levy order for 2026–28 is expected to proceed as planned following its recent consensus vote.

Tim Balcon, chief executive of the CITB, said the consultation reflects the Government’s wider construction skills strategy, including a £600 million package announced last year to address workforce shortages.

“The Government is committed to getting Britain building again,” he said. “This is recognition of how vital the construction industry is, not just to the Government’s own homebuilding and infrastructure development ambitions, but as a crucial cog in the wider economy.”

Balcon stressed that, regardless of the consultation’s outcome, collaboration between the boards is essential to deliver standardised competence frameworks, alternative entry routes and improved access to high-quality training.

He pointed to ongoing joint work on major infrastructure projects such as Sizewell C, where both civil construction and engineering construction skillsets are required at different stages of delivery.

“Nuclear new build is a clear example where both the civil construction workforce and the ECI workforce work alongside each other,” he said.

The January 2025 independent review concluded that the ITBs play an important role in tackling skills shortages but argued that stronger alignment and governance reform would enhance impact. It suggested that operating as a single body could improve strategic workforce planning and reduce duplication, while retaining sector-specific expertise.

Over the past year, the ECITB and CITB have already expanded cooperation across infrastructure planning, trainer and assessor recruitment, clean energy job pathways and skills passporting initiatives designed to improve labour mobility between projects and sectors.

The engineering construction industry, in particular, faces mounting demand as the UK scales up offshore wind, carbon capture and storage, hydrogen production and nuclear capacity — all sectors requiring highly specialised technical skills and safety standards.

The consultation is likely to attract close scrutiny from employers, trade unions and training providers concerned about ensuring that any merger preserves industry focus while delivering efficiency gains.

Ministers have said that no final decision will be taken until the consultation responses are fully analysed.

The outcome could reshape how workforce development is structured across two of the UK’s most strategically important sectors at a time when labour shortages remain one of the biggest constraints on growth.

Read more:
Government to consult on ECITB and CITB merger into single construction skills body

Rachel Reeves delivered her 2026 Spring Statement against the backdrop of escalating conflict in the Middle East and mounting fears that higher energy prices could derail the fragile recovery taking hold in the UK economy.

Speaking in the House of Commons, the Chancellor of the Exchequer emphasised stability in what she described as “an increasingly uncertain world”, arguing that falling inflation and earlier interest rate cuts were beginning to ease the cost-of-living squeeze on households.

In keeping with her pledge to hold only one major fiscal event each year, the autumn Budget, Reeves announced no new tax rises or spending measures. Instead, the statement focused on updated forecasts from the Office for Budget Responsibility (OBR) and on defending the government’s economic strategy.

Yet the economic backdrop has shifted sharply in recent days. Rising oil and gas prices, following military escalation in the Gulf region, have reignited concerns about inflation just as markets had been pricing in further base rate cuts from the Bank of England.

Growth downgraded for 2026

The OBR has revised down its growth forecast for 2026, with GDP now expected to expand by 1.1 per cent this year, compared with 1.4 per cent projected at the November Budget.

While the downgrade reflects weaker short-term momentum and softer global demand, the medium-term outlook has been nudged slightly higher. Growth is forecast at 1.6 per cent in both 2027 and 2028, up from 1.5 per cent previously, before easing to 1.5 per cent in 2029 and 2030.

Reeves sought to frame the revision as a short-term recalibration rather than a structural weakness, stressing that inflation had fallen to 3 per cent and was on course to decline further.

However, business groups warned that the recovery remains delicate. The Zoho Digital Health Study 2026 found that 21 per cent of UK business leaders cited high inflation and rising costs as their biggest external challenge, with half reporting an increase in cost per employee over the past year.

Unemployment to rise before easing

The labour market is also expected to soften. Unemployment is forecast to peak at 5.3 per cent later this year before gradually falling to 4.1 per cent by the end of the parliament, slightly below current levels.

While the government highlighted resilience in wage growth, business representatives cautioned that rising employment costs, including higher National Insurance contributions and the forthcoming 4.1 per cent increase in the National Living Wage — are weighing heavily on hiring decisions.

Borrowing and fiscal headroom

One brighter spot in the forecast is public borrowing. The OBR expects borrowing to fall by almost £18 billion compared with the autumn forecast.

Public sector net borrowing is projected to decline from 4.3 per cent of GDP this year to 3.6 per cent next year, then 2.9 per cent in 2028, 2.5 per cent in 2029 and 1.8 per cent in 2030.

Reeves’ fiscal “headroom”, the buffer against her self-imposed fiscal rules, has risen from £21.7 billion in November to £23.6 billion. The Chancellor presented this as evidence of disciplined economic management designed to reassure bond markets.

Yet the headroom remains vulnerable to external shocks. A sustained rise in wholesale gas prices could significantly alter inflation projections, potentially delaying further interest rate reductions.

Energy and North Sea focus

In recognition of the geopolitical risk, Reeves confirmed she would meet North Sea energy industry leaders to discuss the implications of the Middle East conflict.

Energy markets have already reacted sharply. Brent crude has climbed towards $80 per barrel, while liquefied natural gas prices have surged, raising the spectre of renewed cost pressures for households and energy-intensive sectors.

Analysts warn that a prolonged disruption could undermine the inflation trajectory that underpins current rate-cut expectations.

Business reaction: calls for action over rhetoric

The Night Time Industries Association (NTIA) criticised the statement as disconnected from on-the-ground realities. Chief executive Michael Kill said that while the government spoke of stability, businesses faced compounding pressures from energy costs, business rates and reduced consumer spending.

“For energy-intensive sectors like hospitality and the night-time economy, this is not abstract economics, it is an immediate and compounding threat,” he said, calling for a VAT cut for hospitality to stimulate demand.

Similarly, tech leaders urged more practical support for small firms adopting AI and digital tools. Matt Rouif, CEO of Photoroom, welcomed the pro-entrepreneur tone but said concrete measures were needed to expand access to AI and digital skills at scale.

Meanwhile, Uber Boat by Thames Clippers criticised the absence of measures to accelerate river transport electrification, describing it as a missed opportunity for environmental progress at minimal fiscal cost.

A cautious tone in volatile times

Overall, the Spring Statement was deliberately restrained. Reeves avoided policy fireworks, focusing instead on maintaining fiscal credibility and signalling continuity.

However, the external environment is anything but stable. Rising energy prices, geopolitical tensions and volatile bond markets mean the economic outlook could shift rapidly in the coming months.

While the Chancellor framed the statement around stability and improving fundamentals, business leaders remain wary. Growth has been trimmed, unemployment is set to rise before falling, and inflation risks have re-emerged just as confidence was tentatively rebuilding.

As Reeves herself acknowledged, the UK economy is navigating an increasingly uncertain world. The question now is whether caution alone will be enough to steer it through the turbulence ahead.

Read more:
Spring Statement 2026: Rachel Reeves trims growth forecast as Middle East tensions cloud outlook

Household energy bills could climb to as much as £2,500 a year if the escalating conflict involving Iran leads to prolonged disruption in global gas supplies, analysts have warned, raising the prospect of a renewed energy crisis.

Wholesale gas prices in Britain have already surged by up to 50 per cent amid mounting fears of supply shortages, after QatarEnergy halted liquefied natural gas (LNG) production following military attacks on key facilities at Ras Laffan and Mesaieed. The move has intensified concerns over the stability of supplies passing through the Strait of Hormuz, a vital global energy chokepoint.

Britain’s benchmark gas price, NBP, leapt by 54 per cent to 122p per therm on Monday, mirroring similar spikes across continental Europe. The UK and European markets are closely linked through pipeline infrastructure, meaning price shocks are rapidly transmitted across both regions.

Analysts warn that if disruption to LNG exports from Qatar and the United Arab Emirates persists, wholesale gas prices in Europe could triple. Together, the two countries account for roughly a fifth of global LNG supply. Qatar alone is the world’s second-largest LNG exporter after the United States.

Chris Wheaton, an analyst at Stifel, said that a prolonged closure of the Strait of Hormuz could push European gas prices back towards the levels seen during the 2022 energy crisis triggered by Russia’s invasion of Ukraine.

“If LNG production from Qatar and the UAE was disrupted, we see a repeat of 2022,” he said. “European gas prices would need to rise sharply to attract LNG cargoes away from Asia and into Europe.”

Wheaton suggested that UK wholesale gas prices could reach 250p per therm in such a scenario. At that level, the energy price cap set by Ofgem could rise to approximately £2,500 per year for a typical dual-fuel household, up from the current £1,641.

The strait is a critical maritime route through which a substantial share of the world’s oil and LNG flows. Shipping traffic has slowed dramatically after Iran reportedly targeted tankers in retaliation for US and Israeli strikes that killed Ayatollah Ali Khamenei, Iran’s supreme leader. Brent crude oil has also climbed, rising around 9 per cent to $79.40 per barrel.

Although much of Qatar’s LNG is destined for Asian markets such as China and India, any disruption would intensify global competition for alternative cargoes, driving prices higher for European buyers.

Tom Marzec-Manser, director for European gas and LNG at Wood Mackenzie, said traders were closely monitoring how long the disruption might last.

“The prospect of around 20 per cent of the world’s LNG being cut off from the market has unsurprisingly led to a sharp rise in prices,” he said. “The longer the Strait remains effectively closed, the greater the upward pressure on gas prices.”

Europe currently relies on LNG for around a quarter of its gas supply. Storage levels are lower than usual following a colder winter, leaving the region more exposed to supply shocks.

Any sustained increase in wholesale prices would eventually filter through to consumers via the energy price cap. While the April to June cap is already fixed, the July to September level is calculated using an average of wholesale prices over the preceding months.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said the immediate impact on bills would be limited but warned that prolonged volatility would have consequences.

“For customers on the default tariff cap, there should be no immediate impact on bills,” he said. “However, the long-term effect depends on how long wholesale prices remain elevated. The UK remains highly exposed to global gas markets.”

The government recently announced that average energy bills would fall by £117 from April, offering some relief to households after years of high costs. Analysts caution that those savings could be wiped out if wholesale prices continue to climb.

The Bank of England is also watching developments closely. A sustained spike in energy prices would risk reigniting inflationary pressures, potentially delaying expected interest rate cuts and placing further strain on household finances.

With geopolitical tensions high and energy markets tightly balanced, analysts say the next few weeks will be critical in determining whether current price spikes prove temporary or mark the start of another prolonged period of elevated bills.

Read more:
Energy bills could hit £2,500 if Iran conflict disrupts global gas supplies

Shop price inflation slowed more than expected in February, offering tentative relief to households grappling with elevated living costs and providing fresh evidence that broader inflationary pressures may be easing.

New data from the British Retail Consortium (BRC) and market research firm NielsenIQ showed that shop prices rose by 1.1 per cent year-on-year in February, down from 1.5 per cent in January. The deceleration was driven by increased discounting across fashion, health and beauty categories, alongside moderating food price inflation.

The figures land just days before the government’s spring statement, when the Office for Budget Responsibility will update its economic forecasts and assess the outlook for growth and public finances.

The latest retail data adds to signs that price pressures are cooling. Official statistics from the Office for National Statistics showed consumer price inflation fell sharply to 3 per cent in January, moving closer to the Bank of England’s 2 per cent target. That decline was partly attributed to lower food price growth, particularly in staples such as bread, cereals and meat.

