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

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

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.

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

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

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

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

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

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

The lack of paid paternity leave for self-employed fathers is leaving families facing what campaigners describe as an “impossible choice” between bonding with a newborn child and maintaining an income, as the government begins a long-awaited review of parental leave and pay.

The issue has been thrust into the spotlight after Luke Charters, the Labour MP for York Outer, became the first MP to take an extended period of paternity leave. Charters has stepped away from parliamentary duties for four weeks following the birth of his second son, with his constituency office continuing to operate in his absence.

Charters said he wanted to demonstrate that fathers should be able to prioritise their families without fear of professional repercussions. He argued that the current system fails many working dads, particularly those who are freelancers or self-employed, who are not entitled to statutory paternity pay.

Under existing rules, fathers who are self-employed or earn less than £125 a week are excluded from statutory paternity leave and pay. For many, that means taking time off without any income at all during the crucial first weeks of a child’s life.

For Leeds-based senior business analyst Stefan Bratu, who recently became self-employed, the policy has had a profound impact on family planning. He said the financial reality of taking unpaid leave made the prospect of having a second child feel out of reach. Even taking two weeks away from work after the birth of his first child came with financial strain, and he described the experience of leaving his partner without support as deeply upsetting.

Bratu is involved with Dadshift, a campaign group calling for better paternity leave and pay. Its co-founder, Alex Lloyd Hunter, said many fathers want to be more present but are blocked by policy. He warned that without properly paid leave, families suffer, mothers are left carrying the burden of early childcare alone, and children miss out on the benefits of early bonding with both parents.

Similar concerns were raised by Tom Clements, another Leeds father, whose paternity leave is coming to an end just weeks after the birth of his daughter. He said the standard two-week period was insufficient, particularly after his wife underwent a caesarean section. Returning to work, he said, would place significant pressure on his family at a time when additional support was essential.

For self-employed parents, flexibility often comes at the cost of security. Wedding photographer Barnaby Aldrick said he had to plan work commitments more than a year in advance around the birth of his children, relying on savings to cover time away from work. While he values the autonomy of self-employment, he said it leaves fathers financially exposed during major life events.

Campaigners argue that better paternity leave would also benefit employers by improving staff retention and loyalty. Errol Murray, founder of the Leeds Dads network, said businesses often overestimate the cost of supporting parental leave. He suggested targeted government support could help smaller firms manage short-term cover while ensuring families are not penalised.

However, concerns remain about affordability. Conservative councillor Alan Lamb said there was sympathy for fathers but questioned how expanded paternity leave could be funded, particularly for micro-businesses and freelancers who lack the resources of large firms.

The government has acknowledged shortcomings in the current system. Jonathan Reynolds recently said the UK’s paternity leave arrangements were “not particularly generous” by international standards and confirmed they were under review. He noted that one in three fathers currently take no parental leave at all and said changes in work patterns, including the rise in self-employment, made reform overdue.

As the review gets under way, fathers and campaigners are urging ministers to ensure any new framework reflects the realities of modern work, arguing that no parent should be forced to choose between financial stability and being present at the start of their child’s life.

Read more:
No paid paternity leave for self-employed fathers leaves families facing an ‘impossible choice’

Rachel Reeves is considering a pay-per-mile tax on electric vehicles (EVs) as part of her forthcoming Budget, in a move that could raise hundreds of millions of pounds a year and help offset the sharp decline in fuel duty revenues caused by Britain’s shift to greener transport.

The proposed levy, expected to feature in the 26 November Budget, would see EV drivers charged around 3p per mile, adding an average of £250 a year to running costs. The new duty would sit alongside existing road taxes, which electric vehicle owners became liable for from April this year.

A government spokesperson said the move was designed to make motoring taxation “fairer for all drivers”, noting that petrol and diesel motorists currently pay around £600 annually in fuel duty while EV owners pay none. “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers,” the spokesperson said.

The proposed pay-per-mile charge is being considered as part of the Chancellor’s efforts to fill a £20–30 billion fiscal gap over the remainder of the Parliament. According to the Daily Telegraph, which first reported the plan, the system would be introduced in 2028, following a public consultation.

By then, around four million Britons are expected to drive electric cars or vans, according to the Society of Motor Manufacturers and Traders (SMMT). The trade body, however, warned that the measure could undermine the UK’s fragile EV transition.

“We recognise the need for a new approach to motoring taxes,” the SMMT said, “but at such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time.”

Jon Lawes, managing director at Novuna Vehicle Solutions, said that while a fairer tax system was inevitable, affordability and infrastructure should take priority. “The cost of EVs and charging availability remain major barriers,” he said, urging the government to accelerate charger deployment, extend grants, and boost incentives for used EVs.

The government has already invested £4 billion to support the transition to electric vehicles, including grants worth up to £3,750 per vehicle. But the Chancellor faces growing pressure to broaden the tax base as fuel duty receipts decline, with analysts estimating the Treasury could lose more than £25 billion annually by the early 2030s as the combustion fleet shrinks.

Policy analysts say the pay-per-mile scheme would mark a significant shift in transport taxation, replacing fuel-based levies with usage-based charges. The Campaign for Better Transport and the Tony Blair Institute have both called for road pricing in recent years, suggesting a 1p-per-mile charge for cars and vans and up to 4p for heavy goods vehicles.

Even with a 3p charge, analysis by the Energy and Climate Intelligence Unit suggests that EVs would remain around £1,000 cheaper per year to run than petrol vehicles.

“This announcement comes shortly after the government weakened its EV sales targets under industry pressure,” said Colin Walker, the unit’s head of transport. “That could allow more hybrids on the road that burn five times more fuel than advertised, costing drivers hundreds more a year.”

Treasury insiders have framed the proposal as a matter of fairness rather than revenue-raising, but its timing — as Labour prepares a tax-heavy second Budget — underscores the government’s growing dilemma: how to fund Britain’s transition to net zero without stalling public adoption of clean technologies.

As Reeves finalises her Budget, the EV tax debate will test Labour’s ability to balance fiscal discipline, industrial policy, and environmental ambition — a triad that could define the economic tone of the new government.

Read more:
Rachel Reeves considers pay-per-mile tax on electric vehicles to plug £30bn fiscal gap

The government is still reviewing plans to tighten reporting requirements for small and micro companies, with ministers yet to decide whether to press ahead with rules that would require them to publish profit-and-loss accounts for the first time.

In an interview with The Times, Blair McDougall, the new small business minister, said that “all options are on the table” as officials weigh up the balance between tackling fraud and protecting small firms from unnecessary administrative burdens.

“There are obviously different arguments in terms of the impact on businesses of their exposure, particularly for SMEs, versus people who are worried about financial crime and everything else,” McDougall said. “We’re balancing that at the moment and discussing it.”

Under plans announced by Companies House in June, firms classified as “small” or “micro” would lose the right to file abbreviated accounts from April 2027. Instead, they would have to submit full profit-and-loss statements, revealing revenues and profits.

The move formed part of the Economic Crime and Corporate Transparency Act, designed to reduce fraud and improve the accuracy of information filed at Companies House. However, within days of the announcement, the Department for Business and Trade signalled a pause in the rollout amid concerns from business groups that the new rules would increase red tape and risk exposing commercially sensitive data.

If implemented, the reforms would affect companies with turnover below £10.2 million, balance sheets under £5.1 million, and fewer than 50 employees. They would also require all firms to file accounts digitally using commercial software, ending the use of paper and web-based submissions.

The proposals were first consulted on in 2019 and made law in 2023 under the previous Conservative government. Business groups have broadly supported greater transparency but warned that the changes could deter entrepreneurship by exposing small firms’ financial details to competitors.

McDougall, who became an MP in 2024 and took on his first ministerial role in September, said the government’s focus was on building business confidence and long-term growth rather than rushing through reforms.

He added that success would be judged by how well the government delivers on its Small Business Plan and industrial strategy, both launched earlier this year. “We’ve got a terrible history in government of publishing these PDFs that then gather dust,” he said.

McDougall spoke during International Trade Week at The Great British Pitch, an event organised by Small Business Britain that brought together entrepreneurs and international buyers. He said such initiatives were central to boosting the profile of British SMEs and driving export-led growth.

The final decision on the Companies House reforms is expected early next year, with officials indicating that ministers are still assessing the regulatory impact on smaller businesses before confirming the 2027 timetable.

Read more:
Government still weighing changes to small company filing rules, says business minister

Chancellor Rachel Reeves has signalled that her 26 November Budget will ask more Britons to shoulder the burden of repairing the nation’s public finances — even if that means breaking Labour’s manifesto pledge not to raise income tax.

In a speech this week, Reeves warned that “hard choices” were unavoidable if Britain was to protect the NHS, reduce national debt and keep inflation under control. Her language marked a shift from earlier assurances that only those with the “broadest shoulders” would face higher taxes.

“If we are to build the future of Britain together, we will all have to contribute,” she said. “When that requires hard choices, we will act guided by the interests of working people.”

While the Chancellor maintained that fairness would underpin her fiscal plans, her remarks were widely interpreted in Westminster as preparing voters for a broader tax rise that could affect millions of middle-income workers.

At the heart of the political tension lies the question of how Labour defines “working people” — a term that may exclude much of the upper-middle-income bracket. Treasury insiders suggest the government considers those earning up to £45,000–£46,000 a year as “working people”.

That would leave roughly one-third of UK earners outside the protected group, potentially exposing professionals such as paramedics, teachers, software developers, and vets to higher income tax or national insurance contributions.

Data from the Office for National Statistics (ONS) shows that around 40% of male employees and 20% of female employees earn above £45,000. In London, where the median full-time salary stands at nearly £50,000, the proportion is significantly higher — meaning the capital’s workforce could face the steepest hit.

Ironically, Labour’s own inflation-busting public sector pay awards could see the Chancellor give with one hand and take with the other. NHS pay scales show that senior paramedics, speech and language therapists, and school nurses now earn above the proposed threshold.

Similarly, the National Education Union estimates that nearly all school leaders and senior teachers fall within the bracket likely to face higher tax. Years of frozen income tax thresholds — known as fiscal drag — have already pushed many of these workers into higher bands.

Britain’s finances have become increasingly reliant on a small pool of top-rate taxpayers. According to HMRC projections, 1.2 million people earning above £125,140 — just 3% of all income-tax payers — contribute around 40% of total income tax receipts.

Income tax now raises more than £300 billion annually, making it the government’s single largest revenue stream. Yet, as tax policy experts point out, Britain’s average worker still pays less tax on earnings than counterparts in most major European economies.

“The UK system has become top-heavy,” said Chris Sanger, head of tax policy at EY. “If you increase rates for those with the highest incomes, you risk losing mobility and, ultimately, revenue. In a post-pandemic world where remote work is common, the wealthy can relocate more easily than ever.”

The political risk for Labour is that a tax rise on higher earners could alienate the very middle-class voters who helped deliver its 2024 election victory. YouGov polling shows that households earning over £50,000 were disproportionately likely to vote Labour, while Reform’s support was strongest among lower-income groups and Conservative voters skewed older and retired.

If Reeves presses ahead, she faces a delicate balancing act: funding the public services Labour has promised to revive, while avoiding a backlash from the professionals and entrepreneurs who underpin Britain’s tax base.

As one City economist put it: “Reeves is walking a fiscal tightrope — between fairness and flight risk. The more she taxes those who can move, the less they’ll stay to pay.”

Read more:
Labour risks breaking tax pledge as Rachel Reeves targets higher earners in autumn Budget

Germany is emerging as Europe’s most compelling growth story heading into 2026, with analysts forecasting a return to steady expansion and international firms eyeing new opportunities across the continent’s largest economy.

Global employment specialist Agility EOR is urging international companies to take a fresh look at Germany, as forecasts point to 1.3% GDP growth next year, underpinned by €500 billion in government infrastructure investment and more than €630 billion in private-sector funding. The scale of this combined spending — over €1 trillion — is set to inject new momentum into sectors ranging from technology and manufacturing to energy and digital infrastructure.

“Germany’s fundamentals make it a standout destination for international expansion,” said Scott Winter, HR Executive at Agility EOR. “The combination of a highly skilled, bilingual workforce, a central European location, and the widespread adoption of hybrid work creates an ideal environment for global employers seeking growth.”

The consultancy has positioned itself to meet rising demand from companies entering the German market, having secured an Arbeitnehmerüberlassung (AÜG) licence — a crucial regulatory requirement that allows Agility EOR to support clients with compliant, flexible workforce strategies as they expand overseas.

Recent data suggests that workplace flexibility remains a decisive factor for talent retention in Germany. According to a survey by the ifo Institute, German employees work remotely an average of 1.6 days per week, notably higher than the global average of 1.2 days.

Meanwhile, research by Continental revealed that nearly half of German employees (47%) would consider quitting if their ability to work remotely were significantly curtailed. These findings underline how hybrid work has evolved from a temporary pandemic measure into a core expectation of the modern German workforce.

“Companies that fail to offer flexibility risk losing top talent to those with the foresight to adapt,” Winter added. “Agility EOR helps organisations enter and scale in Germany quickly and compliantly, giving them access to exceptional talent while ensuring alignment with local labour regulations.”

With the AÜG licence in place, Agility EOR is now equipped to act as a trusted partner for global employers seeking to build and manage distributed teams across Europe, ensuring every aspect of employment — from contracts to compliance — aligns with German labour law.

As confidence returns to the Eurozone, and Germany positions itself as a hub for innovation and sustainable growth, businesses ready to act stand to benefit most. For many global employers, 2026 could mark the start of a new chapter in European expansion.

Read more:
All eyes on Germany as €1 trillion investment wave fuels growth and new opportunities for global employers

More than a third of the UK’s fastest-growing technology scale-ups have no women on their boards, according to new research that highlights a striking gap between rhetoric and reality on diversity in Britain’s tech sector.

The report from global growth consultancy Think & Grow found that women occupy just 18% of board positions across the UK’s leading tech scale-ups, while 36% of these companies have no female board members at all.

This is despite an overwhelming 94% of board members and key decision-makers saying they believe a diverse board is essential for success.

The findings expose a clear disconnect between the industry’s stated commitment to inclusion and its execution in practice. The data, published in Think & Grow’s latest study, Breaking and Remaking the Next Generation of High-impact Boards, suggests that diversity is not yet a boardroom priority for many fast-growing tech firms.

In comparison, listed technology companies perform far better: women now account for 41% of board members across FTSE 350 tech firms, more than double the figure seen among scale-ups. This improvement has been driven in part by the Financial Conduct Authority’s diversity and inclusion rules, which require at least 40% female representation on boards.

