The UK Government is planning to make further changes to its food advertising and labelling rules, as it claims market forces alone aren’t sufficient in encouraging children to make healthier food choices. 

The reforms arrive against a backdrop of increasing regulations for food and beverage producers in the UK, with many businesses already feeling the pinch from tighter packaging laws and compliance measures that came into force at the start of the year.

But as these changes quickly approach, what impact will the new food business rules actually have on the factory floor, and what actions startups can take to avoid getting caught short?

What new healthy food rules are the government proposing?

In a bid to tackle poor diets and obesity among children, the Government is considering making changes to its Nutrient Profiling Model (NPM) — a scoring system that measures the healthiness of foods and drinks based on their levels of salt, calories, saturated fats, protein, and free sugars. 

Under these new changes, which are expected to take effect later this month, products such as fruit juices, yoghurts with fruit compost, and bran flakes could be reclassified from the “less healthy” to “unhealthy” category. This revision directly impacts which items can be sold on promotion, displayed in high-traffic areas in-store, and advertised on television during peak times. 

After dropping plans to encourage supermarkets to roll out voluntary food price caps on staple products like bread, milk, and eggs in May, these new regulations take another stab at tackling the drivers of obesity by making healthier products more accessible and appealing to consumers.

How the Government’s new rules could impact prices and investment

The food and drink industry, which is already grappling with rising labour costs, packaging taxes, and stricter recycling rules, is unsurprisingly finding these changes hard to digest. Industry groups argue these reforms risk fueling inflation and dampening investment in the sector, while adding costs that will ultimately be passed onto consumers.

These worries aren’t unfounded. Major manufacturers have already voiced concerns about these new rules, with Jon Hughes, managing director at Haribo, telling the Financial Times that the company would invest less in Britain as a result of the proposed changes, commenting that “The goalposts are moving every year from how we advertise to run promotions”, creating “a huge amount of distraction”.

Changes to NPM scoring criteria may also force manufacturers to spend more on reformatting products, revising packaging, and reconsidering supplier relationships, while retailers could face tighter rules on promoting and displaying less healthy products.

While the Government maintains that these new regulations would only affect large and medium-sized UK businesses, these changes would likely create downstream effects for smaller pubs and restaurants. If manufacturers face stricter rules, the higher costs they face could be passed onto hospitality businesses, forcing venues to raise food prices, switch suppliers or adjust menus to offset costs.

How can your business prepare for the new rules?

While the proposed changes are primarily aimed at larger food businesses, smaller manufacturers and hospitality operators should still consider taking steps to reduce disruption.

For small food manufacturers, we recommend reviewing the proposed Nutrient Profiling Model changes and assessing which products could potentially be reclassified as less healthy or unhealthy. 

You could also explore reformulation opportunities to reduce levels of sugar, salt, or saturated fat in your products, where possible. This could have a direct impact on how retailers you work with market, display, and promote your items.

The rules could also affect small restaurants, pubs, and independent shops slightly differently, potentially affecting which products you’re able to buy and sell. To keep disturbances to a minimum, keep in close contact with suppliers about product availability, recipe changes, and price changes.

You could also stay one step ahead of the curve by reviewing current menus and product ranges, so you’re able to act fast if key products become unavailable, more expensive, or face display regulations when the new regulations come into effect.  

Ultimately, while these looming changes may prove unsavoury for parts of the manufacturing industry, the sooner businesses prepare, the easier it will be to absorb the impact of the new rules. 

Amazon Prime Day in the UK will run from the 23rd to the 26th of June, giving sellers the opportunity to tap into a big wave of bargain hunters, boost sales over a short burst of traffic, and bring in new customers who might stick around long after the discounts end.

But even if you don’t sell on Amazon, Prime Day is still an important event for ecommerce businesses. Since a lot of shoppers will already be in “buying mode” – like comparing prices and spending more freely across all online stores – it’s a great chance to grab attention, run your own promotions, and drive extra sales.

That said, with the event often coming with intense competition, the difficult part is how to attract shoppers’ attention and make the most of the increased demand without getting lost in the flood of discounts and promotions.

That’s why we’ve listed five simple and actionable steps your business can take to make the most of Prime Day and win the best sales this weekend.

Why Prime Day matters

Amazon Prime Day is an important event because it drives a huge surge in online shopping activity, with more consumers actively looking for deals and ready to spend.

After all, UK shoppers spent over £2bn online across the Prime Day period last year, which is the equivalent of two Black Fridays in one. Day one alone also saw a surge in spending by over £670m.

For Amazon sellers specifically, there are 13.4 million people in the UK with an Amazon Prime subscription, meaning brands have access to a huge audience of shoppers who can take advantage of Prime Day deals.

But the impact of Prime Day extends far beyond Amazon itself, as many shoppers use the event to compare prices, research products, and look for better deals elsewhere online. As a result, ecommerce businesses of all sizes often see increases in website traffic, customer engagement, and purchase intent during the same period.

Whether you’re selling on Amazon or through your own business website, Prime Day can be a powerful moment to capture demand and grow your customer base.

5 ways to prepare your online store for Prime Day

Prime Day is a major opportunity for online stores to increase traffic and sales.

That said, success isn’t guaranteed, and it can’t be last-minute either. Brands that plan ahead are far more likely to stand out from the competition and make the most of the spike in consumer spending.

From running timely promotions and preparing marketing campaigns to ensuring your operations can cope with increased demand, here are five practical ways to get your business ready for Prime Day.

1. Run your own timed promotion window

You don’t have to be selling on Amazon to benefit from the increased shopping activity around Prime Day. In fact, many ecommerce brands run their own promotions at the same time to tap into the surge in consumer spending.

What’s more, shoppers aren’t just looking at deals on Amazon either, as 55% of consumers say they plan to shop across multiple retailers rather than only rely on Amazon during this period.

There are several ways to approach this. For example, some brands launch a 48-72 hour flash sale to create excitement and encourage quick purchases. Flash sales are an extremely effective way to drive “Fear Of Missing Out” (FOMO) among customers, especially as 45% of shoppers say FOMO influences their purchase decision, with Millennials and Gen Z being the most susceptible at 67%.

