If you’re keen to work remotely in a new country, you’ll need to apply for a digital nomad visa.

Whether your goal is a better work/life balance, a sunnier clime or the chance to immerse yourself in a new culture, there are plenty of reasons why working abroad as a digital nomad is growing in popularity. When it comes to applying for a visa though, every country will have their own rules and requirements.

One of the biggest headaches facing digital nomads can be the lengthy wait times to get a visa approved which is why we’ve put together this list of six of the quickest digital nomad visas to apply for.

Spain

Visa processing time: 20 days

Spain is a popular choice for digital nomads, and a visa can usually take up to 20 days to process (making it one of the longest on our list).

A digital nomad visa for Spain lasts one year for consulate applications and three years for in-country applications. 

Spain’s digital nomad visas do come with strict requirements though including:

• 3 recent bank statements showing a minimum monthly income of €2400.
• A recent certificate of a criminal background check.
• Proof of employment at a company offering remote work that has been in operation for at least a year or for freelancers, documents that prove at least 12 months of work with a foreign company.

Dubai

Visa processing time: 7 days

For digital nomads wanting to head to Dubai, the visa processing time is speedy and usually complete within 7 days. You submit your application online and will hear back within a week if you’ve been accepted. 

To be considered for the visa, you’ll need to be earning at least $3500 per month (approx. £2742) and be able to prove that you’re working remotely. You’ll also need to be able to prove that you have health insurance that includes UAE coverage too.

If you enjoy your time in Dubai then you can stay for up to one year on the visa before you need to return home.

Bermuda

Visa processing time: 5 business days

In just 5 business days you could be packing your bags and heading to Bermuda!

The island is predominantly English-speaking making it a great choice for Brits looking to work abroad and like Dubai, you submit your application online. There’s a $263 dollar fee for each application but the great news is there’s no minimum income requirement, you just need to be able to prove that you can support yourself financially.

It is worth noting though that Bermuda does have a relatively high cost of living, so make sure you add budgeting to your digital nomad checklist before you set off. 

Costa Rica

Visa processing time: 14 days

A digital nomad visa for Costa Rica takes up to 14 days to process but once approved you can stay in the country for up to two years.

Costa Rica is a popular choice with digital nomads and entrepreneurs thanks to the fact the country is tax-free, meaning you won’t be taxed on global income while living and working there.

It is a slightly more complicated application process though, compared to others on our list, as once you arrive in Costa Rica you’ll need to apply for an additional residence permit. This will allow you to stay for one year so will need to be renewed if you intend to stay for the full 2 years your visa covers.

Greece

Visa processing time: 10 days

If you’re keen to stay in Europe then Greece has the fastest processing time out of all European countries. 

While the processing time may be quick the process itself is a little more complicated. You’ll need to complete your application via the Greek consulate in your country of residence and may even need to leave your passport there while your application is processed.

It’s great news if you fall in love with the Greek way of life as your digital nomad visa allows you and your immediate family to stay in the country for up to five years, one of the longest durations of any digital nomad visa, plus you can even apply for permanent residency!

If you do decide to stay for more than a year, however, you’ll need to apply for a two-year residence permit every two years and the processing time for these can be up to 10 months.

Mauritius

Visa processing time: 48 hours

We’ve saved the quickest until last. The island of Mauritius doesn’t hang about when processing digital nomad visa applications and you can expect to be done and dusted in just 48 hours, barely enough time to pack!

Not only is it super speedy, but it’s also free to file your application and you’ll simply need to prove that you earn at least $1500 per month.

Final thoughts

Deciding to live and work in another country is a big decision and one that comes with various procedures and requirements.

Applying for a visa can be a headache, especially when the rules differ from country to country, but if you’re looking for a speedy solution then hopefully you’ve found it here. 

Take a look at our guide to the best digital nomad spots in 2025 to see where is set to be popular for remote workers next year!

If you’ve been scrolling social media recently then you might have come across various discussions surrounding holiday laws in America.

What do we mean? Well, according to chatter online our American friends are not entitled to paid time off from work in the same way us Brits are. But is that actually true?

In this article we’ll take a look at the American approach to annual leave and how it differs from what we’re used to in the UK.

How much time off do Americans get?

The rumours are true, Americans are not legally entitled to any paid time off. Unlike Brits who get a minimum of 28 days annual leave (with some companies even offering unlimited annual leave) there’s no such entitlement for American workers.

In reality, most American employers do offer at least some paid leave to employees, but the average is around 10 days so still a long way off what British workers are used to.

Why is it so low?

Put simply, annual leave entitlement is so low in America because there are much fewer laws and regulations surrounding employment in general in the US, not least ones that focus on time off.

It’s worth remembering though that for American workers their lack of paid time off is normal and many find it absurd the amount of holidays and days off their European counterparts take throughout the year. 

The idea that many Europeans take the whole month of August off or that many British workers have so much annual leave they end up carrying leave over to the next year is baffling to many Americans.

While American annual leave may be at a minimum, workers in the US do benefit from more public holidays than those in the UK so it’s not all bad.

Sabbatical leave

While American holiday entitlement may not be great, there are various perks that are much more commonplace in US businesses compared with British ones.

One such perk is sabbatical leave. Sabbatical leave is an extended break from work where an employee is able to focus on either personal or professional development before returning to their role. While sabbaticals are relatively rare in the UK, in the US they’re much more commonplace, allowing employees to take time to focus on a project or challenge away from the workplace.

There are also various other benefits that US workers can expect as part of their employment package such as the option to buy back annual leave. 

Final Thoughts

See, we bet your UK job with a chunky annual leave entitlement doesn’t seem so bad now does it? 

Just like in any country, there are pros and cons to the American approach to employment laws and policies, but it’s fair to say that for many Brits the lack of annual leave comes as a huge shock.

Considering annual leave is protected by law in the UK, it’s perhaps no surprise that the American approach is causing such a stir online right now!

Three months after it ordered staff back to the office, Amazon has reportedly delayed its return to office (RTO) in the US because it, err, can’t fit its employees in the building.

Admin workers were previously told they would need to work in-office full-time in January 2025, in order to improve collaboration and strengthen Amazon’s culture. Prior to the policy update, corporate staff had been permitted to work from home for at least two days a week.

Amazon staff overwhelmingly expressed unhappiness with the policy. In good news for them, Business Insider has now reported that the Amazon real estate team has delayed the RTO order for staff members in specific office locations, due to limited workspace.

Amazon upset

Amazon’s RTO mandate was announced at the end of September. At the time, the ecommerce giant argued that its staff will be able to better “invent, collaborate, and be connected” if they are based in the workplace. 

Now, though, Amazon’s strict RTO stance has been thrown off balance by the revelation that its offices are actually too small to accommodate corporate staff.