Food price inflation remained elevated in February at 3.5 per cent, but that represented a slowdown from 3.9 per cent in January. Fresh food inflation eased slightly, while ambient food inflation, covering items stored at room temperature such as canned goods, coffee and packaged foods, slowed markedly to 2.3 per cent from 3.1 per cent. The BRC said ambient inflation is now at its lowest level in four years, reflecting lower global commodity costs and intense competition among supermarkets.

Non-food prices, including clothing, electronics and household goods, fell by 0.1 per cent year-on-year in February, compared with growth of 0.3 per cent in January. Retailers have leaned heavily on promotions to stimulate demand amid fragile consumer confidence and unpredictable spending patterns.

Helen Dickinson, chief executive of the BRC, described the slowdown as a “welcome relief” but cautioned that prices are still rising overall and many households remain under strain. She warned that cost pressures facing retailers, including wage increases and regulatory changes, could reverse some of the recent progress.

Retailers are closely monitoring the potential impact of the Employment Rights Act, which is expected to increase labour costs. Industry leaders argue that if secondary legislation adds complexity or cost burdens, those expenses may ultimately be passed on to consumers.

Mike Watkins, head of retailer and business insight at NielsenIQ, said competitive pricing has intensified across both food and non-food sectors since the start of the year. “While weak sentiment and difficult trading conditions are making demand unpredictable, shoppers are beginning to see some easing in cost-of-living pressures,” he said.

The retail inflation slowdown comes against a mixed economic backdrop. While recent data has pointed to stronger-than-expected retail sales and a record monthly budget surplus of £30.4 billion, unemployment has climbed to a five-year high and economic growth remains subdued.

For policymakers, the moderation in shop price inflation will be closely scrutinised as they weigh interest rate decisions and fiscal policy. For households, however, the immediate takeaway is more modest: some pressure may be easing, but the cost of living challenge is far from resolved.

Read more:
UK shop price inflation slows to 1.1% in February, easing cost of living pressure

Teenage entrepreneurs swapped classrooms for committee rooms this week as groups of 16 and 17-year-olds pitched their start-ups inside the House of Commons, offering ministers a vivid reminder of the ambition bubbling beneath Britain’s youth unemployment statistics.

The Year 12 students, brought to Parliament by the charity Young Enterprise, presented business plans refined through the organisation’s flagship company programme, which challenges secondary school pupils to create and run real trading ventures.

Addressing the students, Blair McDougall described the energy in the room as “intoxicating”.

“The best thing about my job is sitting down with people who have thought of a job, a product, a new industry that you didn’t even know was a thing,” he said. “That way of looking at the world is exhilarating.”

Four teams from three London schools competed for the prize of a tour of 10 Downing Street, showcasing ideas that ranged from sustainable toys to personalised gifts.

Biodegradable desk pets win top prize

The winning team, from Bishopshalt School in Uxbridge, impressed judges with GoFigr, a range of marine-themed desk pets and fidget toys made from biodegradable plastic.

The four boys manufactured 73 units, selling 70 at London’s Portobello market. With a production cost of £1.50 per toy and a retail price of £5, the team generated £100 profit from their initial sales, later boosting total profits by a further £250 through a school pop-up event.

Gurkaram Rai Singh, 16, who acted as chief executive, delivered the pitch with confidence, even drawing laughter from Tim Campbell, the first winner of The Apprentice.

Reflecting on the market experience, Gurkaram said the programme had sharpened skills he did not realise he already possessed.

“Young Enterprise really utilises skills that you already have,” he said. “It gives you certain new skills, but it refines the old ones.”

Initially hesitant when selling at Portobello, he adapted quickly. “I realised there were Italian customers and I’m comfortable speaking Italian. Once I started speaking in Italian, more people came over. It was beautiful, everyone has a different story and reason for buying.”

The team now hopes to expand into keyrings and other accessories.

Another Bishopshalt group presented Alaesa Luxuries, producing jewellery from bismuth crystals, emphasising that each piece is unique and sustainably created. After modest early profits of £25 at market and £60 at school, the team is refining its pricing strategy.

Students from Royal Greenwich Trust School pitched two concepts: Made with a Smile, which manufactures phone charms and key chains at a production cost of just 20p per unit, sold for £3; and Muggle, a personalised mug business that pivoted from its original concept after early challenges. Judges praised their willingness to adapt, a skill many seasoned founders struggle to master.

Meanwhile, Plumstead Manor School’s Standly showcased a bamboo-based phone stand produced via a UK supplier. The team has already raised more than £500 and is moving into production.

Among those observing was Murvah Iqbal, co-founder of courier start-up Hived, who herself took part in Young Enterprise while at school.

“It was formative just having that taste of entrepreneurship really early on,” she said. “It gives you permission to think differently about your future.”

The parliamentary showcase formed part of a broader government initiative, working with Young Enterprise and the Department for Business and Trade, to promote enterprise education as outlined in the small business plan released in 2025.

Earlier in the day, McDougall chaired a roundtable with young founders, who raised practical barriers that still hamper teenage entrepreneurship, from difficulties opening business bank accounts under 18, to limited access to tailored mentoring and funding. Some suggested the government develop an AI-powered advisory tool to guide first-time founders through regulation, tax and compliance requirements.

Lessons for policymakers

The event came against a backdrop of rising youth unemployment and mounting concern that Britain’s next generation lacks visible entrepreneurial role models. Yet inside Westminster, the atmosphere was notably optimistic.

The students’ ideas may have been modest in scale, but their commercial instincts, pricing discipline, supply chain thinking and customer targeting, reflected a level of sophistication that would not look out of place in a small-cap boardroom.

For ministers seeking to drive growth, the message was clear: the entrepreneurial impulse exists. The challenge is ensuring the system does not stifle it before it has the chance to scale.

Read more:
‘Exhilarating’ teenage entrepreneurs take their ideas to Westminster

Consumer confidence in the UK slipped to its lowest level since November as households grew more pessimistic about their personal finances and the wider economy, according to the latest survey from GfK.

An index of household sentiment compiled by GfK fell by three points to minus 19 in February, down from minus 16 in January and below analysts’ expectations of minus 15. It marks the weakest reading since the immediate aftermath of the autumn budget and underscores lingering fragility in consumer sentiment.

The survey, which questioned 2,000 Britons aged 16 and over, showed a notable deterioration in perceptions of personal finances. Households reported that they were less inclined to make major purchases and expected to save less of their monthly income. The forward-looking savings index dropped sharply by seven points to 21, reflecting growing uncertainty about income prospects and interest rate trends.

Although inflation has begun to ease, the psychological effects of the past two years of rising prices continue to weigh on consumers. After the survey was completed, data from the Office for National Statistics showed inflation falling to 3 per cent in January from 3.4 per cent in December. While this decline may have offered some reassurance, it came too late to influence February’s confidence reading.

Neil Bellamy, consumer insights director at GfK, said that even as price pressures moderate, households remain cautious. “Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day-to-day spending over longer-term needs,” he said. “Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.”

The decline in confidence also came before the ONS reported that unemployment had climbed to a post-pandemic high, with youth joblessness reaching its highest level in 11 years, developments likely to reinforce caution among working-age households.

There are, however, countervailing signals. Energy regulator Ofgem recently announced that the average household energy bill will fall by £117 from April, which could provide some relief in the spring. Financial markets are also increasingly confident that the Bank of England will cut interest rates further this year, potentially easing borrowing costs for households.

Despite February’s dip, consumer confidence remains far above its record low of minus 49, reached in September 2022 in the aftermath of the Truss government’s mini budget.

Business sentiment, meanwhile, appears more upbeat. Separate data from Lloyds Bank showed optimism among firms rising by eight points to 36 per cent in February. The survey of 1,200 businesses suggested that expectations of lower interest rates and easing cost pressures may be supporting corporate confidence.

Recent economic indicators have also hinted at improved momentum. Retail sales jumped by 1.8 per cent in January, the composite purchasing managers’ index climbed to a 22-month high, and government borrowing costs have retreated from recent peaks. The FTSE 100 has continued to notch record highs, buoyed by global investor flows and resilient corporate earnings.

Attention now turns to the forthcoming economic forecasts from the Office for Budget Responsibility, due to be published alongside Rachel Reeves’s spring statement. While no major tax or spending changes are expected, the outlook for growth, inflation and public finances will shape expectations for the months ahead.

For now, however, the divergence between improving macro indicators and fragile household sentiment highlights a familiar feature of the post-pandemic recovery: economic stabilisation has yet to translate fully into renewed consumer confidence.

Read more:
Public fears over finances push UK consumer confidence back down

More than half of young Britons are unable to name a single entrepreneur, according to new research that campaigners say underlines a worrying disconnect between the UK’s business community and the next generation of workers.

A YouGov survey conducted for Enterprise Britain found that 56 per cent of 18 to 25-year-olds could not name an entrepreneur, founder or chief executive when asked. Among those who could, Richard Branson remained the most recognised figure, cited by 16 per cent of young respondents, despite being 75 and having founded the Virgin Group more than five decades ago.

Lord Sugar, best known for hosting The Apprentice, was named by 6 per cent, while just 2 per cent mentioned Steven Bartlett, the Dragons’ Den investor and host of The Diary of a CEO. Other high-profile younger founders, including Grace Beverley, barely registered.

Across all age groups, Branson remained the most cited entrepreneur, named by 33 per cent of respondents. Yet 32 per cent of UK adults were also unable to name a single business founder or chief executive. At the same time, 74 per cent of those surveyed believed Britain’s position in the global economy was in decline.

The findings have prompted Enterprise Britain, a lobby group of business founders, to launch a campaign called Time to Act, urging ministers to do more to champion entrepreneurship at a time when youth unemployment is at its highest level in more than a decade and the Treasury is reviewing how entrepreneurs are taxed.

Martha Lane Fox, a member of Enterprise Britain and co-founder of Lastminute.com, said the problem may lie partly in the way entrepreneurship is framed.

“I can only assume it’s because this word has taken on a grandeur,” she said. “People think, ‘I don’t know anyone like that because an entrepreneur is someone who builds a big global company.’ You may have the view that you have to be like Jeff Bezos. Well, I don’t want to be like Jeff Bezos, thank you very much.”

Lane Fox argued that entrepreneurship comes in many forms, from small local businesses to high-growth technology ventures, and should be seen as a realistic and attainable path. “It can come in many forms and can be economically rewarding for you, your community and wider society,” she said.

Enterprise Britain’s co-chairs, Stephen Fitzpatrick, founder of Ovo Energy, and Brent Hoberman, co-founder of Lastminute.com and founder of Founders Forum, are calling for the creation of a dedicated minister for entrepreneurship to act as a champion for high-growth businesses within government.

The campaign also advocates what it describes as the “democratisation of capital” through a “nation of shareholders”, including expanding employee share ownership schemes and encouraging pension funds to allocate more capital to UK growth companies.

Fitzpatrick said Britain risked undermining its own entrepreneurial potential. “Britain has a great economic engine,” he said. “But while we have one foot on the accelerator, the other one is on the brake. It’s always hard to grow a business, but in the UK we’re making it exceptionally tough. We’ve got to take the brakes off so our most ambitious businesses can drive our country forward.”

