From April 2026, the UK Government will be enforcing reforms for statutory sick pay (SSP) under the new Employment Rights Act.

Under this law, employees will be given day-one rights to receive sick pay. The original three-day waiting period will be scrapped, allowing employees to get SSP from their first day of illness.

The new reforms will also remove the Lower Earnings Limit (LEL), meaning all employees will be eligible to receive payment regardless of income.

While this comes as good news for workers, this leaves businesses — particularly smaller firms — facing challenges in managing staff absences, additional costs, and general productivity.

As SSP becomes more accessible, SMEs will need to adapt their policies and practices to ensure they can continue to operate smoothly while still supporting their workforce.

The UK faces record-level of short-term absences

UK workforces have faced a drastic rise in short-term sickness absences over the last year.

Absence levels reached a record high of 9.4 days in 2025. Short-term absences in particular continue to be a pain point for businesses, as 37% of HR professionals say that high levels of short-term and frequent absence is their primary challenge when it comes to managing sickness. 

And business productivity is suffering as a result, especially for smaller businesses with a tighter budget. According to Unum, UK SMEs have lost £29bn annually due to sickness-related productivity losses, and there are calls for Government support and investment in employee health.

Mark Till, Chief Executive Officer at Unum said: “Now is the time to act and act and unlock greater investments into employee wellbeing.

“UK SMEs are under pressure: sickness absences are at their highest in 15 years, productivity is flatlining and budgets are tighter than ever. With the right policy framework, SMEs can unlock productivity and growth through better wellbeing investment.”

How will day-one SSP rights affect businesses?

The Government’s reforms for SSP rights are expected to start on 6 April 2026. As part of these reforms, SSP will be available to all workers from day one, rather than after three days.  Those off sick on low wages will also either receive 80% of their average weekly earnings or the £118.75 per week rate for SSP (whichever is lower).

However, for small businesses already struggling to manage staff absence, these changes could place more financial and administrative pressure on operations. As well as increased payroll costs, managers may have to spend more time processing SSP claims, monitoring absences, and adjusting work schedules to cover absent staff.

Unsurprisingly, many employers are concerned about these impacts, as a survey by Peninsula reveals that 42% of firms believe changes to the SSP will have a negative impact on their business. 

“Under the new rules, even brief periods of sickness that currently attract little or no SSP will become payable,” Tracey Burke, senior HR consultant at WorkNest told Personnel Today.

“For part-time and lower-paid employees, SSP could cover a much larger proportion of their usual earnings, reducing the financial impact of taking time off sick. Therefore, the risk of higher absence rates cannot be ignored.”

How can SMEs stay on top of managing absences?

With SSP becoming payable from day one, SMEs should be proactive in managing short-term absences. 

For example, promoting a healthy workplace — such as encouraging breaks and wellbeing initiatives like mental health support through an Employee Assistance Programme can help reduce the likelihood of sickness in the first place.

Additionally, clear and transparent sickness policies are a must. Employees should know how to report absences, what evidence is required, and how SSP interacts with other company benefits. This will help prevent confusion and ensure absences are legitimate and properly documented.

Flexibility can also go a long way, such as offering remote work, flexible working arrangements, or phased returns after illness. Monitoring absence patterns and addressing any recurring issues early on (such as through meetings or additional support) can help stop short-term problems from becoming long-term disruptions.

As for managing productivity, maintaining employee engagement, training staff to cover different roles, and using easy-to-manage absence tracking tools can help your business keep on top of important work even when people are off sick.

When put together, these actions can help better prepare SMEs to handle new SSP rules without major disruption or added stress to business operations.

Major retailers Urban Outfitters and Dreams have come under fire for allegedly hiring through gig economy apps, raising concerns that some workers may be earning less than the National Minimum Wage.

As a result, the Trades Union Congress (TUC) has called on the UK Government to fast-track reforms to better protect gig economy workers and close loopholes that allow employers to avoid basic employment rights.

Platforms such as Temper allow businesses to hire short-term temporary staff, but critics say the system can leave workers vulnerable to delayed payments and fees that may reduce wages below the legal limits.

With millions of people now relying on gig work as their main source of income and the introduction of the Employment Rights Act, it begs the question whether smaller firms can truly benefit from gig economy apps, or if they’re just a legal headache waiting to happen.

Companies facing scrutiny over gig economy hiring

Major retailers Urban Outfitters and Dreams have been criticised for reportedly using the Temper gig economy app to hire temporary workers.

The platform, which has over 487K workers across the UK and the Netherlands, connects businesses with temporary staff for short-term roles.

According to The Guardian, Urban Outfitters had been advertising roles on the platform — such as stock and sales assistants — paying £12.50 an hour. Similarly, Dreams allegedly advertised a number of delivery driver positions, ranging from £12.71 to £15.14 per hour.

Meanwhile, Colicci Cafe, a family-owned business that runs cafes in London’s Royal Parks, were also reported to have offered barista shifts on the app for £12.50 an hour, though a spokesperson claimed the hourly rate was an error and has since been corrected.

But while the advertised positions were above the current National Minimum Wage (£12.21 per hour), workers using the Temper platform would have to wait 30 days to receive payment. If they didn’t want to wait, they’d have to pay a 2.9% fee, which could bring their wages below the NMW threshold.

Last year, several retailers, including Uniqlo, Lush, and Gymshark, stopped using gig economy apps following concerns over workers’ rights, like the minimum wage, sick leave, and holiday pay.