Internal messages seen by Business Insider (paywall) show that managers have told staff in Amazon’s New York, Atlanta, Houston, and Nashville offices they will need to continue to work from home, as the firm does not have the desk space for them to work at.

Some workers at these locations will apparently now continue with hybrid working until as late as May. The U-turn suggests that Amazon bosses may have rushed through the policy without properly considering its impact.

Amazon can’t claim to have been underprepared. It previously faced capacity constraints after it instructed staff to return to its ‘main hub’ offices in 2023 for three days per week.

Companies facing space squeeze

Outgrowing your workspace is a common issue for businesses. But after going on a hiring spree during the pandemic, the tech giant laid off 27,000 corporate workers last year, and continues to cut from its workforce in order to keep corporate headcount flat.

Instead, Amazon has made a concerted effort to downsize its office space in order to save money. Earlier this year, it announced plans to drastically reduce its office footprint in order to save an estimated $1.3bn.

Lots of UK companies have made the decision to shrink their office premises whether by closing down parts of the office or moving to a coworking membership. That includes HSBC, which will move out of its iconic tower into smaller central London premises next year.

Doing so has helped many firms to save on expensive lease and rental costs. But as the return to office debate heats up, those who have deliberately cut down their office space should consider how logistical issues will impact any future policy announcements.

Are RTOs about collaboration or cost-cutting?

Workers were unimpressed by Amazon’s RTO mandate. Many began ‘rage-applying’ to other jobs in response. Those affected by the change may now be feeling smug by Amazon managers being forced to eat their own words on home working.

However, that may have been the plan all along. Research suggests bosses are using RTO mandates to ‘quiet fire’ remote workers who are unwilling to increase attendance. It’s a subtler approach to Manchester United, which told staff to come to the office or quit in May.

Amazon has denied that its RTO mandate is a backdoor layoff. “This was not a cost play for us,” CEO Andy Jassy reportedly said at an all-hands meeting to address the policy change in October. “This is very much about our culture and strengthening our culture.”

Still, it is convenient that Amazon’s deliberate and public strategy to close down its office space and save on costs has also coincided with its RTO crackdown.

If you’ve been scrolling social media recently then you might have come across various discussions surrounding holiday laws in America.

What do we mean? Well, according to chatter online our American friends are not entitled to paid time off from work in the same way us Brits are. But is that actually true?

In this article we’ll take a look at the American approach to annual leave and how it differs from what we’re used to in the UK.

How much time off do Americans get?

The rumours are true, Americans are not legally entitled to any paid time off. Unlike Brits who get a minimum of 28 days annual leave (with some companies even offering unlimited annual leave) there’s no such entitlement for American workers.

In reality, most American employers do offer at least some paid leave to employees, but the average is around 10 days so still a long way off what British workers are used to.

Why is it so low?

Put simply, annual leave entitlement is so low in America because there are much fewer laws and regulations surrounding employment in general in the US, not least ones that focus on time off.

It’s worth remembering though that for American workers their lack of paid time off is normal and many find it absurd the amount of holidays and days off their European counterparts take throughout the year. 

The idea that many Europeans take the whole month of August off or that many British workers have so much annual leave they end up carrying leave over to the next year is baffling to many Americans.

While American annual leave may be at a minimum, workers in the US do benefit from more public holidays than those in the UK so it’s not all bad.

Sabbatical leave

While American holiday entitlement may not be great, there are various perks that are much more commonplace in US businesses compared with British ones.

One such perk is sabbatical leave. Sabbatical leave is an extended break from work where an employee is able to focus on either personal or professional development before returning to their role.

While sabbaticals are relatively rare in the UK, in the US they’re much more commonplace, allowing employees to take time to focus on a project or challenge away from the workplace.

There are also various other benefits that US workers can expect as part of their employment package such as the option to buy back annual leave. 

Final Thoughts

See, we bet your UK job with a chunky annual leave entitlement doesn’t seem so bad now does it? 

Just like in any country, there are pros and cons to the American approach to employment laws and policies, but it’s fair to say that for many Brits the lack of annual leave comes as a huge shock.

Considering annual leave is protected by law in the UK, it’s perhaps no surprise that the American approach is causing such a stir online right now!

Snap, crackle, flop? The UK arm of the global food manufacturer Kellogg’s made over £1bn in sales of its breakfast cereals and Pringles snacks last year, but celebrations have been soured by the company reporting an overall profit loss.

Kellogg’s UK split into two companies (Kellogg Marketing and Sales Company UK and Kellogg Company of Great Britain) both of which are headquartered in Salford, last October. 

In the 12 months to December 2023, both entities recorded a combined loss of £32.5m.

It’s a perplexing contradiction. Companies boast record-breaking sales figures, yet somehow manage to report net losses. The trend has become increasingly common among tech giants and other corporations. So what’s going on, and what does it mean for Kellogg’s?

What’s eating into Kellogg’s profits?

For 2023, newly-filed accounts with Companies House show that Kellogg Marketing and Sales Company (UK) reported a pre-tax profit of £28.5m, up from £24.1m in 2022.

However, the accounts for Kellogg Company of Great Britain show it went from making a pre-tax profit of £13.6m to a loss of £61m, despite an increase in snacks net sales.

There are a number of reasons why a billion-pound business such as Kellogg’s UK can still end up in the red at the end of the financial year. One key culprit is the wider economy, which has this year turned growth plans for many retailers and manufacturers soggy.

Flaky competition

Retail sales have declined as consumers alter purchasing habits to save, rather than spend. 

Analysis from The Grocer finds that branded cereals have been one of the hardest hit, as Brits swap to cheaper, own-brand boxes from supermarkets. Sales volumes for branded cereals fell by 6.5% in 2024, with figures for Kellogg’s Corn Flakes dropping by 2.9% alone.

To maintain a competitive edge, companies are pouring billions into research and development, infrastructure, and aggressive marketing plans. While these investments may pay off in the long run, they often eat into short-term profits.

Kellogg’s is no exception. Just this week it unveiled a new £12m marketing campaign which will see Cornelius the cockerel, the brand’s 66-year-old mascot, revamped into a 3D Godzilla-style monster stomping through a city’s streets.

Boxed-in internationally

The global economic landscape is also becoming increasingly volatile. In a statement signed off by the board, Kellogg Marketing and Sales Company said that cereal sales had been offset due to “unfavourable foreign currency” exchange rates.

This may also be why smaller cereal brands and breakfast producers are finding success where international corporations are stalling. Thanks to their small operations, startups find it easier to pivot where large organisations might need years to change strategies.

UK startups such as the gut-health brand, Bio&Me and protein-packed, SURREAL are leaping ahead of the competition, with the former having launched its first national media campaign earlier this year.

Rising operational costs

Another factor affecting Kellogg’s is the escalating cost of doing business. From rising labour costs to increased regulatory burdens, companies are facing a perfect storm of expenses. 