The contrast underscores the importance of regulatory frameworks in driving change and the need for scale-ups—unbound by such requirements—to proactively embed diversity in their governance models.

The underrepresentation extends beyond the boardroom table. Just 12% of the UK’s fastest-growing tech firms are led by a female CEO or founder, and the same proportion have a female chair.

While these figures mirror the FTSE 350 tech sector, larger listed firms are significantly more likely to include women in other senior roles such as Chief Operating Officer, Chief Financial Officer, or Senior Independent Director. Across the FTSE 350 technology sector, 28% of senior leadership roles are held by women, and 80% of companies have appointed at least one woman to a top executive position.

The Think & Grow report also draws a connection between diversity and commercial outcomes. More than a third (35%) of senior decision-makers believe diverse boards improve customer representation, while others cite enhanced problem-solving and better identification of blind spots.

Notably, companies with annual revenues above £50 million reported 22% female board representation, compared with 15% among smaller peers—suggesting that greater gender balance may correlate with stronger performance and maturity.

A similar pattern is seen among listed firms: those with revenues over £500 million reported 42% female board representation, compared with 37% for smaller firms.

Despite the sobering statistics, there are early signs of improvement. Start-ups founded within the past five years have, on average, 25% female board representation—more than double that of older firms. Nearly all board members surveyed (93%) agree that progress on gender diversity has been made in recent years, signalling cultural momentum among the next generation of tech businesses.

Jonathan Jeffries, CEO and Co-Founder of Think & Grow, emphasised that diversity is not merely a moral imperative but a business advantage: “There is a clear correlation between diverse boards and strong corporate performance—yet many UK tech companies are failing to appoint board members with diverse backgrounds and expertise, which risks curbing growth.

“Enhancing diversity is not just a social responsibility, it’s a strategic advantage. Founders who prioritise inclusion from day one build boards that solve problems faster, see around corners and understand a broader range of markets and people.”

Founded over 16 years ago, Think & Grow has advised some of the world’s most innovative tech firms—including Stripe, Square, Dropbox, Peloton, and Etsy—helping them navigate the challenges of scaling in competitive global markets.

Read more:
UK tech scale-ups lag on gender diversity as over a third have no women on their boards

Officials and liquidators are pursuing businesses behind 21 movies that sought nearly £16 million in incentives from a joint HMRC and British Film Institute scheme.

Businesses controlled by prolific film producer Alan Latham — whose films have featured stars including Elizabeth Hurley, Kelsey Grammer, and Bill Nighy — are being investigated by HM Revenue & Customs (HMRC) amid questions over how taxpayer funds were used to finance dozens of little-known productions.

Liquidators are examining the collapse of Highfield Grange Production Services, one of Latham’s key holding companies, which listed £20.4 million in film investments now written down to zero. Creditors, including HMRC, have been left facing losses after Highfield fell into liquidation following a tax dispute.

The tax authority is also seeking to wind up GSP Studios International, Highfield’s main shareholder and another Latham-controlled entity.

A Times investigation found that more than 20 films linked to Latham attempted to access £16 million in creative industry tax reliefs, part of a government scheme run jointly by HMRC and the British Film Institute (BFI) to boost UK film production.

Among the titles are Christmas in Paradise, a romantic comedy starring Elizabeth Hurley (pictured) and Kelsey Grammer, shot in the Caribbean as part of a promotional deal for St Kitts and Nevis, and Miss Willoughby and the Haunted Bookshop, featuring Grammer again.

Many of the companies behind these films have not filed accounts for several years — a criminal offence — while others face being struck off the corporate register. The movies are absent from the BFI’s list of projects that received final certification, but some were granted “interim certification”, which allows funds to be released before completion.

Questions have also been raised about the accuracy of the production budgets used to claim tax relief.

For example, Solis — a 2018 sci-fi film starring Steven Ogg of The Walking Dead fame — was reported in company accounts to have cost £4.7 million, qualifying for nearly £1 million in interim tax credits. Its director, Carl Strathie, has said publicly that the film’s real budget was closer to £700,000.

Another film, Gatecrash (2020), is listed as having cost £4.5 million, yet individuals familiar with the project claim the budget was about £750,000. It received nearly £900,000 in tax credits.

Liquidators at Begbies Traynor, who are overseeing Highfield’s administration, said they have conducted “thorough investigations” into why the film investments were written off. In filings this year, they confirmed that solicitors had been instructed to pursue “connected parties” with “substantial claims” against two unnamed special purpose vehicles.

They added that “substantial amounts of money have been identified as having been paid to other connected companies” and that transactions were being investigated for “having the effect of diminishing the company’s assets.”

A statement of affairs signed by Latham listed £3.7 million owed to GSP Studios International, another of his companies, now also facing HMRC action.

The episode has raised wider questions for HMRC and the BFI, which oversee the certification and administration of the UK’s £500 million-a-year film tax credit scheme.

The BFI confirmed that it works closely with HMRC and the government to “uphold the integrity of the system,” adding: “We take any concerns about potential misuse seriously. The tax incentives have helped attract investment, create jobs across the UK and showcase British creativity worldwide.”

An HMRC spokesperson said only: “We take compliance within creative industry tax reliefs seriously.”

Latham, an accountant turned film producer, has held more than 150 directorships and remains linked to more than 60 active companies. He did not respond to multiple requests for comment.

There is no suggestion of wrongdoing by any actors or crew members involved in the productions.

In 2022, Latham told the Mail on Sunday that “inefficiency” was to blame for his companies’ repeated failure to file accounts, after investors complained about losing money in one of his earlier films, The Comedian’s Guide to Survival, which grossed just £75.

Read more:
HMRC and BFI investigate film producer Alan Latham over £16m taxpayer-funded movie projects

The number of Bitcoin millionaires has surged in the year since Donald Trump was confirmed as winner of the 2024 US presidential election, according to new on-chain data analysed by Finbold Research.

Between November 2024 and November 2025, the number of Bitcoin (BTC) wallet addresses holding at least $1 million in BTC rose by 44,783, marking a 33.8 per cent increase. On average, that equates to around 3,700 new millionaire-tier wallets every month.

As of 5 November 2025, blockchain analytics show 156,705 addresses hold between $1 million and $9.99 million in BTC, up from 120,851 a year earlier. Another 20,626 addresses now hold more than $10 million each, nearly doubling from 11,697 in 2024. Combined, roughly 177,300 Bitcoin wallet addresses now qualify as “millionaire-tier.”

The expansion of the “Bitcoin rich list” came during a year of sharp rallies followed by renewed volatility. On election day in 2024, Bitcoin traded near $69,000. Optimism around a friendlier US policy stance toward digital assets helped push prices to a record $126,000 in October 2025 before a correction saw BTC briefly fall below $100,000 this week.

The market upswing has coincided with what analysts describe as a shift in Washington’s tone on crypto. Since returning to the White House, President Trump has pledged to make the US a leader in Bitcoin and digital-asset innovation, promoting clearer regulation and domestic mining expansion as key policy goals.

Jordan Major, Lead Research Editor at Finbold, said the data suggests sustained long-term accumulation by larger investors: “The growth in millionaire-tier Bitcoin addresses during a year that included both strong gains and deep pullbacks shows that accumulation has continued among larger holders. Despite volatility, high-net-worth participants appear to be positioning for long-term exposure rather than short-term trading outcomes.”

Diana Paluteder, Finbold’s Head of Content, added that while some individuals control multiple wallet addresses, the underlying trend is significant “The rise points to greater concentration of Bitcoin among wealthier holders and institutional entities. It underscores Bitcoin’s continuing appeal as a strategic store of value within diversified portfolios.”

Bitcoin’s growing millionaire-wallet segment will remain a key indicator of investor confidence heading into 2026. Analysts expect regulatory clarity, expanding institutional adoption and macroeconomic positioning to shape the next phase of capital inflows — and to determine whether this year’s new class of crypto millionaires can hold onto their gains.

Read more:
44,000 new Bitcoin millionaires added since Trump’s election win, new research shows

Nearly half of Britain’s shop workers are abused or attacked every week, according to new research exposing the human toll of the UK’s worsening retail crime crisis.

The Retail Trust, which supports wellbeing across the retail sector, found that 43 per cent of shop floor employees had faced verbal or physical abuse on a weekly basis, while one in four reported being physically assaulted in the past year. More than three-quarters said they had experienced intimidating or aggressive behaviour from customers.

The number of staff reporting weekly abuse has climbed sharply over the past year. Just twelve months ago, about a third said they faced regular hostility — underscoring what the Trust describes as a “deepening epidemic” of aggression in high street stores.

“What was once occasional frustration has become routine abuse,” said Chris Brook-Carter, chief executive of the Retail Trust. “We’re being contacted by people who are ignored, disrespected and shouted at every single day.”

The report paints a stark picture of deteriorating morale and mental health among retail employees. Of those who had experienced abuse, more than 40 per cent said they were considering quitting their jobs or leaving the sector altogether. Nearly two-thirds reported feeling anxious or fearful about going to work.

Brook-Carter said shop workers are increasingly treated as “less than human”, despite efforts by major retailers and government to curb violence and theft. “The proposed law changes are welcome, but they won’t stop the rudeness, hostility and contempt that retail staff tell us they face every shift,” he said.

The Retail Trust cited additional research by YouGov showing that almost a quarter of UK adults admitted they had forgotten to make eye contact or smile at shop workers, and one in five confessed they had failed to say hello or thank you.

In a growing number of cases, abuse has extended online: 30 per cent of shop workers said they or a colleague had been filmed without consent for social media “prank” videos, a trend fuelled by TikTok and other platforms.

Retailers have poured billions of pounds into surveillance technology, including facial recognition systems, body cameras and security gates, in an effort to curb theft and protect staff.

Tesco recently announced it had equipped 5,000 delivery drivers with body cameras after a surge in verbal abuse, having already issued “spit kits” that allow staff to collect DNA from offenders.

Despite these measures, violence and intimidation continue to rise. The government has pledged to make assaults on shop workers a standalone criminal offence and to reverse legislation that previously treated theft of goods worth under £200 as a low-level misdemeanour.

Ministers have promised to end what they called the “shameful neglect” of retail crime, but unions say the measures are too little, too late.

Nadine Houghton, national officer at the GMB union, said the findings expose the urgent need for tighter enforcement and better staffing in stores.

“Our members have been stabbed, punched and threatened with syringes while trying to do their job,” she said. “It’s completely horrifying — no one should have to suffer this kind of abuse and violence at work.”

She called on retailers to ensure “adequate staff and security to prevent incidents and rock-solid procedures to support employees when they occur.”

The rise in hostility towards retail staff mirrors broader challenges facing the UK’s high streets, which have been battered by inflation, theft and changing consumer habits. Retail experts say the industry’s recovery depends not only on economic policy but on restoring respect for those on the front line.

As Brook-Carter warned, “Our shop workers are the beating heart of our communities — but too many are being made to feel unsafe and undervalued in the places they help keep alive.”

Read more:
Almost half of shop workers face weekly abuse or attacks as retail crime surges

British households have reined in spending on gyms, streaming subscriptions and gaming over the past year, as the cost-of-living crisis continues to reshape consumer habits.

New data from MoneySuperMarket’s Household Money Index, which tracks the income and spending patterns of 8,000 consumers across 31 categories, shows steep declines in discretionary spending, suggesting that households are choosing long-term financial security over short-term luxuries.

Average monthly spending on gym memberships has fallen sharply from £51 in September 2024 to just £13.20 this year, while subscriptions to streaming services such as Netflix and Amazon Prime dropped from £32.20 to £23.50. Spending on video gaming was hit hardest, plunging by 75 per cent to £10.90 a month from £43.70 last year.

The report highlights a marked shift in consumer priorities, with households focusing on debt reduction and savings even as disposable income has edged higher.

Kara Gammell, personal finance expert at MoneySuperMarket, said: “While disposable income has risen, many UK households are making deliberate choices to prioritise long-term financial health over short-term luxuries. The steep decline in discretionary spending reflects this new mindset.”

Gammell added that households are not simply cutting costs but “making their money work harder”, with savings increasingly directed towards loan repayments, pensions and investments.

However, the findings drew scepticism from the fitness industry. Huw Edwards, chief executive of ukactive, said the figures did not align with what gyms are seeing on the ground. “This research does not reflect the clear trends we are seeing in demand for gym memberships,” he said. “A record 11.5 million people are now members of a gym in the UK, with strong growth across all age groups — particularly among younger generations prioritising their health and wellbeing.”

The report shows households are spending £55.26 a day on bills and other outgoings — an 8 per cent increase on last year. Rising costs for fuel (up 18 per cent), mortgages (up 10 per cent) and groceries (up 8 per cent) continue to squeeze budgets, while school and childcare expenses have surged 23 per cent.

Even traditionally fixed expenses have fallen as households hunt for better value. Spending on mobile phones and top-ups dropped by £10 to £29.80 a month, while broadband and telephone bills declined from £46.70 to £41.20. Life insurance payments fell to £13.79, and toiletries spending slipped from £29 to £25.

MoneySuperMarket’s data also shows a rise in payments towards loans, credit cards and workplace pensions, which Gammell said “signals a growing focus on financial resilience”.

“Households are using their extra cash to reduce debt and invest in their future,” she said.

The behavioural shift comes as inflation stabilises at 3.8 per cent and wage growth eases, prompting traders to bet on another Bank of England interest rate cut before the end of the year, potentially bringing the base rate down to 3.75 per cent.

While Britain’s consumers appear to be finding some breathing room after two years of relentless price pressures, the data suggests they are choosing prudence over pleasure — cutting back on non-essentials to safeguard their financial wellbeing for the long haul.

Read more:
Gyms, streaming and gaming subscriptions hit as consumers tighten belts

Artificial intelligence is fast becoming Britain’s most popular financial adviser, with more than half of adults now using platforms such as ChatGPT to help them make decisions about money, according to new research commissioned by Lloyds Banking Group.

The study found that 56 per cent of UK adults — equivalent to 28.8 million people — have turned to AI tools for guidance on budgeting, savings, pensions and even investments. Financial advice has overtaken all other uses of AI, cited more often than help with writing emails or work documents (29 per cent), recipes (20 per cent), medical queries (17 per cent) or career advice (14 per cent).

Researchers said the findings show how quickly AI has entered mainstream decision-making since becoming widely available less than three years ago, but warned that the trend also exposes consumers to new risks.

Jas Singh, chief executive for consumer relationships at Lloyds, said: “AI is empowering millions to feel more confident about their financial decisions — but it’s vital they receive information they can trust.”

