Refillable deodorant brand Wild has been bought by the multinational consumer goods company Unilever for an undisclosed sum, in a deal that will reportedly value the brand at £230m.

Wild has twice been featured in the Startups 100 Index and was also previously nominated for the Startups 100 Sustainability Award in 2023. 

Co-founder Charlie Bowes-Lyon yesterday announced the sale on LinkedIn, stating it would help to supercharge Wild’s mission to eliminate single-use plastics in toiletries.

The move is a major step forward for the company. Unilever’s expansive distribution networks will enable Wild to grow faster while staying true to its eco-friendly mission. 

Who is Wild?

Wild Cosmetics is a premium, Brixton-based cosmetics startup that was co-founded by Bowes-Lyon and Freddy Ward in 2019. It offers eco-friendly personal care products that are also refillable, serving to reduce plastic waste and promote natural ingredients.

Aside from being recognised multiple times in the Startups 100 Index, Wild has built a significant customer base over the years. It is today available in many stores across the UK, including Sainsbury’s, Booths, and Selfridges.

Fun branding, effective marketing strategies, and authenticity have also helped to build Wild a loyal community of customers who share the company’s core values and commitment to sustainability. In 2024, the brand saw its sales more than double to £14.9 million.

What does the deal mean for Wild?

According to reports, Bowes-Lyon and Ward will land a near-£100m payday for the sale. Both founders will stay on to run the firm alongside their 100-strong team of ‘Wildlings’.

Bowes-Lyon says that this change will see the company “doubling down on innovation, investing in cutting-edge sustainable technologies and working with Unilever’s world-class formulators” to further improve its offerings.

In an interview with The Guardian,  Bowes-Lyon hinted that joining Unilever could also lead to lower prices for Wild’s loyal fans. 

Some may be concerned about how the change in ownership will impact Wild’s core values. Bowes-Lyon certainly isn’t. In the full announcement post on LinkedIn, he wrote “Our promise remains: “Great for your body, great for the planet.”

Unilever’s latest acquisition comes as the group carries out major cost-cutting changes, including making 7,500 workplace layoffs globally.

Fabian Garcia, president of Unilever’s personal care department, added: “The brand’s innovative approach to formulations and packaging, and social-first marketing, has made Wild an unmissably superior brand and a perfect complement to our personal care portfolio.”

It’s the debate of the century in the recruitment world – are AI job applications a smart hack to win candidates their dream role, or are they just plain cheating?

AI is helping many organisations to cut corners on fiddly admin tasks, causing jobseekers to increasingly rely on it to write time-consuming cover letters at scale.

Employers and recruiters have been vocal about their disdain for AI CVs. But one expert argues that the use of chatbots and other smart tech isn’t the problem. Instead, it’s outdated recruitment processes that are causing this divide between bosses and job hunters.

Employers’ distaste for AI CVs

Since the start, employers haven’t hidden their contempt for AI CVs. In fact, 80% of UK hiring managers rejected AI-assisted CVs and cover letters last year alone. Lord Alan Sugar also voiced his disapproval of AI resumes in January, describing them as “cheating”. 

David Morel, CEO of Tiger Recruitment, reports that his business is seeing “a significant increase in employers pushing back on applicants who submit CVs generated by AI”.

On the anti-AI side of the table is Sean Horton, Managing Director at Respect Mortgages. Horton thinks that AI CVs are “lazy” and show a “lack of commitment from the start”.

“Experienced employers can easily spot AI written content. It’s not genuine or personal and will often use phrases that aren’t naturally used,” he argues.

However, Sam Newton, Director at Gravitate Accounting argues that while employer concerns are understandable, AI detectors that are used to identify AI-generated content like CVs and cover letters “are not completely reliable” and that “using them without due diligence risks dismissing strong candidates unfairly”.

Are cover letters going out of fashion?

Olive Turon is Head of People and Culture at the talent assessment platform TestGorilla. Turon argues that while the concerns around AI job applications are valid, the real issue is that bosses are still even asking for cover letters, which Turon suggests are now outdated.

Turon comments: “If cover letters are filled with generic phrases like ‘leverage my skillset’, it’s not necessarily because candidates are cheating, but because they’re trying to meet expectations set by a system that rewards style over substance.”

A LinkedIn poll by software development company Teal reveals that the majority of respondents (82%) consider cover letters to be outdated. 

However, most UK employers still believe they’re important when considering new applicants. According to data by CVGenius, 56% of hiring managers believe that candidates who submit a cover letter are more passionate about a job.

Skills-based hiring is the new way forward

Turon advises that modernising the hiring process by focusing on skills-based hiring is the best approach to balancing the use of AI in job applications.

“The real challenge isn’t filtering AI – it’s rethinking how we assess potential in the first place,” Turon says. “That means moving beyond polished prose and focusing on how someone thinks, adapts, problem-solves and collaborates instead,”

“These days, soft skills like adaptability, emotional intelligence and creative thinking are just as important as technical ability,” she adds. “[Skills-based hiring] allows hiring managers to assess a candidate’s ability upfront, based on real tasks and relevant behaviours. When the focus is on demonstrated skill, there’s little room for AI to do the heavy lifting.”

According to a report by The HR Director, 81% of employers leveraged skills-based hiring in 2024. Moreover, research from the Startups 100 survey revealed that 64% of SMEs now prioritise soft skills over hard skills when hiring. 

Richard O’Connor, Director at First Mats, is one employer who would agree. O’Connor believes that an AI CV should not rule a candidate out. He says the real test comes later.

“If they can prove their knowledge or experience face-to-face, backed up by the references they provide, then how they created their CV will become irrelevant”, he comments.

What should employers do?

While many employers see AI CVs as the “easy option” to apply for a job, that doesn’t mean utilising the technology should be completely off the table. A CV created entirely with AI is easy to dismiss, but those who rely on AI purely for assistance shouldn’t be discarded. 

The blame may also lie on both sides. Ironically enough, candidates are increasingly seeing AI job specs as companies lean on the technology to write descriptions for job seekers. Applicants who see these ads may presume that AI is permitted in the hiring process. 

Employers should not be so quick to criticise AI use, particularly when so many now use the technology in their HR operations. Employers should further determine suitability in the interview process and a skills-based approach to ensure smooth, fair and unbiased hiring.

Since its first run in 2005, we’ve seen many Dragons’ Den investors come and go – listening to different pitches, negotiating deals and deciding to back some of the UK’s most successful businesses with their hard-earned cash.

But among the successful investments and failed ventures, Peter Jones takes the crown for the richest Dragon, with an impressive net worth of £1.2bn.

However, just like most entrepreneurs, the Dragons didn’t start with millions in their pockets. Each has their own entrepreneurial journey filled with highs and lows, before becoming successful business tycoons with the knowledge and experience to back their decisions in the Den.

From telecoms and retail to fashion and social media, these Dragons have built significant empires over the years. With the 23rd series of Dragons’ Den currently airing, we take a look at who’s sitting on top when it comes to wealth and success.

Peter Jones (£1.2bn)

An original Dragon since Series One aired in 2005, Peter Jones started his entrepreneurial journey at the age of 16 by selling personal computers. However, in his twenties, he lost £200,000 after selling the business to IBM. This resulted in him also losing his home and cars, and having to move back in with his parents.