Another effective approach is to put together exclusive bundles or limited-edition product drops that can’t be found elsewhere. You can also reward your existing customers by offering early access to sales for email subscribers, loyalty members, or SMS subscribers before opening promotions to the rest of the public.

2. Prepare email campaigns

During this period, email marketing can be one of the most effective digital marketing channels, as it allows you to reach an audience that already knows your business and is more likely to convert. 

As consumers expect deals to be temporary, your messaging should reinforce that sense of urgency and encourage immediate actions. Campaigns built around themes like “Our Prime Day alternative starts now”, “48-hour flash sale”, or “Weekend-only free shipping upgrade” can create the FOMO that drives purchases. 

Don’t just rely on a single email either. Instead, plan a sequence of communication in advance – such as a teaser campaign before the event, a launch announcement on the day the promotion goes live, reminder messages throughout the period, and a final “last chance” email as the deadline approaches.

Make sure to segment your audience, too. For example, VIP customers could receive early access to deals, while previous shoppers could be retargeted with complimentary product offers. You can even reach people who have abandoned their baskets and recent website visitors by reminding them about limited-time discounts before the promotion ends.

3. Strengthen your paid ads before the CPC spike

As more brands compete for the attention of the same audience, advertising costs on platforms like Google Shopping, Meta, and TikTok often go up, making it more expensive to generate clicks and conversions.

So to avoid wasting budget during this period, it’s important to prepare your campaigns in advance. Rather than making major changes once Prime Day begins, use the days leading up to the event to test ad creatives, messaging, audience, and landing pages so that you can find what performs best. You should also make sure your campaigns have enough budget throughout the event. 

When deciding which products to promote, focus on your strongest performers. Best-sellers and high-margin products are often the safest choice because they already have a proven track record of converting and can deliver the best return on investment (ROI). 

4. Optimise your listings for AI

More shoppers are using AI-powered tools and search experiences to research products, compare options, and find recommendations, with 43% of UK shoppers expected to use AI to shop smarter during Amazon Prime Day.

This means that your product listings need to be written not just for good search engine optimisation (SEO), but also for AI optimisation (AIO) and AI systems helping those customers make purchasing decisions.

For this, you should ensure your product titles, descriptions, and specifications are clear, detailed, and easy to understand. With AIOs now appearing on 30% of UK searches, you’ll need to provide information that’s structured and descriptive to determine what a product is, who it’s for, and what problems it solves. Vague product copy or mission information can make it harder for your products to get picked up in AI-generated recommendations.

5. Update your stock and logistics

One of the biggest mistakes ecommerce businesses can make around Prime Day is solely focusing on marketing while overlooking operations.

A successful campaign can drive a significant increase in orders over a short period, but if your stock levels, fulfilment processes, or customer support teams aren’t prepared, that extra demand can quickly become a problem.

Therefore, you should start by reviewing inventory levels for your best-selling products. If you’re planning to promote specific items, make sure you have enough stock available to meet a potential surge in demand. Running out of inventory halfway through a promotion equals lost sales, frustrated customers, and wasted marketing spend.

It’s also important to assess your fulfilment capacity. Whether you manage orders in-house or work with a third-party logistics provider, make sure your warehouse can handle increased order volumes without causing delays. If fulfilment times are likely to be longer than usual, communicate this clearly to your customers.

Making the most of Prime Day

You don’t need to compete with Amazon Prime Day directly. Rather, the opportunity is to ride the same consumer psychology wave – urgency, deal-seeking, and comparison shopping – then convert that attention into your own ecosystem.

The brands that prepare early are often the ones that see the best results when shoppers are ready to buy. 

All it takes is some preparation, optimising your product listings, and ensuring your operations are ready for the potential jump in demand. Through these practices, you can put your business in a strong position to benefit from one of the biggest ecommerce events of the year.

The adoption of AI technology among UK SMEs has grown rapidly in recent years, with most businesses using it for day-to-day tasks like marketing, data analysis, customer service, and automating routine operations.

However, a new report by the Federation of Small Businesses (FSB) has found that a large majority of businesses are raising concerns around data, copyright, and liability, with their hesitance. This could potentially threaten £42bn boost that wider adoption would bring to the UK economy every year, the FSB says. 

As a result, they’re now calling for clearer rules and practical support – including better transparency from AI providers in the form of “model cards” and stronger protections for businesses’ data and intellectual property (IP) – to help smaller firms invest in and adopt AI more safely and confidently.

AI adoption accelerates across UK SMEs

It’s no secret that the use of AI technology has surged tremendously across UK small businesses in recent years, becoming a core tool for everything from everyday operations to long-term strategic decision-making.

According to the FSB’s latest report, 55% of UK small businesses now use the technology – up from 20% in 2023.

Meanwhile, a study by Paragon Bank found that the most common uses of the technology are data analytics and decision making (36%), operations and process automation (33%), customer engagement (32%), marketing (28%), and finance and risk management (27%).

Interestingly, further research from AlixPartners suggests that female founders are embracing the technology more than their male counterparts. 

Specifically, 71% of female leaders primarily see AI as a growth engine, compared to 63% of men, who are more likely to focus on cost reduction. The study also found that women are further ahead on AI deployment, with 26% reporting enterprise-wide rollout of the technology, while saying they are “extremely optimistic” about AI.

Rising concerns over AI risks and governance gaps

As AI adoption accelerates across SMEs in the UK, it’s also increasingly bringing attention to the risks and governance challenges that come with its widespread use.

FSB’s report also shows that concerns over AI have risen sharply over the past two years, with 92% of businesses now reporting worries about AI-related risks – up from 73% in 2023.

AI producing inaccurate responses was cited as the most prominent concern by 54% of firms, followed by security and the abuse of intellectual property (IP) rights at 39%. 

Other notable concerns include a lack of transparency in how models are trained (38%), exposure to legal liability or risk (30%), and uncertainty about using AI legally, ethically, and responsibly (27%).

Tina McKenzie, Policy Chair at FSB, comments: “There is a healthy realism among small businesses when it comes to AI, and it’s encouraging to see so many already finding practical ways to use it to save time, improve productivity and grow.