In May, Kellogg’s shared plans to shut down its Manchester-based factory at the end of 2026, leading to around 360 job losses, in order to consolidate its operations.

“We only use half the space in the buildings and the investment required to maintain the factory in future is simply not viable”, said Chris Silcock, UK managing director at Kellogg’s.

To further save money, Kellogg’s has reduced its product sizes (a pack of Corn Flakes shrank by 10% this year, The Grocer reports). Still, prices have surged by 12%, a form of “shrinkflation” that may have led to higher turnover, but could harm sales in the long-term.

Bowlful of benefits

Despite the recorded loss, and the expected future job losses at its Trafford Park factory, Kellogg Company of Great Britain also issued a dividend of £176.1m in 2023.

Dividends are paid out to shareholders on an annual basis. Businesses are not legally required to issue dividends. Instead, the decision to hand these out will have been made by the Kellogg’s board of directors, and it may seem odd when the business is losing its shirt.

However, dividends may also be calculated based on growth opportunities and shareholder expectations. With Kellogg’s having poured money into its marketing spend this year, it seems to be expecting its value to increase soon.

“The directors are confident that with the pipeline of commercial initiatives, product innovation and various growth and efficiency programmes, the business will be well positioned for the future”, finished the Kellogg’s UK statement.

Grains of hope

The desire to keep shareholders happy may also be related to the sale of Kellogg’s parent company to food giant Mars, which owns brands such as M&M’s, Snickers, and Skittles.

In August, Mars announced it is buying the Kellanova brand in a deal worth £28bn. The takeover is expected to be completed at the start of 2025. The deal could mark a new chapter for the brand. However, with consumer appetite still low, the company must find a way to reduce cereal costs to compete with cheaper, store-brand alternatives. 

All eyes are on Kellogg’s to see if a new production strategy and revamped brand identity will be enough to sweeten the deal for its shareholders and future owner, Mars.

The idea of moving abroad and working remotely as a digital nomad is popular and for good reason. Who wouldn’t want to soak up local culture and experience a new way of living all while still working and earning money? For digital nomads, the main hurdle before they can pack their bags and jet off is arranging a visa.

Depending on your country of choice, different digital nomad visas are available, each with its own regulations and requirements. From slow processing times to strict eligibility requirements and small government quotas, there are plenty of reasons that can make getting a digital nomad visa a bit of a headache.

In this article we’ll take a look at some of the hardest digital nomad visas to get, helping you to be prepared before you begin the process.

Cyprus

Cyprus offers a digital nomad visa that lasts for up to one year and costs €70 per application. 

Why is it hard to get?

There are a few reasons that make getting a digital nomad visa for Cyprus difficult. Firstly you’ll need to prove that you make at least €3500 per month (approx £2880) in income to be eligible.

The hardest part however is the amount of digital nomad visas on offer. Back in 2022, the government announced that they would be approving just 100 per year. They did later up this to 500 per year but there’s been no further increase since then.

If your heart is set on Cyprus therefore, you’re up against tonnes of people for just 500 spots. Good luck!

Norway

When it comes to its digital nomad visa, Norway is a tricky one. 

Officially known as the self-employment visa, once it’s been held for three years applicants can apply for permanent residency in the country, making it one of the only digital nomad visas that can lead to a permanent relocation. 

Why is it hard to get?

Norway’s self-employment visa comes with a lot of requirements, the main one being that in order to apply you must have already signed a contract with a Norwegian client who is willing to pay you the annual minimum wage (€35,719).

If you don’t already have connections and work lined up in Norway therefore, getting a digital nomad visa in this country is out of the question.

It also takes four to five months to complete the process, making it one of the slowest digital nomad visas available. 

Panama

Panama is one of the newer digital nomad visas on offer, allowing workers to soak up the sunshine while working.

Why is it hard to get?

The digital nomad visa comes with a minimum income of $3000 per month but what makes this even trickier to get is the fact that the whole application must be made via an immigration lawyer.

Whereas most digital nomad visas let applicants apply online (or at least via the consulate) Panama insists that everything is done via an immigration lawyer.

Providing you’re willing to enlist (and pay for) the services of an immigration lawyer then the process should be straightforward, but this additional requirement is yet another piece of admin for applicants, hence why it made our list.

Belize

Belize allows remote workers to enjoy their sunny shores for up to six months on a digital nomad visa (which can be renewed). 

Why is it hard to get?

What makes getting a Belize digital nomad visa so hard is the income requirements. Applicants must earn at least $75,000 per year, and that figure rises to $100,000 if you intend to bring your family with you.

For remote workers who earn less than that figure, Belize is simply not an option.

Czech Republic

The Czech Republic offers a freelance visa for digital nomads (however you must register a business in the country and work with local clients).

Why is it hard to get?

This is by far one of the hardest visas to get on our list thanks to the strict eligibility requirements. 

An applicant’s business must fall into one of 80 categories as listed by the government plus you’ll need a business address in the Czech Republic (you can use a residential address but you’ll have to get various forms filled out by your landlord). In short, it’s a bit of a headache.

Final Thoughts

Just because these are some of the hardest digital nomad visas to get, doesn’t mean you have to count them out.

If your heart is set on relocating to one of these places then you simply need to be prepared and understand everything that’s going to be asked of you.

The key to a seamless visa application is being prepared and acting fast, so do your research, make your digital nomad checklist and get your ducks in a row before you get started.

Are London restaurants taking advantage of the new tipping act? Recent reports suggest that several eateries are adding unexpected charges to diner’s receipts, leaving customers to foot the bill for rising operational costs. 

Since October, it has been illegal for firms to keep hold of service charges to encourage a fairer allocation of tips to staff. The loss of revenue has hit some establishments hard. And it seems some chains are embracing alternative pricing strategies to reduce the impact.

Both the London Steakhouse Company, co-founded by celebrity chef Marco Pierre White, and Harrods, which owns over 20 restaurants and cafes in the UK capital, have faced criticism for introducing cover charges as a creative workaround to the new laws.

Have you paid for that napkin?

The London Steakhouse and Harrods are two premium eateries in London known for their fine dining experience. Likely, though, even their upmarket customer base will raise an eyebrow when they’re handed the final bill this year.

As reported by the Guardian, Harrods has instituted a £1 “cover charge” in all its restaurants and cafes in London, on top of a 12.5% service charge. It first trialled the change last year.

The London Steakhouse also apparently began charging diners a £1.50 levy this year. Ostensibly, this is to cover the cost of accessories that most patrons would expect as standard, such as tablecloths and napkins. The fee comes on top of a 12.5% service charge.

Why are cover charges cropping up?

Cover charges are usually associated with nightclubs entrance fees rather than napkin costs. But they are now becoming increasingly common at UK restaurants. 

Because they do not relate to the standard of service from staff, cover charges are not covered by the new laws. Harrods staff have speculated that this is why the fees have become popular, as a way to mitigate against falls in profits without raising prices for diners. 

