The latest ‘Rollback Offer’ from supermarket giant Asda looks a little different: an end to fully flexible work. From January, 5,000 head office staff will need to work in-office at least three days a week, as Asda joins other large UK firms demanding a return to office (RTO).

Various retailers have made similar moves this year, despite UK employees and job seekers increasingly prioritising flexible working in their career.

Employees are protesting the RTO mandates by doing everything from giving up promotions to going on strike. Yet despite the rebellion, employers are doubling down. Below, we explore what’s behind the shift in attitudes, and who will win this work model tug of war.

Who is demanding an RTO?

Flexible working had been sweeping the supermarkets as retailers jumped over each other to win talent. Tesco gave all staff the right to request flexible working last August, almost a full year ahead of it becoming a legal requirement earlier this April. In 2020, Morrisons gave more than 1,500 workers at its head office a four-day week.

But after years of embracing the new policy, many companies have now done an about-face:

• In January, Morrisons axed its four-day week policy
• In July, Tesco told admin staff to work from the office for two days per week
• Also in July, Asda scrapped a four-day week trial for its employees
• This November, Asda told staff to work in-office three days a week

It’s not just the grocers, however. After years of fully flexible policies, retailers JD Sports and Boots told head office workers to get back behind the desk. Both brands now require in-office attendance from staff members five days a week since September.

Why are retailers doing a 180 on flexible work?

WFH sceptics give differing reasoning for their RTO U-turn. Both Boots and Tesco hinted that home working was impacting teamwork. Tesco director James Goodman said the change would “build and support high-performing teams with a collaborative culture.”

Meanwhile, Morrisons has claimed the decision to scrap its four-day week was based on employee feedback. Staff members reportedly complained that the policy had actually led to them having to work extra hours on weekends.

However, that so many large retailers have chosen to start and end flexible working policies within a similar time frame suggests that some are simply following the herd.

In an announcement this week, an Asda spokesperson hinted that its recent RTO decision was made in response to industry trends. “This approach brings us in line with our competitors and the wider market, allowing us to build high-performing teams”, they said.

Asda’s market share has slumped significantly in the past year. Staff confidence has also fallen after a series of pay rows. In this context, leaders could be hoping that an RTO will signal stability and seriousness to stakeholders concerned about its ability to compete.

However, case studies have repeatedly shown that RTO mandates have little impact on productivity, and are likely to harm staff morale. Attempting to fix its financial performance with an RTO could jeopardise organisational culture, creating a win-lose situation for Asda.

Why a one-size-fits-all approach never works

The recent trend of retailers reversing their flexible work policies offers valuable insights for small businesses. While large corporations prioritise in-office work, SMEs should consider the benefits and drawbacks of such a shift. Following trends for trends’ sake can be risky.

Withdrawing flexible working is more likely to hurt, rather than help, the highly specific issues with Asda’s company culture. Similar to how Morrisons’ four-day week was undermined by leadership not taking time to work out how the policy would align with its staff rotas.

Joe Ryle, director of the 4-Day Week Campaign, agreed, saying the approach was wrong from the start. “Being required to work on Saturdays [isn’t] really a four-day week,” he added.

Ultimately, the decision to change any HR policy must consider the business’ unique needs and operations alongside macro-economic challenges. By avoiding a one-size-fits-all solution, SMEs can harness the power of flexible work to drive growth and success.

The name “dark kitchen” may sound sinister, conjuring up images of a sketchy hideaway hidden deep in a dingy alleyway.

But the reality is actually much more harmless than it sounds. Put simply, a dark kitchen (AKA a “ghost” or “cloud” kitchen), is a restaurant that specialises in producing food for delivery without dining areas or customer seating. 

For entrepreneurs looking to start a restaurant business, dark kitchens offer a low-risk entry point into the food industry, while established restaurants can use them to expand into new locations without the expense of setting up a full-scale restaurant.

 What is a dark kitchen?

The “dark kitchen” term was first coined in 2015. The term “dark” comes from the fact that they’re hidden from customers and aren’t open to the public. Instead, they are fully equipped spaces – with proper lighting! – where businesses prepare food just for takeaway services.

With the rise in demand for food delivery services, such as Deliveroo, Just Eat and UberEats, the number of dark kitchens quickly began to increase, especially during the COVID-19 pandemic.

In 2020, around 750 dark kitchens were operating around the UK, in cities such as London, Manchester and Leeds. Popularity has grown further since, and the global market is expected to reach $112.53 billion by 2027.

Who uses dark kitchens?

Many different companies use dark kitchens for their operations. For example:

• Restaurant chains: Some popular restaurant chains have their own dark kitchens and carry out orders through third-party services. For example, McDonald’s launched its first dark kitchen in Hounslow in 2019, while Wagamama opened one in Hackney a year prior.
• Delivery companies: Some delivery companies have their own dark kitchens that they rent out to restaurants. For example, Deliveroo’s Editions services allow its partners to rent out dark kitchen spaces and have orders fulfilled by its drivers. Restaurants also pay a fee to cover rent, marketing and other costs.
• Virtual start-ups: These are restaurant businesses that operate online only and do not have a physical location or dining room. For example, Taster has a virtual list of different food items (e.g. Ugly Chicken, Flat Out and Out Fry) which it offers to restaurant partners to add to their own menus.
• Dark kitchen operators: Companies that buy dark kitchen spaces to rent out for brands. For instance, Karma Kitchen works to turn underutilised industrial estates into kitchen units, which in turn are offered as workspaces for restaurants.

What are the types of dark kitchens?

The way dark kitchens work is just like how regular restaurant orders are fulfilled. The customer places an order through a delivery app or online ordering system, the food is prepared in the dark kitchen and drivers collect it to deliver it to customers. Some dark kitchens also allow customers to wait and collect their orders.

However, dark kitchens aren’t all the same and come in different types. These include:

• Traditional dark kitchen: A single restaurant business owns or rents a dark kitchen space, usually specialising in one type of cuisine. They often rely on third-party services (e.g. Deliveroo or UberEats) to deliver food to customers.
• Multi-brand: A dark kitchen is shared by multiple brands under the management of a parent company. Each brand (with its own cuisine type) operates within a designated area of the kitchen. For example, a dark kitchen might serve Italian food under one brand and plant-based meals under another – all operating out of the same kitchen space.
• Aggregator-owned: These are operated by third-party companies that partner with restaurant businesses to rent a kitchen space. Deliveroo Editions is a prime example of an aggregator-owned dark kitchen.

What are the pros and cons?

Running a dark kitchen is a popular choice for businesses that want to solely focus on delivery or takeout, without having to juggle catering to in-restaurant customers on top. However, there are also drawbacks to consider as well. These are the main advantages and disadvantages of dark kitchens:

Pros of dark kitchens

• Improved sales: Dark kitchens can leverage data analytics to better understand customer needs in different geographical areas. By analysing data from food delivery platforms, social media and other digital channels, they can identify specific preferences, popular cuisines and emerging food trends in real time. In turn, this allows them to improve their menu, adjust portion sizes and introduce new items based on what’s most in demand.
• Less staff needed: As there’s no dine-in service, dark kitchens operate without the need for servers or cashiers. This can significantly reduce the labour costs – and hiring headaches – typically associated with running a traditional restaurant. Without the need to hire, train and manage a large front-of-house team, businesses can focus solely on hiring skilled chefs and kitchen staff to prepare meals efficiently.
• No real estate cost: Running a physical restaurant can be expensive. Payments for rent, utilities, maintenance and furniture can mount up quickly. On the other hand, dark kitchens don’t require a customer-facing location in busy or expensive neighbourhoods, meaning they can operate in more affordable industrial or less central areas. The only essential costs include the rent for the kitchen space itself, utilities and minimal maintenance for the kitchen equipment.
• No geographical barriers: Unlike traditional restaurants, which are limited by their physical location and can only serve customers within a specific area, dark kitchens have the flexibility to operate without these geographical constraints. As they focus exclusively on delivery, they can reach a much wider customer base across different neighbourhoods, cities or even regions, depending on their delivery partners and logistics.
• More expansion opportunities: Expanding a traditional restaurant to new locations is a long and drawn-out process, not to mention expensive too. It involves having to scout potential locations, build a business plan, hire new staff and obtain the necessary permits and licences to operate. Dark kitchens, on the other hand, offer a much faster and more flexible expansion model. Since they don’t rely on physical dining spaces or expensive storefronts, businesses can quickly set up new kitchen facilities in various locations with minimal overhead.

