New research has revealed that less than half of self-employed workers and freelancers are actively saving for their retirement, and their long-term financial stability is under threat as a result. 

Aviva has published data on retirement planning among the UK’s self-employed workers, freelancers, and digital nomads, and it makes for worrying reading. 

From a sample of 500 individuals, it was found that only 38% of self-employed people and 40% of freelancers are actively saving for retirement. The data also revealed that 45% of the wider self-employed and freelance community do not feel confident about their long-term financial stability.

Many are risking “reaching later life without savings”

The research, compiled by Aviva, gives the startling overview that “most people working outside traditional employment structures are not building up dedicated retirement savings”. This could see them “potentially leaving themselves exposed to financial insecurity later in life”.

The research also took in digital nomads, and found that an even smaller proportion of this group (34%) are saving. 

However, it also revealed that many have the intention of saving, but are waiting for less turbulent times. Nearly a third of digital nomads, 23% of the self-employed, and 18% of freelancers said they want to start saving soon. Many, though, have no such plans. 

Alistair McQueen, Head of Savings and Retirement at Aviva, warns: “This research highlights a clear gap in retirement planning for people who are self-employed and freelance. Without auto enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.”

Lack of pension relief knowledge means money is left on the table

The research also found that one of the blockers for workers is a lack of knowledge as to what is available to them. Fewer than one in four self-employed people (24%) and freelancers (21%) know about the pension products available to the self-employed and freelance workers.

This concern was echoed by Chris Eastwood, CEO of pension provider Penfold, who has warned that millions of higher-tax payers could be missing out on hundreds, or even thousands, in unclaimed pension tax relief.

According to Eastwood, many people don’t know that only 20% of tax relief is added automatically, and this means that higher-rate taxpayers must file a Self Assessment tax return to claim relief.

He states: “We regularly see people paying higher-rate tax who assume all their pension tax relief is handled automatically. In many cases, it isn’t, and the result is money being left on the table that HMRC won’t pay back unless it’s claimed.”

To give an example, for someone paying 40% income tax, “a £10,000 pension contribution could cost as little as £6,000 once all tax relief is claimed,” he added.

What can freelancers and the self-employed do?

Both experts encourage workers to use the approaching Self Assessment tax deadline as the impetus to look into their finances. McQueen says that it might not even require drastic action, but “small, regular steps – like opening a personal pension and setting an affordable monthly contribution – can make a big difference.”

Eastwood added that, whether you are self-employed or a PAYE employee, “the key is understanding how your pension scheme works.

“Claiming pension tax relief isn’t about gaming the system. It’s about making sure people receive the tax benefit Parliament intended – and not paying more tax than they need to.”

For solopreneurs and business owners with employees alike, financial planning for the future may feel like a stretch when the economic landscape is so hilly. But a little research and financial sacrifice now is essential to ensure a decent retirement.

Data from 14 different nations has revealed a clear trend: SME owners are seeking out professional advice on cyber insurance, with a significant proportion driven to do so by rising fears around new technology, specifically AI.

With cybersecurity a growing concern for small business owners, media coverage of high-profile cyber attacks against the Co-op, M&S, and Pandora in 2025 has also fueled interest in cyber insurance.

What’s the risk to small businesses?

While reported cyber breaches against UK SMEs dipped from 718,000 businesses to 612,000 in 2025, it’s still true that over 40% of SMEs have experienced a cyber attack. 

As businesses scramble to get to grips with AI technology, they are also becoming aware of the potential risks, with AI empowering cyber criminals to launch low-cost, sophisticated, automated attacks at a higher frequency. In the wrong hands, AI can assist with sending phishing campaigns, generating deepfakes, and creating and deploying malware.

GlobalData’s 2025 SME Survey delved into why business owners were buying cyber insurance. While 39% of respondents said they did so because they were advised by a broker to, 35.8% said that they were interested in a policy because of the “increased risk posed by AI adoption” – making AI the second-biggest draw to cyber insurance, followed by media reports on cyber attacks (34.7%).

Beatriz Benito, Lead Insurance Analyst at GlobalData, commented: “The rapid spread of AI and its integration across all industries is making SMEs feel uneasy and anxious about the technology, perceiving that it may pose significant risk.”

The importance of using AI safely

As well as the threat from cyber criminals’ use of AI, adopting the technology in-house can also create vulnerabilities. Using third-party AI tools and software without properly vetting them could leave your business’s data at risk of being breached if the platforms you use are attacked.

Indeed, as well as being a barrier to growth for many UK entrepreneurs, the lack of AI literacy is a big cybersecurity risk. Research from KPMG revealed that 73% of Brits have received no AI training or education, while the Government’s SME Digital Adoption Taskforce report from summer 2025 revealed that many SMEs lack the confidence to adopt and use new digital and AI tools properly.

This data speaks volumes – many SME owners don’t know how to approach deploying AI, and crucially, don’t know how to protect against its risks and vulnerabilities. Therefore, educating yourself and your team in this should be the first step in safeguarding your business.

Can cyber insurance protect against AI attacks?

According to Benito, business owners are contacting their insurance broker because they want clarity in the face of this confusion.

Specifically, they want to know what protection they have against AI risks as the technology rapidly becomes part of their workflow and is adopted by the world at large. 

However, cyber insurance is not a catch-all solution. Many insurers are in the process of adapting their policies to cover specific AI risks, but SMEs need to be aware of the particular risks they should seek cover for, as they won’t find generic policies covering all possible AI threats. As Benito said: “Given that many standard cyber policies do not mention AI cover, there could be a gap between what clients expect from their policy and what it actually covers.”

She added that GlobalData’s findings should serve as a catalyst for businesses to contact their insurance brokers; and also for insurers to make sure that policies are affordable for SMEs and include specific cover for AI risk:

“SMEs may not always be able to afford the cost of a policy, or the technology (such as software upgrades) required by insurers. Given the high barrier to entry for SMEs, insurers should focus on developing policies covering just the risks that are most common to such businesses.”

Business owners must start interrogating what cyber protections they have in place, both in terms of technology and insurance, and ensuring they buy a policy that covers the risks most relevant to them. Meanwhile, the insurance industry needs to iterate fast to make sure that relevant policies that cover AI-related threats are accessible to all SMEs.