The study of 5,000 adults found that one in three people uses an AI tool at least once a week for financial information or advice. Many users seek practical help — such as drawing up budgets — but others ask for recommendations on pensions, investments and tax, areas that would normally require regulated professional advice.

Unlike banks or investment firms, which face strict rules on what they can tell customers, AI platforms are entirely unregulated. This raises the risk of people acting on incorrect or misleading information, with no legal protection if things go wrong.

Despite those dangers, awareness among users remains mixed. Around 80 per cent of respondents said they were worried about receiving inaccurate advice, and 83 per cent expressed concern about data privacy — yet usage continues to grow rapidly.

Experts say the boom reflects a deeper problem in Britain’s financial system: the “advice gap”, where millions of people cannot afford the roughly £1,000 it costs for a traditional financial adviser to conduct a full review of their affairs.

ChatGPT, the AI chatbot developed by OpenAI, was the most widely used tool, cited by six in ten respondents, followed by Google’s Gemini, Microsoft’s Copilot, and Meta’s AI assistants built into WhatsApp and Facebook.

Users reported saving an average of £399 a year through AI-assisted money management, suggesting the technology is helping people make more informed day-to-day decisions — at least in the short term.

The Financial Conduct Authority (FCA) is preparing to introduce new “targeted support” rules by late 2026, allowing regulated firms to provide more tailored guidance without a full financial fact find. However, the Lloyds study suggests consumers are already far ahead of the regulatory curve.

The FCA has acknowledged AI’s potential to simplify complex information and improve accessibility, but it continues to stress that human judgment remains essential. The regulator is understood to be considering website updates to help consumers understand both the benefits and the limits of generative AI.

Consumers who act on AI-generated recommendations are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme if they suffer financial losses.

Financial experts warn that while AI can make financial knowledge more accessible, it also risks normalising unverified advice.

Ignorance, fear of risk and frustration with the complexity of financial products have long pushed people toward poor decision-making, the report notes. AI, by offering quick and personalised answers, could help bridge that gap — or, without oversight, widen it.

As Singh concluded: “Technology can help people take control of their money, but it cannot replace trust. The future of financial advice must combine innovation with responsibility — and ensure that confidence doesn’t come at the cost of protection.”

Read more:
Half of UK adults now use AI for financial advice, study finds

The Society of Pension Professionals (SPP) has joined forces with Stonewall to publish a new paper calling for stronger inclusion of LGBTQ+ individuals across the UK’s financial and business sectors.

The collaboration, part of SPP’s Inclusive Futures series, highlights the persistent inequalities that continue to affect LGBTQ+ people despite decades of social and legal progress.

The report, featuring insights from Simon Blake (pictured), Chief Executive of Stonewall, and Savannah Adeniyan, Solicitor at Travers Smith LLP and SPP member, shines a light on the inequalities that still shape financial security, workplace culture and representation in senior leadership. It calls on pension providers, employers and policymakers to translate diversity pledges into measurable action.

Blake warns that while the UK has made significant strides since the late 20th century, “a clear picture of inequality remains which flows through to financial inequality and a LGBTQ+ pensions gap.” He points to data from ILGA Europe showing that Britain has slipped from first to 22nd place in European equality rankings over the past decade, reflecting a wider pattern of stagnation and regression.

The figures are stark: two-thirds of LGBTQ+ young people have faced discrimination based on their sexuality or gender identity, while hate crime reports have climbed to nearly 28,000 incidents a year. In the workplace, more than half of LGBTQ+ employees report experiencing harassment or bullying, and almost a third say they do not feel able to be open about their identity at work.

Blake argues that the pensions and financial services sectors have a crucial role to play in addressing these systemic gaps. He urges employers to learn from LGBTQ+ history and lived experience, to ensure scheme information and communications reflect diverse family structures, and to make paperwork and policies genuinely inclusive. “This isn’t just about representation,” he writes. “It’s about dignity, fairness and ensuring our futures are built on equal foundations.”

Adeniyan’s contribution, titled Visible, Open, Engaging, offers a personal reflection on her experience as a queer Black woman in the legal industry. While she celebrates the progress that has made workplaces more inclusive, she acknowledges that barriers remain. “My queer identity has been welcomed throughout my career in a way that I know many LGBT+ professionals did not experience at the start of theirs,” she writes, recalling how early in her career she was advised to “go back into the closet” to get a foothold in law.

Although such attitudes are fading, Adeniyan says too many professionals still encounter “glass ceilings” or feel unable to be open about their identity for fear of harming their careers. Yet she remains optimistic, pointing to genuine strides being made across the legal and pensions industries. “The proper measure of diversity and inclusion is in actions, not words,” she concludes.

The paper makes a broader economic and moral case for inclusion, arguing that equality is not just a social goal but a strategic imperative for sustainable business. It calls for greater accountability in how organisations measure progress and challenges leaders to see inclusion as part of good governance and risk management.

Together, Stonewall and the SPP are urging financial and professional services to move beyond statements of intent and make inclusion a lived reality — one where every individual can plan, work and retire with security and pride.

Read more:
Stonewall and SPP unite to tackle LGBTQ+ inclusion gaps in business and pensions

Innovate UK has announced the winners of the 2025 Knowledge Transfer Partnership (KTP) Awards, celebrating the 50th anniversary of one of Britain’s longest-running and most successful innovation programmes.

Delivered by Innovate UK, the UK’s national innovation agency, the milestone event recognised half a century of collaboration between businesses, universities and graduates, highlighting projects that have driven productivity, sustainability and commercial impact across every corner of the economy.

This year’s winners were praised for their exceptional contributions to scientific progress, digital transformation and social value creation, embodying the enduring mission of KTP to turn cutting-edge research into real-world results.

The African Agriculture KTP Award went to Taro-Agric Consulting, in partnership with Obafemi Awolowo University and the University of the West of England, for pioneering data-enabled innovation in Nigeria’s poultry industry. The collaboration used IoT platforms, dashboards and databases to tackle production inefficiencies, cutting mortality rates and costs while boosting profitability and institutional capacity for digital agriculture.

The Best KTP Award was awarded to Yeo Valley Farms (Production) Ltd and the University of Reading, whose partnership transformed yoghurt production through process modelling and protein science. By advancing milk protein denaturation and gel formation research, the project doubled milk utilisation, improved product texture, and delivered both financial and environmental gains — while enriching teaching and graduate opportunities.

The Changing the World Award went to Dunsters Farm Limited and Manchester Metropolitan University, a family-run food service business recognised for embedding sustainability, social value, and data-driven decision-making into its operations. The initiative secured a six-year, £40 million contract, positioning Dunsters Farm as a model for socially responsible, profitable business growth.

Richard Lamb, KTP Programme Manager at Innovate UK, praised this year’s cohort as evidence that the initiative remains “as relevant as ever.”

“Year after year, projects within our KTP programme exceed expectations, delivering significant impact, advancing knowledge and driving growth,” Lamb said. “After 50 years, KTP continues to attract businesses eager to grow, academics passionate about solving real-world challenges, and the brightest graduate minds from across the globe.”

This year also saw the debut of the Golden KTP Awards, honouring individuals and projects whose influence has shaped innovation practice and collaboration throughout the programme’s history.

Since its inception, the KTP initiative has supported over 14,000 partnerships, generating an estimated £2.3 billion in value creation and establishing itself as a cornerstone of the UK’s innovation landscape.

“KTP remains at the heart of the UK’s mission to drive productivity, resilience, and sustainable industrial growth through collaboration between business and academia,” Lamb added.

2025 Innovate UK KTP Award winners

• Best African Agriculture KTP Project: Taro-Agric Farm (TAF) – University of the West of England, Bristol and Obafemi Awolowo University
• Best Knowledge Base KTP Support Team: The University of Essex
• Best Knowledge Transfer Partnership Award: Yeo Valley Farms (Production) Ltd – University of Reading
• Changing the World Award: Dunsters Farm Limited – Manchester Metropolitan University
• Future Leader Awards:

Ashtead Engineering Company Ltd – Kingston University

Dr Simeon Skopalik – Soapworks Ltd / University of Glasgow

Ray Holder – Smartify Holdings Limited / University of the West of Scotland

Shay McEvoy – AB Pneumatics Ltd / Queen’s University Belfast

Renato Software Ltd – Birmingham City University

• KTP Academic of the Year: TNEI Services Limited – Glasgow Caledonian University
• Technical Excellence Award: Soapworks Ltd – University of Glasgow
• Business Transformation Award: Detoxpeople Ltd – Anglia Ruskin University

As Innovate UK celebrates the golden jubilee of its flagship programme, the KTP Awards 2025 reaffirm the UK’s global leadership in industry–academic collaboration.

From AI-driven agriculture to low-carbon food manufacturing, the winning partnerships demonstrate how innovation thrives when business insight meets academic excellence — a formula that has delivered impact for five decades, and looks set to shape the next generation of British enterprise.

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Innovate UK celebrates 50 years of collaboration as winners announced at 2025 KTP Awards

Britain’s booming creator economy is fuelling a surge in “side hustles”, with millions of people turning content creation into extra income — but new research suggests many could face unexpected tax bills.

According to Tide, the UK’s leading business management platform, the average social media earner now makes £1,223 a year — exceeding the HMRC £1,000 trading allowance that lets individuals earn small sums tax-free.

Yet more than half of social media users remain unaware of the rule, putting them at risk of self-assessment penalties that start at £100 and can quickly escalate.

Tide’s study found that 42% of UK adults have received either money or gifts in exchange for social media posts on platforms such as TikTok, Instagram, X (Twitter) and YouTube.

For some, this means small perks or free products. But for a growing number of creators — particularly younger users — it has evolved into a significant revenue stream.

A fifth (21%) of earners now make more than £1,000 a year from their content, while 55% of 18–24-year-olds report earning from social media — the highest of any age group. Despite this, only 36% of young creators have filed a tax return with HMRC.

The problem, says Tide’s UK Managing Director, Heather Cobb, is that many casual creators don’t realise their side hustles count as taxable income:

“It’s great that TikTok and Instagram have opened new ways for people to earn. But even if you’re paid in free products, those items have a value — and that value counts towards the £1,000 allowance. If you don’t track it, you could face unexpected penalties.”

Under HMRC’s trading allowance, individuals can earn up to £1,000 in gross income from self-employment or side hustles each tax year before needing to declare it. Once earnings exceed that amount — whether through cash payments or the value of gifted items — individuals must register for self-assessment and report their income.

Only 44% of those who earn from content creation say they have done so. With late filing fines and “failure to notify” penalties potentially running into thousands of pounds, Tide estimates that total fines across the UK could exceed £2 million annually.

Cobb urged creators to separate business income from personal finances early on: “Track your earnings from day one. Open a separate business account, keep receipts, and record the value of gifts. Tools like Tide Accounting can help manage tax and expenses easily.”

For many, social media income has become the first step towards entrepreneurship.

Megan Paul, a Tide member and founder of Gel by Megan in Warwickshire, said her business began as an Instagram hobby: “Posting photos of my nail art started as a creative outlet, but it soon grew into paid brand work and now my own training academy.

Taxes and self-assessments can feel daunting, but local business communities and modern finance tools make it much easier. I’d encourage anyone earning online to take it seriously — it could be the start of something bigger.”

The rise of the “TikTok Tax” underscores how quickly passion projects can evolve into taxable businesses. As the boundaries between personal and professional blur, experts say the UK’s tax system and financial education must keep pace.

With millions of creators earning, gifting, and collaborating online, understanding basic business management and compliance has become essential — not just to avoid penalties, but to build sustainable digital careers.

For the new generation of side hustlers, keeping on top of tax may not be glamorous — but it’s the price of turning likes and views into legitimate income.

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The TikTok tax: Millions risk HMRC fines as side hustlers surge past £1,000 earnings threshold

Virgin Media O2 is set to become the first UK mobile network to offer customers automatic satellite connectivity in areas with no phone signal, after striking a deal with Elon Musk’s Starlink.

The new service, O2 Satellite, will launch in the first half of 2026, giving users coverage in rural and remote regions where terrestrial masts are unavailable. The company said smartphones compatible with the technology would automatically connect to satellites when no mobile signal is detected.

While Virgin Media O2 has yet to reveal pricing, the service will be offered as an optional monthly add-on rather than a standard feature.

Initially, O2 Satellite will only support messaging, maps and location apps. Phone calls made via normal mobile networks will not work over the satellite connection, as Starlink’s current generation of satellites does not support voice. However, WhatsApp calls and other data-based communication apps may function, with O2 confirming it will run trials before the public rollout.

Luke Pearce, a telecoms analyst at CCS Insight, said the technology could prove transformative for consumers and businesses.

“In today’s world, connectivity is no longer optional,” he said. “Whether it’s emergency SOS in life-saving situations or keeping software-defined vehicles online, people now expect constant access. Satellite is the only technology that can truly close the coverage gap across mountains, oceans and rural areas.”

O2’s announcement follows rival Vodafone’s successful live video call via satellite earlier this year from a remote mountain in Wales, which the company described as a UK first. Vodafone partnered with US satellite firm AST SpaceMobile, which currently has six satellites in orbit and aims to deploy up to 60 by the end of 2026.

Starlink, owned by SpaceX, already has more than 650 satellites supporting direct-to-device services and has launched similar offerings in Australia, New Zealand, the US, Canada and Japan.

In the UK, the telecoms regulator Ofcom updated its rules in September to allow satellite connectivity directly to smartphones. For now, such connections are limited to emergency texting features available on the latest iPhone and Android models, but O2’s partnership with Starlink is expected to be the first commercial deployment for mainstream users.

Astronomers, however, have raised concerns about the growing number of low-Earth orbit satellites, warning they contribute to light pollution and could make it harder to detect asteroids and other space hazards.

Still, with O2’s move, the UK looks set to take a major step toward universal mobile coverage — powered not by masts on the ground, but by “phone towers in the sky.”

Read more:
Virgin Media O2 to team up with Musk’s Starlink to launch UK’s first satellite-connected mobile service

Apple’s iPhone, Amazon and Virgin Atlantic have been named YouGov’s UK Advertisers of the Month for September, after each brand saw a sharp increase in consumer awareness of their advertising.

According to YouGov BrandIndex, which measures the percentage of consumers who have seen an advert for a brand in the past two weeks, all three brands posted significant gains in Ad Awareness during the month.

Amazon recorded the biggest uplift, rising from 26.5% on September 1 to 33.7% on September 25 — a gain of 7.2 percentage points. The surge followed the company’s UK Upfront event, which promoted new advertising formats across Prime Video and its growing retail media network.