Cons of dark kitchens

• Over-reliance on delivery platforms: While third-party delivery services can provide access to a large customer base and simplify the logistics of delivery, they also charge high commission fees. For example, Deliveroo typically charges a commission fee of 25-35%, as well as onboarding fees when a restaurant signs up. These fees can significantly eat into a dark kitchen’s profit margins, making it difficult to remain profitable. Delivery delays and incorrect orders can also reflect poorly on a brand’s reputation, even if the problem lies with the delivery partners.
• Complicated menu management: If a dark kitchen operates multiple cuisines out of the same kitchen, there can be challenges in managing diverse menus. Unlike traditional restaurants that focus on one type of cuisine, dark kitchens may have to juggle various dishes and ingredients, which can make kitchen operations difficult because staff have to handle different cooking methods, preparation times and ingredient management without compromising the consistency of each dish.
• Lack of physical presence: Without a physical presence, this can hinder businesses from building a strong brand identity and customer loyalty. Moreover, relying solely on digital platforms and delivery apps to attract customers means they have to compete in a crowded marketplace where visibility and brand differentiation are challenging. Customers may have limited exposure to the brand beyond a logo or description on a delivery app, making it harder for dark kitchens to stand out or create lasting impressions.
• Limited customer feedback: While traditional restaurants can engage with diners and address concerns on the spot, dark kitchens rely on delivery services for these interactions, which can limit direct customer feedback. They may also miss out on valuable insights that could help improve their offerings and adapt quickly to customer preferences.
• Inflexible operating hours: Dark kitchens are often bound by the delivery platforms’ operating hours and may not be able to adjust their hours based on demand. In turn, this can limit their ability to cater to late-night or early-morning customers, potentially missing out on sales opportunities.

Dark kitchens offer a flexible and cost-effective model for both new and established businesses. By capitalising on the growing demand for food delivery, these kitchens allow restaurant businesses to simplify operations, reach broader markets and experiment with diverse menus – all without the overheads of traditional restaurant set-up.

That said, as dark kitchens continue to pop up, it’s important for operators to understand the challenges that come with them, like relying on delivery platforms and maintaining brand identity. Ultimately, entrepreneurs should weigh the pros and cons to figure out if a dark kitchen is right for their restaurant business and goals, helping them make the right choices to set them up for success in the industry.

Brits are desperate for their workplace to become one of the UK companies that have adopted a four-day week. Being able to work a four-day week will be at the top of many employees’ Christmas list this year; and for a lucky few, Xmas has come early.

On Monday, the UK’s second four-day week trial began. Run by the 4 Day Week Campaign and consultancy firm Timewise, the pilot will see 21 organisations with roughly 1,000 employees switch to the four-day week model for six months, ending next May.

Commenters have noted that this will be the first four-day week trial under a Labour government. There are hopes that this latest attempt could even make its way into policy.

But just how successful was the last trial — and will this latest attempt be any different?

What happened last time?

17 organisations, including law firm Rook Irwin Sweeney and brewer Crate Brewery, have already begun trialling the four-day model. Four more will join later next year. Their staff will now work fewer hours equating to one day less per week — crucially, with no loss of pay.

Participators this week expressed excitement about the move. Georgia Pearson, manager at Crate Brewery, expressed hope it would “aid recruitment, particularly in support office roles.”

Their optimism likely stems from the UK’s last four-day week trial in 2022. Researcher Autonomy, which ran that pilot, detailed a long list of positive impacts in its report.

Convincingly, of 61 participants, 92% chose to continue with the trial, while 18 introduced the benefit as a permanent change. Of these, most cited a boost to morale for the decision.

“Data shows that 39% of employees were less stressed, and 71% had reduced levels of burnout at the trial’s end,” reads the Autonomy report. Other reported benefits were lower staff turnover and greater work-life balance; all without a fall in revenue for employers.

Four-day flaws

Continuing with the trial does not necessarily spell ‘resounding success’, however. When Autonomy returned to its 61 subjects one year later, only 29 had made the policy permanent.

51% is not to be scoffed at. But it does mean that, if the outcome is similar the second-time around, just under half of the 21 organisations taking part in the 2024 trial will choose not to implement the perk in a year’s time.

What unites these four-day week flip-floppers is their approach. Autonomy’s follow-up report states that firms with ‘conditional’ four-day week policies, such as asking staff to meet targets to earn a day off, saw fewer improvements to work-life balance and job satisfaction.

Indeed, as the four-day week has grown in popularity, many businesses are introducing tightly controlled policies that can impact success rate.

Take Asda. The grocery giant asked staff to work a compressed week (the same hours over fewer days) rather than reduced (less hours with no pay cut), causing a rise in worker stress. As a result, it scrapped the policy four months into its own six-month trial.

Labour’s four-day week plan

One person who will likely be watching the latest trial closely will be the Prime Minister. Before it came to power, several senior politicians in the Labour party expressed support for the policy, including deputy prime minister Angela Rayner.

The new government has since doubled down on flexible working rights with its Employment Rights Bill, arguing that work from home policies may help to improve productivity.

In a speech to journalists, Sir Keir Starmer said businesses needed to find a “making the most of the flexible working practices [and] having appropriate arrangements in place” to tackle the emerging culture of “presenteeism” in UK workplaces.

Despite it being rumoured to appear in the Autumn Statement, though, the government has stopped short of sponsoring a four-day week bill amid concerns over how it would impact firms. This latest trial will be a chance to prove out the concept on a national stage.

Claire Campbell, chief executive at Timewise, agrees. Commenting on the trial, Campbell said: “It’s great to see a wide range of employers participating in this latest trial.

“We look forward to sharing the results next year, adding to the body of evidence that supporting people with choices about their working lives makes business sense.”

Depending which side of the desk you sit on, last week’s Autumn Budget was day and night. Employees were gifted more protections via the Employment Rights Bill, while employers were gifted a number of new financial commitments to make.

The biggest headline was the increase in national minimum wage (NMW), which will go up by 6.7% next April. Workers who are paid by the hour will soon earn at least £12.21 per hour (£11.55 per hour today). Employer National Insurance contributions (NICs) have also risen.

All staff bonuses come with a trade-off, however. Startups data shows that many firms were planning to invest in pay rises and hiring next year. But with firms now facing a much higher staffing bill, wage growth for private-sector workers has been called into question.

Wage woes loom

In mid-October, Startups surveyed 531 UK businesses about their plans for the year ahead. The results paint a picture of optimism, with many planning to invest in scale-up.

Three in ten told us they expected to hire between one and five new employees to achieve their growth objectives in 2025. In a tight labour market, finding a qualified candidate has been one of the biggest challenges facing small businesses this year.

Retaining this talent in the face of spiralling real wages is a related challenge. Official figures from April 2021 indicate that switching careers is one of the quickest ways to increase salary, with movers growing their wages by 6.6%, on average, compared to those who stayed.

Pre-Budget, our survey shows that 33% of UK firms were planning to increase wages by an average of 5% in order to minimise the risk of staff turnover.

However, this planned payday jackpot for UK employees could be curtailed by the Autumn Statement. Research suggests bosses who had budgeted a 3% pay increase for staff would need to reduce these increases to offset the government’s latest measures.

The joys of spring?

Next April promises little for UK employers to look forward to. At the same time that the new minimum wage will come into force, staffing costs will also surge as a result of the changes to employer NICs — likely putting many at risk of closure.