Large restaurant chains — including TGI Friday’s, Frankie & Benny’s, and Pizza Hut — have been accused of posing as independent restaurants on delivery platforms.

Independent restaurant businesses and F&B brands claim that larger chains are disguising themselves on apps like Deliveroo, Just East, and Uber Eats — making it harder for customers to tell them apart from genuine small businesses.

This practice, known as “masquerading”, has raised concerns among both businesses and customers about fairness, transparency, and ultimately the survival of small hospitality businesses.

With more of these listings appearing, major chains are reportedly pulling in extra business — often at the expense of the actual independent restaurants customers think they’re supporting.

What does “masquerading” mean?

Restaurant chains have reportedly been using different names and branding on delivery platforms to appear as independent brands and attract customers who want to support local eateries. 

It’s also a way of sidestepping the limitations of their existing brand — for example, a pizza chain that also serves fried chicken may list these products under a different, chicken-oriented brand name to get more eyes on them.

While there’s currently no law or legislation to prevent this practice, diners have shared their distaste about it, believing that it deliberately misleads users and unfairly disadvantages genuine independent restaurants. 

“There is so much of this in my area. I think it’s entirely misleading, bordering on fraudulent,” a user commented on Reddit.

Meanwhile, another added: “A chain pub near me used to do this. On UberEats it had five listings all with the same address. This was in a pretty small area, so there already wasn’t much competition. They absolutely drowned out the other places.”

How is masquerading affecting small restaurants?

Unsurprisingly, the practice of “masquerading” on these apps means that genuine independent restaurants, cafés, and pubs are at greater risk of losing business to large chains posing as small or locally owned businesses.

With so many businesses using these platforms (Deliveroo, for example, has around 70,000 partnerships with restaurants, groceries, and retailers in the UK), and a large number of them reliant on the revenue these apps bring, this can be particularly damaging. 

According to a report by NIQ, deliveries earned 13.4p in every pound spent with restaurants in November 2025, while takeaways and click-and-collect orders earned 4.8p in every pound.

The reported increase in masquerading means that smaller restaurants face intense competition in an already struggling sector. As of August 2025, hospitality has seen 62 net business closures per month (equalling two a day), while the number of independent restaurants has declined by 22.7%. 

Rajendra Vikram Kupperi, director of Vivo Amigo in Cardiff, believes that the rise in ghost kitchens on delivery apps has contributed to this problem, as they make it easier for chains to launch multiple “brands” from the same location without anyone knowing the same company is behind them.

With over 750 ghost kitchens set up in the UK, Kupperi believes this has directly affected his business, and has called for them to be separated from large brands so that customers aren’t misled.

“During Covid, the number of ghost kitchens that opened was endless,” he told The BBC. “The bigger brands can undercut the prices, they have good offers. Customers can’t really differentiate.”

How should restaurants fight back?

Smaller restaurants may not be able to stop the practice outright, but there are ways to help limit its impact.

For example, sharing clear branding, honest descriptions, and real photos of your food and venue can help customers recognise a genuine independent business, rather than a rebranded chain operating under a different name.

Moreover, building loyalty beyond delivery apps can also build further credibility. Encouraging people to follow you on social media, sign up to a mailing list, or order directly from you in future (for example, you could offer a thank you gift or freebie that your customers wouldn’t get with a delivery app) can help reduce reliance on platforms where competition is crowded.

And finally, it’s worth pushing platforms for change where possible. Giving feedback to delivery apps, flagging misleading listings, and supporting calls for better transparency can all help. One voice might feel small, but when enough people speak up, it’ll be harder to ignore.

While there’s still a long way to go, some platforms have shown a willingness to better support small businesses. Uber Eats has told The BBC that it would be “levelling the playing field” for partners on its platform, helping smaller restaurants get fair visibility alongside larger chains.

A spokesperson commented: “We have a growing team of dedicated account managers working to build bespoke solutions and equal exposure opportunities on the app and we accelerate rather than compete with our partners’ sales.”

Discover the ales and ails of hospitality

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

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UK Finance, which represents 300 firms across the UK, has told the Government that the Bank Referral Scheme (BRS) “no longer effectively meets the needs of today’s dynamic market” and is failing SMEs.

The trade association didn’t pull any punches in its response to the HM Treasury’s consultation on the Bank Referral Scheme, and argued that instead SMEs need “a modern, government-led Access to Finance Hub”. 

The publication of UK Finance’s response comes swiftly after a bid was launched by a group of Labour backbenchers to create a Fair Banking Act, which would monitor and rank banks based on how well they are serving SMEs. 

This response from UK Finance emphasises that traditional banks are no longer playing a key role in financing SME growth, and the Government needs to recognise this. 

Why isn’t the BRS working?

The Bank Referral Scheme kicked off in November 2016, and was designed to help SMEs find alternative funding if their application was rejected by a mainstream lender. However, UK Finance has said the scheme “fails to provide timely, proactive support for SMEs, often leaving them ill-prepared after a rejection and disillusioned with the process.”

In particular, in its response to the Government (PDF), the association argues that take up for the scheme has been really low, “with only 2 to 3 per cent of declined SME applicants taking up a referral.” 

Crucially, of those who do get a referral, only 6% actually obtain finance, which leaves 94% experiencing a “double decline”. 

It was initially suggested that the scheme could unlock up to £1.9bn of additional finance for SMEs. However, over 10 years, it has actually resulted in around £128m shared between 5,400 businesses. “Compared to the £62bn of gross lending to SMEs in 2024 alone, it is now clear that the scheme was only ever going to make a minor contribution,” the UK Finance team said.

The letter stated that the scheme simply hasn’t delivered on expectations, despite a previous independent review of the BRS that recommended improvements to increase takeup – and changes that were made as a result. 

Are big banks still important players in SME funding?

The scheme hasn’t taken into account the fact that the funding landscape has shifted dramatically since it was launched, with SME owners now tending to seek out alternative sources of finance instead of mainstream banks.