Some workers have also expressed concerns that the move will result in service charges being completely removed from food bills, impacting their take home pay. This Sunday, more than 100 Harrods workers are set to begin a three-day strike over wages and conditions.

Secret charges coming to your bill

Startups has previously reported on new hospitality fees being rolled out across pubs, bars, and restaurants, as businesses deal with the loss of revenue incurred by October’s tipping law changes.

Some have reportedly completely replaced service charges with a newly-invented ‘brand charge’. Others have passed their checkout fees (the cost of processing a card payment) onto the customer.

One pub in London, O’Neills on Wardour Street, Soho, has even employed dynamic pricing to apply a £2 levy to any drink served after 10pm.

The changes may keep menu costs down, but diners are unlikely to be impressed. With patrons now being forced to pay service charges on top of the extra levies, they will leave with full stomachs but empty wallets, impacting the customer experience and lowering trust.

Speaking to The Telegraph, Steven Hesketh, who is CEO of Savvy Hotel Group, described the decision to add more charges for customers as “another nail in the coffin of the hospitality industry, which we really don’t need.”

Hospitality businesses struggling

Restaurant-goers who have not noticed new charges since October will likely do so in 2025. 

Industry leaders were left reeling after this year’s Autumn Budget, with many warning that the cash-strapped firms could not absorb the raft of tax rises. 

These include a rise in employer National Insurance Contributions (NICs), as well as a planned increase to the minimum wage due next April.

Research by three rocks®, completed ahead of the Tipping Act’s introduction, found that two thirds of hospitality firms relied on a portion of service charges as a revenue stream.

With October’s rule change having hit profit margins already, the start of the next financial year could signal last orders for many UK pubs, bars, and restaurants. Figures from PwC report that in the first half of 2024, 50 pubs closed per month due to hiked labour costs.

One pub landlord, based in the West Midlands, went viral last month for starting an online petition to demand another general election. In the petition, owner Micheal Westwood called on the UK government to do more to support the struggling hospitality sector post-Budget.

“It is just going to make it harder for small businesses and there will come a time when many just say ‘I’ve had enough’ and call it a day,” said Westwood.

2024 has been a dramatic year for startups and small businesses. A change of government, a raft of new employment laws and tax changes and a complex economic environment have made it a challenging year. But technological developments, new tax reliefs and flexible working rules helped create new opportunities for agile startups who can leverage them and for entrepreneurs about to start a business.

This month-by-month review of 2024 will list the highs and lows of the year for small businesses. We’ll highlight the big issues affecting startups, from changes to angel investor limits to the impact of a new Labour government as well as showcase the views of small business owners themselves on the changes that have affected their hiring strategies and ability to grow their businesses.

Let’s get stuck in.

January

The New Year started with the latest edition of the UK’s longest-running list of new businesses that made their mark in the prior 12 months. 2024’s Startups 100 ranks the top 100 new businesses across all sectors, featuring exciting new ideas, technology and innovation that will power the UK economy for years to come and help the UK lead in many areas.

A panel of experts painstakingly sift through the business ideas, their execution and early results, to judge which new companies deserve a place on the list. It’s a celebration of how the UK’s best entrepreneurs are helping the country maintain its position as one of the leading territories for the development of new technologies, business innovation and growth streams.

In 2024, AI content moderation firm Unitary took the No.1 spot, followed by social care provider Lottie in No.2 and the UK’s first e-bike manufacturer Maeving in the bronze medal position. Will your company be featured in 2025’s list? Not long to wait!

February

February saw predictions that the right to request  flexible working hours would allow millions of workers more flexibility on selecting their working hours when introduced in the new 2024/25 tax year.

Nicknamed the ‘Predictable Working Bill,’ it would have allowed casual workers and those on zero-hours contracts to be able to request a more standardised working pattern hours under new employment laws.

In actual fact this proposal was watered down and integrated into the Employment Rights Bill  and gives workers the right to a contract that reflects the number of hours they regularly work.

March

The government agreed to the reversal of the angel investment rule that would have disproportionately affected female investors. The investment limit was raised to £170,000 from £100,000 in January. It immediately attracted lots of criticism for its impact on female investors and also for discouraging angel investment more widely.

It would have hindered women from investing in startups and seed businesses because, on average, women earn less than men. The rule was reversed in the March 2024 Spring Statement.

April

April saw the introduction of the new 2024/25 UK tax rates, bands and allowances. For employees, the biggest benefit for many would be the 2p cut in Class 1 National Insurance, down from 10p to 8p (it was also cut in January from 12p to 10p).

Business owners did not benefit in the same way and faced deductions in the annual allowance for dividends. These were cut in half from £1,000 to £500, following a reduction in 2023/24 from £2,000 to £1,000. It meant an additional rate taxpayer would typically pay £197 more in tax as a result.

Similarly the capital gains allowance was reduced from £6,000 to just £3,000 following a cut from £12,300 to £6,000 in 2023/24 tax year.

May

In May, the spotlight was on the cost to business and UK productivity of days lost due to ill health. This issue has a major impact on startups and small businesses who have fewer staff to plug gaps.

 The COVID-19 pandemic was a major catalyst for the rise. As well as the actual number of days lost to the virus, the longer-term impact on several million UK workers of mental health issues and long COVID has contributed to a higher proportion of people of working age being unable or limited in their ability to work.

According to the CIPD,  the average rate of employee absence for 2023 was 7.8 days per employee per year, up from 5.8 days since its last report in November 2019, just before the pandemic struck.

But could the real reason be the low rate of sick pay offered by the UK? The UK offers just 17% of average earnings, among the worst in Europe.

June

Another big issue in 2024 was the return to office mandates imposed by many companies. The headlines focused on the household names such as Lloyds Banking Group, Manchester United and BT, but it is an issue that affects small businesses too.

The arguments for and against depend on the nature of the business and type of work the employee does, whether it is customer facing or regular meetings are required.

Again, the pandemic affected this issue as businesses were forced to adapt, helped by technology, enabling many business functions to be carried out remotely. Home working, hybrid policies and remote work are here to stay in some form but the pros and cons of working in person at an office will remain a factor in arguments about the UK’s poor productivity.

July

Consequences for businesses don’t come much more baked in than when there is a General Election that unseats one party. In July, the UK overwhelmingly elected a new Labour government.

Although there was no immediate impact, any new government means businesses of all sizes need to review what the likely impact of new policies will mean for them and begin planning to mitigate and prepare.

August

In August, Innovate UK, part of UK Research and Innovation was under fire for not meeting its promises to pay 50 Women in Innovation Awards to small businesses led by women.

The organisation receives government funding that must be spent on specific qualifying projects. It had a total of £3.75 million to distribute but only 25 of the 50 awards were granted to women business owners as part of a funding competition.