“Business owners can see the potential, but they are also asking sensible questions about how their data is used, who is responsible when things go wrong, and how they can adopt the technology safely.”

The lack of AI cybersecurity training and AI adoption in micro and small businesses is moving faster than governance, with Keith Hickson, Information Security and Data Protection Consultant and Director of KH InfoSec Ltd, commenting that employees are “using tools they haven’t been trained on; sensitive data is being processed by systems nobody has vetted, and the business owner has no visibility over any of it”.

“When something goes wrong, such as: HR data exposed by an AI-enabled search, misinformation given by a chatbot, an AI-generated report with false data or a new AI tool processing Personally Identifiable Information (PII) beyond the scope of a company’s privacy policy, there is often no clear process to deal with it and no defined accountability,” Hickson told the Banbury Guardian.

FSB calls for clearer AI rules, safeguards and support

With a lot of uncertainty around data use, accountability and IP, the FSB is calling on the UK Government to provide a clearer framework for the next phase of AI growth.

This includes the introduction of standardised AI “model cards” to give businesses better transparency over how AI systems handle their data. Under the proposal, AI providers would be required to clearly disclose where business data is stored, whether it’s used to train AI models, who owns any outputs generated by the system, and where the responsibility lies if something goes wrong.

FSB is also urging policymakers to strengthen protections for small businesses’ data and IP. This includes tougher enforcement against AI companies that use copyrighted material without permission when training their models.

Moreover, it wants the Department for Science, Innovation and Technology (DSIT) to provide guidance, accreditation, and certification schemes that would help firms identify trustworthy AI tools and implement them responsibly.

Finally, the FSB is calling for tax incentives to encourage investment in AI and other technologies that can enhance productivity, which could help small businesses overcome the upfront costs or adopt new tools while helping them improve efficiency and drive growth.

“It’s only natural that people want to know the rules of the road before they take the leap and begin using AI,” McKenzie adds. “Small firms are looking for the confidence and certainty to use it well.

“If we can provide that, the prize is enormous. AI has the potential to help small businesses work smarter, reach new customers, develop new products and compete more effectively, unlocking benefits not just for individual firms but for the wider economy too.”

A lack of financial and accounting knowledge holds many people back from starting a business, yet AI has become a trusted source of guidance for entrepreneurs seeking quick, accessible answers to their questions.

So much so, in fact, that a study conducted by Ravical reveals that seven in ten UK SMEs now act on financial advice offered by AI before consulting their accountant.

The findings highlight a growing shift in how businesses seek support, with AI increasingly being used to inform decision-making. However, as more SMEs turn to technology for guidance, there are concerns over whether AI can truly replace the expertise and judgement that professional advisers provide.

AI is becoming the first stop for financial advice

As AI tools become more accessible and sophisticated, businesses are increasingly using them to answer financial questions, assess options, and even guide decision-making before speaking to a professional adviser.

The study by software company Ravical – which surveyed 500 UK SMEs – found that seven in ten businesses (70%) say they “always” or “often” act on AI financial advice before consulting their accountant, compared to just 5% who said they rarely or never do so.

Meanwhile, there are widespread expectations that compliance work is becoming increasingly automated. 90% of businesses believe that accounting software or AI will be capable of handling the majority of compliance tasks within the next few years, while 35% say this is already achievable today.

A previous study by Starling Bank, released in April of this year, also revealed that many sole traders are embracing AI as a source of business guidance. Among those using AI, 39% pointed to the speed at which it can provide information, while nearly a third (32%) said the cost of professional advice influenced their decision.

Joris Van Der Gucht, founder and CEO of Ravical, comments: “Clients are now going AI first. For an accountant, that is a harder place to stand. You become the second opinion, and you have to be better and faster than the tool the client already used. That pressure is only going to grow as businesses lean on these tools more.”

Why businesses are losing faith in their accountants

The growing reliance on AI may also reflect wider frustrations with the support many businesses receive from their accountants.

Ravelin’s study also found that only 33% of SMEs see their accountant as a genuine strategic partner who proactively brings ideas and insights, and 91% have considered switching accounting firms in the last 12 months.

The findings also suggest businesses are looking for more advisory services rather than compliance alone. Respondents said they want accountants to offer forward-looking guidance, reach out with useful advice, and deliver faster responses to questions, particularly when dealing with time-sensitive financial decisions.

Strained relationships between SMEs and their accountants were already being reported earlier this year, particularly as businesses faced a lot of pressure ahead of the Self Assessment tax return deadlines and the rollout of Making Tax Digital (MTD) in April.

At the time, more than half of SMEs were considering dumping their accountant, with high fees, confusing forms, and missed deadlines cited as the main reasons. Communication was also raised as a concern, with 14% of freelancers describing their accountant as a “terrible communicator”, while 10% claim their accountant is “always late” when filing on time.

The dangers of putting too much trust in AI

There’s no doubt AI is making financial information more accessible, but that doesn’t mean it always gets it right. When it comes to complex decisions, businesses are likely to need the expertise and judgement that only a professional adviser can offer.

In late 2025, ChatGPT was reported to be the most popular platform for helping people manage their money, used by six in ten UK adults. 

However, data reported by Ascot Lloyd found that while ChatGPT can usually give clear and confident responses when asked about topics like ISAs, pensions or the basics on investing, there was a 14% margin of error in terms of real-world scenarios for areas like compliance, coding, and reasoning.

Additionally, 54% of UK SMEs feared collapse last year, yet 62% reported not working with a professional accountant or bookkeeper to help them navigate volatile conditions. In this case, AI often lacks a full understanding of a business’s specific circumstances, goals or long-term strategy, whereas an accountant can offer tailored advice and help business owners make informed decisions based on their unique situations.

Financial decisions often involve trade-offs that go beyond data analysis. Issues like succession planning, business structure, investment timing, tax strategy, or cash flow management often need human judgment and experience. 

Therefore, businesses should use AI as a tool to support decision-making rather than replace professional advice altogether. 

While it can be useful for researching options, understanding financial concepts, finding potential issues and carrying out routine tasks, important decisions should still be reviewed by a qualified accountant who can assess the wider business context and any regulatory implications. That way, businesses can benefit from faster access to information without exposing themselves to unnecessary financial, tax or compliance risks.