“Cynical bosses should not be able to exploit gaps in the law to deny workers proper pay and conditions.” Paul Nowak, general secretary of the TUC, told The Guardian.

“The historic Employment Rights Act will bring welcome new protections. But without action on bogus self-employment, bad employers will make greater use of legal loopholes and talent platforms to deny workers their rights.”

Why are gig economy apps risky business?

The UK’s gig economy has grown dramatically over the last decade. Today, around 5% of the population — equating to approximately 1.6 million people — are working in gig roles in the country.

The gig economy is useful for workers as it offers flexibility in when and how they work. For businesses, it provides access to a flexible workforce — particularly useful for smaller firms that need more staff during busy periods, but can’t afford to hire more permanent employees.

However, with 20% of gig economy workers now considering it their main source of income, small businesses risk legal challenges if they hire staff this way without basic employment protection.

Not only are rights at risk, but hiring through gig economy apps consistently means potentially underpaying taxes like National Insurance Contributions (NICs) and workplace pension costs. And for smaller businesses, this could result in hefty penalties from HMRC, including 100% of the unpaid contribution with added interest.

Moreover, as with hiring a full-time employee, businesses must also hire gig workers with the same rights, following the introduction of the Employment Rights Act.

This includes offering an employment contract with guaranteed hours to those who have worked regular hours over a 12-week period (unless a worker chooses to remain on a zero-hour contract), complying with “day-one rights” (including sick pay and paternity leave), and paying a cancellation fee to the employee if you cancel or move a shift at short notice.

How can your business use gig economy apps responsibly?

Using gig economy apps to hire workers isn’t illegal, but they must only be used to meet short-term or changing demand, rather than as a permanent workforce.

Gig workers should be hired for tasks that are flexible or project-based, such as seasonal demand or one-off jobs, rather than relying on them as a long-term source of labour. This reduces the risk of worker exploitation and helps businesses comply with employment law.

Businesses should also ensure gig workers are paid fairly, including guaranteeing that they earn at least the minimum wage once expenses are taken into account. 

For example, if you were to use a platform like Temper to hire short-term workers that charge a fee for early payment, it’s important to offer an hourly wage that doesn’t get reduced below the minimum wage when this fee is deducted. 

Alternatively, simply hiring temporary agency staff can give you the same kind of flexibility as gig economy apps. Hiring through a reputable agency can give you access to trained workers for busy periods, and they will handle payroll, taxes, and compliance for you. If you want to hire directly, taking on temporary employees will give you more control over scheduling and ensure employment rights are applied correctly.

Whatever way you want to hire seasonal workers, following requirements from the Employment Rights Act will keep your business compliant, but also protect your reputation and maintain trust with both workers and customers.

The Government has announced that five major UK banks have committed to a “landmark” £11bn lending package designed to help SMEs invest and expand abroad.  

Led by Business Secretary Peter Kyle, the agreement comes at a time when traditional lenders and their efforts to support SMEs are under the spotlight. A group of Labour backbenchers is currently driving reform of banks’ efforts to support SMEs through the Fair Banking Act. 

Although it has not passed as legislation as yet, it does highlight big concerns that traditional avenues to finance are currently problematic for SMEs; and the business finance landscape has changed as a result.

What is the new pot?

The £11bn is earmarked to “help firms invest, hire and expand into new international markets”, and comes fresh off the Prime Minister’s return from trade trips to both China and Japan. 

The roundtable event at which the agreement was signed was attended by Kyle, alongside senior executives from NatWest, HSBC UK, Barclays, Lloyds, and Santander. The deal was lauded as “one of the largest collective moves by the banking sector in over a decade”, and described by Chancellor of the Exchequer Rachel Reeves as providing “the firepower” for SMEs “to take on the world”. 

The agreement also includes “advisory support through banks’ relationship managers” and regional managers from the government’s export credit agency, UK Export Finance (UKEF). UKEF will also guarantee up to 80% of eligible loans issued by each bank. 

How can businesses apply?

Businesses can apply straight away. We talked to a spokesperson from UKEF, who told us: “Business can apply now for a loan directly with the participant banks. They can start by speaking to their high street lender or their regional UKEF Export Finance Manager.”

The spokesperson added: “Each bank has its own criteria, so we encourage firms to speak directly to their preferred lender about the support available.”

Changing trade landscapes

The push for SMEs to expand overseas and bolster their international trade comes as the UK tries to navigate a very volatile and shifting trade landscape. Businesses have been hit hard by the tariffs levied by the Trump Administration and the uncertainty that has come with them. 

Just days ago, research from Paragon Bank revealed that more than one in five of the nation’s SMEs are facing the tariff threat as their single biggest challenge. A quarter of the businesses quizzed said that their profit margins have been directly impacted, and 17% are recording reduced sales. 

Nearly a quarter added that the continued uncertainty around the tariffs is affecting their ability to strategise on the future of their venture. 

New horizons

This breaking of the old order has seen the Government look to different markets. Prime Minister Keir Starmer visited China last month and has now announced a deal that could make it easier for British businesses to access one of the world’s biggest markets. 

While details are still being bashed out, the first change is that British citizens staying in China for less than 30 days will no longer have to apply for a visa, which is an immediate boon for small businesses without large travel budgets. 

However, the Government is also pursuing closer trade ties with the EU, and according to BBC News, the bloc is “open-minded” and “ready to engage”. 

The European Commissioner for Finance, Valdis Dombrovskis, has mooted the possibility of the majority of food checks being removed between the EU and UK, and the establishment of a customs union, which would eliminate some tariffs and cut down red tape. 

