Running an ecommerce business today can be tough, especially with high competition and supply chain volatility.

However, new research from technology platform Fulfilment.com reveals that rising shipping costs are becoming the real threat to online stores in 2026.

The increasing rates from major carriers are turning delivery costs into a growing hidden threat for SMEs, ultimately impacting profitability, customer loyalty, and long-term growth.

From last-mile delivery spikes to global trade disruptions, understanding these cost pressures and adapting to them could mean the difference between staying competitive and losing market share.

What’s driving shipping costs higher?

For ecommerce businesses, higher shipping costs are eating into profit margins, affecting pricing strategies, and even influencing customer satisfaction.

According to data from Fulfilment.com, shipping costs now make up a significantly larger share of ecommerce expenses, representing 15%-25% of total operational costs.

A notable part of this is last mile delivery cost, which accounts for 53% of total shipping costs. According to Parcel and Postal Technology, 84% of UK and Europe-based businesses faced a cost increase of over 10% for last mile delivery in 2025.

There are several factors that are causing this significant increase. Most notably, with US President Donald Trump threatening to impose tariffs of up to 25% on a range of imported goods, businesses are facing higher expenses that are being passed down the supply chain. 

Moreover, for online stores exporting to the US, new taxes on sending low-value parcels (under $100) mean that businesses are paying higher costs for even modest shipments, making it harder to maintain healthy profit margins.

Brexit has also added to the rising costs, with IPE reporting that 32.7% of retailers and 25.6% of manufacturers say that exporting to the EU has become more expensive since the UK left the European Union.

The impact of price hikes on SMEs and customer experience

Unsurprisingly, the ongoing increase in shipping costs has had a knock-on effect for ecommerce businesses and online retailers across the UK.

According to a survey reported by Insider Media, 38% of small businesses have reduced or stopped shipping internationally completely, with rising costs cited as the main reason. It also found that 40% of SMEs reported “increasing cost of goods and services” as the most significant financial challenge they currently face.

These price hikes are also having a significant impact on customer experience, as 58% of consumers cite high delivery costs as their biggest frustration when shopping online. Additionally, a report by Sendcloud found that 78.5% of UK shoppers admit to abandoning their carts because of high shipping prices.

James Olsen, Ecommerce and Logistics Expert at Fulfilment.com, says: “Rising shipping costs are one of the quiet crises facing small online sellers in 2026. Retailers can’t ignore pricing changes that chip away at profitability.

“But the good news is that there are proactive strategies to reduce fulfilment costs without slowing delivery or degrading customer experience.”

How can SMEs cut costs without slowing down on delivery?

Customer expectations continue to favour free delivery, with Sendcloud reporting that 85.3% of shoppers would choose free shipping over faster delivery.

But how can sellers meet this demand without sacrificing profit margins?

A good approach is not to rely on a single carrier, but to negotiate across multiple networks to secure the best rates for each parcel type, weight tier, and destination. 

Rate shopping software like EasyPost and ShipperHQ also lets you compare live shipping rates from multiple carriers, choose the most cost-effective option, and find the fastest or cheapest service for each order.

Additionally, with many shipping charges now coming from dimensional weight pricing, ecommerce businesses can compromise by keeping packaging as compact as possible (while still protecting your products) and use certified measuring tools or software to get accurate dimensions so they can challenge any incorrect charges.

Placing inventory closer to your main customers can also cut time and costs. This can be done by using multiple warehouses to send goods, partnering with 3PL fulfilment centres near major markets, or using marketplace fulfilment services (such as Fulfilment by Amazon) to take advantage of their networks.

“Today’s successful sellers think in terms of fulfilment economics, not just order fulfilment,” Olsen adds. “That means integrating fulfilment cost into product pricing, customer segmentation, and channel strategy. When fulfilment is optimised, retailers can protect margins and deliver the experiences customers expect.”

Late payments are costing the UK economy billions every year, while leaving small businesses struggling to stay afloat.

To tackle this, the Office of the Small Business Commissioner (OSBC) launched the Fair Payment Code in late 2024 –  helping businesses get paid on time and improve their cash flow.

But while the new code has been met with high levels of confidence, there is still a significant late payment problem, with research from Hiscox revealing that SMEs are collectively owed £70.4bn.

