Ecommerce giant Temu has recently unveiled a new app, allowing Shopify sellers to list and manage products on the platform directly from their accounts.

With this new integration, Shopify merchants can now tap into Temu’s global network of local marketplaces.

As part of the platform’s “Local to Local” initiative, the app aims to simplify cross-border selling, giving businesses faster shipping options, easier inventory management, and the ability to reach customers in multiple markets. 

What is Temu’s Shopify app?

Temu’s Shopify app — which is now available on the Shopify App Store — is a new tool that allows ecommerce businesses and dropshippers to connect their store with Temu’s marketplace.

The app gives sellers access to over 30 markets —  including the UK, US, Canada, Australia, Germany, France and Spain — as well as 600+ product categories. If sellers have inventory in those regions (or want to ship there), they can now manage these storefronts from a single Shopify backend. 

“This app is part of our efforts to lower barriers and create growth opportunities for businesses worldwide while giving shoppers greater convenience and choice.” a Temu spokesperson said. 

The new app also gives sellers access to the platform’s Local to Local initiative, which was launched in the UK in summer 2024. 

The programme lets online stores and dropshippers source products from UK-based suppliers, with deliveries arriving in just one or two days instead of the usual two-week wait when shipping from China. 

What features are included in the app?

When accessing Temu’s 30+ markets, the new app allows merchants to sell and manage products globally without having to build separate systems or infrastructures for each region.

Sellers should be able to connect their store with the platform,  syncing product catalogues quickly and listing items without dealing with manual uploads or extra setup.

Additionally, the app keeps inventory levels updated in real-time between Shopify and Temu, which helps prevent overselling and keeps stock accurate across both platforms without extra effort.

Finally, when an order comes in on Temu, it automatically syncs into Shopify — allowing sellers to manage everything in one place instead of jumping between different systems. 

What does this mean for online sellers?

Temu boasts over 292 million monthly active users in 2025, making it a good opportunity for online sellers to reach a new audience.

The ability to ship items from local suppliers also means that businesses don’t have to worry about hefty shipping costs. This is especially useful in light of the UK Government’s Autumn Budget announcement, which confirmed that the “de minimis” tax exemption for small parcels under £135 shipped from overseas will be scrapped by 2029. 

Sellers can also expand their product range by shipping specific items that previously were uneconomical to ship from China – bulky or heavy products (such as furniture and kitchen appliances) or extremely low-margin items that are worth less than the cost of shipping overseas.

However, expanding to Temu means being dependent on the platform’s policies, which could change over time — potentially affecting fees or selling conditions. Selling through a marketplace can also limit control over the store’s branding and customer interactions, which can impact long-term customer relationships.

While this new integration offers a new opportunity for online sellers to expand their reach, businesses should be mindful of the risks and carefully consider the pros and cons before deciding to bring their products to a new marketplace.

The European Commission has opened applications for what it is calling the “Champions League of Startup Hubs”; and interested parties have until 10 March 2026 to apply. 

As businesses fight for funding, innovation hubs can provide the support that they need, especially in the early stages of their journey. This new initiative by the EC is focussed on supporting 10 to 18 hubs that will get a financial boost but also be able to share resources. 

The EC adds that the call is especially targeting “hubs with strong research capabilities and sectoral expertise in deep tech areas from all over Europe”.

Shared expertise

The EC shares in its call for applicants that the main push for this programme is “enhanced interconnectivity” as the emerging innovation hubs “will gain mutual access to research infrastructures, investors, mentors, talents, and collaboration activities”.

It is part of a wider programme called the “Lab to Unicorn Initiative”, announced as part of the European Startup and Scaleup Strategy, which is focused on boosting growth in the startup sector. 

Announced in May, the Strategy has the mission of “making Europe a great place in the world to launch and grow global technology-driven companies”; and the UK will feel the benefit too despite Brexit. UK ventures can apply to take part through Horizon Europe funding streams like the EIC Accelerator.

Slashing bureaucracy

The strategy is made up of a 26 action plan – which includes offering “better access to infrastructure, networks, and services”. However, it is also hoped it will “reduce the reasons to relocate outside the EU” by cutting the red tape for ventures. The decision to postpone the EU AI Act is a controversial part of this bid. 

In the UK, there have been reports of entrepreneurs upping sticks and moving to Dubai, among other locations, where the tax regime, they argue, is far more conducive to nurturing growth. 

The Government decision to scrap special tax privileges for non-domiciled residents in April has also been pointed to; as has the plan to increase capital gains tax (CGT) on the sale of business shares to 14% on their first £1 million of exit cash and then 18% in April 2026. 

Businesses also claim that they are facing additional bureaucracy as we move towards the implementation of Making Tax Digital. Although it is sole traders who will be impacted first, changes will happen for all businesses alongside new ID mandates from Companies House. 

Expansion into Europe

As many of our Startups 100 founders reveal, the EU is the natural next area to target after they have gained a footing in the UK. For example, Silton, which was Number 55 in this year’s award list, is redefining eye care with technology that allows remote monitoring and tackles preventable vision loss. As well as working with UK health trusts, it lists the European Space Agency among its clients. 

Programmes like Horizon Europe allow businesses to bid for funds from a €93.5 billion flagship research and innovation programme. However, this latest strategy could mean that accessing expertise and funding from the EC can happen through a UK hub but founders will immediately benefit from access to a network on the continent; and this, especially for early -stage ventures, could be a huge leg-up the ladder. 

The Government has announced that it is winding down its UK Shared Prosperity Fund (UK SPF), which has contributed £900m to local growth since 2022. 

The decision is already being criticised as councils warn it could push businesses to the “cliff edge,” arguing that the alternatives being put in place will not fill the gap. Indeed, the County Councils Network, whose members provide more than half of England’s jobs, businesses and Gross Value Added (GVA), is warning of a significant impact on training and business support. 

Hospitality businesses in particular are facing tough times with increased employment costs; business rate rises and the continuing bite of the Cost of Living crisis. For many, funding from local sources has been key to both establishing their business and keeping it going. This latest decision is being warned will hit local growth hubs hard. 