As the letter stated: “British Business Bank (BBB) data showed that of the £62.1bn of gross lending to smaller businesses in 2024, £37.3bn was provided by challenger and specialist banks.” 

These organisations are responsible for 60% of gross lending, with this figure having doubled over the last decade. Their lending has exceeded lending from the big five UK banks for four years in a row. 

What is the alternative?

UK Finance is arguing that the scheme needs to be replaced with a platform that would offer far more support and guidance: “This revamped platform could serve as a comprehensive one-stop centre of financial expertise and valuable resource, offering continuous support and guidance throughout the entire business and financial lifecycle, rather than just a reactive referral process.”

UK Finance pointed to the Department for Business and Trade’s (DBT) Backing Your Business campaign as an example of how the platform could run. 

The hub would offer access to education and assessments on financial readiness and allow SMEs to tailor their applications for a greater chance of success. 

With financial literacy among founders a rising concern, UK Finance’s response is a call for a more proactive approach to helping SME owners get the finance that they need to grow. However, what it doesn’t include are suggestions as to how the platform would be financed. 

Although the potential impact for SMEs is tantalising, it isn’t definite. As the Government tightens its belt, SME owners must try to educate themselves as much as possible about their funding options, as it could be a long wait before the BRS is replaced with something more valuable.

In his latest headline-making move, Trump has threatened to introduce new tariffs on eight European countries, including the UK, unless they support his wishes to buy Greenland. 

If no deal is reached, the proposed tariffs on UK goods could start at 10% from 1 February, rising to 25% later in the year.

While the UK government wants to avoid a trade war, the threat alone has already caused stock prices to falter across the globe. And it’s sure to create further uncertainty for businesses that have a significant American market or rely on supply chains connected to the US.

How tariffs work and what’s at stake

Tariffs are taxes added to imported goods, typically as a percentage of the sale price. While US firms technically pay them, the cost is often passed back down the supply chain, affecting UK exporters. The sectors most at risk of tariffs include machinery, automotive, aerospace, and food and drink products such as whisky. 

You might recall similar news last April, when Trump caused stock market chaos by imposing similar levies. China retaliated by slapping US exports with its own tariffs, causing a chain reaction of widespread economic volatility.

Generally, tariff increases are not positive for the global stock market, as they have ripple effects such as higher prices for consumers and stalling the flow of trade. Even SMEs that don’t export directly to the US could be affected if suppliers or partners face higher costs or reduced demand. 

While the announcement is still fresh, it’s been met with concern. Danni Hewson, AJ Bell’s Head of Financial Analysis, told The Guardian, “The fact US markets are closed for a public holiday means we’re only seeing half the picture today.”

“Uncertainty is the biggest dampener on sentiment, and the timing of the IMF’s latest forecast could be seen as ironic. It may have been forecasting better global growth for 2026 following tariff negotiations and AI gains, but those negotiations might as well never have taken place if they can be ripped up so easily.”

How UK businesses can respond

For now, the UK government is seeking to avoid getting into a tariff war with Trump and has made no immediate moves to impose retaliatory tariffs.

However, if the stock market’s immediate response is anything to go by, businesses might be about to face the ripple effects of market instability. 

In the face of uncertainty, small businesses can still take practical steps to prepare for impact and minimise disruption to profit margins. It could be wise to review how much of your revenue relies on direct US trade. You might check this by speaking with suppliers and distributors, and building flexibility into pricing, stock, or contracts. That said, it’s too early to start restructuring supply chains or raising prices just yet.

There are sure to be more details in the days to come, so the best next step may be to monitor developments closely before making any sudden movements. Stay informed by keeping tabs on updates from the government, as well as EU negotiations, or industry-specific trade bodies.

The hospitality industry is bracing for another squeeze as the government prepares to raise alcohol duty rates from 1 February 2026.

Margins on alcohol sales could get tighter, as rates will increase in line with the Retail Price Index (RPI) at 3.66%. Pubs, bars, and restaurants aren’t directly responsible for paying alcohol duty tax, but the increase in cost could be passed on from suppliers to land on operators who are already facing intense financial pressure. 

As pubs across the UK continue to campaign for wider government support for the sector, including business rates relief, another hike won’t be the news they were hoping for. But with many hospitality businesses already under pressure, it’s important to be aware of the potential increases to alcohol prices in the coming weeks, and to plan ahead where possible.

What’s changing with alcohol duty — and when

This upcoming increase in alcohol duty rates was first announced in November’s Budget, with rates set to be uprated by 3.66% from 1 February, in line with inflation (RPI). The Telegraph has reported that this could result in a £400m-a-year tax rise on pints, wine, and spirits.

It’s worth noting, of course, that the cash discount available under Small Producer Relief (SPR) will also be increased, so the relative discount smaller alcohol producers receive will remain intact.

Why pubs and hospitality businesses are worried

The government acknowledged the change could have “some impact on the hospitality industry”, with alcohol suppliers likely to charge pubs, bars, and restaurants increased prices to cover the duty rates increase.

The Treasury calculated the 3.66% increase to affect approximately 10% of pubs’ costs, which amounts to a less than 0.5% increase overall. But even minor increases can have a tangible impact on pubs working with already tight margins.

UKHospitality’s Allen Simpson told The Caterer that the sector’s cost burden was already “growing at an unsustainable rate”.

“Increases to alcohol duty, while not paid directly by operators, are another pressure if it is passed onto businesses through higher drinks prices,” he said. “We strongly urge suppliers to show restraint, recognising the economic pressure the sector is under.”

The increase is unfortunately timed, as many hospitality businesses are currently up against high energy bills, rising food costs, staffing pressures, and the end of pandemic-era financial relief.

What this means for hospitality SMEs

With suppliers and producers likely to pass the cost of the duty increase on to pubs and restaurants, stocking alcohol may be more expensive from February. Passing these costs on to customers is an option, but it likely won’t land well with price-sensitive consumers, especially those who are already moving away from alcohol. 

That said, many pubs are simply not in a position to absorb additional costs without putting further pressure on their bottom line.

While the duty rise alone may not be a major blow, it’s yet another facet of the cumulative burden facing pubs across the UK. With the increase now effectively locked in, pubs may turn their attention towards the Chancellor’s promised support package, particularly the business rates relief, which could have a much larger impact on how pubs fare in 2026.