The survey’s findings suggest that unless younger Britons see entrepreneurship as relatable and achievable. rather than the preserve of celebrity billionaires, efforts to boost start-ups and scale-ups may struggle to gain traction with the very generation policymakers hope will power the next phase of economic growth.

Read more:
Most young Britons cannot name a single entrepreneur

More than three in four small business owners in London are losing sleep over the pressures of running a company in today’s climate, according to new research from Novuna Business Finance.

The latest findings show that 79% of small business owners in the capital say worries about day-to-day business issues keep them awake at night, with economic volatility and geopolitical uncertainty emerging as the biggest concern. Half of respondents (50%) cited market instability as their primary source of anxiety.

The data suggests that while many London firms remain ambitious, the strain of operating in a fragile economic environment is taking a tangible toll on entrepreneurs.

Beyond macroeconomic instability, 37% of London business owners said they were worried about further tax increases and interest rate hikes. Concerns over tax have intensified since the rise in employer National Insurance contributions that took effect last April, adding to operating costs for thousands of firms.

Cashflow pressures also remain front of mind. Almost a quarter (23%) of respondents said managing cashflow keeps them awake at night, while 20% pointed to business rates as a major worry.

Customer retention is another key stress factor, with 31% reporting broken sleep over concerns about holding on to existing clients in a competitive and uncertain marketplace.

The findings come just one month after Novuna reported a six-month high in London small business growth expectations. Around 40% of London firms predicted growth for the first quarter of 2026, significantly above the national average of 27%.

However, the research indicates that ambition and stress often go hand in hand. Businesses forecasting significant expansion were the most likely to report sleepless nights. Among those predicting strong growth, 85% said business worries were affecting their sleep, up from 75% two years ago.

By contrast, 73% of business owners not forecasting growth reported similar stress, suggesting that while pressures are widespread, high-growth environments can intensify anxiety.

Workforce challenges are also weighing on business leaders. Seventeen per cent said employee shortages were a key concern, while 11% worried specifically about recruitment difficulties in securing skilled staff.

Meanwhile, despite renewed discussions around an EU reset and closer ties with Brussels, nearly one in five (19%) London business owners said the long-term impact of Brexit continues to affect their business and still keeps them awake at night.

“Sleepless nights are not confined to struggling businesses”

Joanna Morris, Head of Insight at Novuna Business Finance, said the data highlights the human cost behind headline growth figures.

“At the start of 2026 we saw a rise in London small business growth outlook. That said, our latest data suggests that this comes at a human cost for many business owners, many of whom take their business worries home with them and struggle to switch off,” she said.

“When business owners are kept awake at night working through enterprise issues, we gain a sense of the intensity of some of these concerns for entrepreneurs. Our research suggests that sleepless nights are not just confined to businesses that are struggling to grow. Managing fast-paced or significant growth can also be stressful for established businesses.”

The findings are based on the latest Business Barometer study from Novuna Business Finance, which surveyed 1,000 small business owners across the UK to identify the issues they consider serious enough to lose sleep over.

While London’s small business community continues to show resilience and ambition, the data underscores the emotional and operational pressures that accompany entrepreneurship in a period marked by inflation, policy uncertainty and global instability.

Read more:
Economic volatility keeps majority of London’s small business owners awake at night

Around one million taxpayers who missed the 31 January self-assessment deadline now face an additional financial hit unless they settle what they owe to HMRC by 3 March.

According to leading audit, tax and business advisory firm Blick Rothenberg, anyone who has not paid their 2024/25 tax liability by that date will be subject to a 5% surcharge on outstanding amounts, in addition to late payment interest that has already begun to accrue.

Robert Salter, a director at Blick Rothenberg, said the clock is already ticking. “The one million taxpayers HMRC estimates missed the 31 January deadline to settle their 2024/25 UK tax liabilities must pay up by 3 March 2026 or face a 5% surcharge on any underpaid taxes plus late payment interest,” he said.

Late payment interest began accruing from 1 February 2026 at an annualised rate of 7.75%, meaning the longer the delay, the higher the total bill.

Salter illustrated the potential cost with a typical example. A taxpayer with a £2,000 self-assessment liability who pays on 1 April 2026 would incur an additional charge of around £125 on top of the original tax owed. That figure would continue to rise the longer the debt remains outstanding, as further 5% surcharges can be applied if the tax is still unpaid six and twelve months after the original deadline.

The surcharge regime has been a central feature of the UK’s self-assessment system for nearly three decades. “Most people would agree that it is appropriate for taxpayers who haven’t settled their liabilities to be subject to extra costs,” Salter noted.

However, he cautioned that economic pressures are making compliance more difficult for many. Frozen tax thresholds and fiscal drag have increased the effective tax burden in recent years, pulling more individuals into higher bands. At the same time, households continue to feel the impact of the cost-of-living crisis.

“Many taxpayers could be struggling to settle their liabilities on a timely basis,” Salter said.

While it is difficult to forecast the exact revenue HMRC may collect from late payment penalties this year, official statistics show that the tax authority has previously received more than £300 million in self-assessment-related penalties in a single year.

There are also concerns that the penalty total could rise further. A significant number of taxpayers have yet to submit their 2024/25 tax returns, while others who have filed may still not have paid the tax due.

“With the sharp increase in effective tax rates in recent years, HMRC’s penalty ‘record’ could be exceeded in the coming months,” Salter warned.

Taxpayers who are unable to pay in full are encouraged to contact HMRC as soon as possible to discuss a Time to Pay arrangement, which may help mitigate additional penalties, though interest will generally continue to accrue until the balance is cleared.

Read more:
Taxpayers warned to pay HMRC by 3 March or face 5% surcharge

More than 860,000 self-employed people and landlords will have to start filing regular digital tax updates with HMRC from April as the government’s long-planned Making Tax Digital (MTD) programme enters its next phase.

From 6 April 2026, sole traders and landlords earning more than £50,000 a year from self-employment and property income will be required to keep digital records and submit quarterly updates to HMRC using compatible software. The reform represents one of the biggest changes to the self-assessment system in decades.

The government says the overhaul will modernise tax administration, reduce errors and help taxpayers keep better track of what they owe. Critics, however, argue it risks piling further administrative pressure on small business owners already grappling with rising costs and tighter margins.

What is Making Tax Digital?

Making Tax Digital is a government initiative designed to move the UK tax system away from annual paper-based self-assessment returns towards digital record-keeping and more frequent reporting.

Under the new rules, affected taxpayers must:
• Keep digital records of income and expenses.
• Submit four quarterly updates to HMRC.
• Submit an end-of-year final declaration to confirm their overall tax position.

For a sole trader, this means at least five submissions per year — four quarterly updates and one final year-end return.

For individuals who are both self-employed and landlords, the reporting burden increases further. Separate updates are required for each income stream, meaning some taxpayers could face more than 10 submissions annually, particularly if VAT reporting is also required.

The rollout is being phased in by income level. From April 2026, the £50,000 threshold applies. From April 2027, the threshold falls to £30,000, affecting an estimated further 970,000 people. By 2028, those earning more than £20,000 will also be required to comply, potentially bringing millions more into the system.

Key deadlines for those starting in April 2026

For taxpayers entering the system next April, the first compliance cycle will include:
• 6 April 2026 – begin keeping digital records under MTD
• 7 August 2026 – first quarterly update due
• 7 November 2026 – second quarterly update due
• 31 January 2027 – traditional self-assessment return for 2025/26 still required
• 7 February 2027 – third quarterly update
• 7 May 2027 – fourth quarterly update
• 31 January 2028 – first full MTD annual declaration deadline

HMRC says free software options will be available, and that digital tools will generate summary reports to submit directly to the tax authority.

The penalty system has also been redesigned. Rather than issuing immediate fines for late submissions, HMRC will operate a points-based system. A £200 fine will only be triggered once four penalty points have been accumulated, allowing for occasional missed deadlines without instant financial consequences.

While ministers argue the system will ultimately reduce errors and smooth out tax administration, many small business representatives fear it will increase compliance costs.

Taryn Lee Johnston, owner of publishing firm The FCM Group, said quarterly reporting adds further strain to already stretched entrepreneurs.

“Quarterly reporting under Making Tax Digital was sold as a way to modernise the system. The concern is not just frequency, but cost, time and mental bandwidth,” she said.

“Many small business owners do not have in-house finance teams. They will either need to pay accountants more or spend more hours on compliance rather than growing their businesses.”

She added that at a time when the government is seeking to boost entrepreneurship and economic growth, increasing reporting requirements may send “a conflicting message”.

Others in the sector warn that preparation will be critical. Gwion Thomas, founder of accounting app LITT, said affected taxpayers should not underestimate the shift.

“While HMRC’s goal of improving accuracy is positive, the priority now is preparation,” he said. “Don’t leave it to a last-minute scramble and understand what you need well ahead of April’s rollout.”

Some technology providers argue the new system could help business owners manage cash flow more effectively.

Research from enterprise software company Sage suggests that almost a quarter of UK business owners spend more than six hours completing their annual tax return. Lisa Ewens, senior vice president for small business at Sage, said spreading tax reporting across the year could reduce pressure.

“Digital tax tools can help spread the workload, reduce last-minute stress and give business owners back valuable time,” she said. “They also provide a clearer picture of what’s owed throughout the year, so owners can plan and budget with more confidence.”

The bigger concern for some is not just the April changes but the expanding scope of the regime. As income thresholds fall over the next two years, hundreds of thousands more sole traders and landlords will be brought into quarterly reporting.

With youth self-employment rising and many individuals operating side hustles alongside salaried work, the number of people affected could continue to grow.

For now, those earning above £50,000 from self-employment or property income have just over a month to ensure they are ready for digital record-keeping and quarterly updates.

Whether Making Tax Digital becomes a genuine productivity boost or another layer of administrative burden will likely depend on how seamlessly small businesses adapt — and how effectively the new system performs once fully in operation.

Read more:
More than 860,000 to move to Making Tax Digital from April as quarterly reporting begins

Sole traders are spending the equivalent of more than three working days each year dealing with tax administration, as the rollout of Making Tax Digital (MTD) for Income Tax approaches.

Research from Monzo Business found that sole traders devote an average of 27 hours annually to tax-related admin — around two hours a month for more than half of those surveyed. Based on the 2026 minimum wage, that time equates to approximately £343 in lost productivity.

The findings come just weeks before HMRC’s MTD for Income Tax rules take effect, requiring sole traders and landlords to submit quarterly digital updates of income and expenses using approved software.

While 70 per cent of those surveyed said they were aware of the upcoming changes, 28 per cent admitted they were not confident their business would be ready. Nearly seven in ten currently do not pay for digital tools to manage their tax affairs.

More than half of respondents said handling business taxes and accounting causes stress, and 44 per cent admitted submitting a tax return late because the process felt too confusing or time-consuming.

The changes form part of HMRC’s wider Making Tax Digital programme, which aims to modernise the UK tax system and reduce errors through digital record-keeping and submissions.

Monzo Business, which serves more than 800,000 business customers, is launching a free built-in tax tool powered by Sage’s embedded accounting technology. The bank says the tool will allow users to categorise transactions, track income and expenses in real time and prepare for quarterly submissions without relying on spreadsheets.

Jordan Shwide, general manager at Monzo Business, said: “With Making Tax Digital coming soon, we want sole traders to feel supported, not overwhelmed. By building a simple tax tool directly into everyday business banking, we’re helping reduce admin and stress.”

