Self-employment in the UK has risen drastically over the last 25 years, fueled by both economic shifts and changing attitudes towards work.

In more recent times, the impact of the COVID-19 pandemic has led to a challenging economic climate, including a multitude of workplace redundancies. As a result, a large number of startups cite job loss as a motivator for starting a business.

Meanwhile, others are drawn to self-employment simply for greater control over how and when they work.

But the freedom and flexibility of freelance life comes with a cost. According to research from financial services company Funding Circle, that’s falling behind in pension savings, which has led to a gap of £208,500 between self-employed individuals and employees.

While employees benefit from employer contributions and automatic enrollment into workplace pensions, freelancers are largely left to navigate retirement savings on their own — a challenge that many are struggling to keep up with. 

The pension divide between employees and freelancers

Being your own boss has plenty of perks, but when it comes to long-term money plans — particularly pensions — many freelancers are falling behind. 

In 2023-2024, sole traders contributed £2.7bn to private pensions — an increase from £2.3bn the previous year.

However, as just 20% of freelancers are paying into pensions, Funding Circle reveals that the average pension pot for self-employed workers is just £50,700 — a stark difference compared to £318,000 for employees.

As a result, self-employed individuals are likely to retire with £10,000-£11,000 less than their target income, even after receiving the full State Pension, leading to a £208,500 pension deficit overall. 

“The 4 million self-employed workers in the UK are the backbone of our economy, yet they’re most at risk of being left behind when it comes to saving for retirement.” James Shafe, Group Policy Director at Monzo, told the Social Market Foundation.

Why do the self-employed save less?

For many freelancers, saving for retirement can feel like a constant balancing act. 

According to IPSE, 34% of freelancers say other financial priorities stop them from contributing to a pension. This was followed by affordability and stopping contributions to their previous pension scheme after becoming self-employed (24%).

However, Funding Circle also points to factors like no automatic enrollment, irregular income and cash flow pressures as common reasons why many freelancers struggle to consistently contribute to a pension. 

Shafe adds that lack of understanding and tailored self-employed pension offerings have also been key barriers.

Meanwhile, John Asthana, researcher at Social Market Foundation, has called on the UK government to further support freelancers struggling to save for retirement.

“It’s simply untenable for the government to continue to overlook this problem.” Asthana says.

“We should build on the success of auto-enrolment for employees and ensure that people in this crucial but often forgotten part of the labour force are encouraged to sufficiently save for their retirement.”

How should freelancers secure pensions?

For freelancers, contributing to a pension is essential for long-term financial security and independence later in life. 

Unlike employees, you don’t benefit from automatic enrollment or employer contributions, meaning you need to take control of your own retirement planning.

Setting up a personal pension or a Self-Invested Personal Pension (SIPP) allows you to contribute regularly and choose how your money is invested. Those with previous workplace pensions can also continue contributing to their old schemes and compile previous pensions into one pot, so that your savings keep growing.

Other options include stakeholder pensions and Lifetime ISAs (LISAs). Stakeholder pensions are low-cost, flexible pension plans with capped maximum charges of 1.5% for the first 10 years, and then 1% after that. Contributions can also be adjusted or paused if income becomes irregular, which is ideal for freelancers.

Meanwhile, LISAs allow individuals under 40 to save up to £4,000 a year and receive a 25% government bonus. After you turn 60, the funds can be withdrawn for retirement — giving you an additional safety net alongside a pension.

By utilising these options and contributing consistently, freelancers can quickly take charge of their retirement, build financial independence, and ensure a more secure future. 

Over the years, many companies have come under the spotlight after employees raised concerns about wrongdoing, fraud, or unsafe practices. 

This is known as whistleblowing, and it plays a key role in keeping the public safe and making sure organisations are held responsible for any illegal or harmful activities.

Yet, it seems that human resources (HR) teams are perplexed on how to handle such cases, as new research from whistleblowing hotline provider Safecall reveals that only a third of HR teams at UK businesses are currently receiving adequate training.

With the number of employment tribunals rising, and new employment protection laws having recently come into force, there’s an urgent need for businesses to provide proper training and guidance for staff.

HR teams are falling behind on whistleblowing training

Human resource teams play a crucial role in handling misconduct and wrongdoing in the workplace. As a result, they’re also responsible for ensuring that employees understand the whistleblowing process and are properly supported through it.

However, the statistics from Safecall tell a very different story. In Safecall’s survey of 500 HR managers based in the UK, it found that only 36% of HR and people teams receive whistleblowing training. Among line managers, this number falls to 31%.

These concerning numbers come despite a sharp rise in whistleblowing claims being brought to employment tribunals in the last decade. 

According to The Financial Times, the number of cases in the tribunal system increased by 92% between 2015 and 2023.

This shows a clear necessity for sufficient training, with companies needing to step up their support for teams dealing with these cases. Without it, employees may feel discouraged from speaking up, leaving misconduct unreported.

Why are whistleblowing policies important?

Businesses should implement a whistleblowing policy as they give employees a safe, structured way to report concerns, while helping organisations catch problems early and maintain a transparent organisational culture.

They also show staff that their employer takes misconduct seriously, protects those who speak up, and is committed to acting on issues rather than hiding them.

This is especially important now that the UK government is looking to further protect employees, including with new laws around Non-Disclosure Agreements (NDAs). Under these proposals, workers who believe they’ve been a victim of a crime can report their concerns — even if they’ve signed an NDA.

Protecting staff from retaliation is also as crucial as ever, as a report by Protect Advice reveals that 68% of employees claimed they faced victimisation or felt forced to resign as a result of whistleblowing.

Joanna Lewis, Managing Director at Safecall, says that “successful reporting and support relies on having a workforce who are adequately trained and comfortable dealing with incidents and knowing the correct course of action.”

How to incorporate whistleblowing policies into your business

Bringing whistleblowing policies into your business starts with creating clear and accessible guidelines that explain how employees can raise concerns and what happens once they do.