The e-commerce giant also announced a landmark partnership with Netflix on September 10, allowing advertisers to buy inventory from Netflix’s ad-supported tier directly through Amazon’s demand-side platform (DSP). The tie-up marked a major step in Amazon’s ambitions to become a global hub for connected TV advertising.

Apple’s Ad Awareness score for iPhone jumped from 12.0% on September 9 to 21.5% on September 25, an increase of 9.5 points. The rise coincided with the company’s annual September product showcase, which unveiled the iPhone 17, iPhone 17 Pro, and the new iPhone Air, alongside updates to the Apple Watch Series 11, Apple Watch Ultra 3, and refreshed AirPods Pro.

The high-profile launch generated extensive cross-channel marketing activity, bolstered by cinematic advertising campaigns and sustained media coverage across the tech and lifestyle sectors.

Virgin Atlantic also saw a notable uplift in Ad Awareness, climbing from 7.9% on August 30 to 13.1% on September 25 — a rise of 5.1 points. The growth was driven by the airline’s latest LGBTQ+ campaign, “Free to Be Me”, created in partnership with Attitude magazine.

The campaign celebrated inclusion and self-expression among travellers, combining digital storytelling with branded content and social partnerships to reinforce Virgin Atlantic’s positioning as one of the most progressive brands in aviation.

Together, the three brands exemplified how major product launches, partnerships, and purpose-led campaigns can translate into tangible boosts in advertising visibility — even in a competitive and cluttered media landscape.

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iPhone, Amazon and Virgin Atlantic named UK advertisers of the month for September

Parliament Street, one of the UK’s leading think tanks has today appointed Steven George-Hilley as its Director of Artificial Intelligence, in a newly created role.

The news comes as the UK government signs a new deal with OpenAI, the firm behind ChatGPT, to use artificial intelligence (AI) to increase productivity in the UK’s public services and key government departments. Areas targeted for improvement include the justice, law and order, national security, defence and education sectors.

George-Hilley, founder of global tech communications firm Centropy PR, will lead the think tank’s cross-party policy development on AI deployment and liaise with businesses to discuss packages for public sector deals and services.

Established in 2012, Parliament Street specialises in connecting businesses with policymakers and operates impartially, organising debates, events and discussions in the Houses of Parliament and the House of Lords. Joining the organisation as Technology Director in 2013, Steven George-Hilley has led key political liaison programmes, working with ministers in both Labour and Conservative party governments to develop the best practice of key technologies such as analytics, AI and quantum computing.

This month, the UK government unveiled a blueprint for artificial intelligence regulation that would allow new AI products to be tested under relaxed rules, in a bid to drive growth and innovation in sectors such as healthcare and housebuilding.

Under the plans, unveiled by the UK’s technology secretary Liz Kendall in London on 21 October, a proposed AI Growth Lab would enable companies and innovators to test AI tools in ‘real-world’ conditions.

The proposed new testing environments would be set up for key economic sectors including healthcare, transport, and in the use of robotics in advanced manufacturing to “accelerate the responsible development and deployment of AI products”, according to the government.

Announcing the appointment, Patrick Sullivan, Chairman said: “Our think has now been in operation for well over a decade, producing agenda-setting research, events and policies. With AI set to shake up the business community beyond all recognition, I’m very proud to appoint Steven to this newly created role.”

Responding to the announcement, Steven George-Hilley, Director of AI, Parliament Street, said: “AI has the potential to transform public services beyond all recognition, saving key services like the NHS billions of pounds. However, the technology brings with it huge challenges in terms of security, privacy and ethical usage. Our organisation will continue to serve as a bridge between private businesses and the public sector, enabling the UK to become the epicentre of ethical and effective AI deployment.

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Steven George-Hilley appointed as AI director for Parliament Street think tank

The Prince Albert II of Monaco Foundation (FPA2) has partnered with Circulate Capital, a leading circular economy investment firm, to scale solutions addressing ocean plastic pollution across South and Southeast Asia.

The collaboration, announced at the Ocean Innovators Platform in Hong Kong — an initiative led by FPA2 to promote sustainable blue economy solutions — marks a significant step in mobilising private capital to fight plastic pollution at its source.

The partnership will combine FPA2’s global environmental influence with Circulate Capital’s investment expertise in circular economy ventures to accelerate funding for businesses that prevent plastic leakage and build sustainable value chains in coastal regions.

“The fight against ocean plastic pollution is one of the Foundation’s highest priorities,” said Olivier Wenden, Vice Chairman and CEO of the Prince Albert II of Monaco Foundation. “Circulate Capital has demonstrated a compelling, market-based approach to solving this crisis in the regions most affected. Our partnership marks an important step in scaling effective, on-the-ground initiatives that protect marine ecosystems and support local livelihoods.”

South and Southeast Asia are responsible for nearly 70% of the plastic entering the world’s oceans each year. Yet, according to the Foundation, the region received just 10% of the US$190 billion invested globally in plastic circularity between 2018 and 2023.

Analysts estimate that improving recycling systems and managing mismanaged plastic waste across the region could reduce greenhouse gas emissions equivalent to shutting down 61 coal plants for a year. Meeting national recycling targets in six key markets could cut global emissions from plastics end-of-life by 10% by 2030.

“We aren’t just getting a partner; we’re getting a champion,” said Rob Kaplan, Founder and CEO of Circulate Capital. “With the Prince Albert II of Monaco Foundation alongside us, we can unlock the networks, capital, and collaboration needed to tackle plastic pollution head-on.”

Since its launch, Circulate Capital has invested in 23 companies across Asia and Latin America, financing projects that reduce plastic pollution while creating social and climate impact.

The firm’s portfolio has added 455,000 tonnes of annual recycling capacity, avoided 627,000 tonnes of CO₂ emissions, and improved the livelihoods of more than 6,600 workers throughout the recycling value chain.

The new partnership aims to extend that reach further, channelling more capital to local innovators tackling waste collection, recycling infrastructure, and alternative materials.

The alliance underscores a growing movement to align environmental philanthropy with market-driven investment strategies. By connecting impact investors with scalable solutions, FPA2 and Circulate Capital hope to redefine how plastic pollution is tackled — turning waste into opportunity and sustainability into growth.

“This partnership exemplifies how collaboration between foundations and private capital can deliver measurable, lasting change,” Wenden said. “The ocean connects us all — and protecting it demands that kind of shared responsibility.”

Read more:
Prince Albert II Foundation and Circulate Capital join forces to tackle ocean plastic in Asia

eBay UK has unveiled the winners of its 2025 eBay Top Seller Awards, celebrating the small businesses and entrepreneurs powering the UK’s growth story across fashion, technology, sustainability and community enterprise.

Now in its ninth year, the awards honour outstanding independent retailers and innovators trading on eBay’s marketplace, highlighting their impact on both the domestic economy and global exports.

With nearly 134 million customers worldwide, eBay remains one of the largest enablers of small business growth, connecting thousands of UK sellers with international buyers.

The 2025 eBay Top Seller Award winners include:
• Lifetime Achievement Award: Music Magpie, Manchester – Refurbished electronics and second-hand media retailer.
• Above & Beyond Award: Curated By Kate (Kaly Limited), Reading – Independent fashion retailer specialising in pre-loved clothing.
• Business Growth Award: Cannon’s Camera House, London – Specialist in refurbished cameras, lenses and accessories.
• eBay Pioneer Award: RCScrapyard, Sussex – Restores and resells radio-controlled models.
• Community Contribution Award: Retro Recycling, Essex – Vintage menswear and homeware retailer.
• Social Impact Award: Forget Me Not Children’s Hospice, Huddersfield – Charity supporting families of children with life-shortening conditions.
• Start-Up Award: tcgx ltd, Yorkshire – Fast-growing collectibles retailer specialising in Pokémon and Digimon trading cards.
• Judges’ Award: Sofab Sports, Gloucester – Authentic sportswear and fashion retailer.

Each winner receives £10,000 in funding, bespoke business mentoring, and a feature in eBay’s Seller Stories video series. They will also be honoured at an exclusive celebration event in Mayfair, London.

The Top Seller Awards are part of eBay’s wider mission to empower UK entrepreneurs with tools, training and funding to grow sustainably.

Among eBay’s key initiatives for sellers:
• Seller Capital – providing fast, flexible funding to help SMEs scale.
• Pro Trader Plus – one-to-one guidance and tailored support for established sellers expanding their operations.
• AI Activate – free access to AI-driven tools to enhance listings, optimise visibility and automate workflows.

The awards showcase how digital marketplaces are enabling growth for UK SMEs amid economic uncertainty, offering global reach without traditional barriers to entry.

Reflecting on this year’s winners, eBay UK said the awards demonstrated the creativity, adaptability and resilience that define Britain’s entrepreneurial landscape.

“These incredible small businesses are redefining what it means to be an entrepreneur in 2025,” said a spokesperson. “They combine innovation with purpose — from sustainable retail and digital innovation to community-led initiatives — and are helping to power the UK’s economic recovery.”

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Britain’s brightest small businesses honoured at 2025 eBay Top Seller Awards

Hensol Castle Distillery has announced a series of record-breaking achievements for the first six months of its financial year, underscoring its growing status as one of Wales’s most successful spirits producers.

The business achieved an AA grade in its latest BRCGS re-audit — the highest possible certification — recognising world-class standards in product safety, quality and traceability.

The distillery also expanded its supermarket partnerships, with new listings driving growth across Wales and the UK. Its premium Hensol Castle Vodka launched in Tesco stores across Wales for the first time this year, while a new distribution agreement with Molson Coors will support national on-trade expansion.

During the first half of 2025, Hensol Castle Distillery delivered record contract bottling volumes of 1.3 million bottles, fulfilling orders for several blue-chip drinks companies. The company also confirmed that profits for the period were significantly ahead of forecasts.

The results highlight the distillery’s dual focus on contract manufacturing and premium own-brand production, with operational excellence and quality assurance driving both revenue streams.

“Whilst the challenges facing the hospitality industry are widely reported, we are delighted to continue building market share and distribution for our own spirits brand,” said Chris Leeke, Managing Director.

“We are also proud to have earned the trust of respected national brands to produce their spirits on their behalf. Our success in the past six months is a testament to our passionate and knowledgeable team, whose dedication continues to drive our growth.”

The business’s partnership with Molson Coors marks a significant step in its on-trade strategy, with the brewer’s Regional Director Martin Anderson welcoming the collaboration: “We’re excited to add Hensol Castle to our on-trade distribution portfolio. Our teams are enthusiastic about bringing the brand’s unique Welsh offering to more customers across the UK.”

Meanwhile, the company’s whisky production programme continues to mature. Hensol Castle confirmed that its first whisky release is planned for the second half of 2026, with several special-edition cask finishes already in development.

The distillery’s visitor experience continues to thrive, attracting thousands of guests annually and contributing to the region’s growing food and drink tourism sector.

In 2025, Hensol Castle Distillery once again secured the Tripadvisor Travellers’ Choice Award and was named Tourism and Hospitality Business of the Year at The Vale Business Awards — both for the second consecutive year.

As Hensol Castle Distillery continues to invest in new product innovation and infrastructure, it remains committed to upholding exceptional quality, sustainability and customer confidence.

“Our focus is on continuous improvement — from the integrity of our production standards to the partnerships we build,” said Leeke. “We’re determined to make Hensol Castle a brand Wales can be proud of.”

Read more:
Hensol Castle Distillery has reported a record-breaking start to 2025

Women working in the technology sector have been urged to trust their instincts, back their ideas, and challenge barriers to change, as industry leaders gathered at the first Inspiring Women in Technology event in Birmingham.

The event, hosted by the School of Coding & AI (SOC), brought together innovators and senior professionals from across the Midlands to discuss how women can turn the challenges of AI into opportunities for leadership and impact.

Suki Gill, (pictured) Director of Education and Quality at SOC, was joined by Aditi Desai, Consultant in Maternity and Gynaecology at The Royal Wolverhampton NHS Trust and co-founder of the iCount surgical safety system, and Hollie Whittles, Information Security & HR Director at Purple Frog Systems.

Reflecting on her own career, which began at Marconi before retraining as a teacher, Gill shared her perspective on building confidence and resilience in an industry still seen as male-dominated.

“For all its advancements, the technology sector is still regarded as a male-dominated industry,” Gill said. “But there are countless opportunities for women, and I was delighted to join others in the field to discuss this.

At School of Coding & AI, one of our key missions is to increase opportunities for women and girls, regardless of background.”

The School of Coding & AI, headquartered in Birmingham, continues to play a prominent role in national efforts to boost digital literacy, AI education and gender diversity in technology.

During Birmingham Tech Week, the organisation hosted CyberVerse Unmasked – Shaping the Future of Digital Resilience, a major conference exploring cybersecurity, innovation and the future of AI.

The event brought together cybersecurity professionals, entrepreneurs and academics to discuss emerging digital threats and how to strengthen resilience across public and private sectors.

SOC founder and CEO Manny Athwal also addressed the ScaleUp Summit at Birmingham’s STEAMhouse, where he shared his entrepreneurial journey — from starting the company in his bedroom to building a multi-million-pound enterprise operating in 17 countries.

“The road to creating a successful business is never straight,” Athwal said. “I built School of Coding & AI from a single idea into a global organisation.

Success doesn’t come from the idea alone — it comes from execution, leadership and resilience. If my journey can help others succeed, it’s a story I’m proud to share.”

The Inspiring Women in Technology event is set to become a regular fixture in Birmingham’s technology calendar, part of a growing effort to encourage more women into STEM careers and leadership roles within AI, cybersecurity and data science.

Organisers said the next event will expand its focus to include female founders, investors and educators, with the goal of creating a national platform for women driving innovation in tech.

Read more:
Women in tech urged to trust their instincts and lead change

JPMorgan Chase, the world’s largest bank by assets, has approved the use of its in-house artificial intelligence system to help employees write annual performance reviews — a move that underscores how rapidly AI-generated content is being integrated into corporate workflows.

According to the Financial Times, the US banking giant has launched a large language model (LLM) tool that enables staff to generate draft reviews based on prompts, streamlining a process that can be notoriously time-consuming in large organisations.

The rollout, which follows months of internal testing, highlights both the productivity gains and ethical dilemmas associated with AI in the workplace — where the line between human and machine-generated text is becoming increasingly blurred.

JPMorgan’s internal guidance instructs employees to use the AI system as a starting point when composing reviews, emphasising that final responsibility rests with the author. The tool cannot be used for compensation or promotion decisions, according to people familiar with the rollout.

The bank declined to comment publicly but sources said the move was intended to improve efficiency and consistency across its global workforce of more than 300,000 employees.