Chancellor Rachel Reeves confirmed that employer NICs would increase by 1.2 percentage points to 15%. Simultaneously, the minimum threshold at which these apply will lower from £9,100 to a new threshold of £5,000, hitting those who hire part-time workers.

UK staff could feel the impact soon. According to the Office for Budget Responsibility (OBR), roughly 76% of the total cost of the NICs increase will be passed on to employees through lower real wages by the time 2027 comes around.

The watchdog also warned that the measure could lead to the equivalent of around 50,000 average-hour jobs being lost, as struggling businesses make layoffs in order to stay afloat.

Alex Till, Chair of The National Enterprise Network, said: “We must remember our micro and small businesses owners aren’t making huge profits like many corporations and they can’t just absorb these costs.

“Combined with the incoming legislation in the Making Work Pay deal, which will increase employment admin and costs yet further, it feels like yet another burden on the small companies who form the backbone of our economy, and will undoubtedly put many at risk.”

Will the Budget derail business growth?

Changes to employer NICs, combined with a new NMW, have put bosses who want to reward staff in a bind. While economic growth stays slow, the goalposts (in this case, staffing costs) are constantly moving, redefining a competitive salary each month.

In truth, the Budget has complicated these issues, not caused them. For months, firms have struggled to balance the rising cost of employment with the struggle to source qualified staff. And entrepreneurs have taken a ‘stiff upper lip’ approach to the challenge.

Also in our mid-October survey, 82% of UK businesses told us they were either optimistic or very optimistic about growth for their business. It remains to be seen if, and how, last week’s announcement has impacted that outlook.

Vishal Marria, CEO of software company Quantexa, acknowledged that the government needs to raise revenue from somewhere to fix the country’s spending ‘black hole’. But, he added, “we also need to ensure that we’re focused on innovation and growth.

“We need to allow UK businesses to scale if we’re to stay competitive both domestically and internationally. Many, like ourselves, will need to take the time to properly analyse today’s statement, to consider the right next steps for their business and its people.”

When looking for work, any current or former job seeker will tell you that they’ve been ghosted at least once during the recruitment process.

Job seeking itself is never a fun task, and not hearing back from employers about a role you’re interested in makes it all the more frustrating. 

But getting ignored might not necessarily mean something’s wrong with your CV. Rather, the job just never existed in the first place. 

This practice is known as “ghost hiring”, and has been nothing short of grim for job seekers looking for their next opportunity in the UK’s current job market.

What is ghost hiring?

Put simply, ghost hiring (or a ghost job) is when a company posts a job listing but doesn’t have any intention of hiring anyone.

Amid mass layoffs in the UK – with around 82,000 redundancies being made as of July 2024 – many employees have been left to look for new roles and navigate an extremely uncertain market.

The UK has 8% fewer job openings than before the COVID-19 pandemic, and the unemployment rate is also expected to rise to 4.4% in 2025.

With these figures in mind, according to research by StandOut CV, over a third (34.4%) of job listings studied were found to be ghost jobs. Veterinary nurse positions were found to have the most ghost job listings (59%.1%), followed by software engineering (46.5%) and cybersecurity analysts (45.7%).

Additionally, a survey by Clarify Capital revealed that while 68% of hiring managers had job postings active for over 30 days, 43% aren’t actively trying to fill the positions.

Why do employers post ghost jobs?

Despite how disheartening ghost jobs are to candidates, there are actually a few reasons why a company may carry out this practice. For example:

• Building its talent pool: Even if a company isn’t actively hiring, it may post a job advertisement to collect CVs and build up a list of potential candidates for future openings. So while the position isn’t open yet, it could become available later down the line.
• Conducting market research: Just like conducting marketing research to attract customers, ghost hiring is a form of candidate research. Businesses can gather information to determine what skills are available on the market or determine salary expectations.
• Showing economic optimism: Some companies like to give the idea that they’re growing to present a positive image to customers, clients and investors.
• Testing job ad effectiveness: Just like when companies run and analyse ad campaigns, they can also post ghost jobs to determine how well they attract potential candidates. This could include experimenting with different job descriptions, titles and formats to see which one will attract the best candidate when vacancies become available.
• Not removing an expired ad: Sometimes, there aren’t any ulterior motives. A company could have already hired someone, but just haven’t taken the advertisement down yet. Either the hiring team forgot, or the company wants to keep the ad live in case it doesn’t work out with the new hire.
  

How to avoid ghost jobs

While companies have reasons to engage in ghost hiring, job seekers don’t want to waste their time applying for a job they’ll never hear back from. Peter Duris, co-founder and CEO of Kickresume shared some red flags to look out for:

“If a listing doesn’t have a clear timestamp or was posted months ago, it’s worth being cautious. Most roles get filled much faster than that,” he said. “Usually, the hiring manager might’ve just forgotten to remove it. However, sometimes it’s left up intentionally. You might also see the job on Indeed or another search site, but not on the company’s own website.”

Other signs of a ghost job include vague job descriptions or lack of salary information.

How do I know if the job is real or not?

“If you’re unsure about a listing, it’s always a good idea to reach out to the company directly by email or phone to ask if the role is still open,” Duris added. “Talking to someone at the company can help you find out how serious they are about hiring right now.”

Right now, there aren’t any laws that ban ghost jobs in the UK and the lack of regulation means they’re likely to persist in today’s job market, However, it isn’t a recommended practice for businesses, as it can potentially harm a company’s reputation if savvy jobseekers spot the signs and steer clear.

Whether you love it or hate it, Temu has become a shopping sensation for many.

Having only just launched in the UK in April 2023, the Chinese ecommerce website quickly became the most downloaded shopping app in the country – raking in 15 million users, generating £10.3 billion in sales and holding a market cap of $170.08 billion.

Customers turn to Temu because of their extremely low prices, while also offering a good variety of products for different customer needs – from clothing and accessories to gadgets, home decor and novelty items.

But sometimes, things are cheap for a reason, meaning you might end up with something that doesn’t quite match the photos or the quality you expected. And while many customers continue to flock to Temu, sometimes the price isn’t always right.

1. What the sock?

Buying unofficial merchandise can be risky, but for one couple, these knock-off Disney socks had them in stitches.

Emilie and John Fernstrom shared their ordeal on TikTok, where John explained that his wife had bought the socks from Temu in preparation for their “upcoming Disney trip”.

But while the characters were recognisable, it was the names that really threw them off.

Chip from Chip ‘N Dale had become “Chib”, while Mickey Mouse was now known as “Miikey”. Only minor errors, but it gets a lot worse.

Minnie’s name was changed to “Minmee”, Donald now went by “Tonaid” and Piglet was renamed to “Bigeet”.

The couple’s TikTok video quickly became viral, but Temu soon removed the product from its site, with a spokesperson telling The Mirror that it “prioritises intellectual property (IP) protection” and removes listings that try to imitate well-known brands. Probably wanted to avoid getting sued by Disney too.

@collab

Typo? Temu? Or avoiding copyrights? 🧦 #socks #temu #oops #disney #mickey #fypage credit: @Emilie

♬ original sound – collab

2. Aloha-oi!

Temu’s hilariously lousy typos strike again. 

This time, a mother and daughter were preparing for a Hawaiian-themed birthday party and had ordered stickers from Temu for the occasion.

At first, everything looked as expected, with popular phrases like “Aloha” and “Tiki Time” displayed on the stickers. However, the last one would have party guests spitting out their Mai Tais.

Sometimes, even just getting a single letter wrong can throw off the entire word. And for this mother-and-daughter duo, it was a set of stickers that read “Let’s Flaminge” pasted across a backdrop of palm trees and flamingos. Let’s just hope this wasn’t a kid’s birthday party they were planning for.

@chelseyedwards_13

FLAMINGE😂 #fyp #funny #temu #temufinds

♬ original sound - Chelsey.E

5. Doesn’t quite fit the mould

There are many things that you can associate with Christmas, but what this small business ended up with didn’t quite hit the mark for what they were looking for.