But this setback didn’t stop Jones from becoming the richest angel investor still in Dragons’ Den – rebuilding his fortune through his telecommunications business, Phones International Group, and later expanding his empire with investments in media, retail and technology.

In February 2026, Jones and his investment group acquired golf retailer American Golf, though financial details have not been released. He is estimated to have a net worth of £1.2bn, according to Hello! Magazine.

Notable investments by Peter Jones:

• Wonderland Magazine – £100,000 for 50%
• Kirsty’s – £65,000 for 30%
• Bare Naked Foods – £60,000 for 50%
• Reggae Reggae Sauce – £50,000 for 40%

Duncan Bannatyne (£500m)

Another original Dragon and known for his no-nonsense approach to investing, Duncan Bannatyne’s first foray into the business world started in his twenties when he bought an ice cream van. Since then, he’s gone on to build a multi-million-pound empire, with successful ventures in health clubs, spas, hotels and care homes.

Bannatyne left Dragons’ Den in 2015. One year later, he revealed in a post on X that he had sold all his investments from the show and now owns a chain of health clubs, spas and hotels under the “Bannatyne Health Clubs” brand. In Glasgow’s Rich List for 2024, his net worth was estimated at £500m.

In December 2025, Bannatyne acquired Beechdown Health Club in Hampshire for an undisclosed amount. A month later, he acquired the Clarice House hotel and spa.

Notable investments by Duncan Bannatyne:

• The Wand Company – £200,000 for 30%
• Chocbox – £150,000 for 36%
• Kirsty’s – £65,000 for 30%

Tej Lalvani (£390m)

Tej Lalvani is the CEO of the UK’s largest vitamin company, Viabiotics, which was founded by his father, Karter Lalvani. Born in India and raised in London, he learned all of his leadership skills from working in the family business. After completing his studies in business and taking on various roles within Viabiotics, he was named CEO in 2015.

During his four-year stint on Dragons’ Den, Lalvani used his expertise to invest in a number of fledgling health and wellness firms. Today, he continues to run Viabiotics, which saw its annual sales reach $36m in 2025. Private equity firms Bain Capital and Blackstone have also emerged as leading contenders to acquire the company. In 2022, The Sun estimated his net worth at £390m.

Notable investments by Tej Lalvani:

• Look After My Bills – £120,000 for 3%
• TEA+ – £75,000 for 50%
• War Paint For Men – £70,000 for 12%

Theo Paphitis (£290m)

From starting a school snack shop at 15 to owning a £300m retail group, Theo Paphitis has become one of the biggest names in retail entrepreneurship. Today, he is the leader of some of the most successful brands on the UK high street, including Ryman, Robert Dias, and Boux Avenue. Paphitis became a Dragons’ Den investor in 2005 and remained there for eight years before leaving in 2012 (although he returned as a guest in series 17 and 18).

Paphitis is also a passionate advocate for SMEs, supporting entrepreneurs through initiatives like Small Business Sunday (#SBS), which he runs on social media. In May 2025, he launched the Theo Paphitis Dyslexia Bursary, providing fully funded training for teachers and teaching assistants to better support students with dyslexia. Further funding rounds are expected to open in late 2026.

Outside of business, Paphitis is a dedicated football fan and previously owned Millwall FC between 1997 and 2005. According to the Sunday Times Rich List 2020, he is worth an impressive £290m.

Notable investments by Theo Paphitis:

• iTeddy – £140,000 for 40%
• Magic Whiteboard – £100,000 for 40%
• Value My Stuff – £100,000 for 40%
• WedgeWelly – £65,000 for 25%

Touker Suleyman (£200m)

After being inspired by his father to start a business, Touker Suleyman first began his entrepreneurial journey selling crimplene garments for his grandmother. He eventually formed his own manufacturing company – Kingsland Models – supplying clothing to brands like Topshop and Dorothy Perkins.

Suleyman became a Dragons’ Den investor in 2015 for the show’s 13th series, alongside Nick Jenkins and Sarah Willingham. Today, he owns the Hawes & Curtis and Ghost brands and was awarded the Drapers Lifetime Achievement award for his 50-year career in fashion. In 2015, The Sunday Times listed him at 637th in its Rich List, estimating his fortune to be in excess of £200 million.

Notable investments by Touker Suleyman:

• Liquiproof – £100,000 for 50%
• Tru-Tension – £75,000 for 30%
• Bad Brownie – £60,000 for 20%

Nick Jenkins (£150m)

While only on the show for two series, the Moonpig founder was a notable investor in Dragons’ Den – backing businesses with strong online potential and offering valuable ecommerce expertise to aspiring entrepreneurs.

Apparently named after his own nickname at school, Jenkins founded the internet greeting card business, Moonpig, in 2000, before later selling the company for around £120m just over ten years later.

Despite leaving the show in 2017, Jenkins still invests in startups, offering his expert advice on customer service, business management, sales and more. His net worth is estimated to be around £150m.

Notable investments by Nick Jenkins:

• Cocofina – £75,000 for 20%
• The Snaffling Pig Co – £70,000 for 20%

James Caan (£100m)

Not to be confused with the late American actor, James Caan first joined Dragons’ Den in 2007 and remained on the show for the next four years. Born in Pakistan, Caan moved to the UK as a child. After working for various recruitment companies, he started his own recruitment business in the early 1980s. Caan later founded Alexander Mann in 1987 with minimal capital before selling it in 2002, which had a £130m turnover at the time.

Nowadays, Caan is a prominent British entrepreneur, investor and philanthropist with a career spanning over four decades. He is also the founder and CEO of Hamilton Bradshaw – a London-based venture capital firm. In 2023, his net worth was estimated at £100m.

Notable investments by James Caan:

• Rapstrap – £150,000 for 50%
• Chocbox – £150,000 for 36%

Steven Bartlett (£71m)

Aside from being the youngest Dragon to date, Steven Bartlett is now also famous for his Diary of a CEO podcast and his role as the co-founder of social marketing firm Social Chain (now Social AG), which we featured back in 2016 in our Young Gun series, as well as his work in the digital marketing and entrepreneurship sectors.

Bartlett joined Dragons’ Den in 2021 and continues to appear on the show. In 2024, he was involved in controversy for his investment in “Ear Seeds”, an acupuncture product that falsely claimed to cure chronic fatigue syndrome, which he has since distanced himself from.

But his portfolio is wide-ranging, and he has also invested in several Startups 100 companies, including PerfectTed. In 2025, MoneyWeek estimated his net worth to be £71m, and The Sun reported that his company Steven.com is worth £320m.

Notable investments by Steven Bartlett:

• Kimaï – £250,000 for 3%
• Luxe Collective – £100,000 for 3%
• PerfectTed – £50,000 for 5%

Piers Linney (£69m)

Linney began his professional career in law before moving on to investment banking. He then launched his own internet business in 2000 before co-founding Outsourcery in 2007, which became one of the UK’s first cloud services providers. 

Linney joined the Den in 2013 but announced his departure two years later in order to focus on other projects. Since then, he has pivoted into machine learning. He co-founded Implement AI in 2023 and has advocated for the AI Action Plan on LinkedIn.

In December 2025, Linney was awarded an MBE in the King’s 2026 New Year’s Honours List for services to SMEs. As of 2023, Linney’s net worth is reported to be £69m.