A recent report by Boston Consulting Group found that AI-assisted drafting of performance reviews can reduce writing time by up to 40 per cent, freeing managers to focus on coaching and qualitative feedback.

JPMorgan has already rolled out its LLM Suite, an internal AI platform comparable to OpenAI’s ChatGPT, to around 200,000 employees within eight months of its launch last year — one of Wall Street’s largest-scale adoptions of generative AI.

The platform, developed in-house for security and compliance, allows employees to safely access and experiment with third-party AI tools while protecting client and regulatory data.

The technology is already used across the bank — by software engineers to review code, investment bankers to draft presentations, and legal teams to review contracts.

JPMorgan invests more in technology than any other global bank, with plans to spend $18 billion in 2025, including $2 billion annually on AI initiatives, according to chief executive Jamie Dimon.

“It affects everything — risk, fraud, marketing, idea generation, customer service. And it’s the tip of the iceberg,” Dimon told Bloomberg earlier this month.

Raj Abrol, CEO of AI firm Galytix, said the announcement demonstrates how financial institutions are accelerating AI adoption — but warned that trust remains a key barrier.

“It’s clear the banking industry is warming up to the limitless power of AI to transform critical processes,” Abrol said.

It’s clear the industry is warming up to the limitless power of AI to transform critical processes in banking.” and use the bolded part as the anchor text?“However, the use of specialist AI assistants must go further — particularly in risk and credit management — if banks are to fully realise the long-term benefits.”

Across the financial services sector, AI is increasingly viewed as a strategic differentiator, with firms from Goldman Sachs to HSBC exploring how to integrate large language models into their operations.

Dimon has previously said AI will “change every job”, eliminating some roles while creating new ones.

Read more:
JPMorgan launches AI chatbot to help staff write performance reviews

From handcrafted partyware to science-backed pet supplements, few firms look less alike than Meri Meri and PetLab Co. Yet they share a single, telling decision that has transformed how they work: both built their next phase of growth on Oracle NetSuite.

In separate conversations, Meri Meri’s managing director, Paul Cripps, and PetLab Co.’s chief financial officer, Tony Morreale, described, in unvarnished terms, what happens when a high-growth company ditches a patchwork of systems for a cloud ERP that acts as the business’s command centre.

Cripps arrived at Meri Meri—a San Francisco-registered, UK-run design house whose seasonal launches light up kitchen tables from London to Reno—mid-pandemic. He found a company with enviable creativity and a back office straining at the seams. Shopify, Amazon, B2B portals and a constellation of 3PLs all fed a heavily customised legacy ERP. The plumbing never quite held. Reports froze. Orders jammed in queues. “Every day there was an issue,” he says. “If a report ran, people made coffee while it locked up.” Decision-making slowed to the speed of a spinning progress wheel. In a global business that designs Christmas two years out and ships to two continents, uncertainty is more than an annoyance; it is drag.

Meri Meri faced a familiar crossroads: pay handsomely to re-implement an ageing system already papered over with one-off fixes, or start again with something built for best practice in the cloud. Cripps had implemented ERPs before. This time, NetSuite’s appeal was less about bells and whistles than about discipline. “Don’t try to make NetSuite fit your business—change your processes to match best practice,” he says. The company adopted OneWorld to reconcile a UK-led, US-registered structure and kept customisation to a minimum. The implementation took two and a half years in calendar terms, not because of complexity but because the company only had one safe cutover window—April to June—each year. A sandbox went up quickly; teams prodded, tested and suggested changes; and when the switch was finally thrown mid-May, something unusual happened: the noise stopped.

What changed first was the rhythm of the day. Under the old set-up, the Reno distribution centre opened before dawn and then waited for someone, somewhere, to release orders. Under NetSuite, Shopify purchases appeared in the ERP within about half a minute, hit the DC pick list moments later and were being packed inside five minutes. The pendulum swung from frustration to speed so quickly that customers began emailing ten minutes after checkout asking to amend orders already sealed in boxes. Cripps’s measure of success was delightfully un-technical. “By the end of June, it was almost like we’d never been without it,” he says. The floor went quiet. Exceptions evaporated. Customer service tickets, once counted in the hundreds each week, fell to a handful of genuine user mistakes. Overtime all but disappeared. The team that had been firefighting became, once again, a team.

The financial consequences are easy to miss because they creep in through absence: no overtime, no backfills, no morning queues, no costly consultants to unpick brittle integrations. Meri Meri’s headcount drifted down from the mid-nineties to around eighty through natural attrition, even as revenue climbed by more than a fifth. Finance shrank without drama; the warehouse moved from two shifts to one and a half. Against the cost of a modern cloud ERP, those avoided hires alone turn into a six-figure annual saving—before you count the opportunity value of moving faster.

If Meri Meri’s story is one of a creative manufacturer rediscovering flow, PetLab Co. offers the CFO’s view of a scale-up growing from start-up reflexes into institutional reliability. The London-founded, US-focused pet wellness brand launched in 2018 and rode a wave of direct-to-consumer demand. When Morreale arrived, the finance stack—perfectly reasonable for an early-stage business—had become a brake. Month-end stretched to four weeks. Multi-entity consolidation was clumsy. Inventory insight at SKU level was elusive. “I’ve implemented NetSuite three times,” he says. “For a business a couple of years into its journey, it’s the right breadth at the right price.”

PetLab’s implementation in 2021 coincided with a professionalising of its operating cadence. NetSuite automated bank reconciliations, turned month-end into a matter of days and finally delivered the granularity to answer the questions a scaled consumer brand must answer: which SKUs make money, in which channels, and how does that change with tariffs, packaging costs and shifting fulfilment footprints? The company mapped its five US warehouses directly in NetSuite, reconciled physical stock against system positions and moved beyond “never stock out” as a mantra to something more useful: never be surprised. When US-China packaging costs bit, the team modelled the SKU-level impact and shifted to Vietnam, tracking margin effects from the general ledger to the pallet.

The knock-on effects are cultural as much as financial. Morreale’s team of eleven has not grown, even as revenue surged from around $70 million to well north of $200 million. Automation has not hollowed out the department; it has lifted it. The repetitive is handled by machines; people move up the value chain. That, in turn, changes how outsiders see the company. In the bootstrapped years, PetLab built credibility with HSBC by sharing NetSuite-derived forecasts fortnightly. When private equity arrived to take a majority stake in 2025, diligence advisers described the numbers as “robust”. It is a small phrase that carries weight. Investors fund what they can trust. Trust starts with auditable, real-time data.

Both leaders are practical about artificial intelligence. Neither is chasing chatty front-ends for their own sake. At Meri Meri, AI already sits inside demand-planning via Netstock and will increasingly draft customer-service replies and surface cross-regional trends—California versus Florida, north-south seasonality, the subtle ways Halloween plays differently in the UK and US—so humans can spend their time on judgement, not retrieval. “AI won’t design our products,” Cripps says. “But it will buy back hours across the business. If you don’t embrace it, you’ll be left behind.” At PetLab, the lure is scenario planning that actually fits how a finance team works, with natural-language prompts and explainable outputs; until then, NetSuite’s core gets them most of the way.

In the end, the case for NetSuite here is not framed in the glossy language of digital transformation. It is disarmingly plain. If your warehouse waits for the system rather than the system serving the warehouse; if month-end bleeds into a third or fourth week; if customer service has become an exceptions desk; if you cannot answer a SKU-level margin question in the time it takes to walk to a meeting, you are not simply inefficient—you are throttling your ability to grow. What Cripps and Morreale reveal, each from different industries and instincts, is that a modern ERP is less a software purchase than a managerial choice. It is a decision to run on standard processes, to measure silence as a KPI, and to treat reliable numbers as a strategic asset.

“By the end of the first six weeks, it was like we’d never been without it,” says Cripps. Morreale offers the CFO’s version: same team, roughly triple the revenue, with banks and buyers leaning in rather than looking away. For ambitious businesses wondering whether the ceiling they feel is real, the lesson is simple. A stitched-together stack adds people to chase problems. A single cloud backbone compounds growth—with confidence.

Read more:
The cloud engine behind scale: why Oracle NetSuite can super-power your business

Rumoured increases to employer pension contributions in next month’s Budget are sparking panic among UK businesses, with nearly one in five firms warning they could face insolvency if contribution rates rise.

A survey of 500 businesses by consultancy Barnett Waddingham found that 19% of employers believe a mandatory hike in workplace pension contributions could push them over the edge financially. More than 30% say they would respond by freezing recruitment or cutting headcount, further tightening an already strained labour market.

The warning comes as companies continue to absorb cost increases introduced in Chancellor Rachel Reeves’ previous Budget, including: The National Living Wage rising to £12.21 from April 2025 and Employer National Insurance Contributions increasing from 13.8% to 15%.

Martin Willis, partner at Barnett Waddingham, cautioned that even a modest rise in pension costs could have severe consequences.

“Even a small increase could disrupt businesses, stall hiring and in some cases threaten livelihoods,” he said. “These findings highlight the financial tightrope many firms are still walking, exacerbated by the national insurance hike and long-term wage inflation.”

Only 17% of firms surveyed said they could absorb the rise with minimal disruption.

While businesses fear additional financial pressure, employees are also feeling the strain, with growing concern that the current 8% auto-enrolment minimum contribution is insufficient for a secure retirement.

According to Standard Life, almost 60% of Gen Z workers mistakenly believe auto-enrolment alone will provide a comfortable pension, despite industry experts warning it falls far short of long-term adequacy.

The government revived the Pensions Commission in July to address the looming retirement crisis, but Barnett Waddingham warned that reform must not come at the expense of business survival.

Willis urged a careful approach: “We need a balanced, sustainable strategy that strengthens retirement outcomes while protecting the financial continuity of UK employers.”

With insolvency risks rising and labour market fragility increasing, any move to raise employer pension obligations is likely to intensify calls for phased implementation, tax incentives or offsetting measures to protect smaller firms.

As the 26 November Budget approaches, the government faces a difficult trade-off: improve pension adequacy now — or risk placing more companies under financial strain and triggering job losses in the process.

Read more:
Businesses warn pension contribution hike could trigger insolvencies as Budget rumours grow

Employees returning to work after cancer treatment must be actively involved in how their reintegration is managed, according to new research that warns current HR support structures are too rigid and often fail to reflect the lived reality of survivors.

A study from NEOMA Business School, conducted in collaboration with IAE Lyon, found that traditional mechanisms such as recognised disability status (RQTH in France), reduced working hours and remote working only address surface-level needs, overlooking the deeper physical, cognitive and emotional changes that often follow a cancer diagnosis.

The research, based on a two-year action project involving 25 organisations and nearly 200 participants, explored how employees navigate their professional lives after treatment, highlighting a gap between employer policies and employee experience.

Professor Rachel Beaujolin (NEOMA) and Associate Professor Pascale Levet (IAE Lyon) found that returning to work after cancer involves a profound process of adaptation rather than a simple reactivation of previous routines.

Survivors frequently report:
• Persistent fatigue
• Reduced concentration and cognitive changes
• Altered time perception
• A re-evaluated relationship with work and purpose

“Returning means relearning to work,” the authors note, often within a body and mindset that no longer responds as it once did.

The researchers describe many survivors’ time away from work as an experience of “abduction” — being abruptly taken out of their professional environment. Upon return, even familiar tasks can feel newly complex or overwhelming. However, this disruption can also be a powerful catalyst for learning and new practices.

To support this transition effectively, the study recommends creating reflection spaces and narrative-based workshops that allow employees to express and share their challenges and learning journeys in a structured environment. These insights can then inform collective practices and managerial approaches.

Given the diverse nature of cancer treatments and individual experiences, the researchers argue that standard protocols often fall short.

“It is not about proposing a standard protocol, but about learning to think from real situations,” says Professor Beaujolin. “We must recognise the knowledge being built through these experiences, and create spaces where this knowledge can circulate.”

With survival rates increasing and more employees choosing to work before, during and after treatment, employers face growing expectations to provide meaningful, human-centred reintegration strategies. Beyond compliance with legal frameworks, this research suggests that effective return-to-work support requires listening, adaptability and co-creation with the employee.

The study, published in Revue Française de Gestion, signals a growing shift in HR thinking — from procedural support to partnership-based recovery models that honour the voice and agency of survivors.

Read more:
Employers urged to give cancer survivors a stronger voice when returning to work

A Welsh steel engineering company has secured a £1.1 million international contract to support Ukraine’s post-war reconstruction, providing a significant boost to the UK’s export manufacturing sector.

Pontypool-based Pro Steel Engineering has been awarded the deal by construction giant ONUR Group to manufacture 200 tonnes of steel girders for a bridge near Kyiv that was destroyed during the war with Russia. Production will take place in South Wales, with the girders set to be transported to Ukraine for installation in the new year.

The contract follows a 2.5-year competitive tender process and marks the company’s first major project backed by UK Export Finance (UKEF). It is expected to create two new jobs and reinforces the firm’s reputation for meeting complex international engineering standards, including stringent Ukrainian welding requirements.

Richard Selby, (pictured above with Carmel Gahan of the Business Wales Accelerated Growth Programme) Managing Director at Pro Steel Engineering, said the project carries major emotional and strategic significance: “Winning this contract is a source of immense pride for our entire team. To know that our work will contribute to rebuilding critical infrastructure in Ukraine and help communities reconnect is deeply meaningful to all of us.”

He praised the support offered by the Business Wales Accelerated Growth Programme (AGP), which has helped the business expand since its founding in 2012. The company currently employs 35 staff and generates annual revenues of around £17 million.

Lucy Jones, Operations Manager for the AGP, said the deal demonstrated the competitiveness of Welsh engineering on the world stage.

“Pro Steel’s success highlights the strength and innovation of Welsh manufacturing. Their ability to meet demanding international standards and secure this contract through UK Export Finance shows the calibre of businesses we have here in Wales.”

The project is symbolic of the UK’s wider commitment to supporting Ukraine’s rebuilding efforts, as British firms increasingly engage in post-conflict reconstruction work across transport, infrastructure and energy networks.

For Pro Steel, the contract signals a new phase of international growth, leveraging specialist skills in heavy structural steelwork for bridges, stadia and industrial projects.

The bridge project, once completed, will help restore vital transport links for Ukrainian communities and serve as a high-profile case study for Welsh and UK manufacturing expertise in global infrastructure rebuilding.

With work beginning immediately and deliveries planned in early 2026, the deal underlines how regional UK engineering firms are contributing to both humanitarian recovery and industrial competitiveness overseas.