Wax melt business Scent Serenity ordered a Christmas tree mould from Temu to add to their festive offerings. 

But instead of a Christmas tree, the mould ended up being of the wandering ascetic Buddha. Definitely not the first thing that comes to mind when building products around the festive season.

@scentserenityuk

#waxmelt #waxmelts #christmaswaxmelts #christmas #festive #funny #lol #bhudda #temu #temuorder #waxmould #waxmeltseller #waxmeltbusiness #fail #fails #failvideo #lol

♬ Merry Christmas and Happy New Year – neozilla

6. A little too realistic

Quality is always important when it comes to selling products. As for the infamous Temu croissant lamp, this probably meant looking as realistic as possible.

Neta Murphy ordered the croissant lamp from the site as a birthday present for her sister. However, after returning from work one day, she discovered ants crawling over the lamp.

The ants weren’t tricked by the product’s realism. Instead, Murphy found out that the lamp was literally made from the popular French pastry and covered in resin.

The reason behind this bizarre choice of material could’ve been inspired by Japanese artist Yukkiko Morita, who started covering leftover bread and pastries and using them as lamps to tackle the excessive amount of unsold bread going to waste. 

Morita later went on to sell her artwork online, likely catching the attention of Temu copycats that sold the same kind of product for much cheaper. We just hope Temu’s return policy covers eaten products.

@froginahatgirl

Pls explain temu

♬ original sound – froginahatgirl

7. Copycat catastrophe

Copycat and dupe products aren’t anything new, and places like Temu and Shein are notorious for copying items from other businesses.

The beauty and fashion industry in particular have seen an increase in cheaper alternatives to high-end products. According to research by Barclays, 32% of customers are now buying dupes due to the cost-of-living crisis.

Unsurprisingly, Temu has jumped on the bandwagon, though its Brazilian Bum Bum Cream dupe has been nothing short of disappointing for one Temu customer.

Temu’s version of the popular Sol De Janeiro product was priced at just $7 (£5.39) – a hefty difference compared to the original’s £36 price. 

Sara Helyse tested the alternative on TikTok, but was disappointed to find it had a paste-like texture and smelt like paint. Just goes to show that sometimes a bargain isn’t worth the sacrifice in quality.

“I will never betray you again Sol De Janeiro.” the video caption reads.

@__sarahelyse

I will never betray you again @Sol de Janeiro 🥲🫶🏼 #bumbumcreamdupe #dupefail #bumbumcream

♬ original sound – sar🤩

Temu takeaways

Temu’s appeal lies in its rock-bottom prices and vast selection, making it a hit among bargain hunters. However, as these stories prove, the quality can be unpredictable. So if you’re willing to take a gamble, Temu can be a treasure trove of unexpected finds – just be prepared for the odd surprise when the package arrives.

For SMEs, there are a few important lessons to take on board. Most notably, consistency in product quality and clear, honest descriptions are important for building a good customer experience and lasting trust. While low prices can attract buyers, quality and accurate representations are what truly stick and get the best feedback.

It’s about focusing beyond price, such as offering reliability, thoughtful branding and customer service. Quality control and transparent communication can work hand-in-hand to build trust, ensuring customers feel confident that what they see is truly what they’ll get. Meanwhile, SMEs can avoid the pitfalls that come with disappointing customers, turning first-time buyers into loyal supporters and avoiding unnecessary returns.

The name “Getir” might not be familiar to most UK shoppers. And that’s little surprise, given the company only operated for around two-and-a-half years before shutting down its UK operations.

The Turkish ecommerce startup – which specialises in fast grocery delivery services – announced in April 2024 that it will be exiting the UK, US, Netherlands and Germany. The company stated that it wanted to focus on its home market, where it could better leverage its resources and ensure operational profitability.

It was a speedy exit for the quick commerce brand, and one worth delving into. Below, we’ll explain the main factors that led to Getir’s decision to call it quits.

Overexpansion

Getir expanded rapidly during the COVID-19 pandemic, having launched in the UK and other countries in 2021. A year later, it acquired rival rapid delivery firm Gorillas for £1.2 billion. Together, the companies launched Europe’s biggest store network for fast grocery delivery for customers in the UK, Germany and the Netherlands.

The company initially saw success with its rapid growth, reaching a valuation of nearly $12 billion (£9 billion) in early 2022. However, as lockdown restrictions began to ease and more competitors emerged, Getir soon started facing increased pressure on its market share.

Online retail expert Martin Newman told the Grocery Gazette that excessive expansion was a poor decision on the company’s part.

He said: “They’d have been better to double down in one or two markets initially, get the model right and grow from there.”

Waning demand

The lockdown period in the UK proved to be a pivotal period for Getir and other online grocery businesses alike. With supermarkets operating under strict restrictions, many consumers turned to online shopping for their grocery needs.

Before the pandemic, only 10% of grocery shopping was done online. This later increased to 16% during the first few months of lockdown, with major supermarkets having to ramp up their delivery services. For example, supermarket giant Tesco doubled its number of delivery slots, including its click-and-collect services to 1.2 million. Sainsbury’s also increased its number of slots by 75%.

However, demand for online grocery services started to slow down after lockdown restrictions eased and more people returned to physical stores. 

It was reported that online grocery penetration peaked at 13.4% in 2021, but the following year saw market growth decline by 12%. A study by the Statista Research Department also suggested that online grocery shopping was becoming unfavourable to consumers because of too many substituted items (with 42.5% of shoppers reporting this), while over a third (33.7%) said they weren’t able to find a suitable delivery slot.

“The rapid delivery space has also been significantly affected by the cost-of-living crisis and a reduction in consumer spending,” Newman added. “Why would you pay extra for rapid home delivery if you don’t need to? This obvious drop off in demand in turn has led to private equity and venture capital funding drying up.”

That being said, things have started to pick up again, as demand for online grocery shopping is now expected to grow by 3.1% in 2024.

Fierce competition

While Getir weren’t the only online grocery business struggling post-pandemic, major competitors, such as Deliveroo and UberEats, were still able to perform well. For example, Deliveroo’s revenue reached an all-time high of £2.03 billion in 2023, a 2.8% increase from the previous year. UberEats generated £700 million in the same year.

These companies already had strong footholds in the broader delivery market – not only offering groceries but also restaurant deliveries, convenience items and other services. This gave them a more diversified and resilient business model. 

Supermarkets have also jumped on the rapid delivery service bandwagon, including Tesco’s Whoosh, Sainsbury’s Chop Chop and Ocado’s Zoom.

Smaller companies were also entering the online grocery and delivery space, such as DoorDash, GoPuff and Zapp. Price wars became rife as a result, leading to increased competition and pressure on profit margins. Getir attempted to compete by discounting some products by around 45% in 2023 to attract customers struggling with inflation and the cost of living crisis.

High operational costs

It was reported that Getir lost £168 million in 2022, which was 45% more than the previous year. Its cost of sales was also at £120.3 million, which unfortunately outran its revenue growth. 

Other on-demand commerce startups were also struggling, with Zapp reporting a loss of £92.5 million the same year, while GoPuff lost £93.8 million. Zapp has since turned things around by focusing on its London market where business has more than doubled in the past 18 months.

To make matters worse, its valuation nosedived from $11.8 billion (£9.68 billion) to $2.5 billion (£2.05 billion) in 2023, even after securing 500 million (£410 million) in a funding round.

Leadership and management issues

Behind the scenes, there were notable tensions between Getir’s founder, led by CEO Nazim Salur and its foreign investors. There were disagreements over business strategies, such as pricing and product offerings. 

For example, investors argued that the company selling a banana for as little as 9 cents during its Black Friday deal conflicted with its premium brand image, while others warned that these decisions would hurt profitability.

Additionally, Getir’s acquisition of Gorillas added more complications to its operations. Integrating Grollas’ technology, warehouses and staff into Getir’s system created significant operational challenges and increased costs. 