This shows that even with new initiatives in place, many firms continue to face cash flow challenges, unpaid invoices, and the administrative burden of chasing payments.

What is the Fair Payment Code?

The Fair Payment Code is a voluntary code that encourages quicker and fairer payments across UK businesses. Backed by the Government, it’s designed to address the widespread problem of late payments for many SMEs.

Replacing the Prompt Payment Code, the FPC is open to businesses of all sizes. To reward strong payment practices, it offers a three-tier award system (Gold, Silver, and Bronze) based on how quickly companies pay their suppliers. 

To achieve Gold, a business must pay at least 95% of invoices within 30 days and demonstrate strong payment practices. Meanwhile, Silver is awarded to firms that pay at least 95% of invoices within 60 days while showing a commitment to fair and transparent processes. At the bottom of the tier, Bronze recognises companies that meet the 60-day deadline and are actively working towards faster payment times.

“As we move toward celebrating its first year, I’m hopeful the Code will continue to gain momentum as a kitemark of payment good practice, attracting companies of all sizes to apply and be duly recognised.” Emma Jones, Small Business Commissioner, wrote on SME Web.

The cost of late payment to SMEs

Despite ongoing efforts to improve payment practices, late payments remain a persistent and costly issue for small businesses across the UK. 

New research by business insurance company Hiscox found that the majority of small firms are optimistic about the code, but late payments are still persisting.

In a survey of 1,000 small business owners and sole traders, 62% of respondents said they feel positive about the FPC.

However, it also found that with 5.7 million small businesses in the UK, outstanding payments across the country could total £70.4bn altogether – an average of £12,357.38 per business each year.

In late 2025, it was reported that 90% of companies experienced late payments in the past year, with the average delay being 32 days. The Federation of Small Businesses also found that 63% of firms were spending time chasing overdue payments, costing up to £5,200 per year in lost time and resources.

This has inevitably led to serious cash flow problems and even drastic measures for SMEs, as data from Companies House reveals that 38 businesses close every day due to late payments – a concerning reminder of the real and ongoing impact delayed invoices can have on the survival of small firms.

How should SMEs tackle late payments?

While schemes like the FPC are helping to encourage quicker payment, business owners are still having to seek support and adopt practical strategies to ensure they get paid on time.

Sending payment reminders was the most common approach, used by 48% of respondents in the Hiscox survey. Other popular options include chasing directly via phone or email (44%), withholding any other pending goods or services (29%), and charging a late payment fee (28%).

Meanwhile, small businesses are also turning to third-party support, with 14% prepared to take legal action and 11% planning to escalate to a debt collection agency.

Another viable solution is to contact the OSBC directly, as they can offer advice, help you pursue unpaid invoices, and step in to handle former complaints if payment disputes arise.

Richard Stone, Founder and Managing Director of PR agency Stone Junction, also shares tips for tackling late payments and keeping cash flow healthy.

“One trick is to issue invoices at the very end of the month rather than the beginning,” he advises. “This sounds small, but it can stop you being kicked into the next payment cycle.” 

“We also always clarify terms upfront, chase promptly, and never assume silence means payment is on the way.

“Ultimately, getting paid on time isn’t just about process, it’s about people. Be professional, be clear, and be proactive.”

Get paid with Emma

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

Get paid with Emma

With the seemingly never-ending rainy weather in the UK yet to stop, we’re all keeping our fingers crossed for a little more sunshine as the spring season approaches.

But a little rain doesn’t stop things running in the business world, and that includes networking.

While it might be tempting to hide away until the clouds clear up, networking can be a major growth driver for founders, as it opens doors to partnerships, clients, investors, and other opportunities you won’t find behind a screen.

Whatever you’re looking for in your business journey, here are 95 free business events you won’t want to miss this March.

As is often the case in the UK, the recent extreme weather conditions have put many of the country’s key services under strain – notably, Royal Mail. 

The postal service has come under scrutiny after reports of delays and even missed deliveries. In response, Royal Mail has explained the disruption was due to the January storms, alongside higher-than-usual staff sickness. 

While the occasional late delivery isn’t the end of the world, for businesses relying on delivery services to complete orders, it can impact reputation and customer satisfaction. So how should ecommerce businesses deal with delivery delays to protect their brands?