Your policy should outline reporting channels (like HR teams or direct managers), set expectations around confidentiality, and ensure staff know they’ll be protected from retaliation. It should also be easy to find and regularly communicated, such as through onboarding, quarterly updates, or just short refreshers through Slack / Teams messages.

However, it’s equally important for businesses to actually follow through on their policies and show employees that speaking up leads to action. After all, Protect Advice’s report also found that 40% of staff said their whistleblowing concerns were ignored.

Indeed, measuring the effectiveness of whistleblowing training is just as crucial as delivering it. Safecall’s findings show that online tests/quizzes and employee surveys are the most popular forms of training assessments, both used by 48% of businesses. This was followed by run scenarios (47%) and verbal check-ins (45%). 

“Training is a vital part of combating wrongdoing and malpractice which should not be overlooked by any business.” Lewis adds.

“Having colleagues who have the right training in place instills a sense of confidence across an organisation, and contributes to a more inclusive, safer working environment where employees feel empowered to speak up.”

From next month, all energy bills will include the “nuclear levy”, a charge used by the Government to fund nuclear infrastructure. It is expected to add up to around £100 a year for small businesses, but this will vary with their energy usage.

The Energy Gyst has created a breakdown of costs and explains that it will depend upon the size, nature and energy usage of a business. A barber or hairdresser using 40,000 kWh annually will pay around £140 in levy while a supermarket using 1,130,000  kWh will pay £3,904.

What is the nuclear levy?

The charge comes under the Regulated Asset Base (RAB) model, which gathers revenue so that the construction, financing, and operational costs of new infrastructure can be covered. It is part of the Government’s bid to move away from carbon energy.

It is compulsory though businesses with an Energy Intensive Industries (EII) exemption or off-grid properties are exempt. Les Roberts, business energy expert at Bionic, told Energy Gyst, “most high street shops, cafes, offices, or small warehouses, will see only a modest increase in their electricity bills because the charge is linked to energy use.

“However, larger businesses with higher consumption, such as supermarkets or manufacturers, will face a proportionally higher RAB cost – the more electricity you use, the higher the charge.”

Plan ahead

Businesses should factor the levy into their budgeting; not least because many businesses are already groaning under the weight of energy costs; and don’t need any nasty surprises. They should also monitor updates from their energy providers as to the details of the levy roll-out.

The Energy Advice Hub suggests that businesses look out for the forecasts of the main charge – the Interim Levy Rate (ILR) and Total Reserve Amount (TRA). This will give an indication of whether the levy could go up or down; and the bill from energy suppliers will be based on this.

As this cost is non-negotiable, businesses just need to plan ahead to absorb it; but it comes at a time when many SMEs are shouting for help with energy costs already; and are just hoping that this is something the Chancellor may deliver with the Autumn Budget.

It was the whispering into their smartwatches that gave them away, but a team who had enjoyed a winning streak at a pub in Greater Manchester have been accused of cheating – and barred.

While the cautionary tale of The Barking Dog cheaters made the headlines, it does raise the question of whether landlords should be calling time on the age-old tradition of a pub quiz.

Technology is pervasive – everyone has a phone or a smartwatch, which means that the answer to most questions is quite easy to get hold of. Quizzes rely on people to be honest; and so without banning tech from their establishments, perhaps landlords need to rustle up some new ideas.

New ways to keep punters

The pub quiz isn’t likely to be completely replaced, despite this little cheating scandal, not least because it has seen a renaissance in the past few years. A 2023 survey commissioned by the brewer Greene King revealed that 70% of people regularly take part in a pub quiz and almost 10% go every single week.

Greene King even has a section of its website for pub punters wanting to find a nearby quiz to attend.

However, the hospitality industry has been hit hard by recent NICs hikes, high business rates and problems recruiting so new ways of attracting and keeping customers are always going to be a good idea.

Late nights, live music

The Government is pushing a new licensing framework that will see sweeping changes to rules about dining outside and managing noise complaints as well as closing times. This, it argues, will increase footfall and revive local nightlife at a time when hospitality businesses are tanking in confidence.

The Government recognised in its proposal that there are huge problems, stating that since the licensing act was introduced over 20 years ago, “we have seen one in four pubs shut their doors”.

As well as streamlining the license application process in general, Gareth Thomas MP, Minister for Services, Small Business and Exports also wrote that pavement licences need a rehaul. This would mean a longer licensing term of a minimum duration of at least two years.

Festivals and events also got a mention as something to be looked at “as part of future reform in licensing, subject to wider consultation”.

Relief not reforms

While the details of the framework are still being bashed out, the Department for Business and Trade (DBT) has pledged £440,000 in support for UK pubs via the non-profit organisation, Pub is the Hub.

This fund will help pubs diversify and has largely been met with approval. Nick Mackenzie, CEO of Greene King and Co-Chair of the Licensing Taskforce said: “Additional access to funding and less red tape is some welcome news to help pubs continue to adapt to meet the needs of their local communities.”

However, what hospitality businesses really want is business rate relief; and the Government to roll back the NICs hikes from the last budget; as well as offering relief on energy bills.

While we will have to watch a few more days to find out what the Chancellor can deliver, pubs that diversify their offering are going to be in a stronger position to survive, whatever the Budget brings – and despite quiz cheats.

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

Optimism is rising among business owners ahead of the budget, research has found, but they have some specific demands they hope the Chancellor’s announcement will meet.

Research from Simply Asset Finance has not only gauged the mood among business owners but also has given voice to what they believe is holding them back from growth.

Rising positivity

Amid concerns about the financial burden that the NICs hikes and business rates have placed on businesses, this research reveals that cost barriers haven;t changed for businesses in the year since the last Autumn budget.

However, despite this, almost half (49%) of SMEs are positive about the year ahead. This is a slight increase from the 43% who were optimistic when asked this time last year. In fact, nearly one in five businesses (19%) are “really excited” about their growth prospects, which is more than double the proportion seen in 2024 (8%).

However, the confidence dropped when business owners were asked whether the Government will deliver a pro-business agenda, landing at 36%.