Innovate UK backtracked after protests from entrepreneurs picked up steam on LinkedIn. The company issued a statement acknowledging the “confusion and concern” the mess has created, saying “That’s on us and we own that. Sorry that it’s impacted so many people.”

September

It was actually on October 1st that The Employment (Allocation of Tips) Act 2023 was introduced. The new rules have a major impact on hospitality businesses, but also apply to other professions where workers receive tips, such as hairdressing.

The new Code of Practice on tipping states that employers must demonstrate “fairness and transparency.” The law aims to ensure that the workers who earn the tip receive the tip and to combat a growing problem whereby the business itself banks the tip to improve profit margins.

The new Act will impact many small businesses because they form a large proportion of businesses in the hospitality sector.

October

As part of the Autumn Statement, a package of reforms linked to workers’ rights and conditions was announced, known as the Employment Rights Bill. This included changes to sick pay and maternity pay, whereby all employees are entitled to either benefit from day one of their time off.

Other parts of the bill included changes to parental leave and a reduction in the length of time employers can keep employees on probation from two years to six months.

November

The run up to Labour’s Autumn Budget was lengthy, the predictions and leaks numerous, but overall it was a mixed bag for startups and SMEs.

Labour would argue that public finances were in such a poor state that tax rises were inevitable, but small businesses can counter that their ability to kickstart economic growth has been hampered by increases in Employer’s NI, the minimum wage and Capital Gains Tax.

December

For many small businesses, December is crunch time, an opportunity to make a good proportion of the year’s profit in one month for retailers, pubs, restaurants and events companies.

In response to the criticism the Labour government received regarding its Autumn Budget, the Chancellor Rachel Reeves used Small Business Saturday (December 7th) to reiterate her support to small businesses.

She visited Leeds Corn Exchange in her constituency to make the point that the smallest of businesses, those that employ less than five people will be exempt and the employment allowance, the amount that can be reclaimed from a business’s NI liability has been increased from £5,000 to £10,500. According to the government this means 865,000 employers will not pay any NI next year. There are 1.4 million private sector businesses in the UK that employ staff.

According to research from American Express, Small Business Saturday saw more than 10 million Brits spending an estimated £634 million in-store and online, in stormy conditions and helping small businesses reach their festive revenue goals.

Conclusion

2024 has been an eventful year for small businesses. A change of government after 14 years inevitably brings alternative policies that create changes to tax, allowances, rates, employment rules, working procedures and more.

Add on the breakneck speed of technological change, in particular AI, and it is clear startups have had many important decisions to make, tweaks to business models and strategies to fine tune in 2024 to be ready to make 2025 a year to grow and a year to remember for the right reasons.

Remote employees could soon be in for a rude wake-up call. According to new data, Brits are getting out of bed earlier, in what seems to be a sign that forced return to office (RTO) mandates have been successful at UK workplaces.

Data from Virgin Media O2 analysed data from its mobile network to see how our morning behaviours have changed. It appears the nation is winding its alarm clocks forward. In 2024, morning traffic began to rise rapidly from 6:20am, fifteen minutes earlier than in 2020.

Despite protests from employees, many businesses have rolled out RTO policies this year due to concerns about the UK’s productivity crisis. But will a return to the office really lead to greater productivity? Or are CEOs simply fostering a sleep-deprived workforce?

Return to the commute?

Speaking to The Times, sleep expert Professor Russell Foster described the data as a positive sign that more of us are taking the health benefits of sleep seriously. 

However, the Virgin Media O2 report suggests that another culprit behind our newfound love of early mornings may in fact be RTO mandates. 

Using anonymised and aggregated data from O2’s mobile network, the report found that commuting increased in 2024. Around 48% of Brits now head to their workplace five days a week, and Wednesday has become the most popular day of the week to travel in.

Being able to miss out on the daily commute has been one of the key benefits that remote or hybrid employees cite when it comes to flexible working arrangements. 

The latest government data shows that it took an average of 27 minutes for employees to travel into work in 2022. When doubled to account for the journey home, this means full-time office workers would spend almost a full day per month in cars or on bikes, buses, or trains.

Perhaps in preparation for the daily grind, the Virgin Media O2 data shows that bedtimes have also shifted forwards. In 2024, the majority of Brits began switching off their mobile phones from 9:20pm. That’s compared to 9:40pm in the first year of the pandemic.

The pressure to clock in

The findings suggest that bosses are being stricter about clocking in. While many employees have embraced flexible work schedules (swapping a 9am start for a 10am start, for example) this earlier rise suggests some workers are arriving at the office before they would like.

Some large employers, including Google and BT Group have said publicly that they will use badge ‘tap-in’ data to monitor staff attendance. Others, including Dell, have linked presence in the office to employee performance reviews and potential promotions.

These stricter RTO policies could be fostering competition among staff, and putting pressure on them to come into work ahead of their colleagues.

Ditch the dark circles

While the new data suggests a renewed commitment to the crack of dawn commute, it’s crucial to question whether this increased office presence translates to greater productivity.

There’s a growing concern that a sole focus on physical attendance could invite presenteeism; stifling innovation, creativity, and overall job satisfaction. Remote work has proven to be a viable and effective model for many, offering greater work-life balance.

As businesses grapple with the future of work, we mustn’t fall back entirely into the rigidity of traditional 9-to-5. Staff need to feel empowered to fit personal commitments into their work schedule. Even Boots, which has ordered staff back into the office five days a week, acknowledged there “will of course still be times when working from home is necessary”.

By fostering a culture of trust, not timeliness, companies can harness the benefits of both in-office and remote work, ultimately leading to a more productive and engaged workforce (with smaller under eye bags).

The Scottish Government has announced new funding to support entrepreneurs starting a business as part of the draft Scottish Budget for the next financial year.

£15m will be allocated to Scottish startups. Holyrood has also ringfenced £4m of this pot to provide support for female entrepreneurs.

The announcement follows the launch of a UK government-backed £250m funding pool for female-led firms in England, Wales, and Scotland at the end of November.

Deputy First Minister Kate Forbes said: “This budget commitment demonstrates that the Scottish Government stands squarely behind this and future generations of business talent.”

Scottish government doubles funding for entrepreneurs

Forbes announced the new measures while on a visit to the Royal Bank of Scotland’s entrepreneur accelerator hub in Edinburgh.

According to the full announcement, a total of £34.7m will be spent on furthering entrepreneurship, innovation and social enterprise. Holyrood has said this is double the amount of funds given for 2024/25.

Part of the pool will be awarded to Techscaler, a state-run programme that connects scaling tech startups with experts in the field. £42m has been committed to the initiative so far.

The government claims to have supported 517 startups and scaleups through the scheme so far, although some critics allege that Teschscaler’s impact has been inflated.

More money will also be injected into the Ecosystem Fund, a pot of money used to organise networking events and educational workshops for Scottish startups.