What’s happening with Royal Mail?

According to the BBC, daily post rounds are regularly missed, with letters being delayed for weeks, citing reports from several Royal Mail staff across the country.

In response, Royal Mail said that “adverse weather, including storms Goretti, Ingrid and Chandra in January, alongside higher than usual sick absence” had caused the “short-term disruption to certain routes”.

“Where a delay affects a route, we work to resolve it as quickly as possible by putting in extra support and reviewing performance daily to restore deliveries as quickly as possible,” they added.

The delays have garnered frustration with Royal Mail, and Citizens Advice found that around 16 million people experienced failed deliveries during the Christmas period.

In addition, Royal Mail received a £21 million fine from Ofcom after falling short of its annual delivery targets, which is the third biggest fine ever issued by the regulator.

In short, Royal Mail’s standards are clearly slipping, but unfortunately, the impact of missed deliveries spans wider than the carrier itself and can impact small businesses relying on the service to complete orders. 

The risk for ecommerce SMEs

Many UK-based SMEs work with Royal Mail for its widespread coverage, competitive pricing, and integration with ecommerce platforms. As a heritage company with a history longer than 500 years, it’s traditionally thought of as a trustworthy option. But recent events have thrown its reputation into question. 

For ecommerce businesses, even “short-term disruption” can result in unhappy customers, which can lead to complaints, refund requests, and negative reviews. The picture is worse for smaller retailers, since they’re more likely to already be operating on tighter margins.

Delayed deliveries increase customer service workload, compensation costs and chargebacks. Poor delivery experiences affect trust and may even deter repeat purchases, particularly for first-time buyers.

How SMEs should deal with delivery disruption

Of course, adverse weather conditions aren’t going away any time soon. The best course of action is to safeguard your business against near-inevitable delivery delays. 

Diversification is a wise move in the face of unreliable deliveries. Set up accounts with at least two different courier services, so you have options to fall back on in case of disruption. You don’t need to ditch Royal Mail completely, but having contingency plans never hurts. 

In addition, transparency is key when communicating with customers about delivery. In the case of weather-related delays, update delivery timelines accordingly at the checkout stage to manage expectations. 

It’s best to communicate proactively, rather than reactively, when it comes to delays. Demonstrating to your customers that you’re ahead of problems before they arise will also build trust and minimise the likelihood of customer complaints.

Ultimately, delivery is an important final step of your brand experience, which can leave a lasting impression for better or worse. So while it’s frustrating that it’s sometimes out of your control, there are steps you can take to help your business bounce back from inevitable disruption. 

The Netherlands is well ahead of the rest of the EU in terms of work-life balance. Dutch employees work an average of just over 32 hours per week, largely thanks to the country’s embrace of a four-day work week. 

Many businesses may be hesitant to adopt a shorter work week due to fears of the impact on productivity or revenue. Despite its inclination towards more relaxed work hours, the Netherlands has one of the highest GDP per capita in Europe, but recent research shows that productivity has not grown in recent years.

With improved staff wellbeing, lower sickness absence, and stronger retention on the table, small businesses may be considering whether a four-day work week can pay off, or whether the impact on productivity is too high-risk.

What the Dutch model really shows

For some businesses, a ‘four-day week’ might translate to compressed hours. That is, working a full 40-hour week by starting earlier and finishing later, to enjoy an extra day off. 

But many Dutch companies actually skip the fifth workday, instead opting for a 32-hour work week. This lighter working schedule has become commonplace in the Netherlands, with several big-name companies working in this way. 

This approach is the opposite of the typical ‘hustle’ culture approach, such as the 996 model, which is popular in Chinese and US tech firms.

Advocates of the four-day work week speak of its benefits, including improved staff wellbeing, fewer sickness absences, and boosted employee retention. 

However, it’s not all positive. While it’s true that the Netherlands has one of the highest GDP per capita in Europe, the OECD (Organisation for Economic Co-operation and Development) told the BBC that productivity hasn’t grown in the last fifteen years. 

So while the Dutch may be enjoying a healthy work-life balance, alongside comfortable wages, stalling productivity signals that the four-day work week should be approached carefully.