The research highlights the time constraints faced by the UK’s smallest businesses. Nearly nine in ten sole traders said they take regular tea or coffee breaks during the day, yet the 27 hours spent on tax administration equate to around 138 missed hot drink breaks annually.

As the new tax year approaches, accountants and business groups have urged sole traders to review their systems and ensure they are compliant with digital reporting requirements.

For many, the success of Making Tax Digital will depend not only on awareness but on whether accessible tools can reduce administrative burden rather than add to it.

Read more:
Sole traders spend 27 hours a year on tax admin ahead of Making Tax Digital changes

Providing excellent customer service is often essential for a business to succeed. Even with a strong product and competitive pricing, a business can struggle if its customer service doesn’t meet expectations.

Negative experiences, such as delayed email responses, short-tempered shop workers, or frustrating returns processes, can put customers off. In some cases, a single negative experience may be enough to dissuade someone from returning.

In this article, we’ll explain the importance of prioritising customer service for long-term success, with guidance from 1st Formations, a company formation agent.

What does customer service involve?

To improve your business’s customer service, you first need to understand what it involves.

Customer service covers every interaction a customer has with a company, from their first enquiry to after-sales support. These interactions can take place across digital channels such as email and social media, over the phone, or in person. Each touchpoint can influence how customers perceive the business and whether they feel confident buying from it.

It’s worth remembering that good customer service involves resolving issues, such as complaints and refunds, as well as supporting satisfied customers.

Whatever the situation, strong customer service is typically built on three key pillars: responsiveness, consistency, and empathy. Responsiveness refers to how quickly a business acknowledges a customer. Sometimes, a full resolution requires some time, but customers still appreciate a speedy acknowledgement. Consistency ensures everyone receives the same standard of service across channels and team members. Empathy is also important as it helps staff respond thoughtfully and tailor solutions to individuals. When you put these together, you can achieve excellent customer service. With responsiveness, consistency, and empathy in place, customers should receive timely replies, reliable outcomes, and meaningful interactions.

Why customer service matters

The quality of customer service can affect trust, influence the likelihood of repeat sales, and determine if people recommend the business to others. Over time, interactions shape a company’s reputation, which can influence its financial performance.

Customers who experience poor service often reassess their trust in a brand. This may mean they choose not to return and speak negatively of the business. On the other hand, good interactions can reinforce confidence, encourage repeat custom, and lead to positive word of mouth.

Why exceptional customer service increases customer retention

Retaining existing customers is often more cost-effective than acquiring new ones, which is why many growing businesses view improving customer loyalty as a long-term investment.

When customers experience reliable service or see that a business resolves issues effectively, they are more likely to return. In some cases, customers may even pay slightly more to buy from a business they already trust.

Customer service as a driver of reputation

Customer service plays a role in how potential customers form opinions about a business, even if they haven’t experienced the service first-hand. Online reviews and social media posts can influence how people perceive a business, both positively and negatively.

While it’s hard to avoid ever receiving a single negative review, how you respond to disgruntled customers can also shape your reputation. For example, a business that replies to comments and shows that they’re willing to resolve problems can still build trust. By contrast, ignoring problems or responding defensively to feedback can discourage potential customers.

Turning service interactions into business insights.

Approached thoughtfully, customer service can become a strategic decision rather than a reactive response.

While addressing a single complaint may resolve an immediate issue, repeated feedback about the same concern often signals a wider problem. For example, if an individual comments that their coffee isn’t strong enough, an additional espresso might be a short-term fix. However, if it happens repeatedly, it’s likely time to consider changing your café’s choice of coffee. Attentive businesses look for patterns like this and can use them to refine their products or services over time.

Looking beyond complaints, it’s also worth finding out what you’re doing well as a business. A lot of customers are more likely to contact a business to complain rather than praise it. Because of this, it’s worth creating opportunities for customers to share feedback. Try running a survey to uncover what people like and where you could make improvements. If you act on these insights, you can refine your offering and better align it with customer needs.

Consider how service is part of a business’s overall health

Delivering strong customer service is just one part of running a sustainable business. It’s also something that’s only possible if you have engaged employees. As a founder, it’s crucial to support all staff with training, clear standards, and recognition to help the team offer top-tier service.

Providing good customer experiences also relies on smoothness throughout the organisation. While some people may only think of service in terms of direct interactions with customers, behind-the-scenes departments, like logistics and product development, can also influence customer happiness. For example, delayed shipping due to a planning issue reflects poorly on the customer experience. Similarly, inconsistent sizing across a clothing range can frustrate shoppers and put a strain on the business’s returns process.

When back-end operations are optimised, it can become easier for frontline staff to focus on delivering positive customer experiences. Improved service standards can encourage repeat custom and may help reduce customer churn over time, supporting greater financial stability across the business.

Applying customer service principles to build a thriving business

Customer service delivers the greatest value when it’s embedded consistently across a business, rather than treated as a standalone function.

One practical way to apply strong service is by ensuring your systems support customers at every stage of the buying journey. Investing in improving backroom processes, training customer-facing teams to communicate with empathy, and proactively acting on feedback can strengthen customer service at all touchpoints.

It’s important to remember that customer service isn’t a nice-to-have extra. It should be valued as an integral part of a business that can influence reputation, customer retention, and its overall financial health. Organisations that embed service excellence across their operations are often better positioned to build customer trust and succeed.

Read more:
Why customer service is integral to business success

The mental health impact of late payments is finally being acknowledged, with new guidance launched to help freelancers and small business owners cope when cashflow uncertainty starts to bite.

Published to coincide with Time to Talk Day, new online guidance from the Office of the Small Business Commissioner (OSBC) brings together mental health support and practical advice for SMEs and freelancers dealing with late or unpaid invoices.

Late payment is usually treated as a balance-sheet issue. In reality, for sole traders and one-person businesses, it’s deeply personal. When you are the business, delayed invoices don’t just affect forecasts, they affect rent, food shopping, sleep, and mental health.

The guidance signposts business owners to trusted mental health services while also outlining steps they can take to chase overdue invoices and escalate payment disputes. It has been developed alongside research from Leapers, which explored the link between financial stress and mental wellbeing among freelancers and small business owners.

Emma Jones, Small Business Commissioner (pictured), said it was essential that freelancers feel able to reach out for support, particularly when payment delays place pressure on their finances and wellbeing.

“Running a business can be tough at times and it is important that freelancers know about, and feel they can reach out to, the help and support available,” she said, adding that peer networks and shared experience can make a “profound and positive impact”.

But while the guidance is welcome, critics argue it only addresses the symptoms,  not the cause.

Stephen Carter, Director of Payment Strategy at Ivalua, said the government is still avoiding the harder conversation.

“UK SMEs don’t just need mental health support to cope with late payments. They need legislation and enforcement to stop delays in the first place,” he said. “Late payment isn’t accidental, it’s the result of poor governance, outdated systems and a lack of accountability from those holding the cash.”

Carter warned that late payment continues to ripple through supply chains, damaging trust and, in some cases, forcing small suppliers out of business entirely. Research cited by Ivalua suggests more than a third of UK businesses have seen suppliers fail due to cost pressures linked to delayed payments.

He called on the government to urgently publish its long-awaited response to last year’s late payment consultation, warning that every month of delay effectively tells large organisations that dragging their feet comes with no real consequences.

Read more:
New guidance set to tackle the mental health toll of late payments

NatWest has announced plans to grow its Accelerator community to 50,000 UK entrepreneurs in 2026, a five-fold increase on its original ambition for 2025, as demand for practical, non-financial support among founders continues to rise.

The move follows a breakout year for the programme. In 2025, NatWest supported around 12,000 entrepreneurs — more than it had backed in the previous ten years combined, underlining how sharply demand has grown for peer networks, mentoring and hands-on guidance as running a small business becomes more complex and more pressured.

For many founders, particularly sole traders and owner-managers, access to capital is only part of the challenge. Time, confidence, skills and isolation increasingly sit alongside cashflow as barriers to growth. NatWest says its expanded Accelerator community is designed to address those realities, bringing together local cohorts, expert mentors and founder-to-founder support rather than focusing solely on lending.

The expansion forms part of the bank’s wider Growing Together plan, which aims to support regional economies, mid-market businesses and the next generation of growth companies. NatWest has been clear that it sees its role as more than just a funder, positioning itself as a connector between founders, universities, investors and policymakers.

Data shared by the bank suggests the model is working. Businesses that completed the Accelerator programme grew turnover by an average of 104% year-on-year, compared with 20% growth among similar businesses outside the programme. Crucially, nine in ten Accelerator businesses were still trading three years later, a stark contrast to the wider small business survival rate.

Robert Begbie, CEO of Commercial & Institutional Banking at NatWest Group, said the ambition reflects a belief that founders need backing at every stage, not just at the point of borrowing.

“Entrepreneurs are the driving force behind innovation, jobs and long-term growth,” he said. “By scaling the Accelerator, we’re reinforcing our commitment to help founders turn ambition into sustainable businesses.”

The programme’s growth has been welcomed by business groups and government, but its appeal is particularly clear among founders who don’t fit the venture-capital mould. Through its hubs and university partnerships, including collaborations with Manchester, Oxford, York, Brighton and Warwick, NatWest offers free co-working space, one-to-one coaching, workshops and access to networks that many small business owners would otherwise struggle to afford.

The Accelerator also operates digitally through the NatWest Accelerator app, giving founders access to tools, training and peer support regardless of location. Pitch events and forums provide opportunities to raise visibility, test ideas and connect with funders without the pressure of a traditional funding round.

Leeds-based production company Mood Films joined the Accelerator after launching in 2024, having moved from creative collaboration into business ownership with little formal experience. Through the programme, the founders accessed coaching, workshops and peer support that helped them refine their offer and approach larger clients with confidence.

For many founders, that kind of support can be the difference between surviving and scaling — particularly in an environment where costs are rising, income is lumpy and late-paying clients remain a constant headache.

As NatWest pushes towards its 50,000-founder target, the expansion reflects a wider shift in how support for small businesses is evolving: less about glossy growth stories, more about giving real people the tools, confidence and networks to keep going.

Read more:
NatWest targets 50,000 founders as more small businesses look for support beyond funding

Martin Daly looks like a government success story on paper. He runs a growing building firm, trains apprentices, wins national awards and contributes to the local economy. And yet, he’s leaving.

The 30-year-old founder of Motherwell-based MD Builders, recently named Screwfix Top Tradesperson for 2025, says Labour’s Budget didn’t just make things harder — it made them unworkable.

After five years of building his business from the tools up, Daly is preparing to relocate to Switzerland, citing higher employer National Insurance, rising wages without matching support, and an apprenticeship system that no longer works for small operators.

“I want to grow my business and bring young people through,” he says. “But I can’t afford to take them on anymore. The numbers just don’t add up.”

From April, employers will pay 15 per cent National Insurance on salaries above £5,000, while the National Living Wage rises to £12.21 an hour. For large corporates, those are absorbed as line items. For small, hands-on businesses, they hit cashflow immediately.

And that’s before regulation, insurance, tools, vehicles, compliance and the reality of delayed payments are factored in.

Daly says work has slowed as clients cut costs, while overheads continue to rise. “It’s death by a thousand cuts,” he says. “You’re constantly firefighting, never planning.”