A new fund will also reportedly be established that will support businesses based in sectors such as life sciences, digital, and advanced manufacturing.

Women-led startups get £4m boost

Of the investment designed to startups, £4m will specifically be allocated to women-powered businesses. This is in recognition of the specific gender funding gap that poses specific challenges for female founders when raising early-stage capital.

In 2023, the Scottish government published Pathways, a review into gender diversity in Scotland’s startup ecosystem that was commissioned by Forbes.

The findings highlighted that, despite the fact women make up one in five Scottish entrepreneurs, just 2% receive institutional investment.

The new funding pool will add to a further £250m for women-led businesses that was unveiled by the UK government at the end of November.

The ‘Women backing Women’ fund, the resource is backed by Westminster’s Invest in Women taskforce. It aims to be one of the world’s largest funding pools for female founders.

“I want everyone, from every walk of life, to feel encouraged and supported in taking the first steps on their entrepreneurial journey,” added Forbes.

Is it the biggest crisis facing British pubs? Perhaps not, but it might be the most ill-timed. Pub landlords are facing soaring energy costs, crippling minimum wage rises, and the fallout from an Autumn Budget that left hospitality leaders reeling. And now, they’ve run out of Guinness.

Suppliers have been forced to ration orders of the black stuff to British pubs after soaring customer demand left them with empty kegs. According to the drinks brand’s owner, Diageo, Guinness was Britain’s number one selling beer by value in the second half of 2024.

For struggling UK pubs, the demand is a double-edged sword. It might mean more sales, but the shortage is leaving some sites unable to meet customer needs. Why has Guinness taken off? And how do you stop your star product from becoming your biggest liability?

Guinness pulls ahead

Guinness has often been thought of as a marmite drink: consumers either love it or hate it. But at some point this year, the lovers appear to have drunk the haters under a table.

In YouGov’s popularity rating, Guinness scored 98% in October 2024, up from 95% in January. That puts it behind San Miguel lager in the alcoholic beverage category, and makes it the most loved beer overall in the UK.

Guinness is even helping us to find love. Last Sunday, a friend told me it is now the brand they see referenced most in dating app profiles, as singles apparently seek out a partner with similar interests in stout.

Suppliers have been forced to respond by limiting the number of kegs rolled out to British pubs this year (rightly, taprooms on the island of Ireland will not have limits imposed).

“Over the past month we have seen exceptional consumer demand for Guinness in Great Britain. We have maximized supply and we are working proactively with our customers to manage the distribution to trade as efficiently as possible,” a Diageo spokesperson said.

Sceptics may wonder: is this a genuine crisis or PR move? It’s more likely the former. Sales reports show that the stout has gone off the charts this year. Even sales for the alcohol-free Guinness 0.0 have doubled during Diageo’s last financial year in Europe.

From TikTok to taprooms

F&B experts have been writing op-eds for days about what’s behind Guinness’ newfound glory. Some point to celebrity alcohol endorsements. Singer Olivia Rodrigo has been pictured wearing an ‘I ❤️ Guinness’ t-shirt. Kim Kardashian was apparently pictured sipping a St. Patrick’s Day pint in a pub in London back in March.

Diageo may have contributed to its own destruction. The brand has also poured money into influencer marketing in the past few years which has helped it to target the TikTok audience.

Still, much of the success has been organic. Splitting the ‘G’, a pub game played by drinkers of the black stuff has been repurposed as a viral trend for social media users, alongside joke ‘quality check’ videos such as the Guinness Finger Test, Foam Test, and Tilt Test.

It’s the kind of amateur, homegrown marketing style that has helped other traditional brands such as Greggs and M&S to capture younger audiences.

Could it also be the luck of the Irish? From the band Kneecap to author Sally Rooney, Ireland has dominated pop culture this year. And, similar to how the Oasis reunion revived bucket hats, demand for the emerald island appears to have trickled into purchasing habits.

The highs and lows of hot products

Guinness is unlikely to dry up any time soon for pubs. But Guinness-gate does bring lessons for SMEs. Having a sellout product that consumers suddenly flock to is what every business owner wishes for. And when it leads to empty shelves, it can be both a blessing and a curse.

Managing stock supplies is a big challenge for brick-and-mortar businesses. The best way to keep an eye on inventory is to create a stock forecast. This involves utilising historical sales data and market trends to predict future demand accurately.

You can also find a hospitality POS system with inventory management features. This can help you to adopt more efficient stocking systems such as the just-in-time method. Diversifying the supply chain to minimise the impact of disruption is another option.

With the pressure on Guinness taps, for example, pubs could introduce other dark beers to the bar to serve this emerging market of stout-sippers.

There’s a new UK startup that’s been splashed across the headlines this week. Tortoise Media has seemingly come out of nowhere, and yet it has reportedly agreed to buy the world’s oldest Sunday newspaper, The Observer from Guardian Media Group plc (GMG).

Tortoise Media is a news site that was first registered as a business in 2017. It isn’t your typical new startup, however. Its CEO is the former BBC News director and The Times editor James Harding, and it boasts multiple billionaire backers.

For The Observer, first published in 1791, its acquisition by a plucky, seven-year old startup was always going to be disruptive. But for many other reasons, the sale is proving contentious. Last week, Guardian and Observer journalists went on strike over the proposal.

So what exactly is Tortoise Media, and how did it win the bid for a 230-year-old newspaper?

What is Tortoise Media?

Tortoise Media describes itself as “a different type of newsroom. For a slower, wiser news”. In practice, that means it looks more like a Substack blog than your typical news site. There are fewer images on the platform and an emphasis on world, rather than domestic, news.

Like many emerging media companies, Tortoise is digital-first. But it has lately embraced alternative mediums to produce non-news content such as podcasts, online conferences called ‘ThinkIns’ (which also feature a plethora of celebrity guests) and a newsletter.

It’s a similar approach as used by The Mill Media Co, another disruptive organisation that uses phrases such as “slow” and “deep reporting” to contrast with media overload.

Users sign up to Tortoise in three or five-year memberships; a smart subscription model that helped the company to fundraise £500,000 via a crowdfunding campaign in 2018.

As is the case for many startups, though, the past few years have not been all smooth sailing. Tortoise Media made a £4.6m loss before tax in 2022; a 45% increase on its losses in 2021. At the time, it said this was due to the cost of investing in the business.

Who owns Tortoise Media?

The mystery behind who Tortoise Media’s owners are is one of the key reasons that Guardian and Observer journalists have been so uncomfortable with the agreed purchase.

Press Gazette has published a breakdown of the startup’s 30 top shareholders. They include Woodbridge Investments Corporation which holds 16.1% of shares and is the investment vehicle for the Thomson family, who acquired Reuters in 2007.

However Harding, as cofounder, is the only person with significant control in Tortoise Media. He currently holds 32.5% of company shares.