Notable investments by Piers Linney:

• Wonderbly – £100,000 for 4%
• Skinny Tan – £60,000 for 10%

Deborah Meaden (£50m)

After graduating from Brighton Technical College, Meaden started her first business in Italy at 19, selling and exporting glass and ceramics. While the business failed after 18 months, Meaden went on to build a successful career in leisure and retail. She is also a keen advocate for sustainability and has invested in numerous green-focused Startups 100 firms, including Bold Bean and Fussy.

Meaden joined the Den in 2006, taking over from Rachel Elnaugh in the show’s third series. Over the years, she has invested in 37 businesses, totalling around £2.64 million altogether. In 2024, Financhill estimated her net worth to be £50m. 

While Meaden has recently been accused of sharing “anti-Semitic” posts on X (formerly Twitter) criticising Israel and US President Donald Trump, the BBC has dismissed these complaints.

Notable investments by Deborah Meaden:

• Magic Whiteboard – £100,000 for 40%
• GripIt – £80,000 for 25%
• Omni – £75,000 for 2%

Sara Davies (£37m)

Sara Davies’s business journey started whilst studying at university in 2005 when she noticed a gap in the market for a tool that could create custom-sized envelopes for handmade cards — inspiring her to launch her Crafter’s Companion business. Davies sold 30,000 units of her “Enveloper” product within six months, and by the time she graduated, her business was turning over £500,000.

Davies joined Dragons’ Den in 2019, being the youngest female investor on the show. However, after selling Crafter’s Companion and buying it from administrators, Davies announced her departure from the Den to focus on her own business. As of January 2025, her net worth is estimated to be around £37m.

Notable investments by Sara Davies:

• Yuv Beauty – £250,000 for 2%
• Thrift+ – £150,000 for 10%
• Myomaster – £100,000 for 10%

Final thoughts

When it comes to pitching your business, it might seem obvious to go for the person with the biggest bank account.

But it’s not all about the money. Instead, the right investor should bring more than just cash to the table – they should offer expertise, experience and a network that can help your business grow. 

While a large financial backing is important, having an investor who genuinely believes in your mission and can offer the right guidance can make all the difference in the long run.

To discover more about how to find the right investor, check out our directory of the top venture capital funds in the UK.

It’s been two years since Gary Neville was mocked for taking mini-retirements on a business podcast.

The football pundit attracted eyerolls when he spoke of the benefits of choosing many shorter two-day breaks over retirement. Many said he had simply “discovered holidays”.

Now, though, mini-retirements seem to be gaining traction among SME owners. Is flexible working changing our attitudes to career breaks?

What is a mini-retirement?

“You can never really retire if you love work and you are relentless, but what you can have is mini-retirements during the year,” Neville explained to Steven Bartlett on the Diary of a CEO podcast in 2023.

“This weekend, I’m going to Spain, Friday ‘til Monday morning. I call that the mini-retirement,” he continued.

“That’s a weekend.” Bartlett responded, likely echoing many of our own thoughts on the concept.

In some ways, though, the idea has proved attractive to business owners. While Neville’s approach emphasises short, frequent breaks, one expert says that many entrepreneurs are using mini-retirements as intentional career pauses before their next venture. 

“Micro-retirement offers a valuable opportunity for reflection and reinvention”, says Aman Parmar, Head of Marketing at BizSpace, a provider of flexible workspaces for SMEs. ““After selling a business or reaching a financial milestone, [entrepreneurs] use micro-retirement to travel, upskill or experiment with new projects before committing to their next big move.”

After years of hard work, selling a business can leave owners uncertain about their next move. A mid-career break offers the chance to step back, reassess goals, and return with renewed clarity.

For those planning their next chapter, mini-retirement might simply be a new way to describe a smart exit strategy.

Are ‘mini-retirements’ another Gen Z work trend?

While career breaks are not a new phenomenon, mini-retirements seem to be growing in popularity among the younger generation of entrepreneurs — known as the quarter-life gap year.

A shift has occurred from an old-school ‘work hard, retire later’ approach to the more ‘work smart, live now’ philosophy of Gen Z and Millennial business owners. It’s out with the grind, and in with work-life balance. Instead of delaying the gratification of retirement after decades of labour, younger entrepreneurs prefer to enjoy their life throughout by taking breaks.

This change is fuelled by a growing awareness of burnout and the redefinition of success beyond just financial wealth.

“Many Gen Z and millennial entrepreneurs see financial independence not as a final destination, but as a tool to design a career on their own terms,” adds Parmar.

Luckily for the younger generations, they have the resources to make career breaks feasible with flexible working arrangements.

Parmar continues, “Rather than disconnecting entirely during micro-retirement, many former business owners are choosing to stay engaged through coworking spaces.

“[Flexible working is] a perfect fit for the exploration and experimentation that emerging entrepreneurs are wanting to take on during periods of micro-retirement.”

Should career breaks be a beige flag?

Once considered a ‘red flag’ on your CV, it seems that both entrepreneurs and employees are now embracing the benefits of taking time off mid-career.

As many as 28% of 18-24 year-olds have already taken a career break. This reflects a broader shift in UK work culture towards flexibility. As the younger generation rethinks the traditional career path, a gap in the CV is becoming the norm.

Employers may need to adapt by no longer viewing them as a ‘red flag’ but as opportunities for employees to recharge, gain new perspectives, and return with fresh energy.

Sorting the office bins may be outside most workers’ immediate job descriptions. But SMEs may need to start paying more attention to recycling, as new guidelines have been put in place from today.

The set of rules, called Simpler Recycling, requires firms to separate their waste from March 31. It’s part of a larger initiative to boost recycling across the country, reduce waste, and work towards a more sustainable culture.

The announcement has gone over many business owner’s heads. Below, we’ll walk you through the new rules — including who’s exempt — so that you can remain compliant.

What is Simpler Recycling and what does it mean for businesses?

Simpler Recycling is a new set of government guidelines that requires workplaces to separate their waste and recycling.

The rules apply from March 31 for most businesses. It’s not just offices; all organisations are responsible, including those in hospitality, healthcare, and places of worship.

As many as 76% of businesses are unaware of the new rules, so here they are, in case you missed the announcement.

The guidance requires businesses to separate waste into three or four categories:

• Dry recyclable materials (plastic, metal, and glass)
• Food waste (fruit and veg scraps, lunch leftovers, coffee grounds, etc.)
• Black bin waste (everything else)

It’s nothing technically new if you’re already a seasoned recycler. It’s just now become a legal requirement for businesses to separate their waste. Bosses should also train staff on the importance of waste separation and how to do so properly.

What are the penalties for not following Simpler Recycling?

While there are penalties for not following the Simpler Recyling’s guidelines, no one is going to jail if they throw an apple core in the paper bin.

However, if your company does not comply with the new requirements then, from today, you are at risk of being slapped with a compliance notice from the Environment Agency.

The exception is micro-businesses, which have an extra two years before recycling becomes a legal requirement.

If your business employs less than ten full-time employees, you fall into the category of a micro-business. This means you have a little more time to get your recycling up to scratch before the deadline in March 2027.

But nothing is stopping you from getting ahead of the curve (and Mother Earth will surely thank you).

Why you need to care about simpler recycling

While recycling rules may not be the most pressing item on your agenda, following the guidelines is important for both compliance and your business’s reputation.

That’s not to mention the real reason behind why we should be recycling. Recent research of 1,000 UK office workers found that each person could charge a mobile phone 13 times with the amount of energy generated by their lunchtime food waste. That’s a lot of discarded meal deals.