What is the UK Shared Prosperity Fund?

Set up to replace the old EU structural funds, the UK SPF was created to level “opportunity and prosperity and overcome deep-seated geographical inequalities that have held us back for too long,” said the Government. 

It added that the fund would “…reduce the levels of bureaucracy and funding spent on administration when compared with EU funds. It will enable truly local decision making and better target the priorities of places within the UK.”

The £2.6 billion fund was given directly to local authorities for them to distribute in three areas: communities and place, support for local businesses and people and skills.

What is it being replaced with?

The fund will be closed down from March 2026 and is being replaced with a new Local Growth Fund for areas with established mayors and the neighbourhood-level Pride in Place programme.

The Local Growth Fund is longstanding and was reviewed in July, with recommendations that a broader selection of government departments should contribute “to the pot”; and the emphasis should be shifted from “scrutiny to support”. 

The Pride in Place Programme was unveiled in November and sees funds sent to 250 places. Businesses can apply, but the criteria are being set at the local level, so they will vary; but the focus is on improving the local community. 

What are the concerns?

The County Councils Network argue that replacing the one single fund with two others has left some councils in limbo, and this will have an immediate impact on businesses. It also comes at a time when businesses are clamouring for the Government to step up to help improve access to private sources of funding.

Grant Thornton revealed in a survey of 800 businesses in the UK that 73% believe that the Government needs to do more on this. Key demands include enhancing tax incentives for private investors in high-growth sectors and implementing policies that incentivise private investment in local businesses.  

Private investment could prove a lifeline ,as when surveyed, nine in ten councils voiced concerns that their areas will not receive any money from the Local Growth Fund. On top of this, not one respondent agreed that the Government’s Pride in Place programme “was an adequate replacement for the UK SPF”. Indeed, 90% said that they would be unable to continue local business support services without adequate replacement funding, with SMEs set to lose out. 

Many of the areas that claim they will miss out are those that have elected officials but will not have a mayor in place until elections happen in 2028. Until then, they warn that growth hub programmes will be shut down with up to 200 job losses in one area alone. 

Which areas will be hardest hit?

In particular, the organisation argues that several areas, including large rural unitary councils such as Buckinghamshire, Shropshire and West Northamptonshire, alongside places like Devon, are set to receive nothing from both funding streams. 

It is the rural areas under these councils that will feel the loss most keenly, the Network argues. Cllr Steven Broadbent, Finance Spokesperson for the County Councils Network, said: “At a time when the government has made economic growth its key priority, it is concerning that the government’s actions suggest it believes growth can only happen in urban and city areas, creating a lopsided system of’ have and have nots’.”

Businesses that are currently benefitting from the UK SPF need to reach out to their councils to find out what other funds they could benefit from; but this might also be the time to look at alternate funding sources. 

Across the UK, many of us are looking to break the working day into smaller, more flexible blocks. That might mean early-morning emails, a long pause for childcare or errands, afternoon meetings, then a final stint of evening admin before calling it a day.

The Owl Labs’ latest State of Hybrid Work Report polled 2,000 full-time UK employees and found that flexibility has become a central driver of job satisfaction, career decisions and retention. More than two-thirds of UK workers say they are interested in working in short, flexible blocks, a model increasingly referred to as “microshifting”. 

For employers, particularly startups and small businesses competing for talent, the trend raises an important question: should flexible working patterns be redesigned around output, rather than fixed hours?

What is microshifting?

Microshifting describes a way of working where the day is split into shorter, flexible blocks rather than fixed hours. The emphasis is on balancing work output with employees’ schedules, energy levels, and personal commitments. 

A day spent microshifting might start earlier than the typical workday. Then, that extra time might be spent attending a morning yoga class or dropping the kids off at school. 

Night owls may have a lighter morning, then lock into higher-value work in the evening if that’s when their creativity peaks. As long as the work gets done, when it happens matters less.

According to Owl Labs’ research, 67% of UK workers are interested in this kind of non-linear working day. Demand is strongest among younger generations, rising to 72% for Gen Z and millennials, compared with 45% of Gen X and just 19% of boomers.

Why businesses are paying attention

For employers, microshifting is not just about employee satisfaction. It can also address productivity, coverage and engagement.

Owl Labs’ report shows that more than half of UK workers now regularly schedule personal appointments during working hours, with those who have caring responsibilities far more likely to do so. 

Rather than resisting this reality, some businesses might begin to design working patterns around it.

Microshifting can allow employees to work during their most productive periods, potentially improving focus and reducing burnout. For companies operating across time zones, it can also extend availability without increasing headcount.

The report also reveals that many workers are already adopting a more creative schedule. They might block out calendar time, decline late meetings, or limit work strictly to contracted hours. 

For managers, this suggests that flexibility is happening regardless; the next step is to incorporate it intentionally.

Why flexibility now shapes hiring and retention

Flexibility is increasingly becoming a basic expectation in the job market, alongside hybrid and remote working. For many, the ability to maintain control over your schedule is becoming as important as the RTO vs. WFH debate. 

Owl Labs found that 44% of UK workers would reject a role that does not offer flexible hours, up from 39% the year before. 

For startups and small businesses, this could present an opportunity. When higher salaries or bonuses are not always feasible, flexible working patterns can become an attractive prospect for high-value candidates.

The findings also show that it’s not just entry-level recruits who are keen to loosen up their working hours. 

Nearly half of managers said they engage in practices like “coffee badging”, attending the office briefly to show face, while 80% of managers said meetings after 4:30pm were too late in the day. This suggests that rigid schedules are also falling out of favour with leadership teams.

So while microshifting may not suit every organisation, it could reflect the broader shift away from hustle culture and a ‘live to work’ mentality. For companies open to it, it offers a chance to give staff at every level greater control over their working day while supporting a healthier work-life balance.

Pubs across the UK have said Labour MPs are not welcome as frustration grows within the hospitality sector over rising costs. Over 250 pubs, restaurants, and hotels have already joined the movement, which started last week.