Despite a turbulent economic backdrop, UK small businesses are continuing to show resilience and drive growth in 2026.

As a new study by Sage reveals, SME profits have grown by 7.4% over the past year, reaching their highest level in four years, with the West and East Midlands seeing the sharpest uptick. The findings provide a welcome boost for entrepreneurs trying to survive through rising costs, economic uncertainty, and changing consumer demand.

However, while these figures point to a positive outlook, many businesses continue to face cash flow challenges due to late payments – something which is delaying investment, restricting hiring plans, and placing additional strain on already tight profit margins.

As a result, tackling payment delays is becoming increasingly important for businesses looking to maintain growth and build long-term financial stability.

UK SMEs achieve strongest profit growth in four years

Even with ongoing economic uncertainty, rising operating costs and continued pressure on consumer spending, UK SMEs are showing encouraging signs of growth and strength, proven by impressive growth figures.

According to data from Sage’s SME Pulse report, UK SME profits grew by 7.4% in the year to Q1 2026 – the highest level of growth since 2022. Revenues also increased by 3.2%, marking a fourth consecutive quarter of growth.

In terms of regional growth, the East Midlands is currently leading in profitability, reporting a growth rate of 20.2%, followed by the West Midlands at 16.3% and London 10.6%.

Derk Bleeker, Chief Commercial Officer at Sage, comments: “The UK’s small business community continues to demonstrate extraordinary resilience to adapt and grow.

“The fact that profitability has reached its highest level in four years is a testament to the determination and ingenuity of business owners across the country. It also highlights the opportunity that exists to help SMEs build on this momentum and unlock even greater growth in the years ahead.”

Late payments continue to hinder business growth

While Sage’s findings paint a positive picture, it’s impossible to ignore the difficulties SMEs continue to face, with late payments continuing to put pressure on their finances.

Late payments cost the UK economy £11bn every year, leaving businesses with limited ability to invest, hire, and grow.

According to Sage’s data, 49% of all SME invoices are overdue, with businesses waiting an average of 27 days to receive payment. As a result, businesses are taking an average of 37.1 days to pay back supplier invoices – up from 31.9 days in Q1 2025.

Additionally, research by Bibby Financial Services found that 42% of businesses have been unable to pay employee salaries on time because of delayed payments, while 24% have paused hiring. The government reports that 14,000 businesses close every year due to not receiving payment on time.

“Sage’s data shows that more needs to be done to tackle late payments, with too many small businesses still waiting weeks to be paid.” Emma Jones, Small Business Commissioner, stated.

“That’s why action to improve payment practices is so important. It gives firms greater certainty over their cash flow and the confidence to invest, hire and grow. Tackling late payments isn’t just about fairness; it’s essential to unlocking the full potential of the UK’s small businesses.”

How businesses should tackle late payments

While late payments remain a significant challenge, there are several avenues businesses can take to tackle them and improve their cash flow.

First, businesses should establish payment terms from the start and ensure they are clearly outlined in contracts, proposals, and invoices to help avoid confusion and set expectations for when payment is due. 

If an invoice is already overdue, automated payment reminders can help businesses chase up on them without spending too much time on manual follow-ups. Certain accounting software – such as Xero and QuickBooks – also offer this functionality to save time and cut down on the administrative burden.

Moreover, before entering into agreements with new customers, it’s worth conducting credit checks to assess payment risk and find any potential issues early. The Small Business Commissioner Office (OSBC) also has its own award directory, which ranks companies based on their invoice processing fees – giving businesses better visibility into which organisations have a strong track record of paying suppliers on time.

Finally, with late payment reforms expected to come in next year, businesses should make use of the help available to them from the OSBC to understand their rights, resolve payment disputes, and minimise the impact of late payments. 

Beyond fines, Emma’s new powers also include a 60-day cap for large firms, mandatory interest and boardroom accountability, so it’s definitely worth taking advantage of the resources available through OSBC ahead of the changes coming into force.

Get paid with Emma

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

Get paid with Emma

A new type of AI fraud could cost restaurant businesses dearly, as fraudsters increasingly use generative AI tools to fabricate complaints, manipulate evidence, and pressure operators into issuing refunds and compensation.

Known simply as “AI food fraud”, the issue was highlighted in a recent report by Food Alert, which shows how fake images of rotten or contaminated food are being used alongside AI-written complaint emails to create convincing but entirely fabricated claims.

The result is a growing challenge for hospitality businesses already operating under tight margins and higher customer service expectations, and the lack of legislation in the UK risks even more exposure to this kind of fraud.

What is AI food fraud?

AI food fraud is a new type of scam to deceive food businesses, delivery platforms and consumers through the use of generative AI tools that create fake evidence and communications to fraudulently obtain refunds, free meals, or other compensation.

According to a report by Food Alert, fraudsters are deceiving food businesses by creating AI-generated images of spoiled or undercooked food and using Large Language Models (LLMs) such as ChatGPT to write complaint emails, explicitly threatening to report the business to health inspectors or blast them on social media unless an immediate refund or compensation is issued.

“A bigger trend for us is the use of AI to intimidate our food business clients and us in relation to food complaints.” Annabel Kyle, Technical Director at Food Alert, comments.

“For example, if a guest disagrees with the outcome of their complaint, we will often receive an email that is clearly written with AI, quoting legislation and stating they will be reporting the matter to enforcement authorities, government agencies, legal representatives, and so on.”

With AI image volume reaching nearly 80 million images per day, and with 71% of social media content estimated to be AI-generated, this paints a concerning picture for small hospitality businesses, as it increases the likelihood of fake complaints and adds pressure on operators to respond quickly to potentially fraudulent refund requests.

The financial and reputational risk for restaurants

The impact of AI food fraud on hospitality businesses can be detrimental, as it can damage both reputation and customer trust. It can also cut into profit margins through fake refund claims and the cost of follow-up inspections or investigations.

After all, 84% of councils across England, Wales and Northern Ireland charge businesses for a food hygiene re-rating, with the average fee costing £219.95. And with 40% of consumers avoiding venues with a hygiene rating of three or less, even a small hit to a restaurant’s reputation can quickly turn into real financial pressure and lost footfall.