He’s already received job offers in Switzerland, and interest from Australia and the Middle East, countries actively courting UK trades with visas, relocation packages and funded apprenticeships.

“Australia helps fund apprentices,” he says. “Here, we talk about skills shortages while making it harder to train people.”

The timing couldn’t be worse. Construction employment has fallen to its lowest level in 25 years, more than a third of workers are over 50, and the industry needs tens of thousands of new entrants every year just to stand still.

Yet the message Daly hears is clear: train less, hire less, risk more.

He stresses this isn’t just about tax or politics. It’s about sustainability. “I want to wake up knowing my business is viable and my kids would want to grow up here. That’s no longer obvious.”

Before leaving, Daly plans to expand school outreach and short-term work experience placements, trying to help the next generation even as he prepares to go.

Unless policy starts reflecting the lived reality of self-employed builders, electricians and contractors, he warns, more will follow.

Read more:
“I can’t afford to train people anymore”: why UK’s top tradesman is leaving the country

If you’re a sole trader or landlord earning more than £50,000 a year, HMRC is about to change how you report your tax — whether you feel ready or not.

From 6 April 2026, more than 864,000 people will be pulled into Making Tax Digital (MTD) for Income Tax, a system that requires you to keep digital records and send HMRC quarterly updates using approved software.

This isn’t optional. And it isn’t something you can leave until next January.

Under the new rules, you’ll need to log income and expenses digitally throughout the year and submit a short summary to HM Revenue and Customs every three months. HMRC insists these are “light-touch updates”, not extra tax returns, but they are still deadlines, admin and another thing to remember.

At the end of the tax year, you’ll still file a final return by 31 January. The difference is that HMRC will already have most of your numbers, meaning no more frantic receipt-hunting in the week after Christmas, in theory, at least.

HMRC says the system is designed to reduce errors and spread the workload across the year. In reality, it means tax admin becomes a constant background task, not a once-a-year panic.

What changes — and what doesn’t

If you’re joining MTD in April 2026, you’ll still submit your 2025–26 tax return in the usual way by 31 January 2027. The first full MTD tax return, covering 2026–27, won’t be due until January 2028.

There is also a 12-month “soft landing”. For the first year, HMRC won’t issue penalty points for late quarterly updates. After that, penalties kick in only once you rack up four points, triggering a £200 fine.

Free software is available, and more than 12,000 people have already tested the system voluntarily. HMRC is pushing webinars, videos and guides — and exemptions exist if you genuinely can’t use digital tools.

But none of that removes the core shift: you’ll be expected to stay on top of your numbers all year, not just when the deadline looms.

Why acting now matters

This isn’t just a software switch. It’s a habit change.

If you wait until April to choose software, learn how it works, or speak to your accountant, you’ll be learning under pressure — while still running your business, managing tenants, chasing invoices and dealing with everyday cashflow stress.

HMRC is being unusually clear on this point: sign up early, pick software now, and talk to your adviser before the system goes live.

Read more:
Act now: 864,000 sole traders and landlords are about to get dragged into digital tax

UK fintech Sidekick has raised £7.8m in Series A funding as it looks to widen access to investment products that have traditionally been locked inside private banks.

The round was led by Eos Ventures and the Development Bank of Wales, with backing from Koro Capital and existing investors including Seedcamp, MS&AD Ventures and TheVentureCity.

Founded in 2022, Sidekick is aimed squarely at professionals whose finances have outgrown entry-level investing apps but who don’t see the value, or accessibility, in traditional private banking. The platform targets people managing larger balances, multiple income streams and longer-term financial decisions, without the opaque fees and relationship-manager model that still dominates wealth management.

Unlike most consumer investing platforms, Sidekick has been built around complexity rather than simplicity. Alongside long-term public market investing and personalised portfolios, the platform offers access to private markets and Lombard lending, borrowing against an investment portfolio without selling assets, a facility historically reserved for high-net-worth clients inside private banks.

Its managed portfolios include an “All Weather” strategy designed to spread risk across different market conditions, while its cash products are aimed at users holding larger balances. One of these, Multi Shield Savings, allows customers to distribute cash across multiple partner banks from a single account, helping them maximise FSCS protection without micromanaging multiple providers.

The company now supports more than £145m in customer assets, reflecting growing demand from professionals who want visibility and control as their financial lives become more complicated — not less.

Founder and CEO Matt Ford (pictured) said many high-earning professionals still feel uncertain about whether they’re actually making their money work for them. He said Sidekick was built to remove unnecessary complexity while giving users access to tools that have historically been restricted to private banking clients.

The funding will be used to expand Sidekick’s investment offering, grow its team and scale operations, including building out roles in Cardiff across customer service, compliance and operations, supported by the Development Bank of Wales.

Investors said the raise reflects a gap in the market. While banking, trading and payments have been reshaped by technology over the past decade, private banking has largely remained expensive, opaque and slow to evolve, leaving a growing cohort of professionals underserved.

Why this lands with sole traders and consultants

For people who don’t get paid the same amount every month, wealth management has always felt slightly misaligned. One good quarter can be followed by a thin one. Cash piles up, then drains away. Tax bills arrive on fixed dates regardless of when clients decide to pay.

Traditional private banks weren’t built for that reality, and neither were beginner investing apps designed around spare change and round-ups. The gap in the middle is where a lot of self-employed professionals sit: too complex for simple tools, not “wealthy enough” for the velvet rope.

Platforms like Sidekick aren’t about chasing yield or pretending income is smooth. They’re about giving people with lumpy earnings, delayed invoices and growing balances somewhere sensible to park money, invest long-term, and access liquidity without blowing everything up. That’s not luxury finance, it’s modern self-employment finance catching up with how people actually live.

Read more:
UK fintech Sidekick raises £7.8m to open up private-bank style investing to professionals

For most sole traders and small operators, cashflow isn’t a spreadsheet problem, it’s a waiting problem. Clients pay late. Platforms hold funds. HMRC wants its cut on time regardless. Meanwhile, rent, software subscriptions and suppliers don’t care whether your last invoice is still “with accounts”.

To help, American Express has launched a new Flexible Payment Option designed to give small business owners more breathing room when cashflow gets tight, without forcing them into loans, overdrafts or personal savings.

Available to new Business Platinum and Business Gold Cardmembers, the feature allows businesses to choose how they repay their monthly card balance. Instead of being forced to pay everything off in one go, cardholders can pay the full balance, the minimum amount due, or anything in between, with interest only applied to the amount carried forward.

Crucially, nothing changes for those who can pay in full. If the balance is cleared by the statement due date, no interest is charged. Cardholders also continue to benefit from up to 54 days interest-free before payment is due, helping keep cash in the business for longer.

For many sole traders and small business owners, managing uneven income is the reality, invoices land late, clients delay payment, and costs don’t wait. American Express says the new option is aimed at supporting businesses through those short-term pressure points, without pushing owners towards separate borrowing or dipping into personal finances.

Ruchi Sharma, Vice President of UK Commercial at American Express, said the feature gives business owners flexibility when opportunities, or unexpected costs, arise, allowing them to smooth payments rather than stall growth.

The Flexible Payment Option is built directly into the card and managed through the Amex app or online account, meaning there’s no separate application process or loan product to juggle.

Alongside payment flexibility, Business Platinum and Gold Cards continue to operate without a pre-set spending limit, with available spending power adjusting dynamically based on how the business uses the card. Cardmembers can also earn Membership Rewards points on everyday spending, which can be redeemed for travel, experiences or purchases.

For self-employed people running lean operations, the launch reflects a wider shift towards embedded finance tools that sit quietly in the background, there when needed, invisible when not, rather than rigid lending products that assume predictable monthly income.

Read more:
American Express rolls out flexible payment option for small businesses feeling the cashflow squeeze

Electricians and welders are expected to remain the UK’s highest-earning trade roles in 2026, as demand for skilled workers continues to rise across construction, manufacturing, infrastructure and clean energy.

New research from Yorkshire-based steelwork manufacturing and coded welding specialist Tadweld shows that skilled trade careers are now matching – and in many cases exceeding – the earnings of traditional graduate professions, while offering strong job security and clear progression routes without the burden of university debt.

Drawing on data from the Office for National Statistics, Gov.uk, Indeed and Total Jobs, the analysis found that the average salary across the top 20 skilled trade roles now stands at £38,925. This places tradespeople broadly in line with the UK’s median full-time salary of £39,039, according to the latest ONS figures from April 2025.

The findings underline the continued strength of specialist roles such as electricians, welders, HVAC engineers, lift technicians and renewable-energy installers, where demand remains particularly strong as the UK accelerates housebuilding, upgrades infrastructure and pushes ahead with the transition to low-carbon energy systems.

According to the Construction Industry Training Board, the UK construction sector alone will require more than 250,000 additional workers by 2028 to meet projected demand. That requirement is increasingly being met by skilled trades rather than traditional professional roles, as employers prioritise hands-on technical expertise.

Chris Houston, Managing Director of Tadweld, said the research reflects a growing recognition that modern trades are highly technical, professional careers with long-term earning potential. He said electricians and welders in particular offer excellent pay, job security and the opportunity to work on nationally significant projects, from infrastructure upgrades to clean energy developments.

Houston said apprenticeships remain the backbone of the sector’s success, allowing people to earn while they learn and progress rapidly into skilled roles. However, he warned that rising training costs are beginning to place pressure on manufacturers and contractors, particularly small and medium-sized businesses.

The apprentice National Living Wage has increased by 66 per cent in just two years, rising from £6 an hour in 2023 to £10 an hour in 2025. Houston said this sharp rise has significantly increased the cost of training new entrants and risks limiting the number of apprenticeship opportunities available unless additional support is provided.

Despite strong interest in trade careers among young people and career-changers, apprenticeship starts remain well below historic levels. Department for Education data shows there were around 170,000 fewer apprenticeship starts in 2024 than a decade earlier, a trend that industry bodies have repeatedly warned could deepen skills shortages.

Groups including the Construction Industry Training Board, Make UK and the Federation of Small Businesses have consistently argued that sustained government support for apprenticeships is essential to maintaining wage growth, supporting regional economies and ensuring the UK has the skilled workforce needed to deliver housing, infrastructure and energy projects.

Tadweld’s outlook for 2026 concludes that skilled trades remain among the most resilient and attractive career paths in the UK, offering competitive pay aligned with national averages, strong demand across multiple sectors and clear progression without student debt. With the right investment in training and apprenticeships, the trade sector is well positioned to provide secure, well-paid careers while underpinning long-term economic growth.

Read more:
Electricians and welders set to be UK’s highest-earning trades in 2026, research finds

Managing cash flow is one of the most important challenges facing businesses of all sizes. While revenue and profitability matter, having access to funding at the right time often determines whether a business can operate smoothly, respond to opportunities, or navigate periods of uncertainty.

Business loans continue to play a central role in business finance, but understanding how different types of loans work is key to choosing the right solution.

This article provides a practical overview of common business loan types, when they are typically used, and how they fit alongside other cash flow products. These funding solutions are usually provided by banks, lenders, or specialist finance providers such as Novuna Business Cash Flow.

How business loans work

A business loan involves borrowing a fixed amount of money and repaying it over an agreed period, usually with interest. Loan structures vary depending on the size of the business, the purpose of the funding, and how predictable cash flow is.