One of the first pubs to bar Labour MPs was the Old Thatch in Dorset, where landlord Andy Lennox explained that it’s a sign of the industry’s reaction to soaring business and VAT rates.

Although the government has pledged multibillion-pound support for hospitality, the campaign suggests many operators feel the response does not fairly reflect the financial pressure they are under.

Why pubs are banning Labour MPs

Andy Lennox told the BBC that the campaign was initiated by a neighbouring Dorset publican, James Fowler, who first displayed a “No Labour MPs” sticker at the Larderhouse in Bournemouth. Mr Lennox said the ban was a last resort after years of lobbying had failed to result in any meaningful financial relief.

One of the reasons the hospitality industry has been under major financial pressure is due to unpredictable business rates.

While in the recent Budget, the government announced that some retail and hospitality businesses will benefit from a lower multiplier, many have seen their rateable values increase, which means they won’t qualify for the lower rates. 

And from April, the remaining COVID-era 40% business rates discount will be no more. 

Another area of concern is hospitality VAT rates, which remain among the highest in Europe at 20%. Before the Budget, the Liberal Democrats suggested a reduction to 5% to help ease pressure on the industry, but this has yet to materialise.

Speaking to the BBC, Mr Lennox said repeated campaigns from a “fed up” hospitality industry had only been met with higher taxes, instead of much-needed support. He described widespread anger among landlords who feel they are being taxed “to oblivion”, despite warnings that pubs are already disappearing.

How Labour has responded

Despite the revolt, the government insists it is not abandoning pubs and small hospitality venues.

In her 2025 Budget speech, Chancellor Rachel Reeves said the government would introduce “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties – the lowest tax rates since 1991”.

She said the reforms would be funded “through higher rates on properties worth £500,000 or more, like the warehouses used by online giants”, alongside a wider package of support designed to protect small businesses facing steep increases in their bills.

However, UKHospitality has disputed the government’s figures, questioning both the scale of the support and how far it will offset rising costs for small venues. 

New data suggests that even with a reduced multiplier and transitional relief, the average UK pub’s business rates will still rise by around 15% next year.

What this means for small businesses

For small pubs and hospitality venues, the campaign highlights a broader concern over whether promised support is translating into real, day-to-day relief.

While the government’s commitments may sound generous on paper, many operators doubt they will feel the benefit. 

Rising rateable values, the phasing out of COVID-era discounts, and uncertainty over how relief will be applied mean overall bills are still a source of concern for many.

And especially for smaller pubs with tight margins, even slight cost rises can have serious consequences, with landlords warning of job losses, trimmed-down opening hours, and potential further closures in 2026.

While the ban signifies a serious breakdown in trust between pubs and MPs, there is still a chance that the government’s pledges will deliver the relief operators are waiting for. In the meantime, hospitality venues can look into alternative funding options to help weather the storm. 

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

Read Whining and Dining

The festive season is well and truly underway, which means that many households across the UK might be feeling the financial pinch. For freelancers and sole traders, the looming Self-Assessment deadline on 31 January 2026 may be the source of added pressure. 

Fortunately, HMRC sent out a reminder that help is available through its Time to Pay service, which allows taxpayers to pay their bill in monthly instalments. Nearly 18,000 payment plans have already been set up since April.

If monthly instalments would ease the pressure and make Christmas a little more enjoyable, we’d recommend filing your tax return sooner rather than later and getting your payment plan sorted. 

What is Time to Pay?

HMRC’s Time to Pay service is designed for taxpayers who otherwise wouldn’t be able to settle their Self Assessment tax bill in full by the 31 January deadline. 

Customers owing no more than £30,000 can set up a repayment plan online without contacting HMRC directly. Payments can then be made through the HMRC app, online via GOV.UK, or through a variety of other methods.

For larger bills or longer repayment periods, HMRC advises calling directly to arrange a plan.

Regarding the scheme, Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Our online payment plans offer financial flexibility and can be tailored to individual circumstances. We want to support all our customers in meeting their tax obligations with confidence.”

Time to Pay arrangements can only be set up after actually filing a Self-Assessment tax return, but they give customers the ability to plan repayments around their finances and are intended to reduce unnecessary financial pressure. 

What else is changing for sole traders and freelancers?

HMRC has also reminded its customers who might have received Simple Assessment letters that they do not need to complete a tax return. Instead, they have three months from the date of issue to pay. 

These letters will have been sent to those with outstanding Income Tax due from the 2024–25 tax year that cannot be collected via PAYE.

Looking ahead to 2026, remember that sole traders and landlords with a turnover above £50,000 will soon be required to use Making Tax Digital for Income Tax. 

From 6 April, those with qualifying income will need to submit quarterly income and expense summaries to HMRC using MTD-compatible accounting software. Getting to grips with this sooner rather than later will support a smoother transition with fewer technical hiccups. 

Should the self-employed set up a plan?

For many, Time to Pay will be a helpful way to smooth the potential blow to cash flow from a hefty tax bill while avoiding late-payment penalties. 

If you decide to set up a payment plan, it’ll be based on your income and expenditure. You can choose how much to pay upfront, then the rest will be spread across the period you choose. Your arrangement can be altered as and when necessary to reflect any changing circumstances. 

That said, interest will still apply, so if you can pay in full, you should carefully weigh up the costs.

The most important first step is to file your tax return in good time, to keep as many payment options open as possible. This way, you’ll maintain better control over your finances during what can be a stressful time of year for many. 

The Government has launched a six-week consultation to look into whether it should extend pub licensing hours in England and Wales during the FIFA Men’s World Cup 2026.

Licensing rules are already under scrutiny as the Government looks at potential reforms to allow venues to stay open later and hold more live events.

That consultation was met with some scepticism as hospitality businesses continue to argue that they need business rates relief or a new rates model as well as licensing reforms to counter the death of British nightlife that many claim they are facing.

What is the consultation?