Fake reviews left by scammers, especially with AI-generated images of contaminated food, can also hurt business reputations. It is estimated that £23bn of UK consumer spending is influenced by online reviews every year, so these kinds of reviews can hinder repeat visits and deter new customers who can’t tell the difference between a real image and AI-generated content.

Kyle also adds that, as the UK’s legislation doesn’t cover AI-generated food complaint fraud, businesses are left exposed to a growing risk of false claims.

“In the UK, there is currently nothing that governs the generation of images outside the intentional generation of sexually explicit images. This also means other people might see and hear this type of fraud and the lack of legislation around it, and carry it out for themselves.”

How businesses can fight back against AI food fraud

While businesses can’t fully stop AI food fraud, they can make it harder to pull off and less likely to succeed.

One of the most effective steps is to change how refunds are issued. Specifically, instead of relying on photos alone, businesses should require additional proof like order numbers, timestamps, delivery confirmations, or even short video evidence in some cases.

It also helps to standardise how complaints are reviewed. This can be done by training staff on how to recognise common red flags, such as overly dramatic language, repeated refund patterns from the same accounts, or mismatches between order history and complaint timing.

Kyle also advises businesses operating on third-party apps like Just Eat and Deliveroo to “work closely with them to understand their specific fraud reporting and dispute processes”, so that fraudulent refunds can be challenged more effectively.

“It’s vital to take every report seriously so you don’t miss real risks within your operations,” Kyle adds. “You don’t want to leave your business exposed to ‘enforcement action’ or financial loss simply because you were unsure if a complaint was real or not.”

Discover the ales and ails of hospitality

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

Read Whining and Dining

Companies House has announced new changes to its rules around account filing for small businesses in the UK.

Under the Government’s reforms for the Economic Crime and Corporate Transparency Act 2023 (ECCT Act 2023), small limited companies and micro-entities will be required to file profit and loss accounts with Companies House, meaning this information will be available to the registrar, and in some cases, the public.

The measures are part of the UK Government’s aim to tackle economic crime, but some warn that this kind of financial disclosure could have unintended consequences for small businesses, potentially affecting how lenders, suppliers, and customers assess a company’s financial health.

What changes are being made to Companies House filing requirements?

The new filing rules set out by Companies House will introduce significant changes to how UK businesses prepare and submit their annual accounts from April 2028.

Most notably, small businesses and micro entities must file profit and loss accounts with Companies House as other companies do, but they have the option to opt out of publishing this information on the public register. All businesses must also file their annual accounts through an HMRC-approved accounting software.

Other reforms include removing the option for firms to file abridged accounts (a less detailed version of a company’s statutory financial statements), an improved eligibility statement for all companies claiming an audit exemption, and reducing the number of times a business can shorten its accounting reference period.

These changes, which were expected to come into effect in April 2027 but were paused last year, will now be pushed to April 2028 to give companies more time to prepare.

Blair McDougall, Parliamentary Under-Secretary of State in the Department for Business and Trade, said in a ministerial statement: “The accounts reforms seek to improve the transparency, accuracy and reliability of data on the companies register, to inform business decisions, modernise practices in line with other countries, and tackle economic crime.”

Could these new rules hinder SME growth?

While the Government says greater financial disclosure will improve trust in the UK business environment, some industry figures have warned that publishing more detailed financial information may lead stakeholders to make judgements based on a company’s short-term profitability rather than its long-term prospects.

Lisa Cleaver, COO at alternative financing company eCapital, says that these changes risk how suppliers, customers, and some lenders might view the business, particularly if heavy investments paint the picture of unhealthy profit margins.

“An SME might reinvest heavily in equipment, people or stock to fund its next phase of growth may not have pretty margins in a given year – and that can be a sign of strength, not weakness.” Cleaver comments.

McDougall stated that companies that choose to make their financial information publicly available will benefit from improved access to finance and greater transparency.

However, Cleaver points out that lots of business owners struggling to access traditional forms of lending are increasingly being pushed towards riskier sources of finance, such as short-term loans, and this can paint a negative picture if financial information is available publicly.

“For those already navigating rising costs and a tighter lending environment, that is an additional pressure many could do without,” she added. 

“What growing businesses need is an environment where they are judged on their potential and their trajectory, not profit and loss numbers in isolation.”

How can businesses prepare for the new rules?

While these reforms are still nearly two years away, businesses are being encouraged to start preparing now.

One of the biggest changes is the move to mandatory digital filing, meaning all companies will need to submit their accounts through commercial software in iXBRL format rather than using Companies House’s existing web or paper-based systems. 

Therefore, businesses should look into whether their current accounting software meets the new requirements and speak to their accountant or software provider about any upgrades that may be needed.

Small and micro businesses should also familiarise themselves with the new requirement to file profit and loss accounts with Companies House, even if they later choose to opt out of publishing that information on the public register. Companies that currently file abridged accounts will need to prepare for the removal of that option and ensure future reporting processes include additional disclosures.

For now, the delay in the rollout gives businesses some breathing room to prepare, but questions remain over how the changes could affect growing firms in practice.

The weather may be unpredictable, but that shouldn’t stop you from stepping out of your everyday routine and expanding your network.

After all, even just one connection can lead to big opportunities. Whatever you’re looking for, networking can open many doors for you – whether that’s finding a reliable supplier, hiring your first employees, or even getting funding for your business.

And they don’t have to be all stuffy or formal either. From coworking days and coffee mornings to netwalking events and founder socials, there are plenty of opportunities to meet like-minded people in a way that feels natural and enjoyable.

With that in mind, here are 79 networking events to check out in July – all completely free to attend.

The ongoing conflict in the Middle East continues to have a knock-on effect on small businesses in the UK. 

So much so that a survey by Bibby Financial Services (BFS) reveals that an alarming number of SMEs now fear bankruptcy if the war continues.

With costs continuing to rise and supply chains facing renewed disruption, many businesses are being forced to reassess their pricing in an effort to protect profit margins. 

And as uncertainty persists, many businesses are finding themselves caught between absorbing additional costs and passing them on to increasingly price-sensitive customers.