So, rather than seeing this as yet more red tape, see it as an opportunity to clean up your office and strive for a more sustainable business — and all in time for Earth Day on April 22.

While the Employment Rights Bill (ERB) is currently under review in the House of Lords, significant changes are already set to take effect from tomorrow, April 1. This “once-in-a-generation” legislation will affect payroll, so it’s important to stay informed.

You can expect to see increases to minimum wage and employer National Insurance Contributions (NICs), as well as changes to parental leave and pay.

Below, we’ll outline the upcoming changes to help you prepare for the week ahead.

Minimum wage rise tomorrow (April 1)

Starting tomorrow, April 1st, there will be significant changes to the National Living Wage (NLW) and the National Minimum Wage (NMW).

The NLW, for employees over the age of 21, will increase to £12.21 per hour.

Meanwhile, the NMW will increase to £10 per hour for workers aged 18-20. For those under 18 and / or undertaking an apprenticeship, the rate will rise to £7.55 per hour.

Be sure to review your payroll run process in line with these changes to stay compliant.

Employer NICs increase (April 6)

Some businesses hoped that the Spring Forecast would halt plans to increase National Insurance Contributions, but the proposed plans will roll ahead on April 6.

As Chancellor Rachel Reeves announced in last October’s budget, employer NICs will rise from 13.8% to 15% as of April 6th. In addition to that, the secondary threshold at which employers must start paying NICs will drop from £9,100 to £5,000 until 2028.

To mitigate the impact of these changes, there are also changes to the employment allowance underway. This allows employers to reduce their overall NIC liability.

The allowance has previously helped employers save £5,000 per year, but from April 6, eligible employers can save up to £10,500. The £100,000 eligibility threshold for claiming the allowance will also be lifted, meaning more firms are set to benefit.

Changes to parental leave and pay (April 6)

Reforms to parental leave and statutory pay will also take effect this Sunday, April 6.

First, let’s examine the updates to pay. Statutory maternity, paternity, adoption, and shared parental pay will increase from £184.03 to £187.18 per week.

Additionally, the lower earnings limit — the weekly earnings threshold required to qualify for these payments — will rise from £123 to £125. However, the threshold for receiving maternity pay remains unchanged at £30 per week.

From April 6, parents with babies admitted to neonatal care can claim up to 12 weeks of paid leave. To be eligible, parents must be employed for a minimum of 26 weeks and earn at least £123 per week before claiming.

Statutory neonatal care pay will be paid at the same rate as other family leave payments, £187.18 per week. The additional pay and leave is in addition to any maternity, paternity, and shared parental pay that parents are entitled to.

The measure is expected to help 60,000 new parents support their families without having to worry about using annual leave.

Changes to statutory pay (April 6)

From April 6, there will also be changes to Statutory Sick Pay (SSP) and Statutory redundancy pay.

There will be a £2 increase to SSP from £116.75 to £118.75 per week. As with statutory parental pay, the lower earnings threshold for claiming sick pay will also rise to £125 per week.

There are additional changes to sick pay incoming. The proposed ERB may allow all employees to claim either 80% of their weekly earnings, or the flat rate, whichever is lower, regardless of their income, from the first day of sick leave.

Employers should take special note of the upcoming changes to statutory redundancy pay. In terms of redundancy pay, April 6 will see the cap on “a week’s pay” to calculate statutory redundancy pay rise from £700 to £719. This rate also applies to the additional award of compensation for unfair dismissal.

The change coincides with many businesses planning to make job cuts this year amid the tough economic climate. Those faced with making redundancies could also be met with increased costs, so should consider this when financial planning.

Limit on tribunal awards goes up (April 6)

The last of the changes coming into force this week relates to the limits on awards of employment tribunals.

From April 6, the maximum limit for compensatory awards for unfair dismissal will rise from £115,115 to £118,223.

Meanwhile, the minimum basic award for select unfair dismissals, including health and safety dismissals, will increase from £8,533 to £8,763.

Since these changes can be a lot to digest, businesses can get help with ensuring they remain compliant by outsourcing HR help from a third-party provider. It may be a wise move, with additional changes on the horizon as the full ERB comes into effect.

In the end, it could only go one way. We had been warned that today’s Spring Statement would be more of an update rather than much-needed reform or spending commitments. Still, some SMEs hoped the Chancellor, Rachel Reeves would have a change of heart on previously-announced tax hikes, like the rise in employer National Insurance (NI).

Those hopes were dashed earlier today, when the news came that the Office for Budget Responsibility (OBR) has halved growth forecasts for 2025 from 2% to 1%. Then, confirmation that the employer NI rise, reduction to business rate relief, and higher National Living Wage (NLW), will all go ahead.

With nothing new to chew on, the reaction to the statement from UK SMEs has largely been one of exasperation. Kevin Fitzgerald, UK MD, Employment Hero, the payroll platform, says that Reeves’ statement “missed the mark”, adding, “the increase in employer NICs alone will cost businesses £900 more annually per employee on a median wage.”

2025 Spring Statement: key updates at-a-glance

Below, we explain the key points that business leaders should know from today’s Spring Statement, with analysis from financial experts and SME leaders.

1. Planned tax rises to go ahead

No Hail Mary on NICs, then. From 6 April 2025, employer NICs will rise from 13.8% to 15% for salaries over £5,000. The threshold for contributions will also drop to £5,000 annually.

There had been hopes for another increase in Employment Allowance, but the Chancellor appears to have said all she is willing to on the change. The new rate will hit payroll bills for small businesses, and there are already warnings it could lead to job cuts this year.

In April, the NLW will also rise to £12.21 per hour for workers aged 21 and over, putting additional pressure on businesses in sectors like retail, hospitality, and care.

Ben Gatenby is owner of 1st Defence Locksmiths, a trades business based in Leeds. Gatenby tells Startups he’s concerned about the impact the rises will have on profits.

“The upcoming tax increases are worrying because they eat into already tight margins”, he reveals. “As a small locksmith business, any extra costs soon add up. It makes it harder to reinvest in better tools, training, and advertising.”

2. Business rates relief set to be slashed

With no announcement to the contrary, it looks like the planned reduction in Business Rates Relief from 75% to 40% (a move announced in the previous October Budget) will go ahead from April 1.

The change is expected to more than double the average pub’s rates bill, causing concern within the hospitality sector. Experts are now pushing for Whitehall to expedite its planned overhaul of the business rates system, which was dealt a significant blow last week.

Andy Fishburn is Managing Director at Virgin StartUp. Fishburn describes the reduction in Business Rates Relief as “a temporary fix with no forward thinking”.

“This is a huge blow and worry for many of the small business owners in our Virgin StartUp Community,” he adds. “The slash in rates relief will have a detrimental effect on businesses that are already struggling and need support now more than ever.”

3. Crackdown on tax avoidance

The government confirmed new measures aimed at increasing tax fraud prosecutions by 20%. It’s estimated that the change will raise approximately £7.5bn in additional revenue.

Tax avoidance is technically legal and helps reduce tax liabilities, while tax evasion refers to breaking the law. However, the Chancellor has pledged to crack down on both.

The plans include investing in more compliance staff for HMRC and leveraging technology to detect tax fraud more effectively. HMRC has previously been criticised for trading in its support team for AI customer agents, resulting in a dismal wait time of 23 minutes.