Discover the ales and ails of hospitality

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

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Weight loss medications such as Ozempic, Wegovy, and Mounjaro have grown in popularity over recent years, and now, they’re starting to influence how people eat out. 

These medications work as appetite suppressants, meaning that those taking them prefer smaller portion sizes, lighter options, and fewer meals throughout the day. As the jabs become more widespread, this is having a knock-on effect on cafés, restaurants, and pubs.

Large chains have recently spoken publicly about this impact, but the shift matters just as much for small and independent food businesses, many of which are already balancing rising costs and changing consumer expectations. The question is: does this pose an opportunity for small businesses, or is it just another hurdle for a sector that’s already under pressure?

What are weight loss jabs, and how are they changing eating habits?

Weight loss injections are technically called GLP-1 (glucagon-like peptide-1) medicines, which create a feeling of satiation without needing to eat as much. The drug is officially prescribed to manage type 2 diabetes, but in recent years, its ‘off-label’ use as a weight loss drug has gained momentum.

According to a study by UCL researchers, approximately 1.6 million adults in the UK used weight-loss drugs in 2025, with a further 3.3 million saying they’d be open to using them in future. In addition, jab use is twice as common in women as in men, and most commonly used by those aged 44 to 55, a core demographic for the hospitality industry.

This means that a growing number of UK consumers are developing a preference for smaller portions and lighter choices, instead of overly sugary, heavy foods. But this doesn’t mean that people have stopped eating full stop – just that they’re eating differently.

Why this matters for small food and hospitality businesses

At first glance, the growing use of weight loss injections may seem like another challenge for hospitality businesses already under pressure. Appetite suppression means some customers are ordering less, sharing more, or opting out of eating out altogether.

Hospitality chains have already taken note of the shift. Roisin Currie, CEO of Greggs, recently said there was “no doubt” that weight-loss drugs are influencing demand for smaller portions, with fewer customers craving stodgy sausage rolls.

There’s no denying that all of this lands at a difficult moment for the sector. Rising food costs, tight margins, and spend-averse customers mean that further changes to customers’ habits only pile more pressure on F&B businesses.

Understandably, you may worry that shrinking appetites will affect your profits. But there’s another way to look at it. Last week, LEON told the BBC that the rise of weight loss jabs could actually present an opportunity. Customers are gravitating towards lighter, higher-protein, or “plant-forward” dishes, which can prove cost-effective for businesses to provide, with smaller portions helping to reduce ingredient costs and cut waste.

How the hospitality industry can adapt to weight loss jabs

For small and independent businesses, the impact is likely to be nuanced. And when adapting your menu, there are practical steps you can take without having to fully diet-ify your offerings.

Varying your portion sizes is a good place to start. You could consider incorporating tapas-style small plates onto your menu, or offering half portions of your existing best sellers, which will allow you to stick with your core dishes and flavours while avoiding waste and appealing to smaller appetites.

If you don’t serve any dishes that could be considered light, health-led, or high-protein, such additions are certainly worth considering if they don’t compromise your brand’s ideology.

Of course, the key is to communicate the value of any menu changes you make clearly, so customers don’t simply perceive your new small portion options as shrinkflation.

Ultimately, this is about choice and flexibility. Businesses that adapt to suit evolving tastes could stand to attract and retain customers navigating a new relationship with food, while easing cost pressures at the same time.

Discover the ales and ails of hospitality

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

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A survey of manufacturing professionals across four nations has highlighted how AI is being deployed in manufacturing. However, it highlights that more investment is needed by F&B businesses to tackle supply chain disruption, which is the industry’s top barrier to meeting production targets. 

Procurement issues were top of the list, specifically in this sector, while other industries singled out digital change management or disconnected ecosystems as their biggest issues. 

Of the respondents in the F&B sector, more than one in ten said that supply chain disruptions could actually limit their ability to deliver on their production goals over the next 18 months. 

This confirms the view from the winner of this year’s Startup 100 Index, Omnea, that procurement is not only dreaded by businesses but actively avoided, and is the problem that they are solving with their AI concierge service. 

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Check out which startups made our list for the Startups 100 Index for 2026 - celebrating the UK's most innovative, ambitious, and fast-growing businesses.

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Significant challenges

While the Augury’s 2025 State of Production Health report gathers intel from businesses with an annual revenue of $100M+, the findings are absolutely relevant to SMEs. Labour shortages, rising staff costs and dropping confidence all get a mention; and these have been actively felt by F&B businesses across the UK.

However, procurement problems were highlighted by the F&B business owners as having been tied to rising product costs (and for some, tariffs) but also fluctuations in demand for specific products. The popularity of “plant-forward menus” is one example of businesses having to rapidly change their procurement needs to match customer tastes. 

AI possibilities

As Chris Dobbrow, VP of Business Development at Augury, told Consumergoods.com, F&B businesses recognise that AI could have an impact on solving this problem, but supply chain management fell by four ranking slots in this latest survey, as compared to 2024. 

The report authors explain: “In a time of trade policy volatility, respondents may address tariffs more with cost accounting and pricing rather than sourcing arrangements/suppliers, though they may need to work both fronts going forward.”

However, the report did suggest that where F&B businesses have put AI technology in place, it is delivering on the investment.  Sixteen percent of the leaders in this sector shared that more than half of the AI pilot projects they started have now been rolled out across their business. 

The survey also revealed that AI is having the most impact in creating AI-generated work instructions; improving production – including making sure that any machinery is working properly – and reducing downtime. 

An emphasis on procurement

The survey results reveal that 78% of the business leaders are planning on investing in AI technology in the coming year. While this was across sectors, it was also noted that 18% plan on prioritising streamlining their supply chain visibility using AI in 2026. 

However, says Dobbrow, for F&B businesses, this needs to be even more of a focus. “Despite recognising supply chain as their biggest hurdle, food and beverage companies rank supply chain management lower when it comes to AI impact. The current data shows that AI tools are not yet being applied as widely or effectively in this area,” he shares.