For SMEs who are struggling with the uncertainty or have traditionally been reliant on US sales, the new lending scheme could provide the impetus to diversify their customer base and explore new possibilities. 

Business owners are hustling to develop AI capabilities over the coming year. According to a new survey, small businesses have singled out technology as offering their best path to growth. 

However, the findings, which came from both sides of the Atlantic, also uncovered a gap between the resources that US businesses and UK ventures are putting into AI uptake—including seeking expert advice and training their staff—with the US pulling ahead. 

The Government is aware of how fast other countries are iterating, and is pushing hard to fill gaps in AI knowledge. It recently announced that it is backing an expansion of Skills England’s free AI training, which, it is hoped, will see at least two million SME employees taught how to use AI effectively at work by 2030.

AI prioritised

For the survey, American Express Global Business Travel and Ipsos gathered the views of 500 business leaders, both based in the UK and the US. As reported by IT Brief, they discovered that 78% of businesses view adopting new technology as a focus over 2026. 

Becky Power, Vice President of SME Client Management at American Express Global Business Travel, said that the findings mark a significant shift in mentality towards AI and other technologies. 

“Our research shows small and medium-sized businesses are entering a critical phase. AI has moved from a ‘nice-to-have’ to a business imperative. The companies leading this shift are those building and implementing AI operations to solve the talent gap, while doubling down on impactful human connections and relationships that drive new business,” she said.

Different deployment in the US

However, there is a difference in how US businesses and those on this side of the ocean are approaching their technological transformations. 

Over in the US, 40% of businesses shared that they believed getting additional AI advice would help their business grow. In the UK, the percentage was 10% less. That said, in both countries, AI and automation topped the list of advisory services businesses planned to seek out. 

US firms are also ahead of the curve in finding AI-savvy talent to bring in-house. The results revealed that 36% of US SMEs have appointed AI personnel or teams. In the UK, this figure sat at 25%.

Growth encouraged from the top down

The AI talent and knowledge gap is now a national focus in the UK. Yesterday, the Government’s Business and Trade Committee announced “seven priorities for UK economic revival”, and placed the “AI revolution” at the top of the list. 

A result of a year of investigations, the list aims to determine “the issues that matter most to Britain’s economic future”. It lists economic security, regulatory reform, and fostering enterprise; but it is AI, productivity, and the future workforce that is reported as most important. 

The team detailed that its work will now involve “examining how Britain can lead the AI revolution while ensuring workers have the skills and protections needed for the jobs of tomorrow.” Liam Byrne, MP and Chair of the Committee, explained that “AI is rewriting the rules of work”, and the committee promises to drive action on this. 

Playing catch up

While this latest survey suggests that the UK is behind the US in AI deployment among SMEs, other reports have suggested that we are behind many other nations, too. 

We reported last month that, according to research from KPMG, 73% of Brits have received no AI training or education. This research also exposed the fact that the UK was in the bottom third for AI literacy and training, out of the 47 countries surveyed.

In the UK, Government figures reveal that AI-related employment increased to 86,139 in 2024, which was a 33% increase from 2023. The Committee wrote: “Diffusion of AI technologies throughout the economy will be the key to its economic impact.”

However, there are barriers to uptake, especially financial and staffing considerations for SMEs and especially in the current turbulent market conditions. The Government will need to pull out the stops to support businesses otherwise we will continue to fall behind.

We’re two months into 2026, and there are already a ton of trends to jump on for social media marketing.

And while the long winter season is still dragging on, there is a strong element of fun and nostalgia for this month’s most popular trends.

From reminiscing about 2016 and leaning into your brand’s sillier side to leveraging viral songs and playful templates, these trends offer plenty of opportunities to engage your customers in a lighthearted way.

But if you’re not sure where to start, we’ve pulled together seven of the hottest trends for small businesses to jump on in February 2026.

The world of insurance is proving a minefield for many businesses across the UK, who are either not properly insuring all aspects of their business—from their premises to their technology—or have no insurance in place at all. 

Despite the fact that business insurance is a critical safety net, a new survey from the Association of British Insurers (ABI) and Public First has shed light on the levels of “uninsurance” and “underinsurance” in UK small businesses. 

It found that a surprisingly significant number of SMEs don’t have compulsory insurance (for example, 39% of firms with one to nine employees said they didn’t have employers’ liability insurance), while 28% of sole traders reported having no insurance at all.

Insufficient protection

While the need for cyber insurance has hit the headlines in recent weeks, these latest findings suggest that, actually, many small businesses need to completely rethink their insurance protections. 

In particular, underinsurance—when the cover is less than the potential liability—is a widespread issue. The Small Business, Big Risk: Tackling SME Underinsurance project, which surveyed 1,002 SME owners, found that businesses are using insurance policies that fall desperately short of their needs. 

Indeed, 48% of respondents said their business had a physical premises, but less than a quarter had business interruption insurance, while 39% of businesses with company vehicles said they didn’t have commercial vehicle insurance (a compulsory cover).

Technology deployment is also a huge area of concern. More than half (57%) of the respondents reported having portable electronic equipment, but only 31% said they have commercial contents insurance. When it came to software or cloud services, only 29% shared that they had cyber protection insurance.

No regular review processes

The survey also revealed that many small business owners are putting insurance in place, but are not reviewing their policies regularly to ensure that their needs are still being met. “Only half of respondents said they had reviewed the types of insurance they hold or their level of cover in the past 12 months,” the researchers shared. 