4. Tax thresholds remain frozen

Despite a viral petition to raise the Personal Tax Allowance, no changes have been made to UK tax bands, which will remain frozen at their current levels until 2028.

It could be worse. There had been rumours that the Chancellor would extend the cap until 2030 in her Spring Statement. Thankfully, though, this threat has not materialised.

5. Consumer spending forecast to fall

As well as the Chancellor’s Spring Statement, the OBR also released its latest economic forecast today. It predicts that real household disposable income is forecast to rise by 1.7% this year. That represents a drop on the 3.9% growth recorded in 2024.

B2C businesses, take note. If consumers have less extra money to spend this year, this means shops, restaurants, and other customer-facing sectors will likely see a fall in sales.

Businesses should adjust their sales forecast now and review pricing strategies. Lowering prices might sound counterintuitive, but it could be necessary to keep customers loyal. In our survey of 531 SME leaders, we found that 16% of thriving businesses attributed their success to strong customer relationships (the highest of any response).

6. Welfare reforms

Ostensibly in a push to get people back to work, the Government also today announced a raft of welfare reforms including stricter Personal Independence Payment (PIP) criteria and reduced Universal Credit support for those with health conditions.

In her announcement, Reeves said the changes will help to address rising unemployment figures. Government statistics reveal that 270,000 employees aged 16-34 are already economically inactive due to long-term sickness and mental conditions.

However, critics argue that reducing support for those on long-term sick leave is unlikely to create a productive and healthy workforce. Forcing individuals with genuine long-term health conditions back into work without adequate support can worsen their conditions, leading to increased absenteeism, decreased productivity, and potential burnout.

Katharine Moxham from Group Risk Development (GRiD), the industry body for the group risk sector, comments: “Cuts impact those who are vulnerable in our society, and workers with health conditions or disabilities need support now more than ever.”

Business leaders say ‘stop the blame game’

Last year’s Autumn Budget was the Chancellor’s first fiscal event. Blasted by critics as the ‘anti-business budget’, Reeves blamed many of the policies it introduced (most of which were confirmed today) on a budget black hole inherited from the previous government.

She’ll need a better line of defence this time around. Gina Miller, Founder of MoneyShe, an investment platform, tells Startups it is “disappointing that the Chancellor has lacked the courage to introduce radical but fairer reforms”, arguing that the Government’s hemming and hawing is causing confidence among business owners to weaken.

“”The Chancellor has stated that growth is her number one mission — yet today offered little evidence of a clear plan or strategy to achieve it,” adds Miller. “You can’t keep blaming the last 14 years; there must be a compelling vision for the future to restore confidence.”

There will be some who are just relieved that the statement didn’t have more trapdoors for employers; a ‘no news is good news’ line of thinking. But that outlook can’t hold for long.

Many businesses have already put major investment decisions on hold, expecting that today would bring economic clarity. Instead, they now face another six months in limbo.

While many associate April with a copious amount of chocolate eggs, it also marks the end of Q4; a time for firms to set new goals and prepare for the start of the next financial year. 

That makes this Easter season a prime time for businesses to look into networking opportunities. Whether it’s attending casual events, setting up coffee chats, or just reaching out to existing contacts, networking opens doors to new collaborations, partnerships, and ideas — all of which can help businesses set up for a strong start this quarter.

We’ve compiled a list of over 50 business events happening across 13 UK cities this April. All of them are free to attend and provide great opportunities to connect and collaborate.

As the debate continues on working from home versus returning to the office, Parliament is collecting evidence about the real-world impact of flexible work on businesses — and your small business could have a say.

A newly-formed parliamentary committee is calling for UK organisations and workers to submit their views into the impact of remote and hybrid working. The findings could potentially guide policy-making and make a difference in future working models.

You have one month to share your views with the committee before the April 25th deadline. We’ll explain how to put your views forward, below.

Parliament calls for evidence on flexible work

An official call for evidence into the impact of flexible working was announced earlier this month by the House of Lords Select Committee on Home-based Working.

The committee is exploring the impact of remote working on workers and employers, as well as wider economic consequences. The aim is to build a deeper understanding of home-working, separate from sensationalist headlines. Major findings from the committee may even influence future government policy.

Commenting on the inquiry’s launch at the start of March, Baroness Scott, Chair of the Committee, said, “Since the pandemic, remote and hybrid working have become increasingly important for large parts of the UK workforce, with around 40% currently estimated to work from home at least some of the time.

“We are interested in examining the [effects] including wellbeing and mental health outcomes, productivity levels, and the wider impact on the UK economy.”

Research efforts are already in full swing, with the committee having held two meetings with large employers so far. On Monday, the conversation focused on company perspectives on remote and hybrid working.

Remote work debate heats up

Widespread return-to-office (RTO) policies have planted a seed of change for many businesses. Boots, Salesforce, and THG are some of the big names that are demanding workers shun home-working for full-time office attendance.

Baroness Scott adds, “[Remote and hybrid working] have become a hot topic more recently amid calls in some quarters for workers to return to the office.”

Reasons for the mandates include fostering stronger team cohesion and collaboration, a desire for an ‘office-first’ culture, and better in-person productivity. Today’s tough economy means bosses are also nervous to keep a closer eye on output.

Conversely, remote working also has its proponents. It provides substantial cost-savings for employers and employees, while also promoting a healthy work-life balance. Additionally, flexible working can broaden the talent pool beyond geographic restrictions. For parents, it can give time back to balance childcare with their careers.

Still, it’s not for everyone. Gen Z graduates have expressed a preference for working in the office to combat feelings of isolation and to improve networking opportunities.

Startups data suggests that a blend of working from home and the office could provide the best of both worlds and SMEs are embracing a hybrid model.

The Government has previously shared the sentiment that flexible working is the way forward. It’s been touted as a potential solution to presenteeism and as of 2024, laws were introduced to support employees requesting flexible working arrangements.

But the findings from this inquiry into home-working could alter Whitehall’s stance.

How to make your voice heard

If you’d like to submit your experience to the committee, you can do so before 10am on 25 April. The final report will be published on November 30.

Beforehand, you should carefully read through the questions posed in the Call for Evidence. If you have answers, you can submit your perspective to the online portal.

Submissions should be under 3,000 words and include an introduction and your reason for responding to the inquiry. If you have any difficulty using the portal, you can also respond via email, social media, or post.

We recommend that SMEs take advantage of this significant opportunity to directly influence the national conversation on RTOs.

By contributing real-world experiences and data, SMEs can move beyond the often-sensationalist headlines and provide nuanced, practical insights that facilitate a more balanced and effective approach to flexible working now and in the future.

A healthy work-life balance has become a non-negotiable for many employees in 2025. But with hybrid working models now the standard work model for SMEs, the line between workers’ professional and personal lives may be blurring, new data shows. 

Headspace, the popular mental health app, surveyed 2,000 workers for its 2025 Workforce State of Mind Report. Its findings indicate a worrying trend regarding the enforcement of boundaries at work. 

More than 7 in 10 employees are now regularly working outside of their scheduled hours, suggesting the rise in flexible working has many struggling to disconnect.

Overtime vs. Office

In its study, Headspace reports that 71% of employees work outside of their regular schedule at least once a week. The finding poses the question of whether the rise of remote working makes it harder for employees to set boundaries with their time. 