Some loans are designed to meet short-term funding needs, while others support longer-term investment. Repayments may be fixed or flexible, and loans can be secured against assets or offered on an unsecured basis. Specialist lenders often adapt loan terms to reflect how a business generates and uses cash.

Why businesses use loans

Business loans are used for a wide range of purposes, including:

• Covering short-term cash flow gaps
• Funding growth or expansion plans
• Purchasing equipment or assets
• Supporting working capital requirements
• Managing timing differences between costs and income

Choosing the right type of loan usually depends on how quickly funding is required and how repayments will be managed.

Common types of business loans

Working capital loans

Working capital loans are designed to support the day-to-day running of a business. They can be used to cover ongoing costs such as wages, supplier payments, or stock purchases during periods of cash flow pressure.

Businesses with seasonal trading patterns or variable income often use working capital loans to maintain stability. Repayment structures may be tailored to reflect trading cycles.

Cash flow loans

Cash flow loans are assessed primarily on a business’s ability to generate income rather than the value of its assets. Lenders focus on turnover and projected cash flow when considering affordability.

These loans are commonly used by growing businesses where cash is reinvested into operations. Specialist providers such as Novuna Business Cash Flow offer cash flow-based lending designed to align repayments with trading performance.

Short-term, quick, and long-term loans

Short-term business loans are typically used to address immediate funding needs, such as temporary cash shortfalls or short-term opportunities.

Where speed is a priority, businesses may consider quick business loans. These facilities are designed to provide faster access to funding, helping businesses respond to time-sensitive costs or opportunities. Quick business loans are generally offered by specialist lenders alongside standard short-term options.

Long-term business loans are more commonly used for larger investments, such as expansion, refinancing, or significant capital expenditure. Spreading repayments over a longer period can help businesses manage cash flow more comfortably.

Expansion and bridging loans

Expansion loans support businesses looking to grow, whether through opening new premises, increasing capacity, or entering new markets. Lenders may consider projected income alongside existing performance when assessing these applications.

Bridging loans are short-term facilities designed to cover a temporary funding gap. They are often used when a business is waiting for funds from another source, such as a sale, refinance, or delayed transaction.

Unsecured and DSCR loans

Unsecured business loans do not require specific assets as security. Instead, lenders assess the financial position and trading history of the business.

DSCR (Debt Service Coverage Ratio) loans focus on whether operating income comfortably covers debt repayments. These loans are typically used by established businesses with predictable cash flow.

Larger business loans

Larger organisations may require higher-value loans to support acquisitions, major investments, or refinancing. These facilities are often tailored to reflect the scale and complexity of the business.

How lenders typically assess business loan applications

When reviewing a business loan application, lenders usually take a broad view of the business rather than focusing on a single factor. The aim is to understand how affordable the borrowing is and how well it fits the purpose of the funding.

Factors commonly considered include:

• How long the business has been trading and its overall financial performance
• The strength and consistency of cash flow
• The reason for the loan and how the funds will be used
• Existing borrowing commitments
• The business structure and management setup

Specialist lenders may take a more flexible approach than traditional high-street lenders, particularly where funding needs are more complex or do not sit neatly within standard lending criteria.

Alternatives to traditional business loans

In some situations, traditional loans may not be the most flexible option. Other cash flow products can help businesses manage working capital more effectively.

Invoice finance solutions

Invoice finance allows businesses to access cash tied up in unpaid invoices. Instead of waiting for customers to pay, a business can release a percentage of the invoice value upfront.

Invoice discounting allows businesses to retain control of their sales ledger, while invoice factoring includes outsourced credit control. Specialist providers such as Novuna Business Cash Flow offer invoice-based solutions that can work alongside business loans.

Making informed funding decisions

There is no single funding solution that suits every business. The right approach depends on why funding is needed, how quickly it is required, and how repayments will be managed.

Business loans remain a core part of business finance, but combining them with other cash flow products can sometimes provide greater flexibility. Understanding the options available, and speaking with experienced lenders or specialist providers, can help businesses secure funding that supports both short-term needs and long-term stability.

Read more:
A practical guide to business loans and managing cash flow

Most self-employed workers and freelancers in the UK are failing to put money aside for retirement, raising concerns about long-term financial security for a growing part of the workforce, according to new research.

A study by Aviva found that just 38 per cent of self-employed people and 40 per cent of freelancers are actively saving into a pension or retirement plan. Among digital nomads — workers who use technology to work remotely while living and travelling in different locations, the figure falls to just 34 per cent.

The findings suggest that the majority of people working outside traditional employment structures are not building dedicated retirement savings, potentially leaving themselves financially exposed later in life.

The research, based on a survey of 500 self-employed and freelance workers in the UK, also revealed widespread uncertainty about pension products. Fewer than one in four respondents said they understood the retirement savings options available to them, with only 24 per cent of self-employed workers and 22 per cent of freelancers aware of products such as self-invested personal pensions (SIPPs) or stakeholder pensions. Awareness among digital nomads was only marginally higher at 25 per cent.

While some respondents plan to take action, progress remains slow. Nearly a third of digital nomads said they intend to start saving for retirement soon, but 30 per cent admitted they are currently doing nothing to prepare. Among the wider self-employed and freelance community, 23 per cent and 18 per cent respectively said they plan to begin saving, yet around a third in each group are taking no specific steps at all.

Despite these gaps, flexible working continues to appeal strongly. More than four in five digital nomads said they plan to continue this way of working long-term, with almost half expecting to do so indefinitely. However, confidence about future finances is mixed: just over half of self-employed workers said they felt secure about their long-term financial position, compared with 50 per cent of freelancers.

Alistair McQueen, head of savings and retirement at Aviva, said the research highlighted a structural weakness in retirement planning for people outside PAYE employment.

“This research highlights a clear gap in retirement planning for people who are self-employed and freelance,” he said. “Without auto-enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.”

McQueen added that even modest action could make a significant difference. “Small, regular steps, such as opening a personal pension and setting an affordable monthly contribution, can have a big impact over time. Flexible ways of working require flexible ways of saving, and taking action today can help build the financial security needed tomorrow.”

With self-employment, freelancing and remote working continuing to expand across the UK economy, Aviva warned that improving awareness and engagement around retirement saving will be critical to avoiding a future wave of financial insecurity among independent workers.

Read more:
Most self-employed and freelancers failing to save for retirement, Aviva finds

As UK small businesses head into 2026, many are feeling the squeeze from rising digital subscriptions, higher utilities and stubborn operating costs. Yet thousands of pounds in potential savings are still being missed, not through lack of ambition, but through habit.

In partnership with company formation specialist 1st Formations, we’ve identified ten practical, often overlooked ways limited companies can take back control of cash flow without chasing high-risk growth or complex tax strategies.

Graeme Donnelly, founder and CEO of 1st Formations, says the mindset shift is crucial: “In 2026, operational efficiency is the new profitability. Too many directors focus on top-line growth while ignoring the silent drain of legacy bank fees, incorrect VAT categories and dormant software subscriptions. Saving £200 a month through smarter digital choices is equivalent to adding thousands to turnover, without the cost of acquisition.”

Tap the hidden value of sector groups

Membership of bodies such as the Federation of Small Businesses or local Chambers of Commerce is often assumed to be for larger firms. In reality, the annual fee is frequently outweighed by discounts on business insurance, HR and legal support, and software such as Xero or Microsoft.

Consider voluntary VAT registration

If turnover is below the £90,000 VAT threshold, registration isn’t mandatory, but opting in can allow you to reclaim VAT on stock, hosting, advertising and equipment. For many B2B firms, the reclaimed VAT more than offsets the added admin and can also improve credibility with larger clients.

Re-examine your VAT Flat Rate category

The VAT Flat Rate Scheme simplifies reporting, but many businesses are using the wrong sector percentage. A small adjustment, for example, between IT consultancy and retail categories, can materially improve margins overnight.

Hunt for hyper-local micro-grants

National grants attract heavy competition, but local Growth Hubs and Local Enterprise Partnerships often offer £500–£5,000 grants for digital upgrades or energy efficiency. These are less publicised and far easier to secure.

Eliminate the spreadsheet tax leak

Manual expense tracking leads to missed deductions. Tools like Dext, Pleo or Expensify capture receipts in real time and sync with QuickBooks or Xero, ensuring every allowable cost is recorded and reducing year-end stress.

Look beyond traditional bank lending

High-street loans remain hard to access for micro-companies. Alternatives such as Tide’s funding marketplace, Uncapped’s revenue-based finance or invoice-finance platforms like Kriya offer flexible funding without long-term lock-ins.

Ditch legacy card machines

If you’re paying monthly rental fees for a card terminal, you’re likely overpaying. Fintech providers such as Square, Zettle and SumUp remove fixed costs and integrate directly with your bookkeeping, improving visibility and cash flow.

Optimise working-from-home deductions

Directors running a limited company from home can legitimately recharge costs such as broadband, mobile contracts and mileage. Whether using the flat-rate allowance or a formal rental agreement, documenting this properly keeps you compliant with HM Revenue & Customs while reducing tax leakage.

Run a quarterly subscription audit

The “SaaS drain” quietly erodes margins. Tools like Cledara highlight unused or duplicate licences. Set a quarterly calendar reminder to review subscriptions — and always negotiate at renewal, where providers often have unadvertised retention discounts.

Stop paying for basic banking

Many SMEs still pay monthly fees for basic accounts. Digital-first banks such as Starling or Monzo Business now offer fee-free banking with better app integration, saving both money and administrative time.

The bigger picture

For UK SMEs, 2026 isn’t about radical reinvention — it’s about tightening the screws on everyday inefficiencies. Each small saving compounds, freeing cash to reinvest in staff, technology or resilience.

As Donnelly puts it: “Being lean is no longer defensive. It’s how ambitious businesses stay in control.”

Read more:
10 under-the-radar ways UK small businesses can regain control of cash flow in 2026

Taxpayers have just eight days left to file their self assessment tax return before the 31 January deadline, as HM Revenue & Customs warned that late submissions will trigger an automatic £100 penalty.

HMRC said more than 11.5 million people successfully filed by the deadline last year and is urging the estimated 3.3 million taxpayers who have yet to submit their return this year to act now to avoid fines and interest charges.

Those who have not started their return can access support through GOV.UK, including step-by-step guidance, webinars and YouTube videos. HMRC’s online services are available 24 hours a day, allowing customers to file at a time that suits them.

Once a return has been submitted, HMRC said the quickest and easiest way to pay any tax owed is via the free HMRC app, which takes less than a minute to use. Alternative payment options are also listed on GOV.UK.

Myrtle Lloyd, HMRC’s chief customer officer, urged taxpayers not to leave it until the last minute.

“Don’t leave it until deadline day,” she said. “Filing now will give you peace of mind that your tax return is completed and, if you have tax to pay, you have a week to arrange payment.

“If you’re worried about paying your tax bill, you may be able to set up a payment plan online – search ‘difficulties paying HMRC’ on GOV.UK.”

This year’s self assessment deadline falls on a Saturday. HMRC’s phone lines are open Monday to Friday, from 8am to 6pm, but will close on Friday 30 January and reopen on Monday 2 February, after the deadline has passed. Taxpayers who need to speak to an adviser are therefore being urged to call before Friday. On Saturday 31 January, HMRC will provide webchat support via its Online Services Helpdesk.