This move also led to the departure of several key executives, including the Gorillas COO and CFO. More turnovers later ensued, most notably the departure of Chirs Chayaa, who led the company’s UK operations, amid a round of mass redundancies which saw around 300 staff laid off.

Come back, Kwasi, all is forgiven. Well, that would be a stretch, speaking as one of hundreds of thousands of people whose mortgage bill increased thanks to Kwarteng’s catastrophic budget. But, for business founders, it’s been a hurtful few days of build up to Rachel Reeves’ budget reveal. Her autumn budget, launched today, has already been subsumed by the debate around Labour’s definition of “working people.”

The us-and-themness of it all would feel particularly divisive, if it hadn’t been so ill defined from the get-go (it’s pretty hard to “other” a group when you can’t even say who they are).

Is a startup founder a working person? How about their first five hires, each on a salary with a monthly paycheck, but also given an equity stake in the business (that will now be liable for an increased capital gains tax rate) as incentive for contributing at its earliest stages? How about a sole trader, or someone who simply saw an empty space on the high street and braved the UK’s virtually unprecedented energy, staffing and rent overheads to start their own business there?

With capital gains tax rising to 24% for higher earners, potentially unwelcome changes to Business Asset Disposal Relief, and a double-whammy of increases to employer national insurance contributions and the national minimum wage, the budget makes for a tough read for anyone founding or running a business in the UK. Profit margins are likely to tighten, and the eventual payoff when selling your stake just took a hit.

“These measures, announced today, will have a massive, and outsized, impact on the UK’s medium sized businesses,” says James Robson, CEO of SME business loan comparison site FundOnion. “It is the businesses with revenue over £500k and less than around £10m that will bear the brunt of these tax rises. This is a mistake that will have huge unintended consequences in the years to come, as small firms take decisions against growth, hiring and investment and medium size firms find themselves unable to do those things without significant difficulty.”

“It’s a triple threat,” adds Warren Mead, CEO of Sumer. “Huge employers’ national insurance hikes, minimum wage increases, and higher taxes on gains. This is a business-busting budget.”

Revealing her budget today, Reeves has said that the only way to deliver growth is to “invest, invest, invest.” To make this possible, she’s unveiled a £40bn roster of tax raises (the largest in 30 years). But, “growth” is an ever elusive concept. Truss and Kwarteng’s uncosted tax cuts couldn’t deliver it. It’s now to be seen if Reeves’ budget can truly create an environment for growth that’s welcoming to entrepreneurs, and ultimately rewarding for their innovation and effort.

The inevitable capital gains tax hike arrives

For startup founders, entrepreneurs, and anyone working for a business that offers shares as a business benefit, the anticipated increase to capital gains tax (CGT) has built an unwelcome tension in recent weeks.

The great fear among entrepreneurs was that Reeves would announce a parity between CGT and income tax – which would be particularly impactful for higher rate tax payers.

In this context, the announced tax hike felt milder than had been anticipated, but it will still be a bitter pill for numerous startup founders and their staff who are holding onto company shares in the hopes of realising a payoff for their hard work.

As confirmed today by Reeves, the government will increase the lower rate of capital gains tax from 10% to 18%. The higher rate, meanwhile, will rise from 20% to 24%.

Reeves was bullish on how, despite this tax rise, the UK’s position as a destination for entrepreneurs could still be defended. “The UK will still have the lowest capital gains tax rate of any European G7 economy,” Reeves said.

Mercifully for the startup community, the spectre of a higher rate CGT of up to 40% never materialised. However, UK business founders are still reacting to the announced CGT hike with dismay.

“Bluntly, the new capital gains tax structure wont help to inspire entrepreneurs to take risks and build companies, and will make attracting investment more challenging,” says Greg Cox, CEO of Quint Group.

“As a small business owner, the cost of business in the UK is really high – there is a breaking point and we are reaching it,” says Natasha Guerra, founder and CEO of Runway East. “ As a flexible workplace operator, we are housing some incredible entrepreneurs who are pioneering radical businesses, but we need to be cost competitive to unleash opportunity and stay attractive – and that requires a competitive tax regime.”

Business Asset Disposal Relief likely to disappoint

While the CGT change hasn’t been as bad as anticipated, there’s a caution over the additional context of an unchanged lifetime limit for Business Asset Disposal Relief, which is to remain fixed at £1m.

That lifetime limit may not be due to change, but business asset disposal relief will remain at 10% this year, rising to 14% in April 2025, then to 18% from 2026.

While this news has been somewhat eclipsed by the lower-than-expected CGT increase, experts are warning it may create a less welcoming investment environment in the UK.

‘The changes to Business Asset Disposal Relief are disappointing and feel somewhat against the government’s ‘pro-growth’ agenda,” says Jon Dawson, Head of Creative, Media and Technology at haysmacintyre. “The revised rate of 18% (14% in 2025/26 then 18% in 2026/27) appears to offer very little incentive to people starting a business in the UK.

“We must remember the original relief designed to incentivise entrepreneurs from 2008 to 2020 – Entrepreneur’s Relief, as it was formerly known – was at 10% on the first £10m,” Dawson continues. “A business selling for £10m in this period could have attracted tax of £1m. Under the new regime, a business selling for £10m could attract tax of £2.34m.”

This disappointment at the less-than-welcoming entrepreneurial environment created by the BADR changes has been echoed elsewhere.

“Capital gains tax rates reward business owners who habitually take significant personal and financial risk to drive growth in the UK economy,” says Seb Wallace, Investment Director at Triple Point Ventures. “The government’s hike in the higher band of capital gains tax to 24% without increasing Business Asset Disposal Relief is disappointing, but it remains within the limits of what may be manageable for entrepreneurs.

“The nature of this risk is vastly different from the risk an employee takes to earn income, and it deserves to be recognised as such. Any move to increase capital gains tax for business owners without a material increase in Business Asset Disposal Relief risks a flight of talent out of the UK. It is something we are hearing many founders talking about.”

Inheritance tax and business property relief

There are few more politically polarising tax issues than inheritance tax. Reeves landed a surprise today in extending by two years the freeze on the inheritance tax threshold for property at £325,000. This will now remain in place until 2030.

But for business owners looking to bequeath their business property to family members, there was a more eye-catching announcement in the stated reforms to business property relief.

“The first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all,” Reeves stated. “But for assets over £1m, inheritance tax will apply, with a 50% relief at an effective rate of 20%.”

This 50% relief and 20% effective rate now extends to AIM shares, in a relatively welcome note for investors and business founders. Nervousness abounded ahead of this announcement, given the possibility of AIM inheritance tax relief being removed entirely.

“The threat of removing inheritance tax relief from AIM shares has dragged on the market for months,” says Nicholas Hyett, Investment Manager at Wealth Club. “Today at least provides some certainty about what the future looks like, even if the IHT relief on offer has been cut in half.

“The cut to tax relief will probably weigh on valuations long term, making it more expensive for small UK companies to raise funding,” Hyett warns. “But, not abolishing it altogether has avoided the worst-case scenario of significant disruption as capital fled the market.”

“Inheritance tax has been an underappreciated risk to the UK tech ecosystem,” adds Jon Dawson of haysmacintyre. “Being able to pass shares in high growth early-stage technology companies in a tax neutral way makes investment in unlisted UK growth companies very attractive to some. Applying a 50% relief on shares on the AIM offsets some of these effects, but expect some earlier stage businesses to look at setting up in more tax-friendly jurisdictions.”

Keeping investors in the UK

In a change that might just have felt aimed at Rishi Sunak’s household, Reeves announced that the government would remove “the outdated non-dom tax regime.” Domicile status will be excised from the tax system from April 2025. This will be replaced by a “simpler residence based regime, designed to bring the best talent and investment to the UK.”