As a result, some businesses have areas of their venture that are completely uninsured, and others that are underinsured. Both these scenarios are potentially dangerous. 

A statement accompanying the findings said: “The consequences of inadequate insurance are sometimes catastrophic. We heard of businesses that had to close after experiencing an unexpected incident without sufficient cover.”

Chris Bose, ABI Director of General Insurance Policy, echoed the warning: “SMEs are the backbone of our economy, and having the right insurance protection is essential to helping them stay resilient when the unexpected happens. From cyber incidents to supply chain shocks, the right cover can mean the difference between a temporary setback and a potentially devastating halt to operations.”

What support do SMEs need?

The ABI has created a new guide, which it hopes will clarify what different insurance products are available to small businesses, as well as the most common requirements for them to help them sidestep risks like compliance failures. 

Andrew Harrop, Director at Public First and co-author of the report, said that the guide has been created to counter the prevalent “misunderstanding, low awareness and concerns about affordability” that are stopping SMEs from being covered. 

However, both organisations argue that SMEs need more support from “insurers, intermediaries, business bodies and government”, especially when it comes to education. The release of the guide is being used as an opportunity to lobby for this support.  

The two bodies are arguing for a “time-limited engagement campaign” to boost awareness of the risks of uninsurance and underinsurance, and the benefits of properly insuring your operation. 

Call to action

However, they also state that there is a clear need for insurers to make their products more easily accessible for business owners so they understand exactly what they need and how to get it. More knowledge would better empower businesses to tailor their insurance to their needs, resulting in higher take-up. 

While the survey did reveal that business owners are generally very positive about their insurance policies, the gaps were still glaring, both in terms of coverage and knowledge. 

This survey serves as a warning that complacency or lack of understanding can lead to huge financial issues; but that insurers, brokers and the Government have a role to play in helping SMEs avoid these detrimental scenarios.

Tool theft has been described as an “economic assault” on the UK’s tradespeople. 

The Express has reported that more than 25,500 tool thefts were reported across the UK in 2024, which equates to one theft every 21 minutes. And the stolen equipment is just the start. 

For self-employed traders and small firms especially, the consequences of tool theft include cancelled jobs, downtime, disrupted cash flow, and, of course, the cost of replacement tools, totalling an estimated £56m. So how can tradespeople protect themselves against this worrying trend?

Why tradespeople are being targeted

The data suggests theft is becoming more organised and targeted. Nearly half of reported incidents are van-related, making vehicles the primary point of vulnerability. 

According to The Express, thieves are increasingly tracking routes, identifying poorly lit parking areas, and striking when vans are fully loaded, particularly during the darker months, to avoid being spotted.

Tools are an increasingly popular target for thieves due to how easily they can be sold on. Online marketplaces, informal resale groups, and car boot sales offer thieves a platform to quickly convert stolen equipment into cash. 

This means tool theft is not simply opportunistic, but part of a wider resale ecosystem that, unfortunately, makes targets of hardworking electricians, plumbers, and painters and decorators.

Practical steps businesses can take—beyond insurance

While insurance is an important safety net, it doesn’t protect against the added disruption of lost earnings. 

In response, many tradespeople are opting for layered deterrence measures rather than relying on being reimbursed by insurance providers. 

You can put off thieves by improving van security with visible deterrents such as dash cams and alarm systems, parking strategies that reduce exposure overnight, asset trackers affixed to tools, and tool marking or forensic ID systems that make resale harder. 

It may also help to unload vans overnight or rotate storage locations to make working patterns less predictable for organised theft operations.

Keeping clear documentation is also important, including detailed inventories, serial numbers, and photographic records of tools, as this can speed up police reports and insurance claims while also making resale harder if tools are identifiable or marked as stolen.

What this means for UK small businesses

For tradespeople, tool theft is no longer an occasional inconvenience but a recurring reality.

With average losses now exceeding £2,000 per incident once downtime is accounted for (£1,565 in equipment and a further £623 in lost hours), proactive prevention is better than reactionary responses. 

Treating tools and vehicles as critical business infrastructure and planning accordingly to deter thieves in the first place can help limit disruption to your livelihood.

The government is backing an expansion of Skills England’s free AI training, a series of short, practical courses designed to help workers—including at least two million SME employees—to use AI effectively at work by 2030.

Despite the hype around AI, only a minority of SMEs currently actually use it, often due to a lack of AI skills, confidence, or time. AI adoption across the UK remains uneven, and small businesses might be missing out on the benefits it can offer.

This expansion aims to address this gap. Here’s what SMEs need to know about the programme, and how they can get involved.

What’s being offered — and who it’s for

Under the expanded programme, every adult in the UK is eligible to take free, online AI foundations training through the revamped AI Skills Hub. The goal is to reach 10 million workers by the end of 2030, which has the potential to transform the UK workforce’s relationship to AI and automation. 

Government research shows that the main barrier to the adoption of AI is the widespread ethical concerns that come with it. But the second-biggest barrier is a huge AI skills gap. The free courses are intended to address this gap so that small businesses can access the time and money-saving benefits of automation. 

In as little as 20 minutes, the courses guide users on drafting text, creating content, and automating routine admin tasks, which can offer tangible help in the workplace. Skills England has benchmarked the courses against its AI foundation standards, and completing the courses earns businesses a government-backed digital badge to mark the achievement.

The programme has already delivered over one million courses since last year, and is now being scaled with the support of major employers, public sector bodies, and business groups — including the NHS, Federation of Small Businesses, and British Chambers of Commerce. 