Barriers to growth

The research revealed exactly what is impacting businesses; and the picture remains much the same as last year. Around half (46%) cite a stagnant UK economy, two in five (39%) high inflation, and just under a third (30%) point to high interest rates.

However, it is energy costs that are a universal thorn in the side of UK enterprise. Two-fifths (40%) of those interviewed called for help with high energy costs in the upcoming Budget  and this was up from 33% in 2024. This figure also rose to more than half (54%) for medium-sized firms.

Mike Randall, CEO, Simply Asset Finance said, “Energy costs remain the biggest drag on growth – and businesses are clear they need support to allow more room to invest. But with the UK facing some of the most expensive energy costs in the world, firms are operating at a disadvantage and something needs to give.”

In June, the Government launched a scheme to help businesses reduce energy bills. However, its scope was limited as it targeted just 600 small and medium-sized hospitality businesses, offering free expert advice and audits on how to cut both costs and carbon emissions.

Tax incentives

While help in energy costs topped the list, a third (34%) of the business owners interviewed said that they also want more tax incentives to unlock better innovation and investment.  This might include help with investment in infrastructure or funding for digital transformation; but also a decrease in corporation tax. The research revealed that calls for this specifically have doubled since last year from 19% to 36%.

A third of respondents also listed government-backed loans as on their wishlist.

With the Government under pressure, a lowering of taxes seems unlikely. Indeed, rumours are strengthening of a rise in the National Minimum Wage, anticipated changes under the Employment Rights Bill, which has currently stalled, and a potential increase in Capital Gains Tax.

With two-thirds (68%) of those surveyed saying the upcoming Budget will have a significant or fundamental impact on their growth plans, pressure is ramping up in businesses around the country as the days tick down to 26th November.

From today, new directors will need to verify their ID when registering a new company on Companies House; as the Government seeks to tackle fraud. Existing directors have until next year for the same changes to impact them.

There has been reported discontent that this adds another burden on companies, who are also trying to get to grips with the Making Tax Digital roll-out as well as wider changes to the details that businesses need to provide to HMRC.

However, the government – and experts – argue that it is necessary to fight fraud; and is a simple process to follow.

What are the ID changes?

The changes are actually part of the Economic Crime and Corporate Transparency Act (ECCTA), which was passed by the previous Government. It aims to tackle fraudulent business registrations and improve corporate transparency.

It is now law for directors, people with significant control (PSCs) and presenters of documents to Companies House to carry out mandatory ID checks. Business owners can contact Companies House directly, either online or via the Post Office to provide their ID or they can verify using an Authorised Corporate Service Provider (ACSP), like an accountant, lawyer, or secretary.

The voluntary ID verification facility has actually been available since 8th April this year. While many businesses have months before their deadline, experts are encouraging them to get on top of this now.

Naomi Rich,COO at Prosec which provides secretarial support for UK companies, says: “Only around 1.5 million of the UK’s seven million directors have verified so far, suggesting many still have work to do. Verification itself is straightforward, yet leaving it too late could cause a bottleneck at the point you need to file or update details, resulting in both frustration and fines.”

While she recognises that it does take valuable time, she – and other experts argue – that completing the ID verification now will save time and money later.

Greater powers for Companies House

The ID requirement is another step in a pathway towards greater transparency and accountability in financial interactions with the Government.

Companies House has been able to reject suspicious filings, query company names, remove inaccurate information from the register, and reject disqualified company directors since March 2024.

In March of this year, the ability to expedite the process of striking off companies formed with false information was added. For more than a year now, it has also been able to issue financial penalties for non-compliance.

All of these changes are taking aim at fraudsters; as is the switch over to the GOV.UK One platform for businesses currently using a Companies House WebFiling log in. The deadline for this change was 13th October.

This means that interactions with Companies House like filing annual accounts; registering a company; making changes to the company’s directors or secretary roles, and authorising who can file for the company online must now all be carried out through the GOV.UK One platform.

Wider changes afoot

While the ID verification scheme isn’t onerous; there is concern about a potential red tape pile up for SMEs that will impact entrepreneurism. In March, Companies House admitted that new business registrations had dropped for the first time since quarterly reporting began, which many took as a red flag.

The Government says it is listening and has offered a temporary reprieve on changes that were set to kick in from April 2027. These would have seen SMEs having to submit detailed profit and loss accounts instead of simplified annual accounts. These accounts have been submitted in a standardised digital format, which would mean having to buy new software for many ventures.

The changes were set to impact SMEs with a turnover of less than £10.2m, fewer than 50 employees, and balance sheets below £5.1m. This has now been temporarily shelved. However, there has been no reprieve for sole traders for whom Making Tax Digital will kick in from next April.

For businesses though, this switch will come in at some point and so readiness is encouraged. In the meanwhile, business owners have plenty of other changes to comply with as the Government pushes ahead with its mandates; and ignoring this, say the experts, will only mean potential fines and business disruption.

Over half of UK shoppers have abandoned a purchase due to concerns that payments may not be securely handled, according to a new report.

The study by fintech Burbank and YouGov also reveals that nearly 60% of online consumers refuse to pay on unfamiliar sites.

With Black Friday and the Christmas rush just around the corner, ecommerce sellers need to pay attention to what’s becoming known as the “abandonment economy”, a growing trend where trust now trumps both price and speed at checkout. If shoppers get the sense that something is off, they’re gone.

For ecommerce businesses, especially smaller online sellers, abandoned carts equal lost revenue. When margins are already tight and seasonal peaks matter, gaining trust is vital.

Why security concerns are driving abandoned carts

Burbank partnered with YouGov to survey over 2,000 UK adults for its Make Trust Pay report. The results show that 52% of shoppers have abandoned checkouts due to security fears.

Shockingly, only 5% of shoppers reported feeling ‘very comfortable’ when entering card details on websites, indicating widespread insecurity when shopping online.

On the flip side, nearly half would feel more comfortable if online checkouts mimicked the in-store experience of chip and PIN payments.