How the Iran conflict is affecting UK businesses

Recent data suggests that many SMEs are struggling to absorb the consequences of the conflict, with concerns growing over profitability, cash flow, and long-term viability.

A report by SME funder Bibby Financial Services (BFS) – which surveyed over 500 UK importers and exporters – revealed that 74% of SMEs reported facing direct disruption from the Iran war.

As a result, businesses have reported an average loss of £38,207 since the start of the crisis, with 70% of SMEs now fearing bankruptcy. More than half (55%) also consider themselves to be in a more uncertain position now compared to when Russia invaded Ukraine in 2022.

These concerning figures come after 36.9% of firms reported to be in “critical financial distress” in the first quarter of 2026. Hospitality businesses, such as pubs and bars, also reported being hit by high supplier surcharges and fuel costs due to the war.

Michael McGowan, Managing Director at BFS, comments: “This is a new era of international trade in which businesses are no longer reacting to isolated shocks; they are operating within a continually volatile landscape shaped by geographical instability.

“UK importers and exporters were already operating under intense pressure from inflation, higher interest rates, and the long-term effects of Brexit, and the Iran war has amplified every one of those challenges.”

Rising costs are forcing SMEs to rethink growth plans

The combination of rising costs, weaker investment and slowing recruitment is weighing heavily on the outlook for UK businesses. 

BFS’s study also found that 39% of businesses are absorbing costs while passing others onto customers, while 29% are absorbing the full increase themselves.

Growth has also slowed for many businesses, as fallout from the war is forcing businesses to halt their investment plans. This slowdown is also affecting hiring activity, with the number of vacancies in the UK falling to 705,000 between February and April 2026 – the lowest level recorded for the same period in 2021.

“Businesses are facing a stark choice: absorb rising costs and see margins collapse or pass them on and risk losing customers”, McGowan adds. “With nearly a third absorbing the full impact, it’s clear many are taking the hit – but this isn’t sustainable, even in the short-term.”

Unsurprisingly, this has had a knock-on effect on business confidence as well. The Business Confidence Monitor (BCM) by ICAEW recorded a sharp deterioration in sentiment in Q1 2026, with the index falling from +2.8 before the conflict to -1.1.

How small businesses can protect themselves from future shocks

While small businesses can’t control geopolitical events, there are ways to build resilience against future shocks.

For example, reviewing supply chains, diversifying suppliers and building better flexibility into procurement strategies can help reduce exposure to disruptions caused by international conflicts. Businesses should also regularly review their cash flow position and maintain contingency plans to manage any sudden increases in operating costs.

Clear communication with customers, such as around price increases, will also be critical in maintaining trust and loyalty. Even a straightforward email explaining the price increase can go a long way and reduce the risk of losing business to competitors.

McGowan also advises that managing foreign exchange (FX) exposure should be a priority for businesses looking to protect margins and minimise the impact of market volatility.

“We’re seeing businesses adapt, reviewing supply chains, managing their FX exposure more closely and strengthening working capital,” he concludes.

“In a trading environment characterised by persistent geopolitical disruption and market uncertainty, effective FX management is no longer optional – it’s a critical tool for protecting cash flow and profitability.”

Greater Manchester Mayor and Labour by-election candidate Andy Burnham has pledged to slash taxes for hospitality businesses – including National Minimum Wage Contributions (NICs) and value-added tax (VAT) – if he becomes prime minister.

Burnham’s promises come as businesses continue to struggle with rising labour costs, soaring energy prices, food inflation, and ongoing staff shortages – all of which have squeezed margins across the hospitality sector.

Now, top chefs – including Tom Kerridge, who is leading the #VATstheproblem campaign – are backing Burnham’s plans, in hopes that a future government under his leadership would deliver long-promised tax reforms, ease cost pressures, and offer a more stable operating environment for pubs and restaurants across the country.

Burnham sets out hospitality tax overhaul plans

On Friday, Burnham – who is the Mayor of Greater Manchester and running as Labour’s candidate in the Makerfield by-election – announced he would reverse a series of tax rises that have hit small businesses since the Labour Party came into power.

This includes permanently reducing business rates for pubs by 20% and cutting NICs. Elsewhere, he has also voiced support for a VAT cut for hospitality. 

While the current Labour Government have introduced support packages for small hospitality businesses – including a 15% cut in business rates for pub businesses and a temporary VAT reduction on children’s menu items over the summer – many hospitality firms have criticised these moves as not being enough to offset the continued pressures of high operating costs.

Burnham stated: “Our high streets matter to me because they matter to the people who live here. I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.

“I am willing to be honest about where we have fallen short – and say that my party has got this wrong in the government. They have undervalued the contribution these businesses make to our livelihoods and our communities.”

Burnham’s plans backed by leading chefs and industry figures

Several top chefs have backed Burnham’s plans, with hopes that he becomes prime minister so that he can push through more ambitious reforms to the hospitality industry.

This includes Tom Kerridge, leader of the #VATstheproblem campaign, which calls for a permanent cut to VAT from 20% to 10%. Since its launch, the campaign has reached over 192,000 signatures, making it one of the most widely supported industry-led petitions to gain traction in recent years.

“Andy Burnham has backed a cut to VAT, and as Manchester mayor, he represents one of the most vibrant and exciting cities in the UK with a growing food scene,” Kerridge told The Guardian. “This is somebody who understands nightlife, food, hospitality and entertainment; he sees it as the lifeblood of creativity.”

Other chefs have also welcomed Burnham’s position on VAT and other taxes, including Thomasina Miers, co-founder of restaurant chain Wahaca, who believes the current Labour leadership didn’t understand the sector in the same way, particularly when it came to high employment costs from raising National Insurance.

Miers told The Guardian: “The government has clobbered young people, it feels so misguided, they talk about helping the worker, but every policy they are doing is making it harder for people to get to work.”

Why this matters for hospitality businesses

If Andy Burnham were to become prime minister, this would mean hospitality businesses could see a reversal of recent tax and cost pressures, which could improve profit margins, stabilise employment, and encourage long-term investment across the sector.

After all, cutting VAT had the strongest level of support from hospitality businesses, with 89% of firms calling for a permanent reduction. A reform to business rates and NICs was also highly supported by 74% and 65% of firms, respectively.