In a traditional office environment, once employees leave the premises, they are clocked off. This is not the case in an office-cum-living-room, as you may be lumbered with out-of-hours texts and emails, within the comfort of your own home. 

A physical office places a hard boundary between employers and employees which disappears in a digital WFH setup. The success of setting and respecting boundaries then rests on the quality of the working relationship. 

Headspaces’s data shows that only 41% of employees are comfortable setting boundaries at work, compared with 62% of executives. This imbalance could mean that employees end up working past their finish time, risking stress and burnout.

While remote working has time-saving benefits, such as avoiding the daily commute, this time may still be lost to working overtime. As previous data suggests, employees are more likely to work extra unpaid hours while working from home.

More Brits working on holiday

As well as working extra hours at home, the issue is also cutting into holiday time. 75% of respondents to Headspace’s survey report being available as needed even during their official time off. This builds on previous data which shows that over half of UK employees expect to work while on annual leave.

Interestingly, these stats coincide with the trend of workations, or work-from-anywhere policies. During a workation, employees work from a destination of choice without eating into their annual leave. They’ll work their regular hours, but then be able to enjoy their holiday destination post-work. 

Allowing workations can boost staff morale and instil a sense of trust between staff and bosses. However, workations could be seen as part of a growing trend of blending work and play that could be contributing to the rise in overtime.

If employees cannot take time off without the expectation to bring work along, then it doesn’t allow them to truly rest and recharge. 

Why can’t we switch off?

In October 2024, the government proposed the “Right to Switch Off” (RTSO) as part of its Employment Rights Bill. The law would have given employees legal rights to ignore work calls and emails outside of their regular working hours — but it has since been scrapped due to concerns it will negatively impact businesses.

Many countries do uphold Right to Disconnect laws. France was one of the pioneering countries to bring in RTSO laws, as part of labour reforms introduced in 2017. Employers that do not follow this rule could face fines. Luxembourg, Italy, and Portugal all have similar rules in place to uphold the importance of a healthy work-life balance.

UK bosses, however, remain divided when it comes to the RTSO. Our own data shows that as many as nine out of ten support the initiative. Contrarily, though, 39% still consider it necessary or acceptable for employees to work overtime. 

The importance of the 5pm finish

In a struggling economy, productivity is key. But it’s equally important to remember that sometimes less is more. Headspace’s findings support the importance of time off from work to avoid stress and burnout, which can wreak havoc on overall productivity.

While flexible working has its merits, we mustn’t forget the importance of a finish time. Being able to clock off at 5pm and truly disconnect is beneficial for staff wellbeing. And relaxed, recharged employees are also more productive — a win-win for bosses.

Tech businesses that are curious about work-life balance are being encouraged to sign up for a new, sector-specific UK trial of the four-day week (4DWW) that launches today.

Run by the 4 Day Week Foundation, the UK’s national campaigning organisation for a 4DWW, companies will be encouraged to trial the policy (where businesses work one day less per week, with no loss of pay) for six months, starting this summer. 

Last November, another UK-wide trial saw 21 organisations switch to a 4DWW for half a year. It is set to end this May, one month before the new, tech-focused trial will begin.

Sam Hunt, Business Network Coordinator at the 4 Day Week Foundation, said: “Nothing better represents the future of work than the tech sector, which we know is an agile industry ripe for embracing new ways of working such as a four-day week.”

How will the trial work?

Since the COVID-19 pandemic, the four-day week has become more and more popular and is now being trialled and implemented across the world.

In a major UK pilot that took place in 2022, business performance, productivity, and morale all increased for the companies that participated.

Some large retailers have previously backtracked on the policy, such as Asda. However, critics have argued that the policy was implemented incorrectly. Asda managers worked the same hours as their normal five-day week, but these were condensed into fewer days. 

While bosses will have the final say in how the trial is run, the 4 Day Week Foundation recommends a six-month long trial of a four-day, 32-hour working week with no loss of pay.

Participants will be provided with six weeks of training and workshops starting on 22 May. The 4DWW trial is then due to commence on Monday 30 June, with the results due to be assessed by researchers at the University of Sussex and Newcastle University.

Companies interested in signing up for this latest test run can do so via the 4 Day Week website today. Technology and software companies that are interested in learning more can also attend an explainer event at Civo Tech Junction in London on Thursday 17 April.

Tech appetite for 4DWW

At the end of 2024, Startups surveyed 531 small business owners about their workplace model. We found that appetite for a shorter workweek is growing, with 13% saying they wanted to adopt a 4DWW this year, an uplift of 1 percentage point from last year’s figure.

Specifically, one in five technology and software firms said they would be interested in implementing a four-day workweek this year. In fintech alone, the figure was higher, at 39%.

There are a number of cultural reasons why the tech sector is well-suited to a 4DWW. Firms often find the transition smoother due to their widespread adoption of remote work practices, which typically makes them more open to other flexible arrangements. Moreover, the industry’s emphasis on innovation fosters experimentation with new work models and tools.

Digital challenger bank, Atom Bank, is one of the biggest four-day week employers in the UK with over 550 staff. Last June, CEO Mark Mullen said the successful rollout “proved that working practices that may have seemed years away can be introduced rapidly.”

200 companies sign up for permanent 4DWW

In January, the 4 Day Week Foundation announced that over 200 companies in the UK, which includes over 5,000 workers, have permanently adopted a reduced hours four-day week with no loss of pay for employees.

According to the findings, 24 of these companies are from the Technology, IT & Software sector. Another 26 firms have been accredited since January, taking the total number to 226.

“As hundreds of British companies have already shown, a four-day, 32 hour working week with no loss of pay can be a win-win for workers and employers”, says Sam Hunt, Business Network Coordinator at the 4 Day Week Foundation.

“The 9-5, 5 day working week was invented 100 years ago and no longer suits the realities of modern life. We are long overdue for an update.”

The future of work is here, and it might just be four days long. Curious about how the policy works? Find out how one PR brand found success with a four-day week.

As the sunshine slowly but surely returns, for many Brits, this means the season of outdoor pints is finally here. However, this year it’s coinciding with a major change in pub licensing rules.

As of 1st April, pubs will no longer be permitted to sell takeaway drinks to be enjoyed off-premises, as a pandemic-era rule is reversed. The rule change will give Brits just over a week to get a final round in.

The announcement has been met with backlash from the hospitality industry amid a string of bad news for UK pubs.

Why is the Government banning takeaway pints?

During the pandemic, a temporary relaxation of licensing rules was introduced to allow pubs to sell takeaway drinks and ease the financial impact of social distancing rules.

Pub-goers were allowed to buy pints through hatches to enjoy al fresco or order alcohol to be delivered to their home. This measure provided a lifeline to taprooms at a time when lockdown was in full throng and sales were drying up.

The temporary easement of licensing was first extended by the previous Government to 2023, and then again until March 2025. However, the current Government has decided not to renew it a second time.

Dame Diana Johnson, the Minister of State for Policing, Fire and Crime Prevention, has announced that the previous government consulted with licensing authorities, trade organisations, residents’ groups, and members of the public. It seems the majority of respondents opposed making the licensing changes permanent.

With this in mind, the current government does not have sufficient grounds to extend the rule for the long term, making March 31st the last day for pubs to make off-sales. Following that deadline, the Licensing Act 2003 will revert to pre-Covid rules, meaning takeaway drinks will be a thing of the past.