The Government has announced it is looking into whether pubs should stay open beyond the usual closing time if a home nation reaches the quarter-finals, semi-finals or final of the FIFA Men’s World Cup 2026.

It explains: “The consultation proposes a potential extension to licensing hours for the semi-finals and final until 1:00am, if matches kick-off at 9:00pm or earlier.”

This reflects the fact that the tournament is taking place in the United States of America, Canada, and Mexico; and so there is a significant time difference.

This has happened before. The Home Secretary has the legislative power to extend opening hours on occasions of what are deemed to be “exceptional international, national or local significance”. This has included the Women’s 2025 Euro competition, the Men’s 2024 Euro final and Women’s Euro 2022 Final.

Positive response

While the plans are still a consultation at this stage – and not the final whistle – it looks likely that the Government will push for this change. Those in the industry have responded positively, not least because hospitality businesses are widely reported to be suffering a crash in confidence for the future, and this is a potential boon for them.

Emma McClarkin, CEO of the British Beer and Pub Association, said: “The pub has and always will be the home of live sport and there’s no better place to gather under one roof during moments of huge national significance and make memories.

“Our sector plays a huge part in boosting community spirit and extending licensing hours will mean that people can gather for longer at their local to cheer on our brilliant teams.”

Kate Nicholls, the Chair of UKHospitality, has been a most vocal advocate for sweeping changes to help the industry. In June, she spoke about how tax hikes had hit profit margins, and spoke out this week about the proposed tourist tax that could be imposed by mayors.

However, she says that this new consultation will not only “…generate the best atmosphere for fans, but it can provide a real boost for hospitality businesses”.

The consultation will now run until January 2026 and the Government says that the Home Office will make a decision “once responses have been reviewed”.

Online sellers who sell more than 30 items or make more than £1,700 on marketplace platforms are reportedly being asked to share their tax info due to an HMRC crackdown on tax payments.

The requests are causing a bit of a stir but are actually prompted by new reporting rules for websites like eBay, Vinted and Depop, which allow users to sell goods or services.

These rules are related to new tax transparency rules, and compel the ecommerce platforms to hand over seller information to HMRC if certain thresholds are met.

When does tax apply?

The OECD rules are all about helping HMRC identify people who may have earned an undeclared trading income. Under the new guidelines, which came into force in January 2024, platforms must share details with HMRC.

These include the seller’s name, address, total sales and tax identification number (or National Insurance number). It is the latter that sellers are reporting they are being asked for as this isn’t a detail they would have shared with these platforms before the new rules came into place.

So, does the tax apply? Well, HMRC is using the data gleaned to check the nature of your selling. There is a tax implication for the difference between casually selling secondhand items for less than you originally paid for them or selling personal items as compared to selling frequently. Essentially; reselling for profit or actively marketing yourself as a business.

If your sales are deemed as private sales, you don’t need to pay tax. However, HMRC might decide that you are a trader if you hit the two thresholds; regularly buy and sell; or have a side hustle for which selling forms a part. In that case, you might owe tax.

What happens if you are deemed a trader?

If HMRC decides that your income is taxable, they will notify you and your reporting responsibility changes, and you may need to register for a Self Assessment tax return.

Keep in mind that the Government is rolling out Making Tax Digital for self-employed workers from April 2026 so, depending on earnings, you may have to invest in accountancy software.

Once set up as a sole trader with HMRC, you will need to keep proper financial records including sharing your sales and expenses. At this point, it is also wise to gem up on allowable expenses, the trading allowance and how to keep accurate records.

While this may feel onerous, the cost of non-compliance is higher and this is also an area that HMRC is really focussed on at the moment. Being unprepared isn’t a valid excuse so if you are selling for a profit, it’s best to start keeping records in case that notification from HMRC arrives.

Handling finances efficiently is an essential part of running a business day-to-day.

This includes cash flow, which is the movement of money that goes in and out of a business over a specific period. 

However, new research from Novuna Business Cash Flow reveals that a third of SMEs and sole traders aren’t aware of the basic principles of cash flow, despite most reporting challenges in this area.

The findings come in the wake of the Government’s 2025 Autumn Budget, which has led to a cautious economic outlook for UK businesses — adding extra pressure to an already tough operational environment for SMEs. 

But what’s causing this lack of knowledge, and how should SMEs tackle it?

Cash flow problems are hitting SMEs, but basic expertise is low

New data suggests that a significant number of SMEs don’t fully understand how cash moves through their business — even as it continues to impact their everyday operations.

Novuna Business Cash Flow’s research — which surveyed 1,000 SMEs — revealed that a third of respondents were unable to even correctly define cash flow. This is despite 82% of respondents reporting difficulties, including 68% of sole traders.

The most common reasons for cash flow issues included late customer payments (36%), seasonal shifts in sales (35%), and unexpected changes in trading conditions (27%).

Yet despite these concerns, many founders are turning to short-term solutions to fix these problems, with more than half relying on cutting costs, business loans, or borrowing from friends and family. 

“These figures show that cash flow problems are not occasional — they’re part of the everyday reality for most SMEs.” John Atkinson, Head of Commercial and Strategy at Novuna Business Cash Flow, says.

“When challenges come up repeatedly across the year, it not only puts pressure on finances but also limits a business’s ability to plan ahead and grow with confidence.”

Why are founders lacking in cash flow knowledge?

Founders often fall short of cash flow knowledge simply because of financial illiteracy.

Previous research reported by Startups found that there was a “widespread lack of financial confidence among entrepreneurs”, with 55% of SME owners admitting that they avoided dealing with finances.

Meanwhile, data by QuickBooks reveals that nearly half of founders surveyed (42%) said they had no financial literacy before starting a business. 

The rise in financial influencers (AKA “finfluencers”) online could be a likely culprit as well. Specifically, 19% of Brits are turning to them for advice, attracted by the promise of “free access to financial experts” — despite over half of investment scams taking place on social media.

Unsurprisingly, this gap in financial knowledge is also showing up in how business owners handle their tax returns.