Read more:
Welsh steel firm wins £1.1m Ukraine bridge contract to support post-war reconstruction

Pizza Hut’s UK dine-in business has entered administration, placing hundreds of jobs at risk and marking another blow to the increasingly fragile casual dining sector.

The chain, owned by US-based Yum! Brands, has appointed FTI Consulting to oversee the process. While delivery and takeaway operations remain unaffected, the administration raises serious questions about the long-term viability of mid-market dining brands on the high street.

Industry commentators say the brand failed to position itself clearly in a market increasingly dominated by polarised consumer preferences.

“Being second-best at everything kills you faster than being excellent at one thing,” said Tony Redondo, Founder of Cosmos Currency Exchange. “Premium chains like Pizza Express offer craft quality and ambiance, while Domino’s dominates on affordability and convenience. Pizza Hut got stuck in the middle—neither premium enough nor cheap enough to compete.”

He added that the brand’s delivery infrastructure lagged behind rivals, reducing competitiveness at a time when ordering in has become a dominant revenue driver.

Dariusz Karpowicz, Director at Albion Financial Advice, said the collapse reflects “a bitter slice of reality” for the wider high street: “Soaring energy costs, rising employment expenses, and families treating restaurant meals as luxuries rather than regular treats have left margins painfully thin,” he said. “Delivery apps have eaten into traditional dine-in profits, while post-pandemic consumer habits have fundamentally shifted.”

He warned that the fallout extends far beyond one brand failure: “It’s hundreds of local jobs vanishing and more empty shopfronts joining Britain’s hollowed-out high streets. The government needs a genuine long-term strategy, not election-winning soundbites.”

Kate Underwood, Managing Director at Kate Underwood HR and Training, said the administration process will create lasting uncertainty for employees.

“When we read that ‘thousands of jobs have been saved’, it sounds like the story has a happy ending,” she said. “But those of us in HR know it is rarely that simple. Many Pizza Hut employees have now lived through two rounds of uncertainty in less than a year.”

While TUPE regulations may protect contracts, she said this does little to restore morale: “A pre-pack deal might stop the headlines getting worse, but it does not rebuild trust overnight. It takes time to restore belief, culture and calm.”

Omer Mehmet, Managing Director at Trinity Finance, described the administration as “another reminder that the casual dining model hasn’t recovered from the pandemic hangover.”

“Rising costs, tighter consumer budgets and competition from delivery apps have squeezed margins to breaking point. Eating out has become a luxury for many families. Even household names aren’t immune.”

Analysts say Pizza Hut’s situation is symptomatic of a broader trend affecting chains that cannot deliver either premium experience or ultra-convenience at scale. With consumers trading either up for experiences or down for value, mid-market operators are increasingly exposed.

As hospitality businesses brace for ongoing cost pressures and softer discretionary spending, further restructuring across the casual dining sector is expected in 2025.

Read more:
Pizza Hut ‘stuck in the middle’ as UK dine-in arm collapses into administration

The Government has announced plans to introduce a new suite of vocational qualifications — known as V-levels — for students aged 16 and over, in a bid to simplify what ministers describe as a “confusing” post-GCSE landscape and strengthen the UK’s skills pipeline.

The new qualifications are set to replace Level 3 BTecs and other post-16 technical courses currently available in England. A consultation has now been launched as part of the Government’s wider post-16 education and skills white paper, amid long-running calls to create clearer and more coherent routes into work, apprenticeships and higher education.

Alongside the launch of V-levels, ministers also plan to introduce a “stepping stone” qualification to reduce the number of students repeatedly resitting English and maths GCSEs — a process that has faced growing criticism due to low pass rates and its impact on learner confidence.

Unlike highly specialised T-levels, which were launched in 2020 and are aimed at students who are already certain about a specific career path, V-levels are expected to provide a more flexible route for students exploring a wider range of vocational options. A-levels and apprenticeships will continue to be available.

Skills minister Baroness Jacqui Smith said: “There are over 900 courses at the moment that young people have the choice of, and it’s confusing. V-levels will build on what’s good about BTecs — practical learning with a clear line of sight to employment — while offering a simpler and more recognisable framework.”

The Department for Education has suggested early subject areas may include craft and design and media, broadcast and production.

Education Secretary Bridget Phillipson added that the reforms aim to create a “vocational route into great careers” by simplifying a fragmented system and ensuring there are enough teachers and resources in further education to support delivery.

However, education leaders have expressed caution about removing BTecs before the new qualifications are fully established.

Bill Watkin, chief executive of the Sixth Form Colleges Association, warned: “There is a risk that the new V-levels will not come close to filling the gap left by the removal of applied general qualifications.”

Others, including David Hughes, CEO of the Association of Colleges, suggested the reforms could bring greater “clarity and certainty” to technical education but stressed that success would depend on careful design and long-term investment.

Myles McGinley, managing director of exam board Cambridge OCR, described V-levels as a “tremendous opportunity” but said schools, colleges and industry partners would need sufficient time to co-develop courses that reflect real-world demand.

For many young people, the changes may provide new opportunities to explore vocational routes without committing to a highly defined occupation at 16.

T-level student Simba Ncube said access to V-levels would have made him consider different pathways after his GCSEs: “It leaves you with so many options you can narrow down without being limited.”

Seventeen-year-old Lola Marshall, who hopes to start an apprenticeship after completing a health and social care diploma, said vocational pathways were still rarely emphasised at school: “Everyone always talked about university.”

The Government also plans to introduce a new “stepping stone” qualification for students who have to continue studying English and maths after failing to achieve a grade 4 at GCSE. While many will still be expected to resit, the new course aims to prevent students from becoming trapped in what ministers called a “demoralising roundabout” of repeated failures — especially among disadvantaged pupils, who are twice as likely to resit.

The reform package comes as ministers prepare to set out new proposals for higher education funding, including revisions to university tuition fees in England. Many universities are currently operating under financial strain after years of frozen fee caps and a drop in international student recruitment.

Prof Shearer West, vice chancellor of the University of Leeds, said while the slight increase in fees to £9,535 this year was welcome, the sector continues to face mounting cost pressures. “We’re being asked to do more research with less money and teach more students with fewer resources,” she said.

The Government will now consult on the structure, timeline and subject scope of V-levels, as well as the rollout of the stepping stone qualification. Full implementation timelines have not yet been confirmed.

The reforms support Prime Minister Sir Keir Starmer’s goal for two-thirds of young people to either attend university or gain a high-quality technical qualification.

With employers facing ongoing skills shortages and the economy demanding more applied technical capabilities, business leaders will be watching closely to see whether V-levels deliver a more workforce-ready generation — or risk leaving a gap where BTecs once stood.

Read more:
Government unveils new ‘V-level’ qualifications to replace BTecs and simplify post-16 education

The Chancellor has been warned she is “flying blind” into November’s Budget after fresh analysis suggested far more non-domiciled residents have left the UK than the Government anticipated, with billions in expected tax revenues now at risk.

In a report published today, economics consultancy ChamberlainWalker says early evidence points to a significantly larger exodus of non-doms following the abolition of non-dom status in April 2025. The firm argues that Treasury assurances—based on HMRC payroll returns—that departures are broadly in line with forecasts understate the scale of outflows because many of the wealthiest non-doms are investors rather than salaried employees and therefore fall outside PAYE data.

ChamberlainWalker cautions that the Government’s projected £34bn haul from the reforms rests on “optimistic and incomplete” assumptions about behaviour, including that only 1,200 people would leave and that a small group—“in the mid-thousands”—would remain and pay substantially more under the new foreign income and gains (FIG) regime.

Chris Walker, founding partner at ChamberlainWalker and a former government economist, said: “It is worrying that the Chancellor is heading into the Budget with so little understanding of the fiscal impact of the reform of non-dom status. The Treasury is effectively flying blind about the behaviour of the most responsive group of non-doms.”

The report argues that who leaves matters more than how many. If departures are skewed towards the richest non-doms—particularly former RBC payers—the impact could be a “triple whammy” for revenues:

1. A larger-than-expected hit to the UK income tax base as top contributors exit.
2. A smaller-than-modelled FIG tax base as high-earning individuals take foreign income and gains offshore.
3. Lower proceeds from the Temporary Repatriation Facility (TRF) if fewer assets are onshored.

The consultancy also notes that official reassurance from real-time payroll data is inherently limited at this stage. Behavioural responses to tax changes tend to play out over multiple years; ChamberlainWalker expects much of the adjustment to occur within two years of implementation, i.e. by April 2027.

HMRC’s forthcoming review of the reforms is expected to publish more granular data, but the report contends current sources cannot “meaningfully capture” the true impact—particularly among investor-type non-doms. On that basis, the authors urge ministers to exercise caution and consider interim adjustments to shore up revenue certainty and competitiveness while the evidence base improves.

Pre-reform modelling envisaged 25% of non-doms with trusts and 12% without trusts leaving, equating to about 1,200 leavers in 2025/26. It also assumed 7,700 non-doms and deemed-doms would be worse off (and therefore generate most of the extra FIG tax), with 14,200 eligible for a four-year FIG tax break and thus no worse off initially. ChamberlainWalker’s estimate that 1,800 have already departed implies the official scorecard could be materially off course if the composition of leavers is tilted to the top end.

With the Budget weeks away, the political and fiscal stakes are clear. If the exodus accelerates—and continues to be weighted towards the wealthiest—the Treasury’s £34bn headline could prove significantly overstated, forcing either policy refinement or compensating measures elsewhere in the fiscal plan.

Read more:
Non-dom exodus ‘far worse than forecast’, new report warns Chancellor ahead of Budget

Capita has been fined £14 million by the Information Commissioner’s Office (ICO) for serious data protection failures following a major cyber-attack in March 2023 that compromised the personal details of 6.6 million people across the UK.

The attack, which saw hackers infiltrate Capita’s systems and extract nearly one terabyte of sensitive data, affected customers, pension scheme members, and staff of one of Britain’s largest outsourcing firms.

In its report, the ICO described the incident as “a systemic failure to apply basic cyber hygiene”, concluding that the breach caused “significant distress and anxiety” for millions of people whose financial, employment, and personal data was exposed.

According to the regulator, Capita detected the breach within 10 minutes of the hackers gaining access but failed to isolate the infected device for 58 hours, a delay that allowed ransomware to spread and data to be exfiltrated.

Sensitive material stolen included financial data, criminal record checks, and “special category data” — information revealing an individual’s race, religion, sexual orientation, and health status.

The ICO investigation found that Capita had known vulnerabilities in its systems, an understaffed security operations centre, and inadequate testing of its defences. Despite handling data for millions of citizens through contracts with local councils, NHS bodies, and private clients, its cybersecurity processes were found to fall “well below expectations for a company of its size and role”.

The total penalty comprises £8 million for Capita plc and £6 million for Capita Pension Solutions, reflecting the wide range of affected stakeholders, including several large pension schemes.

An initial fine of £45 million was reduced after the company demonstrated improvements to its cybersecurity systems and cooperated with regulators, including the National Cyber Security Centre (NCSC).

John Edwards, the Information Commissioner, said: “This incident exposed the personal information of millions of people to potential misuse and caused substantial anxiety and inconvenience. While we recognise Capita’s cooperation and subsequent remediation, the case highlights the consequences of failing to act swiftly and decisively in the face of a known threat.”

Capita’s chief executive, Adolfo Hernandez, said the company had been targeted early in what became a spate of sophisticated cyber-attacks against large UK firms.

“As an organisation delivering essential public and private services, Capita was among the first in the recent wave of highly significant cyber-attacks on UK companies,” Hernandez said. “We have since invested heavily in cyber resilience and security monitoring to protect our systems and our clients’ data.”

Capita provides outsourced services for local authorities, the NHS, and private businesses — making it a key part of the UK’s public service infrastructure. The attack disrupted multiple contracts, including teachers’ pensions administration, prompting government departments to conduct reviews of their exposure to third-party cyber risks.

Andy Ward, SVP International at Absolute Security, said the incident illustrated the danger of delayed responses to cyber intrusions.

“The Capita breach highlights the critical importance of identifying and remediating cyber incidents immediately — every hour of delay multiplies the potential damage,” he said.

“True resilience isn’t just about prevention or compliance; it’s about ensuring organisations can withstand and rapidly recover from attacks while minimising downtime and disruption.”

Ward added that nearly half of UK CISOs (48%) now believe the country’s overall cyber resilience strategy is “insufficient”, calling for greater investment in detection, containment, and recovery capabilities.

The Capita breach remains one of the most significant UK corporate cyber incidents since the 2017 WannaCry attack that crippled NHS systems. The ICO’s findings underscore a broader pattern of cybersecurity weaknesses among large contractors handling sensitive public data.

While the regulator acknowledged Capita’s post-incident reforms, it said the fine should serve as a warning that delays in response and underinvestment in security carry substantial financial and reputational risks.

“Cyber resilience must be embedded across every layer of the business,” Ward said. “Leaders must assume attacks are inevitable — and be ready to respond when they come.”

Read more:
Capita fined £14 Million over 2023 cyber-attack that exposed data of 6.6 Million people

Be.EV, one of Britain’s fastest-growing ultra-rapid electric-vehicle charging networks, has announced a major price cut that halves the cost of fast charging and sets a new benchmark for affordability in the public-charging sector.

The company’s new 39p per kilowatt-hour (kWh) tariff makes Be.EV one of the first charge-point operators to offer public ultra-rapid charging cheaper than refuelling with petrol or diesel.

With around 40% of UK households lacking off-street parking, millions of drivers depend on public chargers and face higher costs — compounded by a 20% VAT rate compared with the 5% levied on domestic electricity. Be.EV says its new tariff is designed to end this “inequality” and make EV ownership accessible for everyone, not just homeowners with private driveways.

“For too long, EV charging in the UK has been built for the privileged few with a driveway,” said Asif Ghafoor, Be.EV’s chief executive. “Those who rely on public charging — people in flats, terraced housing or busy city centres — pay much more than those who can plug in at home. That’s not just unfair, it’s a barrier to mass adoption.”

“Our new 39p/kWh price point proves ultra-rapid charging can be cheaper than filling a petrol tank. It tears down one of the last excuses not to go electric. Drivers deserve a network that’s fast, fair and future-proof — and we’re determined to deliver it.”

The lower price can be accessed in two ways. Subscribers to Be.EV’s Mega Plan (£9.99 per month) will benefit from the 39p/kWh rate at all times, while those on the Mini Plan (£4.99 per month) can charge at 49p/kWh. Both are flexible, cancellable monthly plans available exclusively through the Be.EV app.