In terms of employment opportunities, it’s been reported that hospitality has suffered more than half of all job losses since the Autumn Budget last year, with almost 89,000 jobs being cut as a result of the increase in employer NICs. In more drastic cases, one in seven businesses will be forced to close.

From this, it’s clear that a permanent reform is desperately needed for hospitality businesses, and Burnham’s potential new powers could finally deliver the kind of long-term policy changes the sector has been calling for.

Unemployment – which reached 5% in May 2026 – could also begin to ease if businesses are able to afford more permanent staff. Other investments, such as expansion into new sites, refurbishing existing venues or adopting new equipment, could also become more viable if businesses get better financial stability.

However, given the damage hospitality has taken from these tax increases, it remains to be seen whether Burnham’s promises will actually translate into meaningful policy change quickly enough to reverse recent closures, restore investor confidence, and give businesses operating under tight margins that much-needed relief. And, of course, there’s still a hotly contested by-election that needs to be won for this to even have a chance of becoming reality.

Discover the ales and ails of hospitality

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

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The pub has long been a part of British culture, being the ultimate place to wind down after a long week, catch up with friends, and enjoy a pint with good company.

Yet it’s no secret that pub businesses across the country have been struggling in the last few years, with rising business rates, employment costs, and increasing operating expenses putting great pressure on profit margins.

But recent comments from TV presenter James May have reignited debate over their future, as he suggested the UK no longer needs as many pubs as it once did – adding new fuel to an already heated discussion about what role pubs should play in modern Britain.

James May sparks debate over the future of Britain’s pubs

TV show host James May believes the survival of pubs comes down to the quality of the venues themselves.

The former Top Gear host – who co-owns the Royal Oak in Swallowcliffe, Wiltshire – says he often feels “conflicted” about efforts to help save local pubs, and that “if things need protecting, they’re not doing themselves any favours”.

“Pubs are not actually institutions, they’re not historical monuments or any of that stuff, they are essentially businesses first and foremost, but beyond that, they’re places that have to work,” May commented on LBC Radio.

“The pub will be saved by the pub, nothing else. It would be nice if we could have lower rates and lower duties and so on but that’s not really the issue. The issue is the quality of pubs themselves.”

He also added that “we don’t need as many pubs as we once had” and that “the good ones survive and the bad ones will fade away.”

May’s opinions sparked debate on social media, with people divided over whether the UK has too many pubs or whether economic pressures are forcing them out of business.

“[James May] is absolutely completely out of touch because he’s rich,” one user commented, as reported by The Express. “The youth cannot afford to go out, party and meet up because of the price; a whole generation is missing out on what we all took for granted.

However, another agreed with May, pointing out that pubs were “popular in a time when houses had no central heating” but that “taxation of beer by the government has made pubs too expensive”.

A sector under strain

Data reported by The Morning Advertiser reveals that the number of pubs fell to 44,650 in 2026, marking a decline of 16,150 venues since 2000. Meanwhile, the BBC reported that pubs are continuing to disappear at an alarming rate, with almost two closures recorded every day in 2026.

Sadly, there are several reasons for this, as pub venues are facing a perfect storm of soaring energy bills, higher employer National Insurance Contributions (NICs), and increasing business rates.

And more recently, the conflict in the Middle East has added further pressure, driving up fuel, energy and transportation costs across global supply chains. For hospitality businesses already operating on tight margins, these increases are creating yet another wave of inflationary pressures that are starting to be felt throughout the supply chain. 

Changing consumer behaviour has played a part as well, particularly with the cost-of-living crisis having an impact on everyday spending, with 63% of Brits saying they’ve reduced their pub visits due to rising costs. This, coupled with the fact that the average price of a pint has risen by 36% in the last four years, has inevitably led many consumers to cut back on social spending.

Still, the social value pubs bring to local communities is nothing to be overlooked, particularly with the average pub delivering £1.3m of economic and social value. 

Moreover, data reported by The Drinks Business found that 52% of young people (aged 18-24) say socialising with friends or colleagues at the pub has a positive impact on their wellbeing, meaning there’s still a clear role for pubs as important social spaces in the country.

How pubs should adapt to survive

Regardless of where people stand on May’s comments, pubs are operating in an increasingly challenging environment. With constant high costs and changing consumer habits, many venues are being forced to rethink traditional business models to remain profitable.

For example, there’s a clear shift towards offering experiences rather than simply serving drinks, with consumers increasingly seeking venues that provide entertainment, events, and a memorable atmosphere. 

After all, 19.7% of Millennial pubgoers are seeking premium experiences, which shows a growing importance for creating occasions that justify the cost of a night out, rather than just what’s on the menu.

Consumer demand for low and no-alcohol drinks is also on the rise, as 49% of young adults now opt for these options. Pubs that embrace these trends may be better positioned to attract and retain customers in the years ahead.

Meanwhile, while many of them are not quite old enough for their first pint, Gen Alpha are set to reshape pubs and bars in the future, with events like gaming nights expected to play a greater role in driving footfall and creating experience-led social spaces.

And finally, with the pub still delivering social value to local communities, businesses should continue to market themselves as welcoming spaces, such as through channels like social media, to engage with younger generations and encourage visits through both menu offerings and unique experiences.

In the end, while pubs face undeniable economic pressure, their role in community life remains difficult to replace. Whether you agree with May’s comments or note, one thing is clear – the future of the British pub will depend on its ability to evolve, adapt, and stay relevant to a new generation of drinkers.

Discover the ales and ails of hospitality

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

Read Whining and Dining

The UK Government has announced new plans to support small businesses and sole traders through a £4 million funding boost aimed at improving access to business debt advice.

Delivered through the Money and Pensions Service, the investment is expected to help thousands of businesses over the next three years by expanding access to specialist support for those facing financial difficulties.

This comes as many SMEs continue to grapple with rising costs, cash flow pressures and limited access to finance, thus increasing demand for professional debt advice and financial guidance.

£4 million funding boost to support struggling SMEs

Small businesses and sole traders struggling with finances are set to receive enhanced support under a £4m Government funding package aimed at expanding business debt advice through the Money and Pensions Service.