Earlier this year, it was reported that nearly half of sole traders didn’t know about Making Tax Digital (MTD), despite the initiative set to become mandatory from April 2026. Another survey also found that 43% of freelancers didn’t know which tax band they belonged to. 

How can SMEs get better at managing cash flow?

The first step to understanding cash flow is learning the basics, which means getting comfortable with concepts like cash inflows and outflows, burn rate, and runway. Even just enrolling in online courses can help you learn how to manage money, forecast your cash flow, and budget your finances efficiently.

Tracking cash flow consistently — whether through accounting software or spreadsheets — can also help you forecast for the months ahead, so that you aren’t met with any unexpected surprises later on.

If you’re dealing with late payments, Emma Jones — the Small Business Commissioner at OSBC — can help you challenge unfair payment practices, get advice on overdue invoices, and even raise formal complaints if you’re owed money.

Moreover, getting expert advice can make a considerable difference in making important decisions. For example, an accountant or part-time chief financial officer (CFO) can be useful in spotting risks and suggesting smarter payment strategies.

These practices, coupled with careful expense management and keeping a close eye on incoming and outgoing cash, can help give you the confidence you need to grow your business, with far less financial stress.

Get paid with Emma

Emma Jones is the UK’s Small Business Commissioner, helping businesses get paid on time by tackling late payments and poor payment terms. Read her bi-monthly column for Startups now.

Get paid with Emma

The hospitality industry has been shouting for support as recruitment becomes increasingly difficult, but the government’s decision to extend its apprenticeship scheme could bring 50,000 young people into the workforce.

The expansion of the scheme will see the removal of the 5% levy on apprentices for under-25s and is also promising new apprenticeships in AI, hospitality, and engineering.

How will the scheme work?

The £725m package of reforms to the apprenticeship system was announced in last month’s Autumn Budget. It is directly aimed at people under 25-years old, says the Government in the press release announcing the changes.

The focus is on matching skills training with the jobs that are available locally to those taking part, it adds. Key to this is a £140m pilot programme to support local mayors being able to connect young people – “especially those not in education, employment or training (NEET)” – with apprenticeship opportunities at local employers.

There is also news for SMEs with the plan to cover the full cost of apprenticeships for eligible young people. This sees the removal of the 5% co-investment rate for SME’s, which was a barrier for some businesses.

The Government did offer SMEs some relief to rising staffing costs when it fully funded 20,000 new apprenticeships in April last year, but businesses have continued to suffer after the NICs hikes and changes to the minimum salary requirements for migrant workers.

This latest shakeup, though, is as much about retraining as getting people into the workforce. It includes access to short courses in “cutting-edge areas including AI (as a Level 4 apprenticeship), engineering and digital skills,” adds the Government, so employers can “upskill” their workforce on the job. These will roll out from April next year, and will help apprentices maintain their skillsets in a rapidly changing work environment.

For hospitality and retail businesses, it is hoped that there will be “new waves of foundation apprenticeships”. This is in addition to the Sector-based Work Academy Programme (SWAP), which was launched in May by the Department for Work and Pensions (DWP) and the sector’s leading trade body UKHospitality.

This aimed to deliver 100,000 work placements (up from its previous target of 80,000) to those receiving unemployment benefits, so they could gain skills to work in the industry.

Why is it being introduced?

In the simplest terms, this is about addressing unemployment among people under 25. BBC News reported last month that almost one million young people are not in work or education.

It shared figures from the Office for National Statistics that between July and September, there were 946,000 NEETs, down from 948,000 in the three months before. This equates to one in eight young people; and has been consistently above 900,000 since early 2024.

The reforms are hoped will “simplify and modernise the apprenticeship system,” says the Government, but also include more access to learning so businesses can see the impact in their workforce.

In an interview with BBC Radio 4’s Today programme, Skills Minister Baroness Jacqui Smith added: “The real priority for us with apprenticeships is to put right what we’ve seen over the last 10 years, which is a reduction of 40% in young people starting apprenticeships.”

However, some have criticised the reforms as not going far enough; and the decision to remove funding for level seven apprenticeships for people over the age of 22 has come under particular scrutiny.

The news has generally been received positively. Kate Nicholls, Chair of UKHospitality, said: “The addition of hospitality to the sectors that can access foundation apprenticeships will provide more routes into work for young people and I look forward to continuing to work with the Government on its skills policy.”

How can businesses get involved?

The reforms will take place over the next three years. The details for those businesses wanting to get involved haven’t been released as yet.

There are seven foundation apprenticeship schemes already in place though, which were launched in the autumn. These are in construction, digital, engineering and manufacturing, and health and social care. The new schemes will be in hospitality and retail, but details haven’t been unveiled as yet.

In the meantime, businesses in those areas could take stock of staffing to consider whether an apprentice would work. It could also be the time to look at any skills gaps and look at the short courses that the Government is rolling out to see if there is a potential match up there.

While apprentices can’t fill all levels of roles, the focus that the Government has on these schemes is worth taking advantage of as recruitment continues to be difficult; and as businesses juggle staying afloat with employee needs.

The supermarket giant Asda has reportedly announced plans to change its current sick leave policy as it seeks to improve the customer experience and restore operational focus. 

According to The Telegraph, the company plans to roll out stricter disciplinary rules around sickness leave, leaving staff at greater risk of losing their job for taking consecutive periods of leave. 

Although no changes have so far been implemented, employees have reportedly voiced strong opposition, citing unnecessary stress and a decline in company culture. 

The proposal has drawn scrutiny not just for the retailer’s disciplinary measures, but also for the broader impact on workplace confidence and engagement.

What is Asda’s planned sick leave policy?

On Monday, Asda announced its plans to “crackdown” on sick days by extending the period before an absence record is reset.

Currently, an employee’s absence record is reset after a six-month period, but this would be extended to 12 months under the new rules. However, no changes have been carried out yet.

“We are consulting with elected colleague representative groups on a proposal to adjust our short-term absence policy.” an Asda spokesperson told The Telegraph.

“The proposal is at an early stage and was shared in confidence with these groups as part of the consultation process. No decisions have been made, and no changes have been implemented.”