The idea of “verification fatigue” may be able to explain the preference for simpler in-store payments over online checkouts. While they may be intended for security, cumbersome measures such as ID checks or prompt-style pop-ups can feel confusing and deter users.

The report showed that a larger proportion of older, higher-spending shoppers were the least comfortable with online shopping. While 60% of total respondents feel more worried about online fraud now compared to 2-3 years ago, that percentage climbs to 74% among over 55’s.

How businesses can reduce cart abandonment

One of the major findings from the report is that shoppers want online checkouts to feel as safe and familiar as paying in-store. Nearly half of consumers who abandoned a purchase due to fraud concerns say they would have completed it if the checkout mirrored a tap-and-PIN experience, and 56% say they’d be comfortable paying online with a PIN.

Ecommerce sellers should respond by streamlining their checkout experience, removing unnecessary verification steps, and using clear trust signals such as recognised payment provider logos and secure badges.

Regarding the report, Justin Pike, CEO of Burbank, commented, “People want online payment experiences that feel as safe and familiar as tapping a card in-store.

“To win online, businesses must build the same sense of trust they have long mastered at the counter.”

Burbank’s groundbreaking Card-Present over Internet® (CPoI®) tech enables consumers to use tap-and-PIN payments at home on their mobile phone while shopping online, removing clunky card entry and extra verification methods that can damage shoppers’ confidence.

Building trust pays off

As buyers become increasingly dubious of online shopping, trust is becoming a must-have.

Businesses can strengthen that sense of safety by adopting simple messaging cues, upfront reassurance around security, visible protection icons, and checkout flows that mirror familiar, risk-free offline experiences.

And while shoppers are increasingly open to adapting to new payment methods, they want to feel secure using them, especially during high-stakes periods like Black Friday and Christmas.

Ecommerce sellers who actively prioritise building trust are far more likely to see more completed checkouts and fewer abandoned carts over the holiday season.

TikTok Shop has published its Safety Report for January to June 2025, which demonstrates the increasing prevalence of fake products.

In just six months, over 70 million fake products were blocked, while over 700,000 seller accounts were shut down for fraudulent sales. A huge 1.4 million sellers were also prevented from registration after failing to pass verification.

With AI making fake reviews and listings more prevalent than ever across ecommerce platforms and marketplace apps, we explore how honest sellers should respond.

Fake sellers, AI listings, and fake reviews

TikTok Shop’s latest Safety Report comes from its Transparency Center. The report is designed to give a clear view of how the platform vets sellers, monitors activity, and works to keep both buyers and businesses safe.

According to reports, one of the reasons TikTok is tightening its grip is that AI image and video generators are making it much easier for bad actors to create fake products.

Scammers are now using advanced language and image models to make convincing brand identities, product packaging, and customer feedback to dupe users. On the surface, these listings can look legitimate, making it much harder for shoppers to tell what’s real and what’s not.

This kind of activity can affect genuine sellers who might find their listings drowned out by fraudulent competitors who game the system. And when fake reviews and fabricated branding start circulating, TikTok’s trust signals, like ratings and reviews, begin to lose legitimacy.

TikTok takes several steps to screen sellers before they are allowed to list products, such as requesting identity documents. New sellers are also placed on a probation period, during which time they face limits on uploads and orders.

Sellers that are found using heavily AI-enhanced imagery or fake reviews may now attract more scrutiny. But AI might also be the solution. TikTok says it is also using a mix of AI and human reviewers to block prohibited products and ban fraudulent sellers.

How to protect your TikTok sales

While it’s certainly positive that TikTok is becoming stricter on scams, it doesn’t change the fact that AI is making sham products and sellers more sophisticated. To stand out against the sea of fake profiles, businesses can take action in a number of ways.

Always try to use authentic product photos, or LIVE selling, to promote your products. If any visuals are AI-enhanced, label them as such. Tempting as they might be, brands should also avoid paid or fake reviews like the plague, since TikTok is actively targeting review fraud. Promote genuine customer testimonials or, better yet, video reviews – these are harder to fake.

Another tip? Make sure your seller verification is completed early, and keep your listing history clean to avoid encountering unnecessary delays in getting up and running.

With countless fake products and sellers being removed, consumers will increasingly seek authenticity from businesses.

If you’ve been thinking of turning your side hustle into a business, you might want to do it before the new year.

Next February, Companies House will be upping its fees. In some cases, setting up a company could cost twice as much as it does today.

Companies House insists its new prices will remain competitive compared to other countries and will help them modernise their systems, tighten security, and crack down on fraud.

But with the current economic climate already weighing heavily on small businesses, you have to wonder, is this the right moment to raise costs?

What are the new Companies House fees?

As a quick refresher, incorporation is the process of registering a company so it becomes a legal entity. It’s the first step anyone takes when officially starting a limited company in the UK.

From 1 February 2026, several fees will change. Here are some key updates to pay attention to:

• Incorporation (digital filing): £100, from £50

This is the cost to register your company on the official Companies House register. Every new limited company must do this to legally exist.

• Confirmation statement (digital filing): £50 — up from £34

This is a yearly check-in confirming your company details are up to date. All registered companies must file one annually.

• Voluntary strike off (digital filing): £13 — down from £33

This is the fee to close down your company. Interestingly, this is the only cost going down.

But where will all the extra cash go? According to Companies House, the new fees will help fund the modernisation of their services, thereby improving the experience for business owners.

The organisation is in the midst of a large push to make company information in the UK more accurate and accessible, while enforcing new measures under the Economic Crime and Corporate Transparency Act and investigating fraudulent activity via the Insolvency Service.

The goal is to create “a more trustworthy environment” for both consumers and businesses, and to get there, they need more staff, better tech, and stronger ID checks, all of which cost money.

What else is changing for businesses?

It’s not just Companies House getting more expensive. The Intellectual Property Office (IPO) will follow suit by increasing the cost of registering a trademark in April 2026.

In April 2026, fees will increase by an average of 25%. This makes a typical patent search rise from £150 to £200, while a trademark application will go from £170 to £205.

In its defence, the IPO says its fees haven’t increased in years. The last price review was in 2018 for patents, 2016 for designs, and not since 1998 for trademarks.