He adds that “supply chain resilience can protect production from geopolitical swings and ensure product gets to the end-customer”. For businesses of all sizes, the message is clear. AI can be a powerful tool in solving procurement troubles; and solving these could be businesses’ biggest defence in difficult times. 

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

Refund hacks — otherwise known as refund abuse — is something that’s been costing businesses greatly in the last year.

With this issue becoming more common, ecommerce businesses and online retailers are stuck between trying to maintain a positive customer experience while protecting themselves from dishonest returns.

For smaller businesses, it’s not just about the money. Dealing with disputes, tracking returns, and responding to claims across multiple channels can quickly take up time and energy. 

And while it’s easy enough to slap on a return fee to fix the issue, this comes at the cost of customer satisfaction. So, how should online retailers push back against refund abuse without risk of losing loyal shoppers?

How do “refund hacks” work?

While there isn’t any actual hacking going on, a “refund hack” works by exploiting a retailer’s return policy for dishonest financial gain.

According to Ravelin’s State of Refund Abuse Report 2026, 37% of UK shoppers have admitted to abusing a merchant’s refund policies in the last year.

One common form of this is “refund without return”, where customers repeatedly claim items are defective or missing to get free products. Another approach is “wardrobing”, in which someone buys an item and uses it for a short time (such as an outfit for an event), then returns it for a full refund, claiming that it’s unused.

Other cases include making false claims (saying an item arrived damaged, was never delivered, or was the wrong product) or return fraud (such as returning a different item than what was bought or returning empty boxes).

Ravelin’s report also found that “bracketing” has been the most commonly used form of refund abuse, with 45% of respondents admitting to buying more than they intend to keep (like multiple sizes, colours, or extra items), and then returning the excess items after keeping what they want.

The true cost of refund abuse for businesses

Unsurprisingly, the immense rise in refund abuse has come at a hefty cost for ecommerce businesses and retailers — costing £1.3bn a year in total.

However, Lei Gao, Chief Technology Officer at SleekFlow, says that the impact of refund abuse goes beyond cost, as smaller teams in particular are often stretched thin trying to manage disputes, track returns, and respond to customer claims.

“For small businesses, chargebacks can become an operational drain aside from being a finance issue.” Gao explains. “Some founders end up handling the disputes and chasing information while running the business.”

Gao also adds that early warning signs of refund abuse are scattered across different channels — such as email, social media, direct messages, and marketplaces — making it harder to spot patterns that a dispute is impending.

According to Gao, certain behaviours often appear before disputes escalate. Early signs include repeated follow-ups about delivery or refunds, questions around policies rather than product use, and escalating urgency before there’s an issue.

“There’s a growing perception online that disputing a payment is just part of smart shopping,” he continues. “But for a small business, one dishonest chargeback can wipe out the profit from multiple legitimate orders.”

How should online stores fight back?

Online stores and ecommerce businesses are already counteracting refund abuse through return fees. In fact, 76% of the UK’s top 100 merchants now charge customers for returns, including major retailers such as Boohoo, New Look, Zara, and H&M. 

In more recent news, online fashion retailer ASOS has also introduced handling fees for customers who frequently send back their orders, charging £3.95 for those who keep less than £40 of an order.

But aside from return fees, another way to tackle refund abuse is through practices that cut off repeat offenders without making returns harder for everyone else.

To do this, businesses should remove the incentives that make abuse easy, while still rewarding genuine customers. 

For example, free shipping should be based on what people actually spend, refunds without returns should only be for low-risk cases, and perks like gifts or discounts shouldn’t remain if the qualifying items are returned. At the same time, loyal customers who rarely return items should still receive flexible policies and fast resolutions, so they don’t feel penalised for other people’s behaviour.

Moreover, businesses should be proactive. Tracking factors such as the regularity of returns, how often customers claim issues like “item not received”, and whether they buy regularly just to qualify for free shipping (ultimately resulting in a return), can help retailers spot refund abuse patterns and highlight repeat offenders.

“As refund hacks become more normalised, the line between customer service and dispute prevention continues to blur,” Gao continues. “Businesses that resolve uncertainty early are better positioned to reduce losses without damaging trust.”

The beginning of a new year means that many people are considering major life changes, and that includes starting a business.

But while the idea of a solopreneurship or a new venture sounds exciting at first, it’s much easier said than done.

A report by Intuit Quickbooks reveals a rise in ambition for self-employment and entrepreneurship in the UK. However, there are a couple of things holding these would-be solopreneurs back.

While money worries and fear of failure remain the main blockers to taking the leap into entrepreneurship, a growing lack of AI literacy is also emerging as another significant barrier.

The UK’s appetite for solopreneurship is growing fast

Entrepreneurship remains strong in the UK, and the ambition for people to ditch the traditional 9-5 in favour of the freelance life has been growing rapidly in the last year. 

As of 2025, there are 3.2 million sole proprietorships, and new research suggests that this number is likely to grow. According to the Entrepreneurship in 2026 report by Intuit Quickbooks, 33% of UK adults say they intend to start a business or side hustle in the next 12 months.

The report also reveals that increasing income is the largest motivator for inspiring entrepreneurs, with 52% of respondents wishing to build their wealth through starting a business. Other motivating factors included being your own boss (49%) and flexibility over working schedules (42%).

However, financial concerns and a lack of confidence were reported as the main barriers standing in the way of entrepreneurial ambition, with 40% of respondents citing not enough savings or startup capital as the reason they hadn’t created their own business. This was followed closely by the fear of failure for 38% of respondents.

Leigh Thomas, Vice President EMEA at Intuit, comments: “The ambition is there, but so is the anxiety. Britain is full of people who want to work for themselves, yet the cost-of-living makes that leap harder than ever.”

AI literacy is a hidden brake for aspiring solopreneurs

The lack of AI literacy has also emerged as a hidden yet growing barrier for aspiring solopreneurs.

This is reflected in the Government’s SME Digital Adoption Taskforce report from July 2025, which found that many SMEs still lack the confidence to adopt and use new digital and AI tools effectively.

Moreover, research reported by KPMG reveals that 73% of Brits have received no AI training or education. It also found that out of the 47 countries surveyed, the UK was placed at the bottom third for AI literacy and training.