While the company didn’t provide a reason for these changes, it’s possible that they’ve been made in response to sick leave reforms under the Government’s Employment Rights Bill, which will give employees rights to statutory sick pay (SSP) from the first day of absence, rather than after the current three-day waiting period.

Why are the new rules being criticised?

While nothing has been enforced yet, staff haven’t held back on their disapproval over Asda’s sick leave plans, particularly as it could increase the risk of workers being dismissed for repeated periods of sickness.

A source also told The Telegraph that the new rules will be placed to “put the scarers on people”, when morale was apparently already low.

Asda’s organisational culture and morale have been scrutinised in recent years, with multiple stories of low confidence, poor employee engagement, and other ongoing issues hitting the headlines in the last year.

In March 2025, the company came under fire after scrapping annual bonuses for 10,000 managers due to its underperformance in the market — a move that one former senior employee said would cause morale to hit “rock bottom”.

The pressure didn’t ease in the months that followed, as the retailer then proposed a new round of redundancies. Unsurprisingly, just 47% of Asda staff said they felt confident in the company’s long-term plans last year, despite the CEO being paid a £10m salary last year.

Heavy-handed sick leave rules could backfire for SMEs

Sick leave reforms under the Employment Rights Bill mean smaller businesses will face higher costs, as they will have to pay SSP from the first day of absence.#

And with sick leave continuing to rise — reaching an average of nearly two full working weeks (9.4 days) in the last year — the cost impact could be significant.

It’s a tough balancing act for small businesses. So how can employers maintain staff satisfaction and protect already narrow profit margins from rising absence costs?

Gary Ross, Founder & CEO at business insurance provider Blip, advises that companies should focus on building trust rather than tightening rules, and that extending absence and accelerating disciplinary actions is “just going to ruin morale when you need your team the most”.

“Creating a culture where staff feel they have to drag themselves in when they’re unwell just creates bigger problems down the line.” he adds. “Keeping things fair, staying open with your people, and protecting the trust will always beat a heavy-handed approach.”

Big Issue has been running its annual Changemakers Awards since 2018; and is now calling for entries for groups or individuals who are simply making life better.

Much like the Startups 100 Index, this is a chance to recognise the organisations, entrepreneurs, and everyday people who are tackling huge issues to improve our lives.

There are just days to enter now; so here are the details for our readers to get involved in what has become an annual celebration of the good in society.

How do I apply?

The process to nominate is simple and free. There are ten categories so find what best fits for the person or group that you want to nominate. They are:

• Communities and Equality
• Culture and Sport
• Environment and Climate
• Food and Nutrition
• Housing and Homelessness
• Health and Disability
• Learning and Employment
• Media and Campaigns
• Politics and Activism
• Refugees, Migrants and Asylum Seekers

Applicants can also make an open nomination if they are not sure which category to go for. Among the questions are why this nominee’s work is relevant to modern-day Britain; and the reason for the nomination.

There is also a ‘Young Changemakers’ category for those aged 25 and under within the Top 100 list, who have already made a significant impact in their field.

The organisers add: “Last year’s list ranged from teenagers to octogenarians, and this year we hope to do the same.”

Who has won in the past?

The list of 100 is incredibly diverse. In the Environment and Climate category last year was startup Quantaco, which created a platform to help businesses assess how to retrofit their building premises to cut emissions. This was driven by the fact that buildings are responsible for almost 40% of the world’s carbon emissions.

Led by Aneysha Minocha, a senior leader with more than 25 years of experience in energy efficiency, data-led low carbon strategies and renewable energy technologies, the venture hopes to be able to drive change at scale.

“A lot of us find the idea of climate emergency overwhelming and disempowering. Not Aneysha,” Minocha’s nominator wrote. “She left the safe and slow corporate world and all its excuses, to invent a new way of accelerating us to net zero.”

Ren Yi Hooi of Lightning Reach, has focused on connecting vulnerable people with personalised financial support. The startup, which was backed by Big Issue Invest’s Growth Impact Fund, has now helped individuals access more than £17m in financial aid.

When are the winners announced?

The list of Changemakers for 2026 will be published in a special edition of the Big Issue magazine in January next year.

The organisers add that nominees who do not make the final list will also be celebrated. Buy a copy of the magazine from the organisation’s vendors, subscribe or get the app from the App Store or Google Play.

January will also see the announcement of our Startups 100 Index 2026, including our Award winners and nominees, so look out for that too.

In the Autumn Budget, it was announced that local mayors will have the power to impose a so-called ‘tourist tax’ on overnight stays, backpedalling on earlier promises. It has sparked a backlash from hospitality, which warned the move will increase costs within the sector.

Analysis from UKHospitality suggests the tax could rack up to £518 million in extra charges for domestic holidays, making ‘staycations’ more expensive and, therefore, less attractive.

As businesses battle rising energy costs, staffing shortages, and unpredictable business rates, we’re wondering how will this new tax affect the sector as it heads into the new year.

Why has the Government changed its mind?

The announcement of a tourist tax in England just days before the Budget was a 180 from assurances given weeks earlier. Local Government Secretary Steve Reed confirmed that regional Mayors will be given the power to charge tourists a tax for overnight stays in their towns and cities.

At the time, the government claimed that the tax will align England with other well-trodden tourist hotspots around the world, like New York, Paris and Milan, which already have similar schemes in place. Scotland and Wales are also introducing similar levies.

That said, UKHospitality has warned that the additional cost could end up being passed on to consumers, potentially affecting demand.

A consultation will be run to decide the rates of the tax. Edinburgh’s visitor levy (coming into force next July) charges a 5% payment on overnight stays. In Wales, the charge is set to be £1.30 per person, per night when it starts in 2027.

What does the holiday tax mean for Brits — and for hospitality?

A tourist tax is typically a small charge per occupied bed or room per night. It can be a flat rate or a percentage of the full price of the accommodation, sometimes it’s adjusted for the season, the type of accommodation, or the age and purpose of the traveller.