How will the new rules impact UK pubs?

It comes as no surprise that the new rules have been met with disappointment from pubs and pub-goers alike. The British Beer and Pub Association (BBPA), hospitality’s largest trade association, has said it is “incredibly disappointed” by the news.

A spokesman for the association, made up of members from over 20,000 UK pubs, said, “We have seen no evidence that this easement has created any widespread issues since it was introduced. Instead, it has helped to boost trade for pubs and therefore the economy as a whole, so this move will layer more cost and administrative burdens on pubs and local authorities,” as reported by the Express.

Pubs have long resumed their normal on-premises sales post-COVID. But the change still eliminates a valuable revenue stream at a time when hospitality sales are falling.

And as summer rolls around, the timing is particularly unfortunate, as customers are more likely to enjoy a freshly pulled pint on a sunny stroll.

Long road ahead for UK hospitality

The end of takeaway booze is just another blow for the UK hospitality industry, which, as of April 6th, will be met with various legislative changes.

An increase in employer National Insurance Contributions, and a rise in the minimum wage, will make it more expensive to pay staff, hurting profit margins. This, coupled with an overall lack of government support for hospitality businesses, is making it increasingly harder for pubs to keep their doors open.

What’s more, research published today found that the average pint cost will hit a record £5.01 in April 2025, as predicted last year, making it more difficult than ever for British pub-goers to justify spending at their locals.

With pessimism high, eliminating the possibility of serving takeaway pints comes as an additional slap in the face of pub owners.

With that said, for pubs that wish to continue off-sales beyond April 2025, applications to amend licensing rules with local authorities will be treated as minor variations. This is quicker and cheaper than major variations. This could mean that pubs can continue selling outdoor pints in cases where it has been working successfully.

It may not be ready to start pulling pints just yet, but artificial intelligence (AI) has already become a fundamental part of pubs, restaurants, and cafes around the UK.

Research from Startups has shown that 22% of hospitality firms are facing significant pressure to adopt AI and other emerging technologies into their operations. These tools and systems can be used to automate business processes and improve efficiency.

From improving marketing strategies to easing the usual administrative burden that comes with running a pub, here are five ways that bar and floor managers are using AI in 2025.

1. Shift scheduling

Organising shifts for staff can be a serious admin headache, especially for smaller pub businesses that already have enough on their plate.

The founders of workforce management software, Sona knew this pain point all too well, having worked in hospitality themselves. That’s why, when designing the Sona platform, they called upon AI to find the fix. 

By analysing efficiency data at a site level, Sona’s smart toolset helps managers schedule staff for peak times across their sites, as well as reduce labour during dips.

Sona’s Shift Filler tool further simplifies operations, where staff can find and choose overtime shifts. That makes it easier for workers to pick up extra shifts, while pub managers won’t have to worry about finding and hiring agency staff for any last-minute cover.

2. Target marketing

Pubs and other hospitality businesses are also using AI to great effect for digital marketing. Specifically, by utilising it for targeted advertising through various online channels favoured by pubs and restaurants, such as Facebook, Instagram, and email marketing.

Each of these platforms offers AI tools that can analyse the behavioural and preference data across your customer base.

From there, businesses can use these insights to get a better understanding of their target audience and create relevant marketing campaigns and advertisements.

Pub chain Miller & Carter utilises AI-powered target marketing through Facebook and Instagram. However, they keep humans in the equation by placing real spokespeople and customer advocates front and centre in social media marketing content, ensuring that customer loyalty and brand personality aren’t lost.

3. Monitoring customer feedback

Most hospitality businesses receive customer feedback through Google Reviews or TripAdvisor. But combing through each rating takes a lot of time. 

AI analyses customer reviews to determine the sentiment (whether positive, negative or neutral) behind the text. It can also highlight recurring positive feedback and flag particularly negative reviews, allowing businesses to act quickly to address the issue.

Moreover, hospitality businesses have adopted AI chatbots to gather real-time feedback through CRM software like HubSpot. You could set up the bot to ask targeted questions about the customer’s experience, such as food quality, service, and atmosphere.

Generative AI platforms, such as ChatGPT, might also be used to draft replies to reviews, allowing for a faster response time.

4. Automating bookings

No one likes waiting on hold for hours on end, especially when you want to book a table ASAP. While most pubs and restaurants rely on online booking systems, some customers prefer to do things the old-fashioned way.

The trouble is, when things get busy, there isn’t always someone available to answer the phone, leading to businesses losing out on reservations.

Startups 100-listed company, PolyAI worked with a UK pub restaurant chain to offer an AI-powered voice assistant which can take, change and cancel reservations over the phone, allowing the business to answer these calls 24/7.

If AI voice assistants are out-of-budget, smart chatbots are a cheaper alternative for hospitality firms, with many now offering this function for customers to book a table online. 

This means no more long wait times on the phone or the risk of someone mixing up the reservation time or booking the wrong number of seats.

5. Calculating overheads

Calculating overheads is a struggle for any small business. Costs for essentials like gas and electricity, equipment and supplies can quickly mount up and eat into a pub’s profit margins.

Some landlords and ladies are using AI to tackle the problem. One example is The Farmer’s Dog. The Cotswolds-based pub was launched by TV presenter Jeremy Clarkson, and first opened its doors last year.

There’s a word of caution here for small pubs. Clarkson admitted he had tried to use AI to design a price strategy for his pub lunches. However, the response clearly left something to be desired, as the ex-Top Gear presenter reported struggling profits just one month in.

AI chatbots might be able to provide support for pubs and restaurants, but you can’t solely rely on ChatGPT to take care of something as important as financial planning. 

When calculating a profit and loss statement, it’s important to use AI software in conjunction with human experts, such as a business accountant. 

Hospitality is hungry for AI

With these cases in mind, it isn’t surprising that many hospitality businesses have a strong appetite for AI. After all, a study by Photoroom found that 29% of hospitality workers believe AI can improve their business, while 18% of owners admitted that their business would perform better if they knew how to use AI properly.

Matthieu Rouif, CEO and co-founder of Photoroom, comments: “AI, when used responsibly, is a powerful tool that can unlock new potential – helping businesses create authentic, engaging content without the need for expensive resources.”

The aftermath of the pandemic hasn’t just changed the way we live and work, but also how we do business, a new survey shows.

While the rise of digitisation — such as digital marketing, online payment systems, and automation — was already prevalent pre-pandemic, reliance on digital solutions has practically skyrocketed in the last five years.

The survey by web hosting company GoDaddy finds that UK firms are increasingly dependent on their website. More than half of entrepreneurs now say that their main income source comes from digital channels, making this the new normal for business.

Digital channels are now the backbone of many businesses

At the peak of the pandemic, ecommerce businesses boomed as many companies moved online. Now, the GoDaddy research suggests this migration is still going strong today. 

According to GoDaddy, 52% of entrepreneurs now say that their main income source comes from digital channels, compared to 45% during the pandemic. 

Statistics show the UK is now the third-largest market globally for ecommerce, with 163,278 active limited companies involved in ecommerce sales (excluding sole traders). Meanwhile, the global ecommerce market is expected to reach $6.56tn by the end of 2025.

Is running a physical business unaffordable?

One reason for the rise in these ‘e-entrepreneurs’ is the rising cost of business premises. 