And it’s this limited knowledge and expertise that’s responsible for the low rate of businesses adopting AI technology. A survey by the Institute of Directors found that half of respondents cited limited understanding of AI models and tools as a key barrier to adoption, alongside a lack of trust in AI-generated outcomes.

What’s more, the lack of AI adoption has been most persistent among sole traders and solopreneurs, according to research by Moneypenny. It revealed that 42% of sole traders have no intention of adopting AI, while another 31% are only using it sparingly.

How to master AI tools for entrepreneurship

For aspiring freelancers or solopreneurs that are new to using AI for business, the first thing to note is that not all AI tools are the same — some generate content, some automate workflows, some analyse data, and others optimise digital marketing.

When looking into the tools you want to use, you should first focus on the ones that solve your biggest business pain points, rather than trying to learn everything at once.

Next, learning by doing is essential. Start by choosing a small project (like automating social media posts or generating product ideas), experiment with different AI tools, and track what works and what doesn’t. It also helps to refine your prompts as you go along. Clear, specific, and goal-oriented instructions will give you better results. 

Finally, look at how your business runs day-to-day and spot where AI can save time or reduce effort. From there, you can build simple workflows that use both human judgment and AI assistance. 

“Founders who understand how to apply AI can validate ideas faster, reach customers more efficiently, and operate at a scale that would previously have required a team.” Matt Rouif, CEO of photo-editing platform Photoroom, comments.

“Going into 2026, solopreneurs who build strong AI literacy will be able to stay lean for longer and compete in markets that would once have been out of reach.”

You don’t have to be a fully-fledged AI expert to start as a solopreneur. Even small, practical uses of AI can make a big difference early on, helping you work more efficiently and grow your business rather than getting stuck in endless admin or workflow overwhelm.

A bill has been put forward by a group of senior Labour backbenchers that would see banks required to up their lending offerings for small businesses, and be held accountable for their impact. 

The legislation, if passed, would push banks to give more backing to credit unions and community development finance institutions (CDFIs), which are often the organisations that SMEs approach if mainstream lenders can’t help them. 

The MPs also want banks to be responsible for reporting on their impact, including measures to improve access to business finance and reduce financial exclusion. The move is a bid to make finance more accessible for more businesses – many of which have struggled since financial turbulence has made lenders more risk-adverse. 

What prompted the bill?

The 10-minute rule bill, known as the Fair Banking Act, was tabled by former business minister Gareth Thomas. Commenting on LabourList, he wrote: 

“Thousands of small and medium-sized businesses are currently locked out of the finance they need to grow. Entrepreneurs without long track records or significant assets often find the door to mainstream banking closed. Too many are left without advice, support or a fair chance to turn good ideas into thriving businesses. This is particularly true for businesses led by women, people of colour and disabled people and for those based in the most economically deprived parts of the UK.” 

Thomas added that more than half of small firms say credit is unaffordable, that business finance in the UK is more expensive than in other countries, and that businesses with trading incomes of less than £10m cannot access personalised advice.

This means that early-stage entrepreneurs and businesses with smaller turnovers cannot get funding, nor advice on how to grow. “Access to affordable finance can unlock the potential of businesses across the UK, helping them grow and thrive,” argues Thomas.

What would the Fair Banking Act do?

Mirroring the US Community Reinvestment Act, the Fair Banking Act would give the Financial Conduct Authority the power “to assess how well banks of different sizes are serving individuals, small businesses and underserved communities”. 

This data would then be published as a ratings system to show exactly what banks are doing to meet their criteria. “Banks would be able to improve their ratings by expanding their own affordable lending, and by partnering with credit unions and community development finance institutions (CDFIs),” says Thomas. 

He adds that there wouldn’t be punishments for banks that fall short but there would be “accountability, transparency and incentives to do better”.

The bill has won the backing of business and trade committee chair Liam Byrne, work and pensions committee chair Sarah Owen, as well as former shadow chancellors Anneliese Dodds and John McDonnell.

Does the bill go far enough?

The legislation will face scrutiny, but it has been widely praised for its ambition. However, as George Holmes, managing director of Aurora Capital, told UKTN, there are concerns that it could become a “box-ticking exercise”. 

He explained: “If ministers want this to resonate with business owners, they should pair accountability with practical delivery, faster schemes, simpler access, and consequences for banks that continue to shut SMEs out.”

Businesses struggling to raise finance in the current jittery climate will be hoping that this bill could make an impact. However, it does serve as recognition that the current lending system is leaving many business owners out in the cold, unable to grow their venture. Supporting them will benefit the economy as a whole.  

December sales for non-food businesses dropped year-on-year, but data from post-Christmas and early January shows an uplift in spending.

Data from the latest British Retail Consortium-KPMG Retail Sales Monitor suggests that it was only supermarkets like Lidl and Aldi that had a December of increased sales, while online and high street non-food businesses suffered a year-on-year 0.3% dip. 

Christmas 2025 may not have been the shopping bonanza that retailers expected, but they should now focus on marketing to those customers who held off on full-priced purchases in December and are looking for deals in January instead. 

“Drab December”

Reported by BRC and KPMG, this 0.3% year-on-year decrease in December non-food sales stands out compared to the 4.4% growth seen from 2023 to 2024, and the 12-month average growth of 1.1%.

The report also revealed that December’s online non-food sales specifically dipped by a smaller 0.1% year on year, however, this makes for even more dramatic reading when compared to the year-on-year growth of 11.1% seen in December 2024. 

BRC chief executive Helen Dickinson said: “It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month. While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse than expected.”

Hope for January

The figures for the beginning of this year, however, offer more hope, as there was an uplift in spending as retailers reduced prices for sales periods. Dickinson commented: “Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales.”

Businesses need to market smartly to take advantage of this trend, not least because January shoppers are still very much feeling the impact of the cost of living crisis, and businesses will be fighting for their attention. 

Customer loyalty will play an important role in this, and therefore personalised deals could come into their own. Online shoppers in particular will be hunting out discounts and promotional codes in their inboxes. 