The idea is that revenue is usually reinvested locally, for transport, infrastructure and attractions, to improve the visitor experience and support the wider economy, which of course, is positive.

On the flipside, the worry for hospitality businesses will be how additional charges affects occupancy, pricing, and customer spending. Some hotels, B&Bs, and holiday lets may be able to absorb some of the cost, but others may have no choice but to pass it on to guests.

If the fees are set too high, this could also deter tourists from spending money in the region, potentially hurting revenue for local shops, pubs, bars, and restaurants.

The government claims that “reasonable” fees had a “minimal” impact on visitor numbers. But UKHospitality has highlighted that extra charges may influence affordability, particularly for families and price-sensitive visitors, especially during the ongoing cost-of-living crisis.

Kate Nicholls, Chair of UKHospitality, expressed outrage at the news, “This is a shocking U-turn that will only make life more expensive for working people.

“It could cost the public up to £518m in additional tax when they travel in the UK and having knock-on impacts for the wider hospitality sector.”

How should hospitality businesses adapt in 2026?

Before making any sudden movements, know that the details are still being finalised. The Bill is progressing through Parliament, and a formal consultation is expected to run until 18 February 2026, throughout which, UKHospitality has pledged to actively challenge the Government.

If the tax becomes law, mayors will maintain discretion over whether to implement the levy in their local area, the rate of the charge, and be able set exemptions.

Hospitality operators should keep an eye on developments and consider potential scenarios for occupancy and pricing. If tourist tax does become a reality in your area, clear communication with guests will go a long way.

You might integrate the levy creatively by including it in all-inclusive room rates or packages, offering tiered experiences, using dynamic pricing, framing it as a contribution to local infrastructure, providing small perks to offset the cost, or highlighting the benefits to guests to make the charge feel less jarring.

Thinking about potential pricing structures now, will help you smoothly integrate the charge without causing guests a nasty shock on their holidays.

The UK’s shift to Extended Producer Responsibility (EPR) for packaging continues into 2026, bringing new fee structures and updated regulations that will begin applying from January.

This means businesses will need to accurately report packaging waste – and those not using sustainable packaging could potentially face higher fees.

For small retailers and ecommerce sellers, changing packaging may bring increased costs, as well as other challenges around compliance and red tape.

A silver lining is that with the wider shift towards recyclable materials, greener packaging may actually become cheaper and easier to source, thanks to the increased demand.

What are the new 2026 packaging laws?

EPR already requires certain businesses to report detailed packaging data, including materials, weights, and how easily each type can be recycled. However, from 2026, modulated fees (fees which increase or decrease based on how environmentally friendly packaging is) will begin phasing in, meaning:

• More recyclable packaging is cheaper
• Hard-to-recycle packaging becomes more expensive

The EPR changes are due in January 2026. The idea behind the EPR is that businesses which meet the threshold should cover the full cost of dealing with packaging once it becomes waste.

Under the new rules, firms will need to report detailed packaging data, including materials, weights and recyclability. Businesses that use sustainable packaging will benefit from paying lower fees, while those using fewer green options will pay more.

The regulations apply to manufacturers, importers, brand owners, and certain retailers. If you sell products in packaging, ship orders, or apply your own branding, you may need to follow the new rules.

The shift is in addition to other changes to traceability, advertising and sustainability reporting. 5th January brings increased restrictions on the advertising of unhealthy food, and there will be increased rules on the traceability of ingredients coming into play throughout 2026.

Who will be affected — and how?

According to the government’s guidance, you’ll need to take action if you’re an individual business, subsidiary or group with an annual turnover of £1m or more, and you imported or supplied over 25 tonnes of packaging to the UK market in the previous calendar year, while carrying out any ‘packaging activities’.

That means manufacturers will be the most affected by the new EPR regulations, but small online shops, independent boutiques and DTC brands will also be indirectly affected.

Many suppliers are already responding to the planned changes by phasing out non-recyclable options. While others are promoting lower-cost recyclable alternatives because lowered fees make them more attractive options for businesses.

If you’re ahead of the times and already using eco-friendly packaging, you might see immediate benefits in the form of cheaper materials and lower fees. If you rely on budget single-use options, you may not be so lucky.

SMEs that switch early can secure better rates, avoid green packaging shortages, and strengthen their image as a sustainably-minded brand, which is increasingly noteworthy for customers. Not to mention, the invaluable benefits of greener packaging to Mother Earth herself.

What can small retailers do to prepare (and save)?

Firstly, start by reviewing what you already use. Look at boxes, tapes, mailers, filler and branded packaging to spot anything less planet-friendly that might incur higher fees.

Next, chat with your suppliers. Ask about any planned changes, recommended alternatives, and following that, how long it’ll take to switch. Consider ordering early or negotiating improved rates before the regulations come into force in January.

Remember, it’s not just about switching packaging, you also need to record accurate data. A good start is reviewing your existing packaging data. Even small retailers will need accurate records of the types of packaging used and in which quantities. Getting organised now avoids dreaded late-minute admin rushes.

Finally, why not tell your customers? Turn this required shift into a positive brand moment, that is, without veering into greenwashing. Show them you’re making sustainable choices and staying ahead of industry changes.

While it’s understandable to begrudge compulsory regulation changes, by responding to this one early, you have an opportunity to reduce costs, simplify compliance, improve your brand image, and reduce your carbon footprint.

With the Christmas season now fully upon us, businesses are flocking to social media to sprinkle consumer feeds with festive content, holiday deals, or just the latest viral trends that can keep their followers hooked.

So many businesses posting at the same time makes the festive period an extremely competitive one on social media, and it can be difficult to get noticed in all the noise.

To help you out, we’ve gathered seven of the most popular trends to help you step up your social media marketing this month. 

Last week, Meta confirmed that Instagram will require its US employees to work from the office five days a week in order to create a “winning culture”.

It’s one of the toughest RTO policies in Big Tech, alongside mandates from Amazon and Dell. And while UK SMEs don’t have to follow in US tech giants’ footsteps, the news offers a moment to reassess what’s working, and what workplace supports growth in the new year.