Why this matters for small businesses

Ethical concerns aside, AI adoption is also a question of access.

Research cited alongside the government’s announcement shows that small firms, particularly microbusinesses, are 45% less likely to adopt AI than larger companies, largely due to limited in-house expertise. The programme is intended to grant everybody who wants it the opportunity to gain the necessary skills and knowledge to make the most of AI.

The training is designed to help businesses do more with less, unlocking productivity gains by freeing staff from repetitive tasks so that they can focus on more strategic, high-value work.

FSB Policy Chair Tina McKenzie said: “Small businesses want to make the most of AI, but just under half (46%) say they don’t yet have the skills or knowledge to use it well.” 

“This ambitious partnership will help them – and their workforce – make the most of the new technology.”

What founders and employers should take from this

The programme marks a shift in approach: treating AI skills as basic workplace infrastructure rather than a specialist capability reserved for large firms and tech teams. As PwC UK’s CTO Umang Paw put it: “AI isn’t coming – it’s here, and it’s rewriting the rules of work.”

For small business owners, this creates a rare, low-risk opportunity to build baseline AI literacy across your teams at no cost. As the technology continues to evolve at breakneck speed, understanding how to use AI safely, ethically, and effectively is likely to become a competitive necessity rather than a nice-to-have. 

Initiatives such as this are crucial to help smaller firms stay in step with larger competitors and reduce the risk of being left behind as AI becomes embedded in everyday work, so it’s important to make the most of it.

Last week, the government announced a newly-established partnership with China that will make it easier for British companies to sell services there. This follows repeated calls from UK business groups for clearer rules and better access to setting up links with China.

China holds a significant role in the international business landscape. It’s long been viewed as a high-growth—but equally high-friction—market for UK businesses. This friction is felt particularly by smaller firms without the budgets or local networks needed to succeed overseas. 

The agreement also includes relaxed visa requirements for short-term trips, which will open doors and allow for more flexibility for UK citizens travelling to China on business. 

What’s actually been agreed?

The main headline of the announcement is the new partnership agreed last week following the Prime Minister’s Beijing visit.

The agreement will support partnerships across sectors where the UK already has global prominence, such as professional services, financial services, legal, education, healthcare, and digital services. Both governments will collaborate on a feasibility study into a formal UK-China trade-in-services agreement, which could eventually introduce clearer, legally binding rules for British firms operating in China.

All of these negotiations are still in process. So for smaller businesses, the most immediately practical change will be the newly introduced visa-free travel for British citizens staying in China for less than 30 days. This alleviates a long-standing administrative burden for founders on business trips, making it easier to attend meetings and explore partnerships, which is an important stepping stone to full international expansion.

Business and Trade Secretary Peter Kyle said the partnership responds directly to ongoing requests from UK firms for “clearer rules, better market access, and practical support” to sell services into China.

Why this matters for UK small businesses

The UK is already the second-largest exporter of services to China, with £13bn worth of services sold by UK firms to China each year. Chinese demand is set to rise sharply over the next decade, particularly in expertise-based sectors such as business, financial, and digital services, in which many UK startups already have a strong presence.

For SMEs, the agreement also suggests the government is adopting a more pragmatic approach to helping businesses achieve international growth and supporting market access and finding local partners, areas where smaller firms can struggle most.

Since negotiations are still underway, this won’t be felt as an overnight change. Regulatory complexities and geopolitical risks, such as Trump’s tariffs, remain important considerations, meaning breaking into Chinese markets may still only be a realistic aim for particularly well-prepared SMEs rather than the average early-stage startup.

What should founders take from this?

For UK small businesses hoping to expand internationally, the announcement is a positive sign of the beginning of less friction with China, but it’s not a green light to rush in.

The relaxed visa rules will offer some immediate ease for those already exploring opportunities on the ground in China. And the potential for clearer regulation will hopefully lower some early-stage barriers, particularly for founders in business, financial, and digital services.

As HSBC Chair Brendan Nelson put it, a “strong and balanced economic and commercial relationship” can support growth and jobs, but only if access genuinely improves on the ground.

So for now, the deal signals unlocked opportunities, especially for more mature SMEs looking to expand beyond Europe and the US. It also reinforces the need for careful planning, local expertise, and a realistic risk assessment before exploring the Chinese market.

While, for many ventures, AI is changing the business landscape for the good, a legal expert is urging businesses to get up on the technology, as they can inadvertently fall into legal mires in everything from copyright to data privacy. 

The F&B sector is one of the latest to report positive ROI from AI investments. However, there is also a reported AI skills gap in the UK, which means that companies might be desperate to deploy AI but find themselves lacking people with AI skills. 

This could lead to mistakes with potentially huge implications, both financially and in terms of loss of reputation. 

Copyright calamities

Speaking to IFA Magazine, Kirstin McKnight, practice group leader at commercial law firm LegalVision, said that education is absolutely key for businesses if they want to use AI and avoid legal wrangles or compliance issues. 

According to McKnight, the number one risk for businesses is using AI-outputted material and unintentionally infringing on copyrighted materials in the process. In particular, there have been high-profile legal battles after material protected as Intellectual Property was reportedly used to train AI models. 

This means that someone using AI to create content could find themselves entering prompts and being presented with a response that is actually close to, or identical to, a copyrighted work – whether text, a logo, or an image. 

McKnight advised: “To protect your business, it is essential to carefully review the licensing and terms of service of any AI tool you use. Implement internal review processes to check outputs for potential infringement, and clearly define ownership rights in contracts.” The advice is particularly pertinent if you are using the AI content commercially. 