However, the removal of non-dom status was greeted with a note of caution in some quarters. “Changes to the non-dom regime may lead to those with significant wealth and serial entrepreneurs looking to start their next venture outside the UK,” warns Jon Dawson of haysmacintyre. “This is unlikely to significantly affect those in the earlier stages of their entrepreneurial journey. But, a greater impact on the technology sector could be access to capital if those non-dom individuals with significant wealth choose to reside elsewhere and may transfer their investment overseas as a result.”

Tax relief policies for entrepreneurs can play a key part in making the UK as attractive a destination as possible for companies looking to invest in the biggest growth sectors of our time, including AI.

“If the government is serious about making the UK a global hub for artificial intelligence, we need to see more grants or tax relief for capital expenditures that will encourage companies to invest in this technology,” says Andrew Burman, Principal, Tax Technology, at Ryan. “This will make it more feasible for businesses to adopt new equipment or technology that will help streamline their operations and drive long-term commercial success.”

Would founders and investors actively seek to leave the UK, if the reception to today’s budget is truly poor? It’s an unlikely outcome, given London’s enviable position in the finance and startup global ecosystem, but research has found the risk remains.

“In the run up to today’s budget, we saw numerous reports of entrepreneurs planning to move abroad if the budget didn’t deliver for them, with our own research of 500 business owners revealing that almost half would consider leaving the UK if the tax changes were clearly unfavourable,” says Toby Tallon, tax partner at Evelyn Partners.

“But, perhaps the greater risk is inactivity,” Tallon continues. “If the business owners lose confidence in the government’s economic or fiscal plans, they might decide that striving for that extra growth is not worth it if the rewards are more heavily taxed.”

Other business voices have joined this note of warning. “With the increase in CGT rates, including on the sale of businesses, the budget did not include much to cheer already under-pressure business leaders,” says Thomas Adcock, Tax Partner at Gravita. “If you want to sell your business in the future, now may be the time to start.

“High earners and investors have already been leaving the UK due to rumoured tax rises, and now that these changes have been confirmed, this trend is likely to continue,” Adcock says. “In our experience, it is not just non-doms that are leaving, but the Budget today will likely not encourage them to stay either.”

In better news for the UK’s prospects for attracting and keeping entrepreneurs, Research and Development tax relief rates haven’t been changed in this budget. “It’s a smart move by the chancellor to leave R&D tax relief rates untouched”, says Nigel Holmes, Director, Research and Development, at Ryan. “Before today, we were starting to see clients hold back on decisions to access government initiatives such as R&D tax credits and grant funding, as they couldn’t confidently plan these into their forecasts.

“These regimes, including full expensing and the Annual Investment Allowance for Capital Allowances, are all lifelines for businesses looking to innovate and grow. Now we know this funding is here to stay, we hope to see more firms capitalising on these reliefs, and playing their part in putting the UK on the map as a global technology leader.”

Employer national insurance contributions rise to 15%

There were no surprises to be found on employer national insurance contributions, which Reeves has confirmed will increase by 1.2%, to a new level of 15%. Combined with the increase to the national minimum wage (see below), this is likely to be daunting news for small business owners across the UK.

On top of this, the minimum threshold at which employer NICs apply will come down, from April next year. The former minimum of £9,100 will give way to a new threshold of £5,000.

Reeves has stated the employer NICs increase will raise an additional £25bn, but is likely to come at a cost for businesses obliged to hold back on pay rises, pause hiring plans, or accept smaller profit margins.

“An increase in National Insurance contributions could increase the financial burden on businesses,” says Ira Guha, Founder of Asan Cup. “After a certain point, businesses may find it difficult to improve wages or they may hold off on hiring new talent. This could have an impact on the job market, which will eventually impact working people.”

Greg Cox, CEO of Quint Group, reflected ruefully on the announced changes to employer NICs. “Today’s rise in employers’ national insurance is yet another challenge for small businesses that have been battling economic headwinds for the last half-decade,” Cox told us. “At a time when interest rates are set to fall, releasing some pressure and improving liquidity for businesses and consumers, this additional NI burden is an unwelcome cost that threatens to stifle growth, hiring, and productivity.

“If the government is serious about fixing the foundations of our economy, it should back businesses, not burden them. For a government that wants to encourage national renewal, today’s announcement will set many small firms back.”

Minimum wage increased by 6.7%

As trailed ahead of the budget, the national minimum wage is in for a serious hike of 6.7%. The jump to £12.21 an hour will come into effect from April, and will be welcomed by employees up and down the country – even though it still falls below the £12.60 recommendation of the Living Wage Foundation.

For business owners, the increase will present a challenge. Combined with the employer NICs hike, the true cost of an employee is set to rise for millions of UK small businesses. This could yet impact the number of staff that employers feel able to take on. Reeves, meanwhile, will be betting big on the increased spending power of the “working people” receiving the minimum wage hike, which may in turn support the growth of those businesses.

Hospitality and retail sectors get a mixed bag

In news for the struggling high street, Reeves announced a 40% relief on business rates for the retail, hospitality and leisure sectors. However, this is a big reduction from the previous relief rate of 75%.

It’s good news, too, for pubs and bars, with a 1.7% cut to duty on draft (but not bottled or canned) alcoholic drinks. Could a resulting cut to the price of a pint be enough to tempt back the UK’s drinkers after a rain-soaked summer dampened the UK’s mood for beer gardens?

Unfortunately, the other changes announced by Reeves, such as the increase to national minimum wage and the hike to employer national insurance contributions, may yet mean that punters won’t enjoy a pub price cut.

Recent changes to UK tipping law also mean that there’s less wriggle room on the revenue for those running bars, pubs and restaurants. Much of this is welcome news to those waiting tables or pulling pints, but the increased business rates relief and small cut to alcohol duty are unlikely to offset the biggest overheads being felt by the hospitality industry.

Chief executive of UK Hospitality, Kate Nicholls, says the increase to NICs would “particularly hammer sectors like hospitality, where staffing costs are the biggest business expense”.

She added: “Hospitality businesses are much less able to stomach yet another cost increase when they’re already managing increases in other areas like wages, food, drink and energy.”

A bruising budget for UK business?

The UK’s entrepreneurs and small businesses owners will be scrabbling to assess the impact of today’s budget announcement.

For employers, profit margins are likely to get tighter, with the increase to employer NICs and the rise in national minimum wage next year likely to be particularly tough for the hospitality and retail sectors.

Let’s remind ourselves of some key stats. The UK is home to 5.5 million small and medium-sized enterprises, of which 4.1 million are self-employed or sole traders. Hurt those business founders, and you ultimately hurt the 99% of the country’s workforce that they employ.

For startup founders, there’s somewhat welcome news, in that the worst anticipated changes to capital gains tax didn’t, ultimately, materialise. But, even the smaller announced uplift to CGT will sting, and give pause to plenty of would-be business founders wondering if the long hours and hard graft will ultimately pay off.

“Entrepreneurship involves a lot of risk, which needs to be rewarded relative to taking the more typical path of full time employment and job security,” says Greg Cox, CEO of Quint Group. “While the UK remains one of the world’s top fintech hubs, with a thriving ecosystem and remarkable talent base, today’s hikes will mean some entrepreneurs will think longer and harder about building a company and firms will need to keep finding creative, sustainable ways to grow in yet more adverse economic conditions.”

Returning to the “working people” element so hotly (but inconclusively) debated in the days leading up to the budget, Seb Wallace, Investment Director at Triple Point Ventures, argues, “We must separate the conversation about capital gains from unearned income, such as property investments, from gains earned by hard-working entrepreneurs who are actively driving economic growth.”

Business networking has never been more important than in today’s remote world of work. When you or your contacts are based online, being able to connect in-person is a fundamental skill; and one that’s increasingly in danger of dying out.

Once you’ve printed off the business cards, however, you’ll need to know where to go next. Entrepreneurs who are seeking out workshops, seminars, and lunches can read this guide for a complete list of the best free events to attend this month.