As founders plan their 2026 setups, they might be weighing up the rising costs of office space against the benefits of in-person productivity, and wondering whether their hybrid arrangements still serve them.

The ‘return to office’ panic is over, but the debate isn’t

According to a Business Insider report, Head of Instagram, Adam Mosseri recently circulated an internal memo with the news about the end of WFH. From February, all US employees need to return to the office full-time, despite space constraints in key offices like New York.

The past few years have seen various businesses return to in-person working. Brands such as John Lewis, Lloyds’ Bank, and Morrisons have all decided to call time on homeworking.

SMEs in the UK still seem fond of a moderate approach, with many settling into a happy medium of two to three days per week. According to the ONS, 27% of UK workers work a hybrid arrangement, with a further 13% working fully remotely.

Largely this is due to the culture question. Flexible working has become a firm fixture of the modern workplace, and for many new hires, it’s an expectation. Companies pushing for full-time office presence often face resistance or backlash from employees.

That said, hybrid isn’t without its flaws. Small businesses still run into difficulties onboarding junior staff, keeping culture alive when people rarely overlap, and less-than-ideal collaboration as teams juggle Slack, Zoom and asynchronous tasks.

In an effort to stave these issues and create a “winning culture,” Messori reportedly suggested that Instagram will need to also make other changes, such as scrapping unnecessary meetings and replacing them with clear objectives. He added that 121 meetings should be biweekly, and that staff should be able to decline meetings they feel aren’t necessary.

Forget culture, is office space a cost burden?

One of the major deterrents for UK founders setting up full-time offices remains rising costs. Commercial rents in London and major cities are surpassing pre-pandemic rates and long leases tie up cash flow.

Utilities, service charges and business rates have all risen, with energy bills increasing further this month once the new nuclear levy has come in. For a small business, an office can quickly become one of the heftiest expenses.

But many believe an office is worth the money. A fixed, shared physical space supports stronger team cohesion, faster decision-making, more creative problem-solving, and sets clearer boundaries for newer employees.

So maybe the question isn’t as binary as “office or no office?” but rather, “what type of office makes sense now?”

You might opt for a more modest, yet permanent base, coworking memberships instead of traditional leases, or strategically reserving office space for necessary collaboration.

What should bosses take from Instagram’s decision?

A five-day mandate won’t fit most UK startups, and it doesn’t need to. But the underlying message in Instagram’s announcement remains the same: whatever your decision, be intentional about how and why your team works in person.

Instagram has emphasised fewer meetings, more hands-on collaboration, and more time spent building and testing rather than presenting. Any SME can adopt these benefits, without forcing everyone into the same room every day.

As you plan for 2026, the best strategy is likely somewhere in the middle. Adaptable, cost-effective work models that support culture and collaboration without draining budgets should be the goal for small businesses, rather than keeping pace with tech giants.

Don’t let the name fool you. “Friendly fraud” is anything but friendly.

In fact, it’s something that’s been deeply affecting hospitality businesses across the UK, with firms being hit with high chargeback costs and lost revenue due to dishonest claims.

What might look like a simple dispute on the customer’s end can quickly spiral into lost income, administrative headaches, and hours spent fighting charges that should never have been reversed in the first place.

As the issue grows, hospitality firms are finding themselves forced to balance providing good customer service with the need to protect their businesses from increasingly common — and costly — fraudulent claims.

What is friendly fraud?

Friendly fraud — also known as chargeback fraud or first-party misuse — is a type of scam where a customer makes a purchase with their credit card, receives the goods or services, and then later contacts their bank to dispute the charge, claiming it was fraudulent or unauthorised.

In hospitality, friendly fraud often takes the form of disputed meal charges against a restaurant business, room fees for a hotel, or cancellation and no-show charges.

Sometimes, friendly fraud can be accidental, such as when someone forgets they made a reservation, misunderstands hotel or restaurant policies, or doesn’t recognise a charge from a third-party booking site.

Either way, beyond the direct cost, the increase in friendly fraud can add to more administrative work, strain customer service resources, and even raise insurance or processing fees for the business.

How is friendly fraud affecting hospitality businesses?

The rise in disputes and chargebacks is putting significant strain on businesses that are already operating on tight profit margins, and it’s expected to get worse in the next year.

According to a report by Chargeflow, there is forecasted to be a 40% increase in friendly fraud cases by 2026, with global chargeback volume expected to reach 337 million transactions.

Meanwhile, The Fintech Times reported that just last year alone, UK merchants lost a total of £128m to friendly fraud.

The effects are especially stark for small businesses. Nima Safaei, owner of a local Italian restaurant in Soho, told The Telegraph that chargeback fraud has cost his business £5,000 in just three months.

Hugo Remi, CEO at payment solutions company Cardaq, says the growing volume of chargebacks is creating yet another pressure point for already struggling hospitality firms.

“British high streets are failing amid rising overheads and less expendable income from potential customers,” Remi comments. “For hospitality businesses especially, customers may only visit once. This makes friendly fraud particularly hard to track and dispute.”

How to address friendly fraud in your business

To address friendly fraud properly, businesses should create clear and visible policies outlining cancellation rules and service charges at the time of booking or order, and make sure they are communicated through channels like booking pages and confirmation emails.

You should also keep detailed records of transactions, including receipts, timestamps, and digital logs, so that you have evidence if a dispute arises.

Additionally, secure payment methods like pre-authorisations or 3D Secure can help reduce unauthorised claims, as they add extra verification steps (such as two-factor authentication), creating clearer proof that the customer actively improved the transaction.

And if you are hit with a chargeback, having a proper process that gathers evidence and responds quickly can help improve your chances of winning a dispute.

Remi also added that the financial services industry should collaborate more with hospitality businesses, and have “firmer penalties”, which prohibit bad actors from payment services.

“While not all chargebacks are sinister, we must be hot on the heels of actors that are caught. The patterns are there; a more secure, transparent, business-first payments industry can act on them.”

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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