Why this matters for small businesses

Often, smaller firms are already working with leaner teams and tighter resources than their larger counterparts. Shifting to fewer hours will inevitably affect capacity more immediately than it might in a larger business. 

However, as demonstrated in the Netherlands, working a lighter week could improve your team’s morale and energy levels. Working shorter hours can actually be more fruitful while staving off burnout and absenteeism, which is a win-win. 

Additionally, due to it being a relatively rare employee perk in the UK, advertising a four-day work week could help attract and retain top talent, which can be particularly advantageous in competitive sectors already facing shortages. 

Practical considerations before adopting a four-day week

If the four-day work week sounds appealing, there are a few things to consider before clocking off on Thursday afternoon. 

Working shorter hours will mean that something has to give. Many companies successfully working four-day work weeks minimise unnecessary meetings, which is a common time drain. 

Other ways to free up time and tighten up operations include a sharper decision-making pipeline and optimised workflows. Using software to automate admin tasks can be hugely beneficial for winning back lost time.

As seen in the Dutch example, the impact on productivity can be real. When trialling a shorter week, track productivity before and after by looking at metrics such as revenue, delivery timelines, customer response rates, and staff absences. 

The shift to a four-day work week embodies the mentality of ‘work smarter, not harder’, and with the continuing rise of AI and automation, shorter weeks could become more realistic, without affecting productivity.

While gender equality in the workplace has made some progress, we still have a long way to go. Research from the Trades Union Congress (TUC) recently found that the gender pay gap across the UK is, unfortunately, still alive and kicking.

It currently stands at 12.8%, which is equivalent to £2,548 per year. According to the TUC, at the current rate of progress, the gap will take another 30 years to close, meaning a larger push may be required to address this inequality. 

While only employers with more than 250 staff are legally required to publish gender pay gap data, businesses of all sizes should pay attention. Pay equity increasingly affects employee satisfaction, retention, and reputation. 

What is the gender pay gap — and why does it still exist?

The gender pay gap measures the difference in average hourly earnings between men and women across an organisation or sector. 

While sometimes the case, it doesn’t always literally imply that women are being paid less than men for doing the same job. 

More broadly, the gap often reflects structural patterns in how work and role progression are experienced across genders. And understanding that the gender pay gap is a deeper-rooted issue than just an unequal hourly rate is crucial for actively changing the systems that perpetuate it.

For example, women are statistically more likely to work part-time, often due to childcare or caring responsibilities. As of 2025, 36% of women in the UK worked part-time, compared with 14% of men. 

They are also more likely to take career breaks, which can slow progression, meaning fewer women secure senior, higher-paid roles.

Why the gender pay gap matters for small businesses

Currently, only businesses with teams larger than 250 are required to publish gender pay data. But just because smaller companies aren’t legally required to report on it, they aren’t immune to the effects. 

Beyond it simply being unfair, pay inequity has an impact on retention and morale. In smaller teams, a lack of transparency or perceived inequality relating to pay can quickly erode trust throughout the business.

Similarly, as younger workers populate the workforce, values are increasingly changing to champion transparency and equality. In competitive labour markets, loudly prioritising equitable pay structures can strengthen your reputation and attract top talent.

Practical steps SMEs can take to narrow the gap

The first step is to review your workforce to see where gender imbalances sit and identify patterns.

Are women concentrated in lower-paid roles? Are they underrepresented at senior levels? Then take a look at progression: compare who applies for promotion, who reaches assessment stages, and who ultimately secures the role. 

At the recruitment level, by analysing your applicant pools and hiring outcomes, you can determine how likely women are to be hired into higher-paid roles at your company. 

Pay structures should also be regularly reviewed, even if it’s an informal annual check-in. Look at starting salaries, bonuses, overtime, and performance scores for men and women in comparable roles. 

A heavy reliance on pay negotiation can unintentionally disadvantage women, so introducing clear, transparent salary bands and making it clear when pay is negotiable can level the playing field.

Finally, consider whether part-time employees and those with caring responsibilities are well-supported. If flexible working is only available in theory, or just for junior positions, disparities will inevitably continue. Therefore, make it easier for employees at all levels to balance work and caring responsibilities with adequate parental leave and return-to-work pathways.