With inflation up 32% since 2016, they say that a 25% increase in fees helps to keep services running and invest in up-to-date digital tools.

While intellectual property may not feel like the most urgent point on your agenda when registering your business, don’t let the increased costs put you off entirely. Protecting your brand and ideas early on is vital, as it can save you from future legal complications.

Companies House ID checks: are you ready?

Don’t forget that fees aren’t the only upcoming change to Companies House. From tomorrow, 18 November, anyone setting up or running a company will also need to verify their identity.

This is part of the broader campaign to stop fraudulent companies from being registered and to make UK businesses more transparent.

New directors, PSCs (people with significant control), and anyone filing on behalf of a company will all need to complete the ID checks. The new rules also apply to existing companies, which will have a transition period to get verified.

These changes will hopefully improve transparency, reduce fraud, and modernise government systems, which, in theory, are all positives.

But for new founders already grappling with rising costs, economic uncertainty, and endless admin, having to also foot the bill for Companies House’s redevelopment feels unfortunately timed.

So, if you’re thinking about incorporating, it may be wise to do it sooner rather than later.

As the Christmas season approaches, many consumers and businesses aren’t quite feeling the usual “joy” that we experience every year, and it’s easy to see why. 

With the cost of living crisis continuing to bite, rising unemployment, and uncertainty around the upcoming Autumn Budget, there isn’t a whole lot of festivity around. 

Yet even in tough times, people are still looking for moments of happiness and ways to lift their spirits — a search that is creating opportunities for businesses.

But what is the “joy economy”, and how could it add some cheer to your sales figures this Christmas?

What is the joy economy?

The joy economy is an economic trend where businesses and brands focus on delivering experiences, products, or services that make people genuinely happy, entertained, or emotionally fulfilled — rather than just meeting practical needs.

For businesses, tensions are high around the upcoming Autumn Budget announcement, with almost four and ten firms expected to make job cuts and freeze hiring over the next 12 months.

Consumers are feeling the strain too. With the unemployment rate hitting 5% this week – on top of the cost of living crisis continuing to strain millions of households — many people are finding it harder to look forward to the holiday season.

Yet despite the doom and gloom, Brits are still looking for joy in the little things, as a survey by Human8 reveals that 91% of respondents say it’s important to find small moments of happiness in life’s seriousness.

This is where the joy economy comes in, as businesses that can offer those small sparks of delight aren’t just making people feel good, but meeting a real demand.

Joy economy in action: how “kidults” are boosting the toy industry

Evidence of the joy economy’s impact can be seen in the rise of UK toy sales, thanks to “kidults” — adults who buy products and services, such as toys, collectables and video games, typically aimed at children.

Playtime isn’t just for kids anymore, as statistics by research and technology firm Circana reveal that 43% of young adults have purchased a toy either for themselves or another adult this year. 

And it’s their love for such things that has seen the toy market report its strongest performance in years, as Circana reported a growth to £3.9bn in the last 12 months (up to August 2025). 

LEGO sets in particular, such as Formula 1, LEGO Botanicals, and Minecraft, have seen notable growth within this period — accounting for 18% of purchases. Collectables are also driving this growth, with trading cards, mini figures, and blind bags representing 22% of all toys sold. Adult colouring books, which are designed to promote mindfulness and relaxation, have also seen vast popularity, with the market projected to reach around $1.2bn by 2032.

“It’s a double success story,” Melissa Symonds, UK Toys Director at Circana, comments. “We’re seeing children rediscover the joy of play while adults are embracing it as a form of self-care, nostalgia and fandom. That combination is keeping the market vibrant and relevant.”

How should your business ride the joy economy?

With more people looking for comfort and happiness in difficult times, the joy economy is a real opportunity for businesses to connect with their target audience on a deeper and more personal level, while still remaining recession-proof.

Ultimately, it’s less about selling a product and more about creating a mood, whether that be through fun packaging, personalised touches, or uplifting marketing campaigns. 

The rise of “kidults” – plus the clear impact their spending habits have had on the toys industry — shows that nostalgia sells. In fact, according to Accelerant Research, consumers are 10-15% more likely to pay for products that evoke nostalgic feelings.

A prime example of this is Surreal, which was featured in the Startups 100 Index for 2025. Its branding, bright colours, and playful tone are a homage to the breakfast cereals from the ‘90s, but with the added bonus of being high in protein and low in sugar.

There’s also a lot of value in catering to the small, everyday moments that people look for, termed “micro joys” by the Circana report. Chocolate, for example, is still indulged by shoppers, with 61% of Brits willing to spend money on premium chocolate despite the larger price tag. 

Even so, businesses need to be smart about how they operate, especially during uncertain times. While this doesn’t mean cutting corners on happiness, striking the right balance between investing in the product experience that resonates with customers without breaking their bank, but that also protects your bottom line, is key. 

In the latest wave of trending beauty treatments, LED masks have been taking over TikTok feeds and bathroom shelves everywhere, with many promising glowing skin after just a few minutes of light therapy a day.

But it’s these bold claims that have led the Advertising Standards Authority (ASA) to ban several advertisements for the products. According to the ASA, some online ads were found to imply medical-level results without the clinical evidence to back them up.

The crackdown is a stark reminder that brands need to be careful about what they claim when selling online. 

Why are ads for LED masks being banned?

As part of its ongoing crackdown on misleading advertising, the ASA recently ordered the removal of multiple LED mask ads that made unauthorised claims about treating skin conditions like acne and rosacea. 

The rulings specifically cited a breach of CAP Code rules, which are used by the ASA to govern medicinal and medical claims for unauthorised products.

One business shared before-and-after images on its website, showing a woman’s forehead — the first with acne, and the next without — alongside the caption: “By week three, my acne had disappeared”.

Meanwhile, social media ads posted by other beauty businesses were taken down for similar claims. One video in particular featured a woman using an LED face mask with the caption: “Finished with the blue light to help treat my acne and scars”.