Whether you’re an experienced business owner, or a new founder, put on your scarf and hat and prepare to make fireworks at the below 70 networking events for November!

Tighten your seatbelt and assume the brace position. That’s been the UK government’s warning ahead of this week’s Autumn Statement, as it attempts to steer clear of an economic crash without raising taxes for “working people” (not that it can define who that is).

While her predecessor, Jeremy Hunt was peddling promises of tax cuts and giveaways back in March, Chancellor Rachel Reeves has thrown optimism out the window. Faced with a “£22bn” black hole in public spending, a rise in National Insurance contributions for employers looks imminent, as does a hike in Capital Gains Tax (CGT).

This glass half-empty approach might help to protect the government. But it also means throwing cold water on business growth plans at a time when a bold vision is most needed.

Small firms seem to be most affected. Accountancy firm Price Bailey recently found that just 57% of SME bosses think their sales will improve this year, compared to 95% at large companies. Chand Chudasama, Partner at Price Bailey, warns, “concerns that tax rises in the Autumn Statement could fall heavily on small businesses are sapping confidence.”

We heard from UK business leaders about what government support and initiatives they’re demanding from the budget – and what policies they think could do more harm than good.

“Reinstate Entrepreneurs Relief limit”

“The UK has had a leading global reputation for entrepreneurship, although the gloss has come off in recent years following Brexit, political instability and general tax increases.  During the General Election the Labour Party proclaimed their support for small businesses, but talk of a capital gains tax hike, and a strongly rumoured employer’s National Insurance increase has raised serious concerns with the UK’s entrepreneur community.

“The Autumn Budget is a ‘knife-edge’ moment for the Government – deliver the right support for entrepreneurs to unleash the growth potential, or anchor private businesses with more tax increases, severely dampening the appetite to take a risk.

“I would encourage the Government to reinstate the £10 million entrepreneurs relief limit, which allows entrepreneurs to pay a reduced 10% tax rate on profits from selling their businesses, compared to the usual 20% rate, and provide a strong signal that Britain is ready to back business.”

• Nimesh Shah, CEO of Blick Rothenberg

“Don’t touch Inheritance Tax relief”

“The Government has pledged that the headline rates of VAT, income tax and NICs for what it terms ‘working people’ will be frozen in the upcoming Budget, and corporation tax will be capped at 25% for the rest of this parliament. However, changes to other taxes which the Chancellor has remained silent on keep many business owners awake at night.

“Removing or restricting business relief for IHT or hiking CGT rates could have a considerable impact on the investment of time, energy, risk and money by business-owners, which in turn could jeopardise economic growth for the UK.

“CGT has historically been charged at lower rates than income tax in order to reward entrepreneurs for the considerable risks they take when founding and growing businesses. Restricting IHT business reliefs may make it more costly to pass businesses on to the next generation which could put the viability of long-standing companies – and the ability to continue employing loyal workforces – at risk if family members of business owners have sizable inheritance tax bills they need to settle. “

Toby Tallon, tax Partner at Evelyn Partners

“Finance policies focused on micro-lending”

“”Many of the nation’s 5.5 million businesses are approaching this Budget with trepidation. Given they collectively represent huge potential for powering UK growth we need measures that boost confidence.

“We need better access to finance, with more government-backed policies focused on micro-lending and scale-up, especially for under-represented entrepreneurial groups.

“Small businesses have been woefully under financed and many also lack financial skills. So there also needs to be more support to make the most of existing funding – and this support needs to be accessible and inclusive.”

• Michelle Ovens CBE, Founder of Small Business Britain 

“Encouraging people into the workforce has to be a priority”

“From a recruitment perspective, we appear to be in a hiring recession, with employers putting the brakes on their recruitment activities in nearly every sector. The latest UK labour market statistics show that employment has increased very slightly while unemployment has also cooled marginally.

“Some answers may be found in the Government’s draft Employment Rights Bill but further detail will be needed to instil confidence, some of which may be forthcoming in the Autumn Statement.

“For businesses that can do so, encouraging more people back into the workforce has to be a priority. Employers who aren’t currently in a position to hire must stay focussed and strategic with their workforce planning across areas such as skills-based hiring, flexible working, and talent development.”

• Michael Stull, managing director, ManpowerGroup UK

“Present a clear roadmap to solve late payments”

“Late payments are the number one threat for SMEs across the UK. According to the Federation of Small Businesses, 50,000 companies are forced to close each year because of the cash flow issues that late payments create. This is simply unacceptable.

“The government has promised to tackle this growing problem. We’ve seen the rollout of the New Fair Payment Code, and a consultation has been promised to identify new measures that will improve the payment practices of large businesses to smaller firms – but we don’t know when. We need more details.

“Given the severity of this issue, we’d like a clear update next week from the Chancellor on when the government’s consultation will start, along with information on how everyday business leaders who are experiencing these issues first-hand, can be a part of it.”

• Andrew Martin, CEO and Founder of SMEB 

“Confront the energy crisis head on”

“This month’s energy price increase is already hitting businesses hard—just as Sir Keir Starmer marks his 100th day in power—turning the situation into a critical threat for many, particularly in sectors like hospitality, manufacturing, retail, and healthcare.

“When Rachel Reeves steps up to the despatch box on 30th October, we urge the Chancellor to introduce policies that directly support SMEs. Measures like energy bill relief or subsidies for energy efficiency upgrades would provide vital help in managing these sudden cost increases. If the Government is truly pro-business, it must confront the energy crisis head-on to protect the backbone of the UK economy.”

• Liam McKee, Head of Digital & Growth at BusinessComparison

“Reform R&D to drive growth in every corner of the economy”

“The substantial drop in the number of businesses claiming R&D credits in recent years is a concern. A 20% drop is unprecedented, and the fact it is made up almost exclusively of SMEs and lower-value claims, does nothing to diminish perceptions that the scheme is currently biased against smaller businesses.

“It raises the question as to whether HMRC – whose primary role is to raise revenue and ensure compliance – is the most appropriate arbiter of business R&D and whether a separate agency would be more effective. What we need to see from Labour is an understanding of the root of the problems and a proposed solution that still allows R&D to thrive, which is one of the recommendations we set out in our Innovation Manifesto.

“In the run up to the Autumn Statement, the Chancellor needs to seriously consider whether the current system is fostering the best environment to harness the spirit of entrepreneurialism that she’s hoping will drive growth in every corner of the economy.”

• Benjamin Craig, Associate Director of R&D Incentives at Ayming

As the Christmas shopping season creeps closer, the great cashless debate continues – leaving many questioning whether traditional cash transactions will make it through the holiday or if we’re edging closer to a cash-free Christmas.

The UK is expected to become a cashless society by 2043, but could the rapid shift to digital payments see this transformation happen sooner?

Could 2024 be a cash-free Christmas?

As contactless payments continue to dominate, more businesses are moving away from cash. As of 2021, 5% of small businesses are no longer accepting cash, while 3% have discouraged cash payments. There were also 1.59 billion contactless card transactions recorded in March 2024.

But even large firms are beginning to go cashless, such as with the UK’s cash-free supermarkets, including Tesco’s cash-free cafes, Morrisons’s card-only self-checkouts and Asda’s plans to make kiosks across 25% of its petrol stations cashless. Pizza Hut restaurants have also been cashless since April 2020.

In terms of region, London was considered to be turning cashless faster than the rest of the UK. According to statistics reported by The BBC, residents and workers had been taking out £500 million less every month from ATMs compared to pre-pandemic levels.

The number of cash transactions in the UK was reported to drop to a record low of 12% in 2023 – down from 14% the previous year. On the other hand, debit cards were reported as the most popular payment method, accounting for 51% of all payments made in 2023 and the most used method among consumers of all age groups.

Meanwhile, gift cards were becoming increasingly popular choices for Christmas presents. According to research by the Gift Card and Voucher Association (GCVA), nearly 44% of UK adults tightened their gift-buying budgets last year due to the cost-of-living crisis. 