The Help Out Hospitality (HOH) campaign has kicked off again for the fifth year and will once again see suppliers offering businesses discounts, which they can then pass on to customers to increase footfall and fill venues.

While pubs have had some relief with the new Government business rates relief package, the wider industry is still struggling with overheads, including alcohol duty, red tape and staffing issues. 

Businesses are also bracing for changes incoming with the deployment of the Employment Rights’ Bill, which will change parental rights, sick pay and zero-hours contract obligations in what is being praised as a boon for workers.

The Help Out Hospitality campaign aims to help businesses mitigate some of these changes by keeping businesses booming during the industry’s off-season.

Winter woes

The Full Range is launching the Help Out Hospitality campaign in what is a tough market, but also a traditionally tough time of year. 

The culinary and purchasing consultancy shares: “January to March are traditionally lean trading months for operators, but this year, pressures on energy, supply, and consumer confidence are expected to intensify.”

This is especially true after a festive period, which may have seen longer stays and bigger spends per visit, but did not see occupancy up from previous years, says The Drinks Business. 

What’s the deal?

The campaign gives hospitality businesses access to deals from suppliers, which can then be used to create guest-facing offers, promoted to potential customers, commission-free, on the Help Out Hospitality website. Customers are then able to book directly with venues.

The hope is that the scheme will see a rise in trade for restaurants, bars, cafés, hotels and accommodation providers, but also reinforce the vibrancy of local communities during months that are typically characterised as dark and bleak. 

The organisers add that anyone can get involved, from groups and independent businesses to venue owners, suppliers, and wholesalers. 

How can I get involved?

The campaign runs until 31 March 2026, and interested parties can sign up via the website. This is where suppliers can set their discounts and categories, and the HOH team will then assist them with rollout materials.

Barry Knight, Director of The Full Range, told CLH News: “By involving suppliers in the process, we can drive meaningful change – generating discounts at the beginning of the process while removing commission on the other end; a real win-win for the industry and at the same time satisfying consumer demand for great value deals.”

With confidence still low among hospitality business owners, this campaign is a chance to buoy spirits in the quieter months and perhaps lift hopes for a better year ahead. 

Discover the 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

Our Startups 100 Index for 2026 is all about celebrating the most ambitious, innovative, and impactful young companies making bold ideas work in the real world.

This includes startups that are shaking things up in the F&B scene and, in 2026, this is all about eating better without making life harder. More Brits are reaching for fibre-rich and gut-friendly products without compromising on flavour, while sustainability and cutting down on food waste continue to influence what ends up in people’s baskets.

Meanwhile, tech is creeping into the kitchen with personalised meal plans, flexible menus, and tailored shopping quickly becoming the norm for today’s consumers.

As minds and stomachs continue to change, these eight Startups 100 companies are spicing up the scene — serving up innovation on a plate and taking bold bites out of the future of food and drink.

Sustainability Award Nominee

In recognition of a sustainability leader that prioritises the health of the planet as part of its company mission.

Startups 100: Sustainability Award

Founder(s):

• Pierre Dupuis

Adamo Foods offers environmentally friendly steak substitutes that don’t sacrifice flavour. This magic formula hinges on putting masses of freshly-grown fungi through a fermentation process, so that Adamo products can offer the same rich texture and savoury taste you’d expect from a regular cut of beef.

While working in the food industry, founder Pierre Dupuis uncovered the reality behind so-called “plant-based” products — they were ultra-processed and full of artificial ingredients.

It was this discovery that inspired Dupuis to start Adamo Foods and his mission to create meat alternatives that used fewer than five ingredients. This, along with the company’s aim to challenge a food system that slaughters over 70 billion animals each year, earned Adamo Foods a nomination for the Startups 100 Sustainability Award.

Marketing Award Winner

To recognise the startups that demonstrate the most creative and effective method for building early-stage brand awareness.

Startups 100: Marketing Award

Founder(s):

• Amelia Christie-Miller and Ed Whelpton

Making its third appearance on the Startups 100 Index, Bold Bean Co is on a mission to revolutionise how people think about beans by turning legumes into a premium, flavour-forward ingredient for everyday cooking. Through premium and slow-cooked legumes — like butter beans and chickpeas — Bold Bean products aim to offer better texture and deeper flavour than standard tinned options.