Misleading information

Caution is also advised as generative AI can be prone to “hallucinations” – false or misleading information that the system presents as correct. If you are a business owner using AI to create marketing material, for example, make sure that you have a human fact-checking process in place. This is something job hunters have neglected at their peril when using AI to help write their CVs. 

According to New Scientist, hallucinations are getting worse. The site reported on a hallucination rate leaderboard that revealed some models had seen double-digit rises in hallucinations from their more recent releases. 

When AI is deployed by organisations in customer-facing capacities, this has led to potentially dangerous situations. A bot used by the New York City authorities, for example, gave out “dangerously inaccurate” advice on everything from housing policy to workers’ rights.

Put frameworks in place

While the EU is working on its own AI framework, businesses can’t be lax about their own governance. McKnight said: “Many businesses adopt AI tools without establishing clear policies. This lack of governance can quickly turn into a serious legal and operational risk as employees may misuse AI, input inappropriate or sensitive data, or fail to recognise harmful outputs, which could lead to data breaches or escalate into costly lawsuits.” 

If you are using AI that’s given access to your customers’ personal data, for example, protocols need to be in place to make sure this data is protected and anonymised, and that permissions have been gained. 

Regulation is key to protecting against these kinds of data protection or compliance slipups. Create a robust AI plan that your employees are trained on. This training also needs to include understanding the compliance rules and regulations that are already in place for AI usage. 

McKnight added: “It is essential to stay informed about evolving regulations, conduct regular audits of AI systems, and design strategies with flexibility so you can adapt quickly to new legal requirements as they emerge.” 

While AI uptake is moving at a dizzying pace, businesses cannot use their lack of understanding or ignorance of the regulations as an excuse if things go wrong. If you’re to deploy AI without risk, constant awareness and alertness are your greatest shield.

New research from 1,000 SMEs across the UK has revealed exactly how much of an impact President Trump’s erratic threats of trade tariffs are having on businesses. 

Data from Paragon Bank has laid bare that more than one in five of the nation’s SMEs say that the tariff threat is their single biggest challenge, placing it above all other concerns, including problems recruiting staff, tax burdens, and regulatory red tape. 

Direct impact on takings

As the world waits on the whim of the US President, businesses in the UK are reporting that they are already feeling the impact of the tariffs. 

In the survey, a quarter of businesses said that their profit margins have already been directly hit, and 17% are recording reduced sales. Among these, 23% said that they were suffering from reduced access to export markets or falling demand from overseas clients. 

22% of business leaders also said that the uncertainty over the future is affecting their ability to strategise, while 20% said that there has been a direct impact on their production time. 

State of limbo

While there seems to be a temporary lull in the tariff storm after the World Economic Forum in Davos, the possibility of escalation remains. Just a week ago, Trump was threatening to introduce new tariffs on eight European countries, including the UK, unless they supported his wishes to buy Greenland.  

In this climate of uncertainty, the survey found that the transportation, storage, and manufacturing sectors are reporting the most vulnerability. 

However, businesses in all sectors pointed to the same issues, with 30% reporting a rise in the cost of imported goods, 28% reporting supply chain disruption, and 27% saying production costs had increased.

Continued turbulence

The trade tariff wrangle has been going on for many years, and unfortunately for businesses, it isn’t showing signs of abating. Some businesses in the UK, therefore, have had no option but to “delay investment decisions or scale back growth plans,” said Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank.

He added: “Trade tariff disputes have created significant challenges for SMEs, not only those directly involved in import and export markets, but also businesses further down the supply chain.” Hughes recognised that many businesses have shown “resilience in absorbing these rising costs”. 

There have recently been increasingly urgent calls to make funding for SMEs easier to access, as this could prove a lifeline for those businesses that have managed to ride the tariff storms so far, but are not sure how much longer they can continue fighting without sinking.

The UK Government has recently announced a new support package for pubs, giving businesses a 15% cut to business rates bills from April.

This comes following the Government’s decision to backtrack on its plans to increase business rates for pub venues following the 2025 Autumn Budget announcement. 

While this move is being hailed as a major win for pub owners across the country, other hospitality firms — including restaurants, hotels, and cafes — feel overlooked, and have called for the Government to extend the relief across the wider hospitality sector.

The Government unveils business rates relief package for pubs

On Tuesday, the Government revealed a new support package for British pubs, aiming to ease the financial burden caused by rising business rates and boost local communities.

The support package includes slashing business rates by 15% from April, as well as a two-year real-terms freeze, and a review into the method used to value venues for business rates.

This new revelation comes after weeks of commotion from pub landlords after it was announced at the Autumn Budget that business rates would increase for hospitality businesses, causing landlords to bar Labour MPs from their doors in protest.

The Government’s support package aims to save the average pub £1,650 in 2026/27, with around 75% of pubs seeing their bills either drop or stay flat over the same year. It will also announce a new “High Street Strategy”, which is expected to be published later this year.

“If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive,” Chancellor Rachel Reeves said. 

“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.”

Support package leaves wider hospitality sector behind

While pub landlords may be breathing a sigh of relief, restaurants, hotels, and other hospitality firms feel they’ve been left out in the cold.

As the support package only applies to pubs, other hospitality businesses will not be eligible for the relief, and will be expected to pay higher business rates in the new tax year. The Federation of Small Businesses predicts an average rise of 52%.