Shoppers on the high street may have specific buys in mind and will go from store to store to find the best deal. The high street, though, remains a tough environment. A Press Association report suggests that 2026 will see yet more closures with River Island, Claire’s, LK Bennett and Pizza Hut all on the watch list.  

Call for support

The BRC has used the report to call on the Government to support high street businesses, many of which are suffering from slow sales but also the burden of business rates, staff costs and what they argue are high taxes. 

Dickinson says: “From business rates to the implementation of the Employment Rights Act, there are plenty of opportunities for the Government to mitigate costs for retailers and prices for customers.”

For retailers of all sizes, December hasn’t brought the boon hoped; and they will now need to scramble to take advantage of any potential boost from January deals.

After a turbulent year, fast food business LEON has been bought by its previous owner and co-founder, John Vincent, whose social media posts and emails to customers have been a lesson in how to address complex change, retain loyalty, and even drive footfall in difficult times. 

2025 was not kind to LEON. After profits tanked under the ownership of supermarket chain Asda, the end of the year brought closures and job losses. We examine how Vincent is managing to change the narrative, and what businesses can learn from his comms.

Being honest about the present while looking to the future

In December, the news for LEON was all bad. The company had to appoint administrators, and the decision was taken to shut 20 stores across the country and make job cuts as a result. This announcement came after Asda’s tenure had seen the chain lose around £10m a year. 

Vincent retook the helm in November, and told BBC News that he was sympathetic to Asda’s management team’s struggles, but added candidly: “In the last two years, Asda had bigger fish to fry, and LEON was always a business they didn’t feel fitted their strategy.” Vincent – and the other LEON co-founders – have openly spoken and written about how the brand lost its way under Asda, including Vincent’s comment: “As you may have noticed, LEON has drifted from some of its core principles.”

But it hasn’t all been dwelling on the difficulties. Vincent has pushed forward with a balance of honesty about the current situation for his employees and tantalising hints about what fans of the brand can now expect in the coming months.

In fact, Vincent is reported by The Guardian to have drafted in co-founder Allegra McEvedy, who is no longer involved in the business side of the venture, to create a menu that goes back to the original tenets the brand lived by.

Showing care for staff

Rather than skirting around the fact that job losses were inevitable, Vincent sent an email to subscribers that dealt with this head on. “We will need to close the restaurants that are not profitable and that we expect will not return to profitability. That means reducing from around 70 to around 50 locations,” he wrote. 

However, he added that LEON management had already reached out to rival Pret A Manger and created “a dedicated application route” to support LEON employees as they try to find a new role. He also explained that LEON would fight to keep as many employees as possible, finding them new positions in restaurants that were staying open. 

The letter reads as a masterclass in acknowledging the truth – job cuts and closures – while developing practical ways to help staff find a solution, showing they were valued in their roles. Balancing the bad with the solution can be an effective way to communicate difficult news to your customers, from price hikes to stock issues. 

With confidence low among many business owners – especially in the F&B sector where LEON resides – Vincent’s letter is valuable reading. Lots of businesses are having to make the tough call to let staff go, and Vincent has shown how to do this with compassion and without repelling customers.

Adding a personal touch

However, it is the inclusion of his email address in the letter that has won the most admiration. 

Vincent asks customers to be part of the journey to bring LEON back to what it had been: “From my many conversations with our guests across the last four weeks, it is clear that you also share my belief that we must also restore the culture of teamwork and customer service in our restaurants. That is at the end of the day my responsibility.” 

This simple inclusion gives customers a sense of being part of the brand’s journey. It gives them emotional investment in LEON’s restoration, potentially making them more likely to visit when the new menu goes live.

In his communications with customers, Vincent has turned a dire situation into one in which he has won praise for compassion, excited customers about the future, and reinvigorated loyalty by giving customers a personal way to have a say in the future of the brand. For the many businesses going through hardships, this could be a blueprint for navigating difficult change. 

Discover the ales and ails of hospitality

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

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Last month, Labour’s ‘once-in-a-generation’ overhaul of workers’ rights finally became law, but in a significantly diluted format. 

After a drawn-out game of parliamentary ping-pong, ministers made a series of concessions that have reduced the projected impact on workers, simultaneously lessening the cost for UK employers. 

According to the government’s latest figures, the cost of the reforms for businesses has fallen from as much as £5bn to around £1bn. For small businesses already up against a relatively bleak financial outlook, the news may trigger a sigh of relief.

What’s changed in Labour’s Employment Rights Bill

On its way through Parliament, the landmark Employment Rights Bill has been subject to many key concessions. 

Notably, ministers scrapped plans to introduce day-one rights to claim unfair dismissal, instead replacing them with a six-month qualifying period. This was in direct contrast with Labour’s election manifesto, causing backlash from several MPs, business groups, and trade unions. 

Other changes include gradually phasing in reforms, rather than introducing them all at once. 

Despite the revisions, the bill will still introduce major employment changes, including day-one rights to sick pay and paternity leave, which employers should be prepared for by April 2026.

How much will it really cost businesses?

The government’s revised impact assessment puts the cost of the reforms at around £1bn for businesses, a significant drop from previous estimates of £5bn. 

However, business groups have challenged the government’s figure. The British Chambers of Commerce said the £1bn figure likely underestimates the true cost of the impact on businesses.

Policy director, Kate Shoesmith, commented: “The impact figure doesn’t adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.”

Furthermore, some business leaders and Conservative politicians are also unhappy with the bill, saying that even in its diluted form, it adds unnecessary pressure to businesses at a particularly economically difficult time. 

What does it mean for small businesses, and what happens next?

Aside from the projected cost to employers, the government says that millions of workers will benefit from the improved employment rights, particularly women, young people, and lower-paid employees. 

The reforms are intended to improve job quality and productivity, while creating fairer competition between businesses and bringing the UK in line with EU standards, which should have an overall positive impact on economic growth.

For small businesses, the focus should now be on adapting to the upcoming changes. While the phased rollout may slightly delay the immediate impact, employers will still need to review their HR processes while preparing for the new ways of working and potential cost increases along the way.

Last Thursday, the government announced it would be making a U-turn on its earlier planned hikes to business rates for pubs, following ongoing pressure from MPs, trade groups, and the wider industry.