It was this passion to put beans in the spotlight that won founders Amelia Christie-Miller and Ed Whelpton a £50K investment on Dragons’ Den in 2024 and got their products on the shelves of major supermarkets like Tesco and Sainsbury’s. Plus, with its playful branding of stylish glass jars and bold labels, as well as its library of “beanspo” recipes, it’s easy to see why Bold Bean took home the Startups 100 Marketing Award for this year.

The future of F&B: bold, smart, and sustainable

These eight startups show just how much the F&B landscape is changing right now. From lab-grown fats and sustainable steak alternatives to AI-powered meal planning and zero-waste cooking solutions, innovation is filling every corner.

As we continue into 2026, the demand is clear. Consumers are looking for products that are healthier and more sustainable, without having to sacrifice the taste and experience they get from their usual choices. In other words, people don’t choose healthy food if it tastes boring, so F&B companies that combine this need with nutrition are the ones winning over shoppers.

All in all, the next wave of F&B will be bold, tech-enabled, and purpose-driven —proving that the industry’s future isn’t just about what we eat, but how we produce, shop and enjoy it.

Curious about the hottest startups outside F&B? Check out the full Startups 100 Index for 2026 to see all the standout companies — including who we crowned as number one.

Return To Office (RTO) mandates have been all over the headlines in the past few years – as has the resultant employee push back – with the impact being felt most keenly by female workers. 

Many CEOs have been bullish in pushing their mandates, using everything from threats to withholding bonuses to blatant use of the RTO policy to quietly fire staff who they knew wouldn’t comply. 

However, recent months have seen an evolution of tactics emerge, with employers now using the newly termed ‘hybrid creep’ to subtly and gradually push workers into the office over time.

Anchor days signalling “Hybrid Creep”?

This trend sees a slow and steady change of working practices designed to power a move back into the office, but without the drama that the draconian RTO mandates saw. 

As detailed in Forbes, the most prevalent sign is that businesses have been noted to be adding more “anchor days” in the office when teams are needed together. “Before long, the nominal two-day office schedule has crept up to three or four days,” it shares. 

The numbers support this thesis. EuroNews reported in October that two and three-day schedules now account for 81% of hybrid roles. Sharing data from Indeed, it detailed that one-day requirements fell from 35% in 2022, to 15% in 2025. 

In contrast, job roles requiring three days in the office increased from 16% to 25%. The percentage of roles with a four-day requirement went up by a factor of four, but still remains low at 4%. 

These increases reflect a widely held belief by many business owners that having teams in one location increases collaboration and, therefore, productivity. For smaller businesses, there’s a balance to be had between team building and the potential cost of maintaining an office space. 

Changing expectations

In addition to this, another shift is occurring – one that’s even more subtle. This is the unwritten understanding that those who show up in the office more will be rewarded with faster career progression. 

This isn’t a new approach, and recent years have seen companies threatening career stagnation for those who do not comply with RTO mandates. As a result, those employees with an increased physical presence receive the most promotions and plaudits. 

Some businesses are even going so far as adopting more drastic measures, including staff surveillance. There’s been a sharp rise in this behaviour, with nearly a third of UK employers now using “bossware” to monitor staff, including tracking emails and web browsing. 

For attendance, this means logging when staff are in situ. As a report by Resume Builder added, one in 10 bosses admit that they use monitoring software to encourage their staff to come back to the office. 

However, neither approach takes into account that there has been a shift in expectations among employees, too, especially between Gen Z and Millenials. While new graduates are actively seeking out office-based roles, millennials are opting for the opposite, instead prioritising flexibility and hybrid working.

As the FT reported, there is also a potential clash between Gen X and Millenials, especially in very traditional sectors like finance. An “older banker” told the paper that some managers feel “resentful of younger employees being able to work flexibly when they themselves spent decades slumped over company desks. They expect the same of others.”

For employers, the message is stark: in this diverse workplace culture, a one-size-fits-all model doesn’t always work. 

Perks and parties

It’s not all hardline tactics, though, and a less insidious approach adopted by employers has been the rising number of perks in the office. These are specifically aimed at tempting employees back willingly, rather than forcefully. As Forbes writes: “Free catered lunches, happy hours, guest speakers, wellness programs, and team-building events are all making a comeback. The catch is that they’re only available to people who show up in person.”