Today’s economy has made it significantly harder for businesses to secure affordable locations. 26% of respondents from GoDaddy’s survey cite this as a major obstacle, an increase from 6% in 2020.

Nowadays, the cost of rent for commercial buildings is almost through the roof. Unsurprisingly, London was reported to be the most expensive location to start a high street business. But the issue is rife across the whole of the UK.

There are also business rates to consider. The government claims it will permanently cut rates for high street properties in retail, hospitality and retail from 2026. Until then, a commercial property with a high rateable value can quickly eat into profit margins.

Online is easier, but you’ll have to fight for it

Digital marketing has made it easy for businesses to promote their offerings through a variety of channels, without having to spend an extortionate amount of money.

However, with so many new businesses entering the market (5.5 million small businesses and SMEs were recorded at the beginning of 2024) standing out has become a significant challenge for many.

Respondents to the GoDaddy survey also report that online marketing is today a major hurdle. That represents an increase from 15% to 20% in the last five years.

According to a report by LocaliQ, 36% of businesses cited increasing competition as one of their biggest challenges for successful marketing.

Will digital businesses take over?

While ecommerce and digital businesses may continue to dominate, it’s unlikely that physical businesses — whether retail stores or restaurants — will disappear completely. 

For example, while 2024 saw a large number of high street closures as brands went into administration, research finds there have been 324,995 new retail businesses, with small businesses and SMEs making up over 99% of them. 

With ecommerce still on top, UK businesses are likely to stick to the digital route, but that doesn’t mean traditional methods will go away completely. Many businesses will find a way to use both, using the digital space to reach a wider audience while still offering the personal touch or physical presence that customers appreciate with in-person experiences.

Government efforts to reform business rates have been dealt a major blow this week, after the House of Lords voted to block part of the plans.

On Tuesday, the Lords voted to remove key provisions that would have imposed a new surcharge on some properties next April. The extra tax would have been used to fund business rates discounts for local retail, hospitality and leisure firms.

Concerns were raised that the impact of the Non-domestic Rating (Multipliers and Private Schools) Bill had not been fully considered. One expert described it as “rushed”.

For years, UK SMEs with physical locations have called for reforms to business rates. The Labour party, in its pre-election manifesto, previously promised to overhaul the system. Whether it can deliver on this promise now looks uncertain.

Why does the Government want to reform business rates?

Business rates are a charge imposed on commercial properties, similar to how council tax is paid on homes. Local firms pay rates to councils, who keep 50% of the money collected. The other half goes to the UK’s central government.

During the pandemic, business rates were frozen to help struggling UK high streets. But in April 2024, the rates were unfrozen and a key relief scheme was scrapped. Next month, rate bills are set to increase by around 3% (the current rate of inflation).

Labour first unveiled its business rates reform pledge in November 2023, of which this latest Bill would have played a big part.

As part of the measures, the Government intended to apply a supplement of up to 20% on all large properties with rateable value assessments of £500,000 and above.

The money raised would have been used to fund retail, hospitality and leisure relief (RHLR) for all eligible properties. Small pubs, restaurants, bars, and shops in England and Scotland all currently benefit from RHLR.

“Rushed” plans

According to a report by Costar, opposition Lords voted against the Bill after it emerged that the Government had not carried out an impact study into the changes.

Peers voted to exclude certain ratepayers, such as large healthcare, manufacturing, and retail sites from the plans, due to concerns they would unfairly penalise bigger businesses.

Simon Green, Head of Business Rates at Newmark, argued the House of Lords were right to question the reforms, which he said were “rushed through without prior consultation”.

“England’s business rates are among the highest local property taxes in the world, and rather than reducing the burden for all businesses, the Government is further squeezing large businesses with additional supplements”, added Green.

Large firms have previously expressed concerns about the impact of rate bills on cash flow. Last August, the CEO of Sainsbury’s publicly appealed to Whitehall lower rates, arguing that it would help to fund the creation of 17,000 retail jobs.

Deadline doubt looms

With this latest development, there is doubt that the Government’s pledge to reform business rates will happen ahead of its self-imposed deadline of April 2026.

The plans have already been watered down. At first, Labour said it would completely abolish the business rates system and replace it with something fairer for bricks and mortar businesses. In its campaign manifesto, this was softened into a promise for reform.

Whitehall has already introduced other measures designed to ease the financial pressure on SMEs. Last year, local councils were awarded the ‘right to rent’ under new laws that allowed them to rent out long-term empty commercial properties for less money.

The Government must deliver deliberate, well-planned reform policies if small businesses are to survive the next year, especially ahead of next month’s tax rises.

Chancellor Rachel Reeves is set to deliver the Spring Forecast next Wednesday when the public will be updated on the current state of the UK’s economy. 

This comes after painful news from last year’s Autumn Budget, in which National Insurance Contributions (NICs) were increased for employers, leading to predictions of impending workplace redundancies and forcing many businesses to explore cost-cutting measures to offset financial strain.

While research suggests that many businesses have strong ambitions for the year, the majority are putting major investment decisions on hold until next week’s announcement in the hope that it can bring economic clarity.

What will the Spring Forecast include?

The upcoming Spring Statement will look a bit different to previous years. Next Wednesday will see the publication of the latest forecast from the Office for Budget Responsibility (OBR), as well as a statement from the Chancellor.

However, the Government has committed to holding just one fiscal event each year, meaning few policy changes are expected this month.

It hasn’t yet been confirmed what Reeves will discuss in next week’s statement, but there has been a lot of speculation and predictions over what will be discussed. Most notably, whether the planned increase to employer NICs will go further.

Jamie Morrison, Head of Private Client team at HW Fisher, believes there won’t be any major tax changes for businesses.

“With Labour committing to keeping their main tax announcements in their Autumn Budgets, we’re not expecting any major tax changes in the upcoming Spring Statement,” Morrison says. “As the UK’s tax burden is already at a historic high, it is more likely that spending cuts and reform to public finances will take centre stage.”

Business confidence remains high despite difficulties

While the government’s Autumn Budget left many businesses feeling the pinch, there’s still a strong sense of confidence and optimism for UK startups.

At the end of 2024, a survey by Startups found that 82% of small businesses report feeling optimistic about the future, a significant increase from 27% the previous year.

There’s also a strong ambition for growth. According to research by Bibby Financial Services (BFS), 87% of firms are planning to invest this year. Data from its Q1 2025 SME Confidence Tracker also found that 66% are expecting sales to increase in the next six months.

Our survey delivered similar findings. The data reveals that businesses are focusing more on proactive growth strategies like innovation, market expansion and customer retention, than cost-cutting measures, this year.

Major investments on hold for now

While few changes are expected in the Spring Forecast, uncertainty is pushing businesses to take a step back in their plans, with 48% of SMEs delaying major investment decisions until after the Chancellor’s speech, BFS’s research found.

The aftermath of the Autumn Budget can’t be ignored either, as more than half (52%) of businesses reported that they’re less likely to make short-term investments, primarily because of the rise in NICs. 

Moreover, the number of businesses with no investment plans has increased to 13% — an increase from 8% in Q3 2024.

Derek Ryan, UK Managing Director at BFS, comments: “UK businesses are showing a clear appetite to invest, but many are taking a wait-and-see approach ahead of the Spring Statement.

“Business leaders are craving stability before they deliver investment plans. Without this, the government’s plan to kickstart economic growth is at risk.”