Alternatively, all drivers — even without a subscription — can take advantage of the 39p/kWh rate during off-peak hours (7pm to 7am) using the Be.EV app or RFID card.

At 39p per kWh, charging an electric vehicle with Be.EV works out at roughly 12p per mile, almost half the current average cost of 23p per mile for rapid or ultra-rapid public charging. The comparison is based on a typical pay-as-you-go rate of 76p/kWh and an average EV efficiency of 3.3 miles per kWh.

Be.EV’s price cut means public ultra-rapid charging can now be cheaper than running a petrol or diesel car, a milestone the company hopes will accelerate mass EV adoption ahead of the UK’s 2035 zero-emission vehicle deadline.

Be.EV’s announcement comes as the cost of charging remains a flashpoint in the UK’s transition to electric mobility. While at-home charging typically costs between 15p and 30p per kWh, public ultra-rapid chargers have surged in price since 2022, leaving many city dwellers at a disadvantage.

The new Be.EV model directly targets that gap. By offering off-peak and subscription-based discounts, the network aims to make ultra-rapid charging both affordable and predictable, encouraging drivers to plan charging sessions during lower-demand hours.

Be.EV currently operates more than 850 charge points nationwide, with 1,000 additional sites in development across motorways, city centres and community hubs. The company says its goal is to build a “truly democratic” charging network that brings reliable, high-speed access to every corner of the UK.

“Public charging shouldn’t be a postcode lottery,” Ghafoor added. “With our expansion, drivers everywhere — from Manchester to Milton Keynes — will have the freedom to charge on their own terms, one charge at a time.”

Industry analysts say Be.EV’s move could pressure other charge-point operators to revise their tariffs, particularly as public concern grows over pricing disparities between home and on-the-road charging.

The initiative also reignites debate over VAT reform for public charging — an issue campaigners argue is holding back adoption among urban and lower-income drivers. Be.EV’s model, by cutting prices without government intervention, may strengthen calls for a level fiscal playing field.

According to the Society of Motor Manufacturers and Traders (SMMT), there are now over 1.3 million electric vehicles on UK roads, a figure expected to double by 2028. Ensuring affordable public charging is viewed as critical to sustaining that growth.

Be.EV’s 39p tariff places it among the most competitively priced operators in the UK and represents a bold challenge to incumbents. For drivers, it means immediate savings from the very first charge.

For policymakers, it highlights a growing divide between infrastructure providers willing to absorb margin pressure to drive adoption and those maintaining premium rates.

Either way, Be.EV’s strategy signals a pivotal moment in the evolution of Britain’s public-charging landscape — one where accessibility, fairness and affordability are fast becoming as important as speed and reliability.

Read more:
Be.EV halves cost of ultra-rapid charging with 39p/kWh tariff

Britain’s renewable electricity generation hit a new record for the third quarter of 2025, with wind and solar output combining to deliver the country’s cleanest power mix on record, according to the latest data from Montel Analytics.

In the three months to the end of September, total renewable output — including wind, solar, hydro and biomass — reached 31.9 terawatt hours (TWh), the highest Q3 figure since records began in 2014. Renewables accounted for 51% of Britain’s total power generation, overtaking all fossil-fuelled sources combined.

Wind power led the charge with 17.7TWh, up 6% year on year and the highest third-quarter output ever recorded by Montel. The increase came despite several periods of curtailment, particularly in September when strong winds coincided with weak demand, driving electricity prices into negative territory for several hours.

Solar generation also saw exceptional gains, producing 6.2TWh — the second-highest quarterly total since records began, behind only Q2 2025. This marked a 32% increase on Q3 2024’s total of 4.7TWh, fuelled by prolonged sunshine and intense summer heatwaves in early July and mid-August that sent temperatures soaring and boosted cooling demand across the UK.

Phil Hewitt, Director at Montel Analytics, said the figures reflect Britain’s accelerating transition toward renewable energy and the growing impact of clean generation on the overall power mix.

“High levels of renewable generation are symptomatic of a long-term commitment to producing more of our power from clean sources,” Hewitt said. “Wind output would have been even higher had it not been for several curtailments across the quarter. Because of the high levels of renewable generation, the requirement for gas-fired power was significantly reduced.”

The surge in renewables has continued to displace gas-fired power. Combined cycle gas turbine (CCGT) plants produced 15.4TWh in Q3 — slightly up from the record low of 13.8TWh a year earlier, but still 25% below 2023 levels, when gas generation totalled 20.5TWh.

Meanwhile, output from Britain’s nuclear fleet fell to 7.8TWh, its lowest third-quarter level since 2014. Multiple reactors, including Hartlepool 2, Heysham 1 and 2, and Torness 1 and 2, were offline for maintenance and refuelling during the period.

As a result, Britain’s Q3 power mix was dominated by renewables (51%), followed by gas (24%), imports (13%), and nuclear (12%).

Hewitt noted that the high renewable share, combined with reduced summer demand, helped stabilise wholesale power prices during Q3.

“The quarter followed the expected seasonal trend, with warmer weather easing system demand and contributing to lower gas and electricity prices than seen in Q2,” he said. “We expect that stability to continue into Q4, unless geopolitical tensions — particularly in the Middle East — push gas prices higher.”

Gas storage levels across Europe are now nearly full ahead of winter, but analysts warn that emerging La Niña conditions could bring colder-than-normal weather to the UK and northern Europe later in the year.

“A La Niña event typically occurs every three to five years and can bring a colder winter,” Hewitt said. “That could increase demand, speed up storage drawdowns, and add upward pressure on wholesale prices. However, this appears to be a weak La Niña event and may fizzle out.”

The new data underlines the resilience and importance of renewables in the UK’s energy system — even amid market volatility and infrastructure constraints.

Analysts said the record-breaking quarter reinforces the UK’s position as a global leader in clean energy generation, while also highlighting the need for greater grid flexibility and storage to prevent curtailments during high-output periods.

As the UK heads into the winter months, the balance between renewable generation, system demand, and gas market stability will be critical to maintaining energy security — and to sustaining the downward trend in wholesale prices that consumers and businesses are hoping will continue.

Read more:
Wind and solar power drive UK renewable electricity record

The UK economy is losing as much as £3.5 billion a year as tens of thousands of women leave the technology sector amid stalled career progression, unequal pay and weak leadership pipelines, according to a new landmark report released to mark Ada Lovelace Day.

The 2025 Lovelace Report: Unlocking £2–3.5 Billion, published on Tuesday, reveals that between 40,000 and 60,000 women are quitting the industry annually — an exodus that experts warn is undermining the country’s ambitions to become a global leader in artificial intelligence and digital innovation.

Despite making up just 20% of the tech workforce, women are leaving at twice the rate of men, with the losses hitting hardest among mid-career professionals who should form the backbone of Britain’s digital economy.

The report’s authors say the problem is not that women are failing to enter tech, but that the system is failing to retain them. More than three-quarters of women with 11–20 years’ experience said they had waited over three years for a promotion, while half earned below-average pay for their seniority.

Although 90% of women in the sector say they want to lead, only one in four believe they can, citing a lack of sponsorship, opaque promotion pathways, and workplace cultures that undervalue women’s contributions.

The report estimates an annual cost of £1.4–2.2 billion in lost productivity from women leaving tech, and a further £640 million–1.3 billion from turnover as women move between employers in search of better pay or opportunity.

Elizabeth Anderson, chief executive of the Digital Poverty Alliance, said the findings highlight how structural inequality and digital exclusion reinforce one another.

“With women being 14–22% more likely to be in digital poverty than men, Ada Lovelace serves as an important reminder of the need to close the gender gap in access to technology,” Anderson said.

“Without the right tools, connectivity and digital literacy, many women face a self-perpetuating cycle of exclusion that limits their ability to participate in the workforce.”

She added that the issue goes beyond workplace access to devices, noting that digital exclusion now “deepens existing inequalities” by limiting access to education, healthcare, and financial planning.

“Celebrating Ada’s legacy is not just about honouring the past — it’s about ensuring every woman can thrive in a digitally connected world,” she said.

The report warns that the UK’s inability to retain female tech professionals comes at a dangerous moment. The government’s AI and Digital Skills Strategy aims to scale the national AI workforce twentyfold by 2030, yet the sector already faces a shortfall of 98,000–120,000 skilled workers across AI, cybersecurity, and infrastructure.

Industry leaders say the country risks falling further behind the US, Canada and Singapore unless it tackles workplace inequality and embeds retention incentives into industrial policy.

“This isn’t just about fairness — it’s an economic emergency,” one senior tech executive told Business Matters. “If half of your skilled workforce leaves before reaching senior level, you’re not just losing talent, you’re sabotaging your own growth strategy.”

Each year, Ada Lovelace Day celebrates the pioneering mathematician who in the 19th century imagined machines that could process ideas as well as numbers — a vision that prefigured the birth of modern computing.

But 184 years after Lovelace’s notes on Charles Babbage’s analytical engine, the report argues that the UK is still failing to build the inclusive innovation ecosystem she envisioned.

The researchers conclude with a stark warning: unless companies address career stagnation and gender inequity, the UK will continue to “bleed talent and opportunity.”

“On Ada Lovelace Day, this research is both a celebration and a call to action,” the report states. “Women have been at the heart of technology since its inception — and the UK cannot afford to lose the next generation of its brightest minds.”

Read more:
UK Losing £3.5bn a Year as Women Exit Tech Sector, Warns 2025 Lovelace Report

The Open University (OU) has joined forces with NatWest and the Department for Work and Pensions (DWP) to relaunch the Open Business Creators Fund, a nationwide initiative offering early-stage women entrepreneurs financial support, mentoring, and access to training resources.

Launched in a video message by Baroness Martha Lane Fox, Chancellor of The Open University, the competition offers individual grants of up to £2,500, backed by £50,000 in sponsorship from NatWest.

The fund is open to women and those who identify as women aged 16 and over living anywhere in the UK, and is aimed at supporting those in the idea or early stages of starting a business.

“This is more than a competition – it’s a launchpad for women entrepreneurs,” said Chaitali Patel, Head of Prospects at The Open University. “With the support of our Validate platform, every applicant leaves with a stronger, clearer business concept and the confidence to take it forward.”

A learning-led approach to entrepreneurship

What sets this initiative apart is that every applicant is guided through the OU’s Validate business development platform — an interactive tool that helps users refine and test their business ideas.

Validate walks participants through identifying customer needs, developing value propositions, understanding key partners and resources, and producing a professional business portfolio. The completed portfolio then forms part of the fund application, meaning even those who don’t secure a grant gain practical skills and a tangible business plan.

The initiative builds on The Open University’s long-standing commitment to inclusive, accessible entrepreneurship, helping remove the barriers often faced by women, people of colour, and those from lower-income backgrounds when starting out in business.

Alongside the funding competition, the OU and NatWest will host a three-part webinar series across October and November — free and open to all — designed to inspire and equip new founders with practical skills.

The series, themed around Confidence, Capabilities, and Connections, features high-profile entrepreneurs, academics, and industry mentors:

Webinar 1: Confidence – Tuesday, 21 October (12:00–13:00)

Mags Byrne, Entrepreneur in Residence at The Open University, and Stef Genesis, a pioneer in the esports industry, will share their journeys. OU Business School’s Liz Moody will lead a hands-on workshop to help participants refine and strengthen business ideas.

Webinar 2: Capabilities – Wednesday, 5 November (12:00–13:00)

Ronke Maye, founder of Ronke Maye Ltd, will discuss audience engagement and relationship-building, followed by NatWest experts on managing costs and projecting revenue.

Webinar 3: Connections – Tuesday, 18 November (19:00–20:00)

A dynamic panel featuring Soyna Barlow, Justice Williams, Claudine Reid MBE, and OU Entrepreneur in Residence Russell Dalgleish will explore networking, visibility, and collaboration.

Anyone can register for the webinars through the Open Business Creators website.

Applications open until 21 November

To apply, participants must complete their Validate portfolio and submit it via the Open Business Creators entry formby midnight on Friday, 21 November 2025. Winners will be announced on 19 December 2025.

The competition provides more than just funding — it’s designed to foster a sense of community among new founders, connecting them with role models and professional networks through NatWest’s Enterprise team and The Open University’s entrepreneurship ecosystem.

Patel added that the initiative represents a broader push to democratise access to entrepreneurship: “Everyone should have the chance to turn an idea into a viable business — not just those with existing networks or resources. This fund is about levelling the playing field.”

The fund’s return comes at a time of rising interest in female entrepreneurship, with women starting businesses at faster rates than ever before but still facing significant disparities in funding access.

By combining NatWest’s business expertise with the OU’s education and mentoring framework, the partnership aims to support women from all backgrounds to build sustainable, scalable ventures — and, in turn, boost the UK’s entrepreneurial landscape.

To learn more and apply, visit: Open Business Creators Fund

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The Open University and NatWest launch £50,000 ‘Open Business Creators Fund’ to empower women entrepreneurs

Small businesses in deprived urban areas are less likely to secure finance than those in more affluent or rural parts of the UK, according to new research by the British Business Bank (BBB).

The government-backed economic development agency said its latest annual Small Business Finance Markets report revealed “significant disparities” in access to credit cards, overdrafts and loans across the country — with geography proving to be a major factor in whether businesses can borrow money.

The findings show that where a business is based has a measurable impact on its access to funding. Even within towns and cities, firms in more deprived areas are less likely to obtain external finance, despite being more likely to seek it out to support growth plans.

“This evidence shows that where your business is located has an influence on your ability to access finance, not just at a regional level, but also at a sub-regional level,” the report said.

The study found that entrepreneurs in economically disadvantaged areas were more inclined to look for funding than the national average, but more often discouraged from applying — either due to previous rejections or perceived barriers from lenders.

Richard Bearman, the British Business Bank’s chief development officer, said the organisation was stepping up its efforts to bridge the funding gap.

“The problem we are trying to solve is to ensure that businesses across the UK have access to capital and, where they have potential, we are supporting that potential,” Bearman said.

He added that new debt and equity programmes would ensure that high-growth, high-potential businesses can access capital “wherever they are based”.

The BBB will roll out £340 million in new regional funds next April across the east and southeast of England, completing its network of state-backed investment vehicles across the UK. These regional funds are designed to improve the supply of debt and equity capital for small and medium-sized enterprises (SMEs).

They follow the £660 million Northern Powerhouse Investment Fund II, which began lending to businesses across the North of England last year.

The bank has also expanded access for community development finance institutions (CDFIs) to its loan guarantee schemes. These specialist lenders provide capital to small firms in lower-income areas who have been turned down by high street banks, helping them to invest, hire and grow.