In its ruling, the ASA stated that “no medical claims could be made for the product, whether or not such claims appeared in customer testimonials.” 

It’s just one in a series of crackdowns from the authority, as it attempts to tackle the myriad of new healthcare “cures” cropping up online.

In July, the advertising watchdog previously released several new rules on another emerging medical product, weight loss injections. Online pharmacies are no longer allowed to run adverts for weight loss injections unless they are part of a wider service (such as consultation and prescription), following several breaches of advertising rules.

Other cases have made headlines in recent years. Last year, an episode of Dragons’ Den was edited after complaints that a pitch promoted “unfounded” claims. Ear Seeds founder, Giselle Boxer, said her product helped her recover from myalgic encephalomyelitis (ME).

What are the risks of selling healthcare products?

Cases like these reflect a wider issue of businesses exaggerating or misrepresenting the effectiveness of healthcare products when selling online, particularly as so many new product categories are emerging rapidly onto the market

For online stores and dropshipping businesses, selling healthcare products comes with many risks beyond regulatory scrutiny.

Making misleading claims in marketing leads to non-compliance with advertising and product safety, which can ultimately result in fines, legal action, or having product listings removed.

It’s similar to the risks of selling counterfeit or substandard food products, which can cause harm to consumers. A notable case from July involved the Food Standards Agency (FSA) discovering that several Dubai chocolate products didn’t contain legally required allergen information.

This not only carries legal consequences but can also severely damage reputation and customer trust. Negative reviews or viral social media can amplify these risks, potentially affecting sales and profit margins long after regulatory action has ended.  

How to sell healthcare products safely

When promoting LED masks and other healthcare-related products, transparency and legal compliance must be prioritised.

As reported by the Daily Mail, Izzy Dharmarisiri, Media Relations Officer at the ASA advises: “When it comes to skincare and health treatments, it’s important that advertisers don’t blur the line between cosmetic benefits and medical claims.”

“People should be able to trust the ads they see and hear. It’s important we act to protect people who may be vulnerable and seeking genuine solutions to medical problems.”

This means avoiding medical claims that could be considered misleading by regulators — such as, in the LED mask case, “curses acne”, “treats rosacea”, or “reverses ageing”. If a product is legally classified as a medical device, it must meet strict regulatory standards. Products only claiming general cosmetic benefits have fewer regulatory hurdles.

Certain products must also be registered with specific regulatory bodies and laws, including the Medicines and Healthcare products Regulatory Agency (MHRA) FSA, and the UK Cosmetic Regulations (UCR). All products sold in the UK must also meet specific safety standards and often bear the UKCA mark to confirm regulatory compliance before being sold to consumers.

Working with reputable suppliers, especially for firms that don’t handle inventory directly, helps guarantee that products are genuine, safe, and comply with UK regulations.

The ASA ruling is a reminder for ecommerce firms not to jump onto trends blindly. Make sure to research all of your product listings and check all legal and regulatory requirements before marketing them, so you can keep your customers safe and your business compliant.

New research suggests that as many as 81% of UK employers believe that cost cutting has damaged the culture in their workplace. 

As professionals argue that “culture rot” – or the slow erosion of what made their company successful – is having a profound impact, over 80% of bosses have noticed it “creeping” into their office; while 28% recognise early warning signs that it is starting to infiltrate. 

With the Autumn Budget impending, the cost of living crisis grumbling on, and many businesses nervous of the future (especially in hospitality) belts are being tightened. But with what impact on staff? 

Worrying symptoms

The data comes from global talent solutions partner Robert Walters and reveals that declining morale is pervasive in workplaces across the country. 

Professionals pointed to limited incentives or rewards (41%); poor collaboration across the company (36%) and unclear or broken-down communications (23%) are the three biggest red flags that a company is ailing. 

“Culture rot is the silent threat currently impacting business productivity across the UK,” comments Lucy Bisset, director of Robert Walters North.

“When company values erode and morale dips, businesses lose their edge. This isn’t a case of dramatic failures, instead, success is slowly diminished through everyday disengagement, declining incentives and broken communication loops.”

Staff underwhelmed by financial rewards

One of the biggest sticking points for employees was that while 69% of professionals were eligible to receive bonuses this year, only 37% were happy with the bonus they received.

This reflects a wider scaling backing of benefits packages with 76% reporting that they have been impacted. 

Bisset states that “comprehensive reward strategies are the backbone of a successful company culture,” and that businesses that cut them will see a rapid decline in productivity and quality of work.

Employees not aligned with core values

The report also suggested that 86% of employees don’t feel aligned with their company’s core values and workplace culture. This is despite 71% saying that these are essential factors they consider when applying for a job.

When things go wrong, it can then also be a factor in an employee’s decision to look elsewhere.  According to a recent report from Pearn Kandola, three-quarters of UK professionals have admitted to leaving a job due to issues with workplace culture.

As many businesses concentrate on survival, their focus has moved away from growth and innovation. However, says Bisset, this can then mean that they lose their key players’ and that can have a huge impact on their business’ future.

She concludes that, “good culture isn’t just branding or a ‘nice to have’ – it’s a powerful performance driver and not something that can be reduced in aid of balancing budgets.”

More than 340 hospitality businesses have signed a letter to Rachel Reeves just weeks ahead of the Budget to urge significant intervention to support the sector.

The signees are some of the biggest hitters in the industry. They include Marston’s, which operates more than 1,300 pubs, plus its rival Stonegate, the owner of Slug & Lettuce. Other signatories include Wagamama, Butlin’s, and notable hotel chains like Marriott.

The group argues that the hospitality sector needs some relief as rising business rates, increasing goods costs, and difficulties in recruiting are all impacting confidence.

What does the letter say?

The letter, which came from action group UKHospitality, has a core message: “…deliver change for hospitality at this Budget so that we can get back to growth”.

It continues: “Many businesses have either closed or cancelled planned expansion. Young people and those who work part time have seen their opportunities narrow and the benefit bill has grown as a result. Towns and rural and coastal areas have been hit harder than the big cities due to the prevalence of hospitality. Consumer prices have risen.