The funding is expected to expand access to specialist debt support, allowing an estimated 16,000 more businesses to receive assistance over the next three years and bringing the total number to 75,000.

The change builds on the £3 million annual funding allocated by the Money and Pensions Service in 2024 for Business Debtline – a service that supports business owners where personal and business finance often overlap.

Since then, Business Debtline has successfully supported around 50,000 people, with over 90% of clients seeing their debts reduce or stabilise, while demand for its services has continued to grow.

“When financial pressures mount, knowing where to turn can make all the difference,” says Oliver Morley, CEO of Money and Pensions Service. “This vital funding will help more small business owners and sole traders get trusted advice when they need it, so they can regain control of their finances and plan for the future.”

Access to finance remains a challenge for small businesses

This announcement comes at a time when many small businesses continue to face significant financial pressure, with 82% of SMEs facing cash flow difficulties.

Access to finance has proven to be a challenge as well. While gross bank lending for SMEs hit £68bn last year, this has since declined to its lowest level in 30 years, with loans for businesses outside the financial sector falling to 59%.

Banks have also reported moving away from broader SME lending due to higher risks, and instead are favouring lending to companies within specific sectors. For example, real estate SMEs now receive 51% of all loans.

As a result, businesses have faced continuous challenges in accessing finance. According to data reported by The Intermediary, 81% of SMEs say they missed opportunities last year due to a lack of funding, and that while 82% applied for external finance, many still weren’t able to secure funding quickly enough to support growth.

Against this backdrop, the Government’s expanded debt services will aim to help more businesses navigate financial challenges and access better support before problems escalate.

Additional £2 million to modernise debt advice services

Alongside funding to expand debt advice services, the Government is also investing a further £2 million to modernise the way debt advice is delivered.

As part of its Financial Inclusion Strategy, launched in November, the modernisation fund will allow debt advisers to spend more time helping clients, particularly with complex cases that may need additional support.

Previous funding rounds have supported a wide range of initiatives, including AI pilots, digital referral systems, infrastructure upgrades, and improvements to service accessibility.

For example, community-based debt advice charity Money Advice Plus received £49,000 towards enhancing its technology, including AI-supported transcription and upgraded equipment. As a result, initial wait times have reduced by 46%, and advisers have been able to spend more time supporting people in financial difficulties.

Economic Secretary to the Treasury Rachel Black said: “From the plumber fixing your radiator to your local cafe, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.

“We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.”

London’s hospitality businesses could find it easier to secure new licences and extended trading hours after Mayor Sadiq Khan pledged to use new powers to overrule objections he believes are holding back the capital’s night-time economy.

The mayor’s plans come amid an ongoing debate over licensing in Soho, where residents’ group the Soho Society voted to lobby against new licensing applications for pubs, bars, and restaurant businesses.

This move has sparked concern and criticism among hospitality operators, who argue that this kind of opposition to new licences could make it harder for venues to grow, invest, and create job opportunities in one of London’s best-known hospitality districts.

How Khan’s proposed licensing power could impact hospitality

Khan comments come after members of the Soho Society voted to oppose all new licensing applications in the area – suggesting that he will overrule the group’s challenges for hospitality licensing applications.

He also said the residents’ group’s approach was “bad for London” and that new powers introduced by the Government would enable him to intervene in licensing decisions he believes are holding back the capital’s hospitality sector.

It could also mean that bars will be allowed to open later and offer more alfresco dining. The Government has already allowed pub businesses to extend trading hours during the World Cup, highlighting a wider push to support the hospitality and night-time economy.

Khan told The Guardian: “Once in force, new licensing powers I’ve been granted by the government, coupled with our bold new proposals to support London’s hospitality and nightlife, will help us protect venues, extend London’s late-night offer and allow the capital’s nightlife to flourish.”

The Government also proposed new laws around outdoor dining last summer, which would protect pubs and bars from noise complaints, including making property developers responsible for soundproofing buildings if they choose to build near existing venues.

Why the Soho Society is opposing new licensing

The Soho Society – which was first established in 1972 – voted in its Annual General Meeting (AGM) last Thursday to challenge all new licensing applications for any bars and restaurants in the area, including renewing existing licences. It will also object to venues that want to open beyond “core hours”, which is set at 11pm by Westminster council.

The society claims that the area has seen an escalation of unacceptable noise from London’s nightlife, as well as an increase in crime and litter. However, hospitality firms have been quick to hit back at this move.

Speaking to The Guardian, Rupert Power, owner of Sophie’s Steakhouse and Jack Solomons Club on Great Windmill Street, and chair of the Soho Business Alliance, expressed concerns over the effect licensing objections could have on jobs, investment, and growth in the area.

“It is strangling small businesses, meaning there are less hours and jobs for young people to work,” he said. “I really worry for young people. To have a minority be in a position of stifling growth that is funded by the council is not ideal.”

Some members of the Soho Society also claimed they felt pressured not to vote against the mandate after an email allegedly said that individual votes would be seen by the group’s chair.

A spokesperson for the Soho Society stated: “Changes to our planning mandate are about light pollution and encouraging virtual queuing to keep the pavements clear. 

“To our knowledge, no member has raised these concerns with the Soho Society or any other member of the exec committee. The Soho Society has never initiated a review of anyone’s licence.”

Why this matters for hospitality businesses

For hospitality operators, the debate goes beyond Soho and raises broader questions about how easy it is to open, expand and operate in London and elsewhere in the UK.

While the late night economy contributes £139bn each year to the capital, data from NiQ reveals a 4.1% net decline in the number of venues operating late at night, which could be caused by the red tape and restrictions around late openings.

As a result, this segment of the hospitality industry – including clubs, casinos and late bars – is now 28.2% smaller compared to March 2020, when the start of the COVID-19 pandemic forced closures across the country.

If Khan does gain power to intervene in important licensing decisions, businesses could benefit from a more consistent approach to applications that involve extended opening hours, outdoor dining, and venue expansions.

The plans could be especially good news for smaller and more independent operators, as additional trading hours can give a valuable boost to revenue. With profit margins constantly under pressure across much of the sector, even modest increases can have a meaningful impact on a venue’s financial performance.

Discover the ales and ails of hospitality

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

Read Whining and Dining