While Labour MPs have called for a pause on business rate hikes for music venues, restaurants, gyms, nightclubs, and local shops have criticised the Government for not extending this support beyond these establishments.

Michael Kill, Chief Executive of the Night Time Industries Association, told The Guardian that the support package is “little more than a drop in the ocean when set against the reality of the current tax system and the cumulative damage inflicted by the last two budgets.”

Meanwhile, Kate Nicholls, Chair of UKHospitality, said that “the rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution.

“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets,” she added. “Without clear action, they will face increasingly tough decisions on business viability, jobs, and prices for customers.”

How should hospitality firms respond?

Hospitality businesses that don’t qualify for the new support package should first check for Small Business Rates Relief (SBBR). Many small pubs, cafés, restaurants, and hotels may already be eligible for SBBR, which can reduce or even eliminate business rates depending on the property’s rateable value.

As Matt Harris, owner of Planet of the Grapes, advises in his latest column for Startups.co.uk, you should check whether the Valuation Office Agency (VOA) has the correct rates for your building, and challenge any inaccuracies before they push up your bill unnecessarily.

It’s also worth exploring other local or sector-specific grants, as some councils and trade bodies offer targeted support for struggling hospitality businesses. For example, short-term financial relief, energy or rent subsidies, or programmes that help businesses recover from post-pandemic challenges.

And with the Government’s High Street Strategy expected later this year, you should keep an eye out for any new support measures or updates to business rates that could benefit your operations.

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

90% of workers view pension packages as important, and will scrutinise them when they are deciding whether to stay with their employer or look for a new job. This reveals pensions to be more influential than any other benefit – including runner-up flexible and remote working (which 76% said was important).

The research from workplace pensions specialist Penfold took in 2,000 employees and 500 SMEs. The resulting data suggests that, while businesses may focus on their pension obligations as an employer, pensions should also be viewed as a powerful tool for staff retention. 

Pensions are more important than other financial benefits

After pensions and remote or flexi working, the survey – which ranked employee benefits – found that the benefits you might expect to top the list didn’t come close to pensions. Bonus schemes and salary advances, for example, were named as important by 74% and 65% of respondents respectively. 

In addition, employees flagged a generous parental leave policy as important, and health and life insurance both got a mention, as did work socials. 

While recent research suggests that freelancers often neglect their pension pot, it’s clear that for PAYE employees, it is an absolute focus.

Pensions as a recruitment tool

Pensions have been found to play a key role when employees are looking for a new job. In the survey, 88% of respondents said that, when deciding whether to join a new company, the pension on offer is a very important consideration.

In its Salary Trends Report 2026, which analysed 21.6 million UK job positions across 22 industries and 21 cities, Totaljobs says that 41% of candidates are looking for or planning to look for a new role in 2026.

By ensuring your company offers an appealing pension package, you’ll be helping to put your business in a good position to avoid losing strong candidates from this group to other hirers.

Untapped potential

While offering a range of workplace benefits is essential, the Penfold team argues that pensions are often underestimated as a tool for retention. 

Chris Eastwood, co‑founder and CEO of Penfold, said: “For many employers, pensions still sit quietly in the background. They’re treated as a compliance task: important, but largely fixed. Something you set up once, then move on from.” 

He argued that, instead, pensions can be a powerful tool in supporting employees’ “financial wellbeing, morale and long‑term retention”.

With talent shortages in some industries, notably hospitality, canny employers can create pension packages that help them retain their staff, and also use them to attract the best people to help them ride out the current storms.

According to data from Taxfix, the stress caused by tax returns is leaving one in six freelancers reconsidering whether self-employment is really worth it.

The dreaded Self-Assessment tax return deadline is a tale as old as time, and as most sole traders and freelancers will tell you, so is the system. Every year, it’s the same story of last-minute panic, frantic inbox searches for that one receipt, and a mad rush fuelled by cold coffee and the HMRC countdown clock.

And with complaints around poor customer service and complicated processes, concerns are growing over whether HMRC is prepared to roll out Making Tax Digital (MTD) in April 2026 without adding further strain to freelancers who are already under pressure.

Tax headaches are making freelancers reconsider self-employment

Becoming self-employed may sound like a dream for some, but the stresses around tax returns are turning this dream into a horror story for many sole traders.

According to research from AI accounting platform Taxfix — which surveyed 2,000 freelancers — the stress around tax returns is making 16% of sole traders question whether they want to work for themselves anymore.

And for those who once thought about going freelance, the reality of the system is prompting a rethink — with the proportion of people considering self-employment falling from 50% to 38% between 2024 and 2025.

HMRC has warned that 5.65 million people are yet to file their tax return this year, but Taxfix’s survey found that 19% of self-employed Brits would rather pay the £100 fine than deal with the stress of filing their tax returns on time, while 25% admit to leaving their return later than usual this year.

“Doing a tax return as a sole trader feels way more complicated than it needs to be,” says Connor Gani, a freelance producer in London. “Every year, I’m forced to navigate the same system a limited company uses — scrolling through endless pages that don’t apply to me with anxiety-inducing warnings about penalties if I get it wrong.”

Is HMRC ready for Making Tax Digital?

Ongoing problems with HMRC’s systems could pose a risk to the implementation of Making Tax Digital (MTD) in April 2026.

A majority of respondents from Taxfix’s survey (54%) cited poor customer service and HRMC’s “confusing” website as the main reason for putting off their tax return. Complicated forms (29%) and anxiety around the process (27%) were also highly reported reasons.