According to Companies House, there are three other directors associated with Tortoise Media. Active officers include Nick Jones, who founded Soho House, former Sony Music Entertainment executive Ceci Kurzman, and former US ambassador Matthew Barzun.

Katie Vanneck-Smith, who left Tortoise in 2022 to become CEO of global media company Hearst UK, was also a co-founder. Venneck-Smith now holds 3.85% of the firm’s shares.

Why has Tortoise Media proved so controversial?

Having a long list of high-profile backers is not so unusual for fast-growth startups. Plenty of new companies rely on angel investors to get up and running.

Tortoise Media has also pledged to raise new investment for The Observer totalling £25 million as part of the acquisition, which it will use to return the site to growth. The Observer reported a £36.5m deficit for the last financial year due to a decline in advertising spend.

However, Guardian and Observer journalists have expressed concerns that Tortoise Media’s lack of profitability means it will not be able to cover The Observer’s operating costs, which could result in job losses among the 70-strong workforce.

Last Wednesday 4 December and Thursday 5 December, they held a 48-hour strike in protest at the sale, the first at The Guardian in more than 50 years.

There have also been accusations of a conflict of interest in the sale. Harding is friends with GMG CEO, Anna Bateson. They reportedly holidayed together aboard a £15m superyacht.

Still, startups can take years to report a positive profit margin. One of the UK’s biggest startups is Monzo, a challenger fintech that only made its first profit after almost a decade in operation. Monzo is now hiring 33 new roles in an effort to expand into the US.

Tortoise takes the reins

It is only natural for existing employees to feel nervous about an acquisition. Specifically for The Observer sale, questions remain about the relationship between GMG and Tortoise Media bosses, and there will likely still be teething issues once the purchase is completed.

But that Tortoise Media has yet to break-even is not necessarily a concern in the startup world. Its promise to invest £25m into The Observer signals it isn’t planning to start slashing, and its business model aligns with the direction that the media industry needs to travel in.

Journalists may be concerned about job losses, but success stories like Monzo show what could be achieved — a refresh for a struggling newspaper and more jobs created.

Arguably, Tortoise’s is a tale of digital media clashing with traditional broadsheets, and the need for younger startups to step in and push larger businesses to innovate. The Observer’s future remains unknown, but we must remember it is at a crossroads, not a cliff edge.

After years of back-and-forth, Marks & Spencer’s has received approval to demolish its flagship Marble Arch location in order to redevelop the famous art deco building.

Plans were first submitted for the revamp back in March 2021. They were blocked at the time by environmental groups as well as the former secretary of state, Michael Gove, over concerns about harm to nearby landmarks.

Last week, housing secretary Angela Rayner ruled that the retailer should be allowed to demolish the store on London’s Oxford Street. The decision ends what CEO Stuart Machin described as “three unnecessary years of delays, obfuscation and political posturing” on X.

The news might sound like a death knell for the struggling high street. However, the quick resolution of the dispute signals a renewed commitment from the government to take swift action to revive the UK high street. And not a moment too soon.

Thousands of retail businesses — including a number of big-name brands — have gone bust since 2021, and the new M&S development could be the start of a retail renaissance.

M&S to build mixed-use hub

First opened in 1930, the building (also known as Orchard House) has become a staple on London’s most famous shopping street over the past nine decades. However, even on the busy streets of the capital, consumer footfall has been steadily declining.

M&S has said it intends to remake the store into a nine-storey building that houses retail space as well as a cafe, gym and office to re-engage shoppers and encourage sales growth.

Many planners have been looking at retrofitting existing buildings to turn them into mixed-use sites. By combining shops with restaurants, cinemas, offices, and homes, these developments create a more attractive place where people can shop, eat, work, and live.

Last year, developers shared similar plans for the old HSBC building in Canary Wharf, which will be redesigned to hold workspace alongside retail, home, and leisure amenities.

Mixed-use sites are also more convenient for shoppers, who have grown tired of travelling to destination retail parks and shopping centres and increasingly asking for smaller, more strategically-located convenience stores (M&S has opened 10 more smaller sites this year).

Following the ruling, Machin said: “We can now get on with the job of helping to rejuvenate the UK’s premier shopping street through a flagship M&S store and office, which will support 2,000 jobs and act as a global standard-bearer for sustainability.”

More power to councils

Showing M&S the green light is one prominent example of how the government plans to address the problems facing UK high streets. For those brick-and-mortar businesses that aren’t based in the capital, though, it has taken a different approach.

At the start of this month, local councils were given the ‘right to rent’ under new laws that will allow them to auction off empty commercial properties for rent, without the landlord’s say-so.

The scheme is intended to fix the huge number of stores that lie empty in towns and cities. Boarded-up windows and dilapidated buildings can create a sense of neglect and decay, reducing visitor footfall and encouraging criminal activity, such as a rise in shoplifting.

Despite these measures, however, the government has yet to carry through with one of its biggest election promises for SMEs: business rate reform. Labour had previously said it would scrap business rates. But, apparently, it still intends to profit massively off them first.

In October’s Budget, chancellor Rachel Reeves slashed the Retail, Hospitality, and Leisure (RHL) Relief discount from 75% to 40%, raising the rates bills for thousands of UK SMEs.

“We want to breathe life back into towns”

M&S may be rebuilding its HQ, but the government is hoping it can rebuild its reputation. It has been a lacklustre start for Sir Keir Starmer. In part due to the business rate debacle, the Autumn Budget was criticised by business owners, with some calling for a general election.

According to analysis by the Local Data Company, one in seven shops on UK high streets now sit empty today. The M&S plans and new powers for local authorities should act as a kernel of optimism for SMEs, who want to see action taken after years of neglect.

But it’s important to note that one key obstacle remains. High business rates will need to be properly addressed for SMEs to take full advantage of the high street renewal schemes.

“We share the government’s ambition to breathe life back into our cities and towns and are pleased to see they are serious about getting Britain building and growing”, added Machin. “We will now move as fast as we can.”

Forget the Hollywood Walk of Fame; the new landmark that every A-Lister wants their name on is the spirits aisle in Tesco. So long as they can find the space to squeeze their ozempic-ified figures onto the market, that is.

There are so many celebrity-backed alcohol brands that it’s probably easier to list those who haven’t dipped their toe in a distillery unit. Last week, Rebekah Vardy launched a skittles vodka brand, while podcaster Alex Cooper filed a trademark for her own white spirit. James May’s gin brand also released a limited edition of horseradish gin over the weekend.

Perhaps the hottest newcomer, though, is Beyoncé’s whiskey, SirDavis. Reportedly, it was founded by the singer after she was drawn to the “power and confidence I feel when drinking quality whiskey” — which, by the same logic, qualifies me to be the next CEO of Greggs, thanks to the power and confidence I feel when eating four quality sausage rolls.

PRs no longer seem to care about these watered down links between their celebrity client and the spirits sector, however. At this point I think the right marketing manager could do a convincing sell for a rum backed by Mother Teresa (look for Holy Spirit on your shelf soon).