Overall, the report found that the share of smaller businesses using external finance fell slightly last year from 46% to 45%, following a 10-point rise the year before. However, the headline figures mask sharp regional variations.

In the West Midlands, 47% of firms accessed external capital in the past year, compared with just 39% in the East Midlands. The gap widens when measuring appetite for future borrowing — 49% of West Midlands firms said they were willing to use finance to drive growth, compared with only 17% in the East Midlands.

The British Business Bank said its regional funds and community lending partnerships were designed to make the business finance landscape more equitable, reducing the postcode effect that limits funding in disadvantaged areas.

Bearman said the goal was not only to address inequality but to unlock growth potential nationwide. “We want to make sure that location is no longer a limiting factor,” he said.

Read more:
Access to finance remains a postcode lottery for UK small businesses

The UK government has launched its long-awaited £5 billion “Pride in Place” programme, a decade-long initiative designed to revitalise towns and communities by putting local people in charge of how regeneration funding is spent.

The scheme, which was officially announced this week, will see 169 areas across the UK each receive £2 million per year for ten years, while a further 95 areas will be given immediate funding to improve public spaces such as parks, high streets and community centres. The aim, according to ministers, is to give neighbourhoods the means to breathe new life into their towns and stimulate local economies through community-led development.

For small businesses, the initiative presents significant opportunities to contribute to — and benefit from — a wave of regeneration projects across the country. Local cafés, retailers, tradespeople, professional services and leisure providers could all gain from increased investment, higher footfall and new contract opportunities as public spending flows into local infrastructure.

Joe Phelan, business loans expert at money.co.uk, said the programme could transform both communities and the small businesses that serve them. “The initiative gives neighbourhoods the tools to breathe new life into their towns,” he said. “It could also present opportunities for small businesses willing to step in.”

In towns such as Eston, Elgin, and Blyth, residents are already consulting business owners as part of the planning process, ensuring regeneration reflects local needs and expertise. In Newark-on-Trent, several vacant town centre units are being converted into housing, generating demand for construction, design and cleaning services. Meanwhile, in Torbay, a planned Agatha Christie heritage trail is expected to draw tourists and create fresh opportunities for cafés, gift shops and other visitor-facing businesses.

Experts say early engagement will be key for local firms hoping to benefit from the Pride in Place funding. Business owners who attend planning meetings, consultations or local forums are more likely to identify potential opportunities ahead of time. Financial readiness will also play a role, as some projects may require upfront investment to deliver goods or services before contracts are paid. Phelan suggested that flexible finance options such as business loans or credit lines could help small firms prepare for this new phase of community-led investment.

Beyond immediate contracts, analysts believe the Pride in Place initiative could help small businesses strengthen their resilience by anchoring growth in their local communities. As high streets, parks and community facilities are refurbished, surrounding businesses are expected to see higher visibility, greater footfall and a renewed sense of civic engagement. Local entrepreneurs could also benefit from partnerships and sponsorship opportunities linked to new community events and facilities.

In practical terms, regeneration funding may provide a more stable pipeline of work for small firms, helping them plan for the future with greater confidence. Businesses operating in areas benefiting from investment could see an uplift in trade and may be better positioned to expand, invest in new equipment or hire additional staff.

“The Pride in Place programme isn’t just a government initiative,” Phelan said. “It’s a call to action for local communities and entrepreneurs alike. Small businesses that get involved early can help shape the future of their towns while securing long-term growth.”

Full details of the scheme, including a complete list of participating areas and funding allocations, are available on gov.uk.

Read more:
Pride in Place: Government’s £5bn regeneration scheme offers major opportunity for small businesses

Six university-founded social enterprises have been selected as finalists for Ignite 2025, the Ford Family Foundation’s flagship competition supporting early-stage, purpose-driven ventures.

The finalists will pitch their innovations at the Barclays Innovation Hub powered by Eagle Labs in Shoreditch, London, on Tuesday 21 October 2025, competing for a share of a £50,000 prize fund. Each will receive tailored pitching support, accelerator mentoring and access to Barclays Eagle Labs’ digital resources.

Last year’s finalists went on to share an additional £280,000 in follow-on funding after the inaugural Ignite showcase at The Shard.

Tony Ford, founder of the Ford Family Foundation, praised the “extraordinary talent emerging from universities across the UK,” calling this year’s field “outstanding.”

“Each of the ventures we are celebrating through Ignite demonstrates the kind of entrepreneurial talent and social purpose that will shape the future,” Ford said. “It’s a privilege to support and showcase their work.”

The Ignite 2025 finalists

WeDonate (University of Chichester) – A digital platform designed to boost blood donation through community-based rewards, helping hospitals maintain reliable supplies while recognising donors and supporting local businesses.

Reporti (Imperial College London & Royal College of Art) – A safeguarding app enabling users at large events to report incidents such as harassment or unsafe behaviour quickly and securely.

Harker (University of Liverpool) – A CRM system for homelessness charities, providing data insights to improve services, strengthen funding applications and enhance outcomes for vulnerable individuals. (pictured above) 

AIBŌ (King’s College London) – A social enterprise connecting students with older people through paid companionship, tackling loneliness while supporting students financially.

Braille Forge (Brunel University) – Affordable braille technology to improve access to STEM education for visually impaired students, with a focus on lowering costs and enhancing tactile learning tools.

Rephobia (Queen’s University Belfast) – A virtual reality therapy platform offering affordable and accessible treatment for phobias, including fear of flying, heights and social situations.

Giselle Gonzales, founder of EQUALReach and finalist at Ignite 2024, will return as keynote speaker and judge. Her employment platform connects refugee professionals with digital work opportunities and has since secured a UK and international pilot with a Fortune 500 company.

Gonzales reflected on her journey since last year’s competition:

“When I started my company in the UK, I never imagined I’d be pitching to a packed audience at The Shard. The friendships, networks and support from Ignite have been invaluable. It’s an honour to return as a judge to help champion the next wave of founders driving profit with purpose.”

The six finalists will present their pitches to a live audience and judging panel, followed by a Q&A session. Organisers say the competition continues to highlight the growing pipeline of socially conscious entrepreneurs emerging from UK universities, blending innovation with impact.

Read more:
Six university start-ups named as finalists for Ignite 2025 social enterprise competition

The Department for Education (DfE) has spent more than £170,000 over the past three years to upskill staff in data, artificial intelligence (AI), and digital technologies, as part of the UK government’s broader push to build a digitally confident civil service.

The figures, obtained under a Freedom of Information (FOI) request and analysed by the Parliament Street think tank, show a sharp rise in DfE’s investment in advanced digital training — from basic data analysis and visualisation courses to specialist AI, cybersecurity, and cloud skills.

The move comes as 70% of government departments are either piloting or planning to implement AI tools, underscoring the growing importance of structured, secure, and high-quality data in public sector operations.

In the 2022/23 financial year, more than 1,450 DfE staff completed training in areas including statistics, business analysis, digital design, and data visualisation, with an investment of £44,500.

By 2024/25, over 350 staff had progressed to more advanced training covering AI, data science, cybersecurity, and the Microsoft Power Platform — signalling a strategic shift towards specialist, future-focused digital capabilities.

This progression, experts say, reflects the DfE’s growing recognition that data and AI skills are no longer optional — they are essential to policy development, service delivery, and governance.

Stuart Harvey, CEO of Datactics, said the government’s investment represents “a critical move” as high-quality, well-governed data becomes the backbone of effective policymaking and citizen services.

“The ability to manage, cleanse and interpret data accurately is no longer a back-office function — it’s central to operational efficiency and public trust,” Harvey said.

“Training in AI and data science enables staff to automate manual processes, detect patterns, and generate actionable insights at speed and scale.”

He added that forward-looking programmes in AI, cloud platforms, and advanced analytics would allow the public sector to deliver “smarter, safer and more responsive services” built on robust data management.

Sheila Flavell CBE, Chief Operating Officer at FDM Group, welcomed the DfE’s investment but said ongoing upskilling must remain a top priority if government services are to remain secure, resilient and trusted.

Sawan Joshi, Group Director of Information Security at FDM Group, Flavell said: “These figures highlight a growing recognition across government of the importance of advanced digital skills. The shift towards specialist training in cybersecurity, AI, and cloud engineering is a positive step, but continual upskilling must remain a priority.”

FDM’s own research shows 54% of organisations now expect AI literacy in all graduate roles, yet only 6% believe their teams are currently equipped to apply AI effectively.

“The future of AI success lies in human oversight,” Joshi added. “AI doesn’t replace people — it amplifies those equipped to use it wisely. Government and industry must work hand in hand to build a truly digitally confident workforce.”

AI adoption accelerating across Whitehall

The DfE’s expanded training push aligns with a wider cross-government effort to embed AI and data analytics in public services. Departments are using machine learning and predictive analytics to improve policy outcomes, reduce fraud, and streamline administration, while investing in ethical frameworks and human oversight to mitigate risk.

The Cabinet Office has also launched new data literacy standards and AI adoption guidance, while the Central Digital and Data Office (CDDO) continues to lead cross-departmental efforts to modernise digital infrastructure and recruitment.

As AI systems become more pervasive across Whitehall, experts warn that data quality and governance will determine whether the UK’s digital transformation succeeds.

For departments like the DfE, the goal is no longer simply to digitise — but to build institutional intelligence, where data-driven decisions enhance both efficiency and accountability.

“High-quality data is the fuel of government innovation,” Harvey said. “Without the right skills, even the best AI tools can fail. But with the right foundations, the public sector can set the global standard for responsible, human-centred use of technology.”

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Department for Education ramps up AI and data training as part of UK government digital skills drive

What began as isolated disputes over niche items is now reshaping how cakes, baked goods and sweet snacks are treated for tax purposes.

The result is that products previously considered zero-rated are increasingly being reclassified as standard-rated confectionery, subject to 20% VAT.

The change centres on a single phrase in VAT legislation, which defines confectionery as: “Chocolates, sweets and biscuits; drained, glace or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers.”

HMRC and the courts are treating this final clause as decisive. If a product is sweetened and typically finger-eaten, it is now likely to be deemed confectionery.

That logic has already been applied to cases ranging from mega marshmallows to M&S’s viral Strawberry and Crème ‘sandwich’, raising industry-wide questions about how far the category could extend.

HMRC has gone beyond case-by-case challenges and is now issuing ‘One to Many’ letters to producers, wholesalers and retailers. These urge businesses to file error correction notices for potential underpayments dating back four years.

The language of the letters suggests HMRC assumes errors have already been made. Voluntary disclosure may soften penalties, but businesses risk significant retrospective liabilities if they fail to act.

What food businesses should do now

Alex Nicholson, Head of VAT at Johnston Carmichael, advises companies to take a proactive stance:

• Track case law timelines – understanding when products were ruled taxable is key to assessing backdated exposure.
• Review past HMRC correspondence – previous clearance or reliance on HMRC behaviour may provide a defence.
• Audit product ranges broadly – don’t just review the items HMRC highlights; a full audit may reduce risk.
• Explore legal challenges – not all HMRC interpretations are unassailable, and viable counterarguments remain.

For many businesses, the issue is not just future liability but historic exposure. Margins across food production and retail are already squeezed by inflation, wages and regulation. Unexpected backdated VAT bills could be devastating for smaller producers and costly even for established players.

The expansion of the confectionery definition signals a fundamental shift in HMRC’s approach. The courts’ willingness to support that shift suggests that zero-rating sweet products will become increasingly rare.

The takeaway is clear: the days of relying on historic VAT treatments are over. Businesses that move quickly to review and adapt their VAT positions will be best placed to limit financial and reputational damage.

Read more:
HMRC has stepped up its campaign to expand the scope of ‘confectionery’ under VAT law – and the courts are backing them

Only 5% of generative AI pilots at companies are delivering meaningful results, according to a new report from MIT’s NANDA initiative, which warns that corporate enthusiasm for AI has outpaced real-world success.

The report — The GenAI Divide: State of AI in Business 2025 — analysed 300 public AI deployments, 150 executive interviews, and survey data from 350 employees. It found that while AI tools promise faster growth and efficiency, most enterprise projects fail to generate measurable impact on profit and loss statements.

“Some large companies’ pilots and younger startups are really excelling with generative AI,” said Aditya Challapally, the report’s lead author and a research contributor to MIT’s project NANDA.

“Startups led by 19- or 20-year-olds have seen revenues jump from zero to $20 million in a year. It’s because they pick one pain point, execute well, and partner smartly with companies who use their tools.”

The “GenAI Divide”: startups surge, enterprises stall

The report identifies a widening gap between nimble startups and larger corporations — a phenomenon MIT calls the “GenAI Divide.”

While small, focused teams are translating generative AI into clear commercial wins, 95% of corporate pilots stall, producing little or no productivity uplift. MIT attributes this to poor integration, not model quality.

“The issue isn’t regulation or model performance,” Challapally explained. “It’s that enterprise systems aren’t learning from their own workflows. Generic tools like ChatGPT excel for individuals because they’re flexible — but in businesses, they don’t adapt, they don’t integrate, and so they stall.”

This “learning gap” between tools and organisations, the study argues, is the single biggest drag on enterprise AI performance.

MIT’s findings also highlight a mismatch in corporate AI investment. More than half of enterprise GenAI budgets are currently spent on sales and marketing applications, even though the highest return on investment comes from back-office automation — areas such as document processing, compliance, and finance operations.

According to the research, companies that used AI to replace business process outsourcing (BPO), cut agency costs, or streamline internal workflows saw the strongest returns, while those deploying AI for content generation or chatbots struggled to show value.

“Executives want fast wins in visible areas like sales,” Challapally noted. “But the real value is hiding in the unglamorous operational work where AI can quietly save millions.”

Among the 5% of AI pilots that succeeded, MIT found three common factors:
• Clear, narrow use cases tied to a measurable outcome.
• Deep collaboration between AI teams and end-users.
• A focus on data integration before deployment, not after.

These pilots often achieved revenue acceleration of 15-25%, validating the technology’s potential when applied with precision.

The report urges enterprises to “move from experimentation to operationalisation” — integrating generative AI into existing systems, rather than treating it as a separate innovation silo.

The findings come as companies across industries race to embed AI into workflows following the explosive adoption of tools such as ChatGPT, Claude, and Google Gemini. Analysts estimate that corporate spending on generative AI exceeded $40 billion globally in 2024, but measurable returns remain elusive.

“We’re seeing an extraordinary gap between expectation and execution,” Challapally said. “The winners will be those who stop chasing buzzwords and start solving specific problems — one workflow at a time.”

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MIT report: 95% of corporate generative AI pilots are failing