And with MTD on the horizon, this data raises serious questions about whether HMRC is truly ready for its rollout — particularly when 81% of freelancers are calling for a simpler process, while 27% want mobile-friendly filing.

Oliver Harcourt, Senior Director at Taxfix, says: “MTD is a structural change requiring quarterly reporting that may benefit the tax system long term. But it currently risks increasing complexity for sole traders, rather than reducing it.

“We’re seeing that the current system is a huge pain point for tax filers, raising questions about HMRC’s preparedness for a quarterly reporting process.

“Whilst I’m confident that the technology for MTD will go live, I’m not confident that the user experience will be seamless in the immediate term.”

How freelancers should prepare for MTD

The most important step for sole traders and freelancers is to start keeping digital records as soon as possible and ditch the pen and paper methods for good.

That means organising income, expenses and receipts completely digitally. This will make Self-Assessment less stressful and lay the groundwork for MTD ahead of April.

MTD-ready accounting software can make the process much easier, with 71% of small businesses already relying on it to manage their taxes. Tools like Xero, QuickBooks and Sage allow you to track expenses in real-time, generate reports automatically, and even submit data directly to HMRC once MTD becomes mandatory. 

Overall, the key is to get into the habit of recording records digitally. The earlier you start, the smoother your tax filing will be, and the less stressful quarterly reporting under MTD will feel.

A survey that took in 1,500 diners across the UK has found that restaurants are frequently falling victim to unscrupulous diners who scarper without paying, and London is the worst for it. 

The data, collated by card payment solutions provider takepayments, revealed that 8% of restaurant goers admit they have headed off without paying the bill. 

The survey comes at a time when restaurants need good news, not unpaid bills. While relief may be around the corner for pubs, business rates changes and alcohol duty hikes, as well as expensive long-term goods and staffing costs, are keeping confidence low.

For many businesses, an unpaid meal could have a huge impact. 

The scale of the shame

There was a 1% difference between men and women, with men being more likely to not pay. The results also pointed the finger at one age group, the 35 to 44 bracket, as the most likely to dine and dash. 

The reasons for doing so varied, and actually offered some hope, with 39% of dine-and-dashers saying they had simply forgotten to pay. However, there is no data on whether they went back to rectify this, and an unpaid bill is an unpaid bill regardless of how innocent the accident. 

Meanwhile, 13% said they had left a restaurant without paying because they were in a hurry and the service was too slow, suggesting they acted out of perceived necessity.

However, the remaining non-paying customers knew exactly what they were doing, and admitted they had dined and dashed as an act of theft, with 11% saying they did it for the thrill. 

As well as revealing which gender and age group are most likely to skip paying for their meal, the survey also uncovered regional differences. 

London accounted for 21% of all reported incidents in the UK. However, before those living in the capital hang their heads in shame, it’s worth knowing that when the data was adjusted for population size, it was the East Midlands that actually topped the list as the region with the most incidents.

Are no-shows an even bigger problem?

The data also uncovered a potentially larger issue for businesses – the fact that 12% of diners have booked a table at a restaurant, then failed to show up.

In terms of the reasons customers do this, 60% of no-shows said they had simply forgotten to cancel their table, while being too embarrassed to contact the restaurant was listed by 15% of respondents, and a further 15% said cancelling was too much effort.

London was again pinpointed as a hotspot, with almost one in five admitting to missing a booking. 

Interestingly, there was also a gender disparity. Women are more likely than men to forget to cancel a reservation, with 68% of women saying they’d done this compared to 49% of men.

To counter this, some businesses have been putting deposit schemes in place, but punters are baulking at this, with the survey finding that 44% are put off making a reservation when a restaurant asks for card details to secure the booking.

What can businesses do?

For businesses, the key to countering no-shows and non-payers is to keep it simple for customers, said Darren Larkman, Field Sales Director at takepayments: “Restaurants can make the booking process much easier by keeping it quick and simple. That could be an easy-to-use online system, clear instructions for walk-ins, or flexible deposit options.” 

He adds that automated email reminders and easy cancellation links “also help diners cancel responsibly”. 

Clarity is also key to preventing dine-and-dash disasters. Diners should be able to clearly see how and when they need to pay; and there should also be a designated member of staff in each area to monitor tables and ensure customer service is timely. 

Larkman advises taking pre-payments or deposits for large tables; but paying upfront for all customers could also be an option, depending on the nature of the business. It might not work, for example, for a high-end restaurant with a small number of covers, but it could work for a large venue with a rapid turnaround of tables. 

However, even with measures in place, there might be situations where diners are determined not to pay. Larkman recommended that restaurants ensure their staff are trained to “approach the situation calmly and professionally”.

If things do get out of hand, CCTV is a strategic tool (though customers must be told that it is in place), and staff must know the processes if they need help from the authorities with a problematic payer. 

As Larkman said: “By combining good processes, staff training, and smart use of technology, restaurants can minimise accidental or deliberate dine-and-dash incidents while keeping customers happy and service running smoothly.” In these times of rising costs, this is all the more important.

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

Valentine’s Day is just two weeks away, and for dropshipping businesses, finding the “perfect match” means selling the products that are in demand right now. 

While this may not involve stilted first days or awkward getting-to-know-you chats, it can be tough to know exactly what shoppers are looking for.

Luckily, we’ve done the hard work for you. 

After crunching the numbers and digging into the latest market trends, we’re rounding up seven of the most popular products from top dropshipping suppliers — so you can spend less time guessing and more time making sales this Valentine’s Day.