“We are asking for urgent action at the Budget, so we can support your goals to get young people and the economically inactive into work, regenerate high streets and boost tourism and, ultimately, drive economic growth.”

A turbulent few months

The signatories also claim that there have been more than 80,000 jobs lost since the last budget, which they say has caused hospitality to be “taxed out” – and some businesses taxed out of existence.

Kate Nicholls, Chair of UKHospitality, said the last Budget was “devastating”. “Business closures, job losses, curtailed investment, consumer price rises and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4bn of additional annual cost”. She added that, “without action, we will see these impacts continue and intensify.”

The Government is currently reviewing licensing laws for pubs – and this will bring some relief – but the response has been that even more is needed, especially as costs of staffing and premise are rocketing.

What does the industry want?

The letter states: “We are asking for urgent action at the Budget, so we can support your goals to get young people and the economically inactive into work, regenerate high streets and boost tourism and, ultimately, drive economic growth”.

The signatories ask for lower business rates. This is for businesses across the scale – as they are asking for the maximum discount for hospitality properties under £500,000 (rateable value) but also no penalty charge to larger hospitality properties.

At the end of last month, experts warned that there could be a £1bn increase in business rates in April and this will cripple some businesses.

The second ask is for National Insurance Contributions from employers to be frozen, in order to boost jobs “through targeted support for employers hiring young people and those returning to work”. They are also encouraging the Chancellor to cut VAT on hospitality “to drive investment and make us more competitive with European counterparts”.

With the Budget creeping ever closer, this letter is hoped will have an impact – but businesses are also bracing for a negative impact.

The Government has announced that, pending approval from MPs, it will increase several important Intellectual Property fees from April 2026. 

Exact costs have not yet been confirmed. However, the Intellectual Property Office (IPO) said the fees will increase by an average of 25%. For example, a patent search will now cost £200, up from £150, while a trademark application will increase from £170 to £205. 

According to the IPO, the change has been proposed to help the organisation better invest in its systems. It also reflects rising prices across the UK. In a statement, the IPO added that “the proposed 25% increase allows us to address the 32% rise in inflation since 2016.”

What do businesses need to do?

At the moment, the fee increase isn’t set in stone and fees won’t come in until next year. However, the IPO has said that it will publish full guidance early next year to help customers whose fees may be due around the time of the planned changes.

However, when the changes come in, they will impact both patents and trademarks. Trademarks tend to be logos or symbols representing a company while patents are used to protect a business’ creations and offer the exclusive right to make, use, or sell that invention for a set period, which is usually around 20 years.

In this period of consultation, businesses who regularly file trademarks or patents need to budget for a potential price increase. This is far more preferable than not protecting their IP. 

Why IP protection is important

For many businesses, especially those designing their own products, IP has taken on more importance in recent years with the proliferation of copycat designs. 

We reported last month about businesses who are trying to fight platforms including Temu and Shein, when they have found similar, if not identical, designs to their own online. 

While they have been trying to get designs taken down, many business owners face the frustration that others are appearing just as quickly. 

Enforcing IP across borders is incredibly difficult and isn’t helping business owners in this situation without huge costs. But owning your IP lends businesses protection in the UK. 

It is also a way of winning customer confidence in their products as businesses can prove that their designs are original and therefore made to standards. This is their best line of defence against mimicry but also a way of building their client base. 

Around 680,000 out of the UK’s 5.67 million SMEs are actively planning to relocate themselves, their businesses, or both due to the current tax burden, according to a new report. This is around one in eight enterprises.

This worrying statistic comes from a poll by Rathbones, one of the UK’s leading wealth and asset management groups. It reveals that nearly two out of three (63%) SME owners and bosses believe the government does not do enough to encourage business growth in the UK. In fact, 42% actually state that they believe that the Government is unsupportive.

With concerns that the Chancellor is going to raise the tax burden on businesses, the data reflects leaders’ nerves around the upcoming Autumn Budget.

Why are businesses considering leaving?

According to Rathbones, the main driver for businesses contemplating moving abroad is the prospect of a higher tax burden. Some businesses – especially in hospitality – are already struggling with rising employment costs following last year’s hiked National Insurance rates.

The poll supported this, saying that 36% of respondents report that increases to Employers’ National Insurance and the National Living Wage have “moderately or significantly affected” their businesses. 43% say tax changes have had the biggest impact on their business.

While it is a small percentage considering leaving – disillusionment about tax levels is shared by many. More than a quarter of business leaders say that while they are not planning on moving overseas, they are concerned about the tax environment.

What do businesses want?

Nearly half of the respondents (49%) say that tax breaks to encourage business growth and staff hiring are top of their wishlist. A further 25% support incentives for business owners to take risks while 21% favour rewards for business success.

Senior Financial Planning Director at Rathbones, Ade Babatunde, says: “SME owners are sending a clear message: they feel let down by current government policy.

“With nearly two-thirds saying not enough is being done to support business creation and growth, and many citing tax changes and rising employment costs as major challenges, it’s no surprise that confidence is waning.”

Where are businesses going?

Among the business leaders interviewed who were considering an overseas move – Ireland was the top destination with 26% of the vote, while Dubai came a close second with 21%. The US also got a mention, though the visa hike is sure to put many off.

As we reported last month, Dubai is actively courting entrepreneurs with no personal income tax and a corporate tax that is also considerably lower than the UK. It has also set up a Golden Visa scheme for long term residence as the state tries to encourage growth in its real estate, retail, logistics, and tourism industries.

The reported exodus, which the Government says has been vastly inflated, is being driven by the Government’s decision to scrap special tax privileges for non-domiciled residents in April. The loophole allowed these residents (whose domicile or home is another country) to avoid UK taxes on overseas earnings for up to 15 years.

However, one high profile leaver is Nik Storonsky, the co-founder of Revolut, who is reported to have moved to the UAE because of the licensing issues he has faced in the UK when trying to win its UK banking license.