Hospitality businesses have faced incredibly tough trading conditions in recent years, with rising costs, tight margins, and looming increases to business rates threatening closures and job losses across the country.

This change could be a partial light at the end of the tunnel for many venues, but questions remain about whether the relief will be enough to make a real difference.

What’s changed, and why hospitality businesses welcome the U-turn

Chancellor Rachel Reeves has promised a financial support package for pubs, which would include reductions to business rates.

Before this, the sector was set to face a steep 76% increase in rates bills on average. This was, in part, a result of the withdrawal of pandemic-era reliefs and higher property valuations, meaning fewer businesses would qualify for the lower multiplier announced in the 2025 Autumn Budget.

Industry groups had already warned that the increases could intensify financial pressure. But in recent weeks, pressure has amped up, with trade bodies lobbying ministers and desperate landlords barring Labour MPs from their pubs in protest.

While welcoming the U-turn, industry leaders have remained cautious, stressing that rate reform must go further to fully account for the financial state of the hospitality industry.

What it means for hospitality on the ground

Without change, UKHospitality estimated that the business rate rises would have amounted to a staggering £318m in costs for small hospitality businesses over the next three years.

Thanks to already thin margins, this would have been a blow for many, which makes the government’s reversal feel like a precious bit of good news for a sector that has had so little of it recently.

For pubs and small venues, the reversal will have immediate, tangible benefits. Reduced or delayed business rate bills could provide cash flow relief for struggling businesses, which could help them stay afloat through the quieter first months of the year.

What comes next for pubs and the wider sector?

So far, relief appears to be limited to pubs, leaving much of the wider hospitality sector, including restaurants, cafés, hotels, and nightclubs, still at risk of rising rates. Trade bodies and industry leaders are pushing for wider support for the whole industry, arguing that restaurants and hotels face many of the same challenges as pubs.

“The entire sector is affected by these business rates hikes – from pubs and hotels to restaurants and cafés,” Kate Nicholls, chair of the industry body UKHospitality, told The Guardian. “We need a hospitality-wide solution.”

There are also renewed calls for long-term reform of the business rates system, with campaigners arguing that, as it is, the model disproportionately penalises bricks-and-mortar businesses, which by nature include most hospitality venues, compared with online or lower-overhead sectors.

For now, the government’s promise of a U-turn represents a hopeful step. Whether it becomes a lasting turning point for hospitality will depend on what follows, and whether the government is prepared to address the sector’s challenges beyond short-term fixes.

Discover the ales and ails of hospitality

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

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According to UKHospitality’s 2026 trend report, “plant-forward” dining is expected to influence a widespread shift across the industry this year. As strict vegan diets become less common, a larger group of flexitarians – diners who favour a balance of both meat and plant-based dishes – are now shaping menus.

Perhaps in quiet rebellion against the strict veganism of previous years, 2025 was defined as the year of protein. Meat-heavy menus and high-protein hacks dominated both social media and restaurant menus.

However, 2026 appears to be a little more moderate, as this data suggests the future of eating out isn’t all-or-nothing.

For hospitality businesses, this raises a practical question: what does plant-forward dining actually mean, and how should you adapt your menu to stay competitive?

What does “plant-forward” mean, and why is it trending?

Plant-forward dining doesn’t mean wiping out meat from your menus entirely. Instead, it refers to an approach where plant-based ingredients are central to menu design, rather than treated as an afterthought.

Rather than adding a token vegan option just to tick a box, food and beverage businesses are integrating vegetables, grains, and plant-based proteins into staple dishes, often in ways that feel familiar and comforting. This might look like reimagined pub classics or creative, globally inspired small plates, rather than overly health-conscious, “clean” vegan salad bowls.

Diners increasingly want food that is flavour-led, inclusive, and recognisable, not dishes that feel like a compromise or, frankly, boring. Global flavours can work seamlessly here. Korean-style sauces, Middle Eastern spices, and street food-inspired ingredients help plant-forward dishes remain indulgent and familiar, without becoming unnecessarily complex.

UKHospitality’s report notes that operators are rethinking how plant-based dishes appear on menus, keeping them visible, appealing, and varied.

How to decide if your menu needs a plant-forward upgrade

For many hospitality businesses, the issue isn’t a lack of plant-based options; it’s how they’re presented on the menu.

Often, plant-based dishes are buried in a separate vegan section that offers limited choice or lacks the flavour and oomph of meatier options. Many businesses also fall into thinking that “plant-based” equals “something green”, but crucially, diners are increasingly looking for plant-forward options that appeal to a wide range of taste buds across various contexts. 

Of course, it’s worth acknowledging that many hospitality businesses are operating under increasingly tough cost pressures, facing ever-rising food prices, energy bills, and job losses. 

For some, a full menu overhaul may not feel like a priority as they focus on getting out of the woods. However, plant-forward dining can also work out more cost-effectively. Working with cheaper ingredients like potatoes, grains, and veggies over pricier meat and fish might work in operators’ favour, at no cost to customer appeal.

How hospitality businesses can adapt to plant-forward demand

For pubs and restaurants looking to respond to this trend, menu integration is key. Position plant-forward dishes alongside classics, rather than isolating them in a separate section.

UKHospitality notes that group dining has become a major driver, where appealing plant-based options determine where the entire group chooses to eat. By signalling that you can offer both, you’ll win over vegan-leaning customers and their friends, too.

Aside from labels, your number one focus should be flavour. Bold seasoning and globally inspired dishes will help plant-forward dishes stand out alongside meatier favourites. But this doesn’t require complexity. Building dishes around cost-effective, seasonal, and local ingredients reduces pressure on kitchens and supply chains.

If you do embark on a plant-forward menu makeover, make sure your community hears about it by highlighting your plant-forward options online, on delivery platforms, and on your physical menus.

In practice, plant-forward dining can offer flexibility on both sides of the table. For consumers, it reflects changing tastes and a desire for options without rigid dietary labels. For hospitality businesses, it can offer much-needed breathing room to adapt to cost pressures while appealing to a broader set of diners without needing to commit to all-or-nothing changes.

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