HMRC also set out the penalties for missing the deadline. Anyone who files late will face an initial £100 fixed penalty, even if there is no tax to pay or if the tax due is paid on time. After three months, daily penalties of £10 per day apply, up to a maximum of £900. Further penalties apply after six months and 12 months, amounting to either £300 or 5 per cent of the tax due, whichever is greater.

Additional penalties apply for paying tax late, charged at 5 per cent of the unpaid amount after 30 days, six months and 12 months, with interest added on top. HMRC said it will consider appeals from taxpayers who miss the deadline due to a reasonable excuse.

Looking ahead, HMRC also reminded taxpayers that major changes are on the way. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 will be required to use Making Tax Digital for Income Tax, submitting quarterly summaries of income and expenses.

HMRC is encouraging those affected to sign up early to familiarise themselves with the new system and prepare for the transition.

The tax authority also confirmed that customers do not need to include their 2025 Winter Fuel Payment, or Pension Age Winter Heating Payment in Scotland, on their 2024–25 tax return. Payments made in autumn 2025 will instead be accounted for in the 2025–26 return, due by 31 January 2027.

With the deadline fast approaching, HMRC is urging anyone who has yet to file to act now to avoid penalties and unnecessary stress.

Read more:
Eight days left to file self assessment as HMRC warns of automatic £100 penalty

HM Revenue & Customs is braced for a substantial surge in tax receipts this January as millions of taxpayers settle their self-assessment bills and employers begin paying out annual bonuses, according to tax advisers.

The boost, described as a “January tax boom”, is being driven by the fast-approaching self-assessment deadline on 31 January, alongside a broader year-on-year rise in overall tax revenues.

Robert Salter, a director at Blick Rothenberg, said there would be “no January blues” for the tax authority this year.

“Millions of taxpayers will need to pay their 2024–25 tax liabilities before the end-of-January deadline, significantly boosting January’s receipts,” he said. “This comes against the backdrop of a steady rise in the overall tax take year on year.”

Latest figures from HM Revenue & Customs show total tax revenues for the 12 months to December 2025 rose by more than 7 per cent compared with the previous year — an increase of over £60 billion.

Salter said the momentum is unlikely to fade quickly. “Employers typically pay taxable bonuses over the next two to three months, meaning HMRC can expect several more months of strong receipts as we approach the end of the tax year on 5 April 2026,” he said.

However, advisers cautioned that the surge in revenue is being driven less by underlying economic growth and more by recent tax policy changes. Salter pointed to direct tax rises introduced by the chancellor, Rachel Reeves, including the increase in employers’ national insurance contributions to 15 per cent.

He also highlighted the growing impact of fiscal drag — where frozen tax bands and thresholds pull more workers into higher tax brackets as wages rise with inflation.

“More and more taxpayers are paying higher rates of tax not because they are genuinely better off, but because thresholds remain frozen while wages increase,” Salter said.

As a result, he said, annual government tax receipts could soon exceed £1 trillion for the first time. Receipts for the year to December 2025 were around £910 billion and are expected to rise sharply over the final months of the tax year.

Despite the short-term boost to the public finances, Salter warned that higher inflation and rising joblessness, which he said were at least partly linked to higher employer taxes — could undermine the government’s longer-term economic ambitions.

“The risk is that these tax rises weaken employment and growth, leaving the Treasury under continued pressure from both a taxing and spending perspective,” he said.

While January’s figures are set to provide a welcome lift for HMRC, economists and advisers say the challenge for ministers will be turning today’s tax windfall into sustainable, long-term economic growth rather than relying on ever-higher receipts driven by fiscal drag and rising tax burdens.

Read more:
January tax windfall set to boost HMRC coffers amid self-assessment rush

More than a million people over 50 in the UK work for themselves. Some do it for freedom and flexibility; others do it because redundancy, caring responsibilities or health changes make traditional employment harder.

Either way, self-employment can be a smart “second act” if you pick something that fits your strengths, your schedule and your tolerance for risk.

Before jumping into the ideas, keep two principles in mind: Start with what you already know. Your experience is your unfair advantage, and choose a model you can sustain. It is better to run a business you can manage at 70% energy consistently than one that burns you out at 100%.

Quick checklist before you start

Define what you want from self-employment

• Do you want income replacement or top-up income?
• Do you want flexibility (school runs, caregiving, travel) or structure?
• Are you building something to sell later, or just to enjoy working on your terms?

Know your constraints

• Health/mobility limits
• Driving/time on the road
• Seasonal income swings
• Working alone vs client-facing work

Get basics in place early

• Insurance (public liability / professional indemnity as relevant)
• A separate business bank account (optional but sensible)
• Simple bookkeeping method (software, spreadsheet, or bookkeeper)
• A clear pricing approach (hourly, fixed fee, packages)

1) Gardening and garden maintenance

Why it suits over-50s

Gardening is tangible, outdoors, and often in high demand locally—especially for regular maintenance, hedge work, tidy-ups and seasonal resets.

Typical services
• Lawn care, pruning, weeding
• Border planting, mulching, composting
• Hedge trimming, leaf clearing
• Light landscaping (paths, raised beds) if you have the skills

Start-up requirements
• Tools (mower, strimmer, hand tools) and PPE
• Transport (even a small car can work with the right kit)
• Public liability insurance

Pricing approach
• Offer maintenance packages (e.g., 2 hours fortnightly)
• Charge a day rate for larger jobs
• Consider add-ons (green waste removal, planting plans)

Reality check

Gardening is physical and weather-dependent, and winter demand can dip. A winter service list (fencing repairs, pressure washing, greenhouse clear-outs) helps smooth income.

2) Cleaning (domestic, commercial, specialist)

Why it works

Demand is steady and repeatable. Many clients prefer consistent weekly or fortnightly cleaners.

Options
• Domestic housekeeping
• Office cleaning
• End-of-tenancy cleaning
• Specialist (carpet, upholstery, trauma/biohazard—requires training)

Start-up costs

Low: cleaning products, basic equipment, insurance.

How to stand out
• Reliability, punctuality, clear communication
• Specialise: “eco-friendly cleaning”, “elderly support cleaning”, “Airbnb turnover cleaning”
• Create simple service tiers: standard / deep clean / premium

Reality check

It can be physically demanding. If mobility is a concern, focus on light housekeeping or admin-heavy cleaning niches (Airbnb coordination and staff management rather than doing all cleans yourself).

3) Counselling or coaching (with training)

Why it suits over-50s

Life experience can be a genuine asset. Many clients actively prefer working with someone who feels grounded and experienced.

Pathways
• Counselling (regulated best practice; requires recognised training)
• Coaching (less regulated; still benefits from accredited training)

Practical route
• Intro course → certificate → diploma / core training
• Register on therapist directories (if qualified)
• Start with a narrow focus: grief support, menopause transition, career change, confidence rebuilding

Reality check

This is emotionally demanding work. Supervision and boundaries are essential. It also takes time to build referrals and trust.

4) Handyperson / odd jobs / light property maintenance

Why it’s popular

There is consistent demand for “small jobs” that tradespeople often do not want: mounting TVs, fitting curtain rails, small repairs, basic decorating.

Services
• Minor repairs and maintenance
• Painting and decorating
• Basic carpentry, tiling, flat-pack assembly

Requirements
• Tools + transport
• Public liability insurance
• Clear scope: know what you will and won’t do

Pricing

Avoid hourly-only. Use fixed-price bundles (e.g., “half-day handyman” / “two-hour visit”).

Reality check

Clients value reliability. Late arrival or poor communication kills repeat bookings.

5) Mobile hair, barbering or beauty services

Why it suits

It is portable, relationship-driven, and often builds repeat, loyal clients.

Options
• Mobile haircuts, blowdries, colour (if qualified)
• Nails, lashes, brows
• Make-up (weddings/events)
• Men’s grooming, barbering

Essentials
• Qualifications where needed
• Insurance (public and product liability)
• Portable kit and hygiene protocols

Reality check

Even if you are brilliant, you are still running a business: marketing, booking, reminders, cancellations and payment chasing all matter.

6) Bookkeeping and admin services

Why it’s ideal for some over-50s

It is low-impact physically, can be done from home, and small businesses are desperate for reliable admin help.

Services
• Bookkeeping and reconciliation
• Invoicing and credit control
• Payroll support (if trained)
• “Virtual assistant” packages for sole traders

Training

AAT bookkeeping qualifications are a common pathway; basic accounting software literacy helps (Xero, QuickBooks, Sage).

Reality check

The work is consistent but trust-based. Confidentiality and professionalism are non-negotiable.

7) Consulting in your former profession

Why it’s powerful

You can sell expertise rather than time. Many over-50s have networks they can activate.

Examples
• Operations improvement
• HR consulting
• Marketing strategy
• Procurement, compliance, project management

How to start fast
• Build a simple one-page offer: “I help X achieve Y”
• Reach out to past colleagues and suppliers
• Offer a “diagnostic” session with a clear fixed fee

Reality check

Consulting is sales-heavy. If you dislike selling, partner with someone who enjoys business development.

8) Antique dealing and resale

Why it works

If you have an eye for value and enjoy sourcing, you can build a strong side income.

Models
• eBay flipping
• Etsy/vintage platforms
• Car boot sourcing → online resale
• Specialist auctions

How to reduce risk

Start as a side hustle to learn pricing and demand patterns.

Reality check

Cashflow is tied up in stock. You need discipline and good storage.

9) Taxi / private hire driving

Why it suits some

Flexible hours, immediate income potential, and social interaction.

Options
• Private hire apps
• Local taxi work
• Specialist: airport runs, executive driving

Reality check

Long hours in a seat, insurance costs, and vehicle wear and tear matter. Treat it as a business, not just driving.

10) House sitting and pet sitting

Why it’s attractive

Low overhead, flexible, can include travel or local work.

How to start

Use established platforms, build reviews, then shift to direct referrals.

Reality check

You need trust and reliability. Always clarify responsibility for property issues and emergencies.

11) Buying into a franchise

Why it appeals

You get a proven model, training, and brand recognition.

Where it works best

When you want structure and support, and you are willing to follow a system.

Reality check

Do due diligence. Speak to existing franchisees. Understand total costs, not just the headline franchise fee.

12) Photography (weddings, family, events, product)

Why it’s popular

It can start part-time and scale.

Niche options
• Family portraits
• Pet photography
• Corporate headshots
• Product photography for Etsy/Amazon sellers

Reality check

Photography is as much editing, marketing and client management as it is shooting. Build simple packages and tight turnaround expectations.

13) Pet services (dog walking, grooming, sitting)

Why it works

Strong demand, repeat customers, and often immediate referrals.

Consider specialising
• “Puppy drop-ins”
• “Senior dog walking”
• “Weekend sits”

Reality check

Insurance matters. For grooming, training and safety protocols are essential.

14) Personal training or fitness instruction

Why it’s growing

Fitness is increasingly tied to longevity and wellbeing—areas where over-50s often have credibility.

Options
• PT sessions (in-person or online)
• Older adult mobility classes
• Menopause fitness support
• Beginner strength coaching

Reality check

Consistency beats intensity. The best trainers build routines clients stick to.

15) Event planning and small-scale experiences

Why it’s a good “second career”

Organisation, calm under pressure, and people skills often improve with age.