Whatever the reason for which entrepreneurs are making the final decision to move, the poll reflects a wider confidence issue. Founders are shouting that present conditions won’t allow them to grow and innovate; something they desperately hope the Budget will address.

As we approach the end of 2025, small businesses across the UK continue to battle rising costs on multiple fronts, from supply chain inflation to tax burdens. And, as a result, many businesses have had to raise prices to reduce the pressure on profit margins.

For some, raising your prices is a matter of do or die, but how does it actually sit with customers? According to a recent YouGov survey, consumers increasingly prefer straightforward price rises over feeling subtly shortchanged.

While some businesses try to absorb cost pressures by shrinking product sizes, a tactic known as “shrinkflation” (looking at you, Freddo), data suggests customers would rather pay more than get less for the same price. Transparency, it seems, still comes out on top.

Why price rises are hitting businesses

Businesses are facing an onslaught of rising costs. Supply chain inflation is pushing up the price of raw materials, while employees expect higher wages across most sectors. At the same time, increased employer NICs and tax hikes mean staff are already more expensive.

These challenges are even more acute for sectors with complex or large supply chains, such as hospitality, food production and ecommerce. Here, even small fluctuations in ingredient or shipping costs can ripple through the entire operation, leaving little room to maintain previous pricing without sacrificing something, like product size or quality ingredients.

Yet despite these pressures, customer expectations haven’t dipped. Consumers still want value, fairness and consistency.

So for many businesses, the question isn’t whether to raise prices, but how to do so in a way that remains profitable without alienating loyal customers. Planning the timing and scale of price increases has therefore become essential in maintaining that careful balance.

What the YouGov data means for your customers

YouGov’s poll asked 4,223 UK adults how they think companies should respond to increased production costs.

More than half of respondents (51%) say they would prefer a price increase if it means the product stays the same size. Only 15% are comfortable with shrinkflation, highlighting just how much of a bad rap the phenomenon gets.

The findings point to a clear preference for transparency. Customers would rather be told the truth than feel duped, and clear explanations about rising costs can make the difference between a frustrated customer and one who stays loyal to the brand.

Smaller firms, in particular, often rely heavily on customer relationships, and the data shows that honesty, even when it’s bad news, can help preserve those relationships.

How to raise prices without losing customers

If you need to raise prices, the first step is to figure out where expenses have increased, how margins are affected, and what level of price adjustment is actually needed.

Equally important is avoiding the tactics customers dislike. Shrinkflation may seem like a quick fix, but it ruins trust and leaves a bad taste with regulars who will notice slight changes in portion size or ingredient quality.

Likewise, dynamic or surge pricing feels unpredictable. Understandably, this won’t sit right with customers who are also feeling the cost-of-living pinch. Instead, keep your products consistent and explain honestly why prices need to change.

When communicating the rise, be upfront. Outline the cause and reassure customers that quality and value are your priorities. Many customers are more understanding than businesses expect, as long as they don’t feel misled.

Once the increase is in place, monitor feedback. Look at sales patterns, social media, and review sites. If something isn’t landing well, adjust accordingly.

Ultimately, transparency is the safest bet. Well-explained price rises both preserve trust and allow businesses to navigate tough economic conditions.

Learn more about the best pricing strategies to employ in your business in our complete guide, updated for 2026.

Among business owners, tensions are high in the run-up to the Autumn Budget, according to a new report.

The survey of hundreds of company owners reveals that almost four in ten expect to have to make redundancies over the next 12 months, to cushion the possible financial blow of further tax rises.

The widespread unease across UK business owners was partly triggered by last year’s Autumn Budget, which increased employer National Insurance rates, leading to hiring slowdowns and tighter margins.

Understandably, business owners are waiting in anticipation for this year’s changes. Will the 2025 Budget have the same bleak impact, or offer some much-needed relief?

Redundancies on the horizon

S&W’s The BOSS (Business Owners Sentiment Survey) report surveyed 500 UK business owners with turnovers of over £5m.

The report found that 37% of business owners expect to make redundancies and 39% foresee a hiring freeze, reflecting an ongoing crisis of confidence as businesses struggle to bounce back a year on from last year’s Autumn’s Budget.

Chancellor Rachel Reeve’s 2024 financial statement saw tightened fiscal policy, which raised employment costs. Notably, increased employer NICs have impacted businesses UK-wide, with sectors such as retail and hospitality facing additional strain.

Toby Tallon, Tax Partner at S&W, said the research sent a clear message to the Chancellor ahead of the November 26 Budget. “Further tax rises on risk-takers and wealth creators could drive more of the UK’s most successful businesses and owners out of the country.”

Business owners eye overseas moves

Confidence among UK business owners has dipped so sharply that many are now considering leaving the country entirely. The report shows that 41% of respondents would think about moving their operations abroad if November’s Budget bears more bad news.

Several proposed changes are fuelling thoughts of a mass exodus. Around 40% of business owners cite the proposed extension of inheritance tax to pensions from April 2027, while 42% point to impending cuts in business property relief and agricultural relief.

Together, these shifting policies have many entrepreneurs questioning whether the UK still offers a stable, competitive environment for growth.

For those already navigating high costs, tighter margins and ongoing economic uncertainty, the threat of further tax rises makes relocation a realistic survival move, rather than a dramatic last resort.

What’s causing uncertainty among business owners?

The drop in confidence among UK employers can largely be traced back to recent tax policy changes. This, combined with rising operational costs, supply chain pressures, higher wage expectations and ongoing skills shortages, makes long-term planning increasingly difficult.

These pressures are already visible across the country, with insolvency levels continuing to climb. Hiring stalls are now also spreading beyond sectors like retail and hospitality, to impact industries like communications and healthcare.

And with so many businesses on the brink, industry groups are urging the Chancellor to deliver a pro-growth, pro-enterprise Budget. They argue that stability, supportive tax policy and targeted relief can help restore confidence, avoid redundancies and ensure the UK remains a habitable environment for SMEs.

“[In this month’s Budget] we need bold policies that give entrepreneurs confidence and keep Britain open for business while staying fiscally responsible”, Tallon stresses.