That’s apparent by the many alcohol-free drinks brands started by teetotallers, such as singer Zayn Malik or Spiderman himself, Tom Holland. Both have spoken about their difficult relationships with ethanol (a refreshing level of honesty that should be applauded). But pouring millions into a red carpet release party is hardly the natural reaction to going sober.

We can’t blame this new star-studded supermarket cast for feeding demand. It’s clear that the A-List appeal does help businesses to outperform in the booze category. In 2023, celebrity whiskies grew 8% by volume, compared to 2% for ‘civilian’ products. In the same year, celebrity rums grew by 11%, majorly outperforming a category that declined by 4%.

Still, it’s jarring that these newcomers can jump ahead in the queue simply by whispering a famous name, while so many small drink brands are struggling to get noticed.

Take Jubel, a challenger peach-infused lager we nominated for the Startups 100 Marketing award. For almost a year, founder Jesse Wilson visited 20 pubs per day to try to get them to stock Jubel, and spent his evenings and weekends running sampling sessions.

Those efforts have paid off. Jubel became the best-selling beer in Sainsbury’s in three years. But can you imagine Jeremy Clarkson doing the same to secure his 44 pub supply partners for Hawkstone beer? Years of effort for Wilson amounts to a subplot for Clarkson’s Farm, (alongside opening a loss-making pub) with all risk covered by Amazon Prime Video.

It’s doubly irritating because startups like Jubel are also where the genuine innovation is at. Take Drop Bear Beer, a B-Corp that’s also the world’s first all-female and LGBTQ+ founded alcohol-free brewery. And the alcohol-free IMPOSSIBREW, which has invented an entirely original blend of ingredients that can give you the buzz of booze, without the hangover.

Both firms were founded by entrepreneurs with years of experience in the sector, whereas many celebrity bottles range from glorified endorsement, to plain embarrassment (think Nigel Farage’s gin which he described as “the taste of Brexit”). And, thanks to breathless reviews from starry-eyed journos, these shame-faced efforts often go without scrutiny.

Here’s where harm can be done. Celebs like Dwayne Johnson and Kendall Jenner, who have made millions from their ‘authentic’ Hollywood hooch, have made it harder for smaller firms with real mission statements to escape the narrative that it’s all just a quick cash grab.

Yorkshire-based tequila company Sphynx found this out when its founders first tried to find a distiller in Mexico. Cofounder, Sukhvinder Jaheed told us, “The attitude was ‘it’s just another tequila going West’ – it was very challenging to find real, authentic generational makers.”

That said, some celebrity brands are more authentic than others. Take Renais Spirits. Emma Watson is a founder but the actress really plays the role of investor. It’s a family business, and the brains behind the brand is actually Watson’s brother, Alex, who has worked in the drinks industry for a decade.

As well as being easier to swallow, Renais is more likely to stand the test of time. While a big name can generate buzz, it doesn’t always guarantee success. In 2023, volumes of celebrity-owned or backed gins declined by 1%, even as the wider gin category grew by 4%.

That’s because, despite what PR managers may think, consumers will still have the ultimate say in what star product deserves to top the drinks cabinet this holiday season.

I have one request for you this Christmas. When you’re searching for the perfect gift for your boss this year, vote with your wallet. Let the underdogs win the booze box office, and support the independent brands that are driving innovation and passion in the industry.

The UK’s transition to becoming a cashless society has been thrown a spanner, after figures released by the British Retail Consortium (BRC) show that cash use in shops has risen for the second year in a row.

Previously, card and contactless payments were winning The Great Cashless Debate. As well as being more secure for businesses, card payments were also thought of as more convenient for shoppers than carrying around loose change.

The reversal signals that consumers are embracing cash out of concern that it may become extinct. While not illegal, many shops now refuse to accept cash payments due to the amount of admin that management can entail.

Cash use on the rise

It may not be a cash-free Christmas after all. After decades of falls, the new BRC data shows that cash payments made up one fifth of all transactions in 2023. Notes and coins were used in 19.9% of transactions last year, up from 18.8% in 2022.

That’s a significant rise since a record low of 15% recorded in 2021 (though concerns over hygiene due to COVID-19 at the time might have worsened the decline in cash usage).

The BRC says debit cards remain far and away the most popular payment method. 62% of transactions last year were made by debit card. Roughly 13% were made by credit card.

Analysts attribute the change in behaviour to the cost of living crisis. As shoppers struggle with rising prices, it is easier for many to keep track of their spending by paying in cash.

In part, this is why retail sales have been falling since 2023. Indeed, the BRC also found that the amount spent per purchase dropped from £22.43 in 2022, to £22.03 last year, as more consumers took steps to avoid overspending.

Card fees up by one quarter

SMEs had also been following the cashless trend. As of 2021, 5% of small businesses in the UK report they are no longer accepting cash, while 3% have discouraged cash payments. Even UK supermarkets are going cashless at some tills, such as self-checkouts.

That shift could also be about to undergo a reversal, however. The BRC finds that, as the number of card transactions grows, card processing fees have also risen.

The total amount paid by retailers to banks and card schemes rose by over 25% in 2023, at an extra cost of £380 million. This brought the total card fees paid to £1.64 billion. 

What do businesses need to know?

If card payments expenses continue to rise, this could eat into profit margins at a time when revenue is falling. Those who don’t want to go back to managing loose notes and coins will need to shop around for the best card merchant with the lowest transaction fees.

There are other reasons why embracing cash should remain on retailers’ radars. Charities have warned that a cashless society could isolate certain consumer groups. That includes older people who are less comfortable with making digital payments. An Age UK report found that one in five older people in the UK rely on cash for everyday spending.

Of course, new technologies, such as digital wallets or virtual payment gateways are still the most popular method of payment. They also bring bigger benefits for SMEs, such as a reduced risk of theft, as well as time and money saved on physical admin tasks.

Ultimately, though, the best approach for satisfying customer needs is to personalise the checkout process by offering a range of contactless, card, and cash payments.

As cash-paying customers continue to fight back against the cashless transition, the future of payments will likely be a hybrid model that caters to both digital natives and traditionalists, ensuring a seamless and inclusive shopping experience for all.

For aspiring entrepreneurs, December is always an exciting month. With most of us taking a break from full-time work, Christmas is the perfect time for wannabe founders to get stuck into building a business plan ahead of the New Year. 

Think you might know the next Steven Bartlett? Then a smartly chosen Xmas gift could provide the perfect boost to get their ambitions underway this year. But what do you buy for someone that will genuinely help them to start a business that isn’t a giant fistful of cash?

I asked real-life business owners what they wish they’d be given before they took the first step on their business journey. It turns out to be a long wishlist. Here are 16 fail-safe present ideas to surprise and delight the side hustle hero in your life.