As a result, 14% of shoppers planned to increase their spending on gift cards to better manage their budgets and avoid wasting money on unwanted gifts. Gift cards were particularly popular among Millennial and Gen Z consumers, with 28% of those aged 16-34 choosing them for budgeting purposes.

The gift card market is expected to grow to £11.23 billion by 2028, with a compound annual growth rate (CAGR) of 6.0%.

However, cash is still considered a meaningful present to many shoppers. Last year, it was reported that 76% of parents gave their children cash for Christmas, the average amount being £109.93. 37% of consumers also said they wanted cash or a transfer as a Christmas present.

The impact of going cashless for shoppers

December is an expensive month and some consumers prefer using cash to manage their expenses and avoid overspending.

Take the “cash stuffing” trend as an example, which took off on TikTok and Instagram last year. Participants would allocate their monthly budget into different envelopes labelled for specific categories (eg groceries, entertainment, bills, etc.) and would only use the cash available in each envelope for its designated purpose.

Consumers are also more likely to spend more with a card than with cash, particularly when it comes to impulse purchases. It was reported that 36% of Brits are more likely to make an impulse buy when shopping online, while the average spending on credit cards in December 2023 was £850 – the highest ever recorded by data analytics company FICO. A survey by Lowell also revealed that the average shopper in the UK gets into £439 of debt over Christmas, taking four months to financially recover after the festive period.

Meanwhile, going completely cashless could exclude vulnerable groups, particularly elderly individuals and those without bank accounts or smartphones who depend on cash. 

The Financial Conduct Authority (FCA) estimates that there are 1.1 million unbanked adults in the UK and as of 2021, 12% of the UK’s adult population didn’t have a smartphone device. A report by Age UK also revealed that 2.4 million people aged over 65 rely on cash in their day-to-day lives.

Will we all be shopping online?

Here comes Santa Claus? Now, it’s more like here comes Amazon.

After all, shoppers spent £24.4 billion online over the Christmas period in 2023 – a 3.7% increase from the previous year. Unsurprisingly, online shopping is expected to increase by 5.1% to £32.48 billion this Christmas season, while sales are predicted to reach around £242.72 billion for Black Friday.

Meanwhile, high street sales in the UK declined by 2.7% in 2023, which was the biggest monthly decline since January 2021, when lockdown restrictions were reintroduced.

And that’s just part of the high street’s struggles. As of September 2024, almost 38 stores have closed permanently each day this year. Research reported by the Retail Gazette revealed that 6,945 outlets had closed their doors, unfortunately outnumbering the rate of new store openings, which was around 25 per day.

As the UK approaches another holiday season, the cashless debate continues. With major retailers adopting cash-free systems and contactless payments on the rise, the UK could slowly be moving towards a cash-free Christmas. 

However, this also raises pressing questions about inclusivity, financial education and the future of traditional holiday shopping.

As the Autumn budget looms, the Labour government has harked back to its manifesto pledge to not increase taxes for “working people.”

However, clarification over who exactly this covers became muddled after Prime Minister Keir Starmer hinted at possible tax increases for those who own shares and assets – which of course includes plenty of startup and small business founders. This comes as ministers refused to rule out National Insurance increases for employers.

When asked to define the meaning behind “working people,” Starmer responded that it was someone who “goes out and earns their living, usually paid in a sort of monthly cheque.”

But this uncertain position begs the question of whether business owners – from bootstrapping founders and side hustle entrepreneurs to freelancers and sole traders – are perceived as “working people”, and if they’ll be taxed further in the upcoming budget.

The importance of entrepreneurship in the UK

A rise in capital gains tax seems all but guaranteed at this point, and it’s a cause for concern among entrepreneurs and those starting their own businesses, who would ultimately hope to profit from the share value of their venture upon sale or exit. Potential buyers or investors would have to factor in the higher tax costs, meaning business owners could see reduced net proceeds they receive from the sale, making the exit less lucrative.

Any such tax increase could feel like a potential deterrent to taking on the long hours, stress and dedicated focus required to launch and run a startup or small business, particularly if CGT were to reach near parity with income tax bands. For founders to face this prospect while being referred to as “non-working people,” it’s an even more bitter pill.

As of January 2023, there were around 5.5 million small and medium-sized enterprises (SMEs) in the UK, which cumulatively employ 99% of the country’s workforce. 1.3 million of these businesses are under 5 years old, while 4.1 million are self-employed or sole traders.

“The UK government must continue to support SMEs, which are navigating an exceptionally challenging landscape,” Laurent Descount, co-founder and CEO of Neo said. “However, the Chancellor’s proposed blanket increase in Capital Gains Tax threatens this vital investment access. It risks deterring investors from backing small, growing companies in the UK, and potentially hampers start-ups from progressing to IPOs or secondary share sales, as investor reward just won’t be there”.

Craig Mehta, co-founder of Know You More, commented: “As a small business owner, the last few years have been extremely challenging. With inflation rising and market competition intensifying, many small businesses, including ours, are struggling with cash flow challenges. Any increases in corporate tax would have a particularly negative impact.

“Additionally, our employees, including myself, are also feeling the strain. We have a limit on how much we can raise wages, and any tax increases on middle earners, such as capital gains or inheritance tax, would exacerbate their financial stress.”

A study by Evelyn Partners revealed that 48% of founders also said they would consider leaving the UK and moving their business abroad if taxes are increased for the Autumn Budget, while just 20% believe the Budget will be good for their business.

“Following the prime minister’s comment in August that the Budget was ‘going to be painful’ we’ve seen an influx of queries from business owners who are anxious about what any potential tax changes could mean for them personally and their businesses, with some mulling the option of becoming non-resident,” Toby Tallon, tax partner at Evelyn Partners commented. 

“With the technology available today some business owners may decide to up sticks and move either themselves or their operations – or both – abroad if they felt they weren’t being made welcome in the UK.”

Should business owners worry about the upcoming tax changes?

An increase in CGT could also dampen investment in businesses, especially via venture capital or private equity funding. Higher taxes on capital gains could reduce the net returns for investors, which can make them more cautious and they might not be willing to invest in high-risk or high-reward ventures. This can limit the funding pool available for new businesses, as well as restrict growth opportunities. 

According to research by Business Matters, 86% of business owners are concerned that increased taxes could hinder their growth, while 78% expressed concern that the Autumn Budget could negatively impact their plans.

Raising these taxes such as CGT could risk deterring entrepreneurship. If founders are charged the same amount of tax as they would when receiving a normal salary, then the hard work and dedication that goes into running a business would hardly seem worthwhile. 

The counterargument to this position is that many people with assets aren’t business founders (eg investors and landlords). These groups don’t pay as much tax compared to someone on a regular salary. For example, someone with income from shares of £50,270 or less will only pay 10% of capital gains tax on that income, whereas the basic rate for income tax between £12,571-£50,270 is currently 20%.

While the government hasn’t yet announced specific figures for tax increases, there are potential risks that can affect a business’s financial health if it faces higher taxes. These include:

• Reduced profit margins: Increased taxes will cut directly into a business’s profit margins, leaving it with less retained earnings for growth or investment. As a result, businesses may need to raise prices or cut wages to offset these costs, risking decreased customer demand or unhappy employees.
• Stagnated growth: Higher tax obligations can reduce the available funds for research, development and expansion efforts. With tighter budgets, businesses may also pause expanding operations or improving infrastructure, which can hinder productivity over time.
• Decreased cash flow: Higher taxes can also put pressure on cash flow, affecting a business’s ability to cover everyday operational costs, make debt payments on time or maintain healthy inventory levels.
• Employee layoffs and reduced benefits: With less revenue, businesses may have to reduce employee benefits and perks, freeze hiring or even lay off workers to manage expenses.

While the Labour government’s tax pledges aim to protect “working people,” there is still uncertainty over how these policy changes will impact small business owners and entrepreneurs, many of whom are critical contributors to the UK economy.