Focus areas
• Small weddings
• Corporate away-days
• Birthday events
• Community events

Reality check

Event work is deadline-heavy and can mean weekends. Price properly for stress and time.

16) Tutoring (online or in-person)

Why it’s strong

Demand remains high and you can often set your own hours.

Options
• GCSE/A-level tutoring
• Adult education and skills
• English language support

Reality check

Parents want reliability and results. Structure your offer with clear goals and progress updates.

17) Childminding

Why it can suit

High demand in many areas and steady weekly income.

Requirements

Ofsted registration, first aid, checks and compliance.

Reality check

It is regulated, physically active work. Make sure it fits your lifestyle and energy levels.

18) Writing and editing

Why it’s flexible

You can work from home, choose projects, and build a portfolio over time.

Options
• Content writing
• Copywriting
• Editing/proofreading
• Ghostwriting
• Newsletter writing for businesses

Reality check

AI has increased competition for basic content. The opportunity is in expertise, insight, voice and credibility.

19) Catering and food businesses

Models
• Home baking
• Meal prep
• Mobile food stall
• Pop-up events

Reality check

Food businesses require compliance and margin discipline. Start small, test demand, and watch costs ruthlessly.

20) Holiday lets and short-term rentals

Why it appeals

If you have space, you can generate income without a “job”.

Reality check

Short-term letting is increasingly regulated, and cleaning/turnover can become a full-time operational burden. Consider whether you want to manage it yourself or outsource.

Choosing the right idea: a simple scoring method

Score each idea out of 10 for:
• Enjoyment
• Profit potential
• Time flexibility
• Physical intensity (reverse score: high strain = low score)
• Ease of starting

Then pick the top three and validate them:
• Talk to five potential customers
• Price it realistically
• Test with a small pilot before committing fully

Practical next steps for over-50s starting out

1. Start lean. Pilot before investing heavily.
2. Use your network. Your first clients are usually people you already know.
3. Package your offer. People buy clarity: what you do, who it’s for, what it costs.
4. Avoid underpricing. Underpricing leads to burnout and resentment.
5. Protect yourself. Insurance, contracts, boundaries, and good record-keeping matter more than most people think.

Read more:
20 popular self-employment ideas for over 50s

The annual self-assessment deadline is once again taking a heavy emotional and financial toll on Britain’s self-employed workforce, with new research suggesting that tax stress is now making many question whether working for themselves is worth it at all.

Research from Taxfix, Europe’s AI-powered tax accounting platform, found that almost one in five self-employed people would rather pay a £100 fine than face the stress of filing their tax return on time. With the 31 January deadline approaching, 25 per cent of respondents admitted they plan to leave filing even later than usual this year.

The findings come as HMRC revealed that, as of 2 January, 5.65 million people – around 47 per cent of those required to complete a self-assessment – had yet to submit their return. Rather than apathy, Taxfix’s data points to complexity and anxiety as the main drivers of delay.

Among those still to file, complex forms, frequently changing tax rules and the stress associated with getting something wrong were cited as the biggest barriers to starting. More than half of respondents said poor customer service and a confusing HMRC website actively put them off beginning the process.

For many, the burden of self-assessment is starting to overshadow the benefits of self-employment. A third of self-assessors said filing a tax return is the worst part of working for themselves, while one in six admitted the process makes them reconsider being self-employed altogether.

London-based freelance producer Connor Gani said the system feels stacked against sole traders. “Every year, I’m forced to navigate the same system a limited company uses, scrolling through endless pages that don’t apply to me, with constant warnings about penalties,” he said. “You’re always worried you’ve underpaid, but you rarely know if you’ve overpaid either. With little clarity on what you can expense, it’s almost impossible to feel confident you’ve got it right.”

He added that the timing of the deadline compounds the problem. “November to February is often quieter for freelancers. Spending hours on tax instead of finding work feels brutal – and it’s a big reason I’m considering going back into full-time employment.”

The stress is spilling over into personal lives too. Nearly 40 per cent of respondents said they felt anxious over the Christmas period or failed to feel rested because they spent the break worrying about their tax return. One in ten said the process derailed their New Year’s resolutions, while around 600,000 people said tax stress ruined their Christmas altogether.

Asked why they delay filing, respondents pointed to the pressure of the process itself, competing work demands, the need to prioritise income generation, and the cost of hiring an accountant. More than a quarter said they would rather clean the fridge than tackle their tax return.

The cost of delay is significant. Last year, HMRC issued more than £110 million in late-filing penalties after over one million people missed the deadline. Anyone who files late automatically receives a £100 fine, with additional daily penalties applying after three months.

Martin Ott, chief executive of Taxfix, said the system is no longer fit for purpose. “With the longest tax code in the world and constantly changing rules – including the rollout of Making Tax Digital – self-assessment is not getting any easier,” he said. “Tax filing should be as simple as ordering a pizza. No one should be paying unnecessary fines because of an outdated, overly complex process.”

Looking ahead, most self-assessors said their relationship with tax would improve significantly if the system were simplified. Many want clearer rules on deductions, less complexity in tax law and mobile-friendly filing that fits around modern working lives.

Read more:
Tax returns driving regret as self-employed Brits rethink going solo

Seven in ten UK sole traders are still unprepared for the biggest change to the tax system in a generation, just three months before it comes into force, according to new research.

The findings, from Sage and IPSE, reveal widespread uncertainty ahead of the rollout of Making Tax Digital (MTD) for Income Tax in April. The reform will require millions of sole traders to move from annual self-assessment to quarterly digital reporting to HMRC.

The survey of 1,000 sole traders found that 70 per cent are not ready for the change. A third are still tracking income and expenses using pen and paper, while almost two thirds rely on spreadsheets to complete their tax returns — methods that will no longer be sufficient under the new rules.

In response, Sage has launched a £25,000 prize draw aimed at encouraging sole traders to prepare for the transition. One winner will receive £25,000 to help cover the cost of a future tax bill, as a growing number of self-employed workers face the prospect of increased administrative burdens and unfamiliar reporting requirements.

Lisa Ewens, senior vice president for small business at Sage, said many sole traders are underestimating the scale of the change.

“This is one of the biggest shifts sole traders have faced in decades, yet most are still not ready,” she said. “Leaving it late risks stress, mistakes and unexpected tax bills. The earlier people start, the easier this transition becomes.”

Under MTD for Income Tax, sole traders will be required to keep digital records and submit income and expense updates every three months, replacing the once-a-year self-assessment process. While the government has argued the system will improve accuracy and reduce errors, experts warn that poor preparation could result in compliance issues and added pressure on already stretched small businesses.

Alongside the prize draw, Sage is offering free MTD-ready accounting software to help sole traders begin keeping digital records and familiarise themselves with quarterly reporting before the April deadline.

Sole traders can enter the £25,000 competition by signing up to Sage’s free MTD-ready software, with entries closing on 31 January.

Read more:
Seven in ten sole traders unprepared for major tax change as £25,000 prize launched

2026 is here and small business owners felt the squeeze during 2025, with increases to the rate of National Insurance Contribution for employers and increases to the minimum wage resulting in higher per-employee costs.

Despite increasing energy costs adding to their concerns, the outlook among SME owners remains bullish, with 73% expecting growth in 2026 – although this viewpoint varies across sectors.

With the new year now underway,  we asked Carl Johnson, UK Sales Director at Anglo Scottish Asset Finance to take a look at seven overlooked strategies that can help small businesses boost their bottom line in 2026.

Carry out a subscription audit each quarter

If your business is reliant on monthly subscriptions for services such as office suites, cloud storage, project management or communications software, carrying out regular audits of these can help reduce flabby expenditure on unnecessary items.

Exporting and itemising your monthly business bank statements is a good place to start. This’ll help you get a handle on exactly how much you’re spending. Then, consult your team leads to find out whether there’s any duplication taking place – there’s no point spending on tools like Microsoft Office if everyone is using Google alternatives.

Once you know which are unnecessary, you can cut out the corporate spend.

Leverage grants, tax and expense opportunities

We find that many SME owners are unaware of the opportunities available to help support their bottom line, particularly in terms of grants, levies and subsidies listed by the government.

You might be surprised to find that your business activities are actually eligible for R&D tax relief (the remit is wider than you might think), while there are a number of region-specific grants available that traditionally go under-utilised. Where investment in technology is required, schemes like the Gigabit Broadband Scheme could help your business upgrade connectivity on a cheaper budget, with vouchers up to £4,500 available.

Maximising finance

One of the issues SMEs face more acutely than larger corporations is maintaining a healthy and regular cash flow, particularly in capital-intensive sectors like manufacturing or construction.

Unexpected outages to business-critical machinery can have a massive impact on your ability to meet your obligations on time and on budget, while late payments from suppliers and partners can also make it difficult to maintain a consistent cash flow in the short- and medium-term.

By spreading the cost of assets or larger invoices over longer periods of time with finance, SME owners can eliminate the burden that comes with spending significant sums in one go, making their business more financially resilient and helping save money in the long run.

Reviewing and renegotiating with suppliers

If your business has long-term relationships with suppliers, it may be worth revisiting these to see whether more favourable terms are available. If price is the only motivation, it can be tempting to switch suppliers to a cheaper competitor – but if you’re lucky enough to have a long-lasting and positive relationship with an existing supplier, renegotiating your existing contract might be a good way to increase your financial freedom.

The suppliers you spend the most money with are those that might be able to offer reduced terms or extended payment schedules to retain your custom, offering you more financial freedom going forward.

Invest to reduce energy costs

Energy is usually one of the largest controllable overheads, and prohibitive energy costs remain a barrier to growth for SMEs that operate in carbon-intensive sectors. Optimising your energy usage and spending is a great way to slash your monthly fixed costs – and though there’s going to be an up-front cost associated with becoming more sustainable, you’d save in the long run by enjoying cheaper monthly payments.

Switching to LEDs and motion-sensor-controlled lighting options can save your business between 20% and 50% on your energy bills. It also means longer lifespans and no more lights being left on, so you could save money on your energy spend each month while reducing your maintenance spend, too!

Reduce excess inventory

Often, smaller businesses find it more difficult to plan for changes in demand and keep larger quantities of stock to accommodate any spikes in demand. High stock levels are great for protecting yourself against these unexpected changes, but also mean working capital is tied up.

Getting more visibility over your sales data is step one – review your stock levels versus sales forecasts and negotiate smaller, more frequent payments as part of your discussions with suppliers. More flexibility could help you save money.

Leveraging remote work

While 2025 saw several larger businesses pledging to return their staff to the office full-time following a period of hybrid working, these corporations have far less to gain compared to SMEs, who can enjoy difference-making money-saving by leveraging remote work smartly.

If your business is capable of delivering work with your staff being remote, consider how much money you could save on overheads if your staff were at home on Mondays and Fridays, for example. Provided that you have the tools to keep your team connected on these days and still deliver a great service, this energy-saving exercise could dramatically reduce weekly energy costs onsite – scaling over the course of the year to huge impact.

With less time tied to full-office occupancy and fixed-cost burdens being cut, this could essentially result in a 40% saving on energy spend.

So, which of these measures apply to your business? If you want to get a head start and boost profitability in 2026, begin putting these procedures in place and reap the benefits throughout the year.

Read more:
Seven overlooked money-saving tips for small businesses in 2026