Fun these opportunities may be, but the message remains the same: those who don’t attend the office will miss out, and their career progression will feel the potential ramifications. Business leaders are perhaps hoping that FOMO will be a better motivator than RTO, but the undercurrent of compulsion remains. 

This says much about the nature of “hybrid creep”. It’s subtle, not mandated, and perhaps leaves employees with an uneasy sense of unwritten expectation.

Why is it happening?

Ultimately, this trend demonstrates that there’s still a clash between what employees want and what employers think they need. The tactic shift to gentler, more subtle methods hasn’t come about because employers have recognised this difference, but more because they’ve simply accepted that straight RTO mandates haven’t delivered what they need.  

Hybrid working is still very popular in the UK. According to the Global Survey of Working Arrangements, the UK has the second-highest adoption of hybrid working in the world after Canada. The Office for National Statistics shared that more than a quarter of employees in the UK are working under some kind of hybrid contract. 

Indeed, a YouGov survey revealed that the number of employees working from their office/ place of work every day has shifted very little since December 2021, with around half still working from home in some capacity.

However, there is a stark difference in percentage when respondents were asked whether they would like to be in the office full-time. This has gone down from 39% in 2021 to 20% in December 2025. Flexibility is a rising want for employees. 

Many employers, though, are still pushing to get their staff in. “Hybrid creep” is the newest strategy in a long line of methods designed to make this happen. The difference this time is that it’s slow and steady, so that the change is normalised rather than feeling forced and abrupt.

It’s also possible that workers are now more willing to accept the “hybrid creep”. This could be reflective of the fact that times are tough and the job market across sectors is proving challenging. Employees have fewer options and are likely more nervous about pushing back in case it costs them their role.

As Forbes reports: “One year ago, 51% of workers said they’d quit rather than accept a non-negotiable return-to-office order. Today, that number has plunged to just 7%.”

Last year, the UK Government announced reforms for hiring apprentices — aiming to deliver 50,000 more apprenticeships for young people, backed by £725m in funding.

However, a study by Employment Hero suggests that Government funding alone isn’t enough for SMEs to take on apprentices, and that administrative red tape is deterring many businesses from hiring.

Despite the rise in apprenticeship hiring and the benefits SMEs can get from apprenticeships, the complicated system is proving to be a significant barrier, and it’s going to need more than financial support for SMEs to take the first step in recruiting. 

What are the Government’s reforms for apprenticeships?

Over the last year, the UK Government has announced new plans to support apprenticeship hiring for businesses across the country.

As part of its “fast track” apprenticeships reforms announced in February 2025, these changes include updates to training and development for new short courses, as well as cutting approval time from 18 months to as little as three months.

Other schemes and support initiatives have been introduced since then, including the hospitality apprenticeship scheme, designed to match young people with local hospitality employers. The Government also announced during its 2025 Autumn Budget that it would offer free apprenticeship training for SMEs in 2026, meaning that costs for apprentices under 25 would be fully funded.

Work and Pensions Secretary Pat McFadden said: “Britain’s future depends on getting more young people into good jobs with real prospects. These reforms will slash bureaucracy so we can train people faster in the industries where they’re needed most.”

Complex processes are blocking SMEs from hiring apprenticeships

Despite promises that these reforms would make hiring apprentices easier for both young jobseekers and businesses, the reality is proving to be complicated.

Apprenticeship hires were up by 7.7% in the 2025/26 academic year, and as a study by Employment Hero reveals, 73% of SME leaders are willing to hire apprentices and take advantage of the Government’s support.

However, the same survey found that the Government’s administrative system has become a barrier for apprenticeship hiring. Specifically, statistics show that 43% of SMEs say navigating the apprenticeship system is too complicated, which has threatened to deter them from hiring.

“There is clearly an appetite from SMEs to give apprentices a key role in driving their business forward.” Kevin Fitzgerald, UK Managing Director at Employment Hero, said. 

“This has to be matched by the Government to improve and remove the unnecessary red tape that might hold SMEs back from the productivity gains on offer with the apprenticeship scheme.”

In a letter to McFadden, independent charity Edge Foundation has called on the Government to “take decisive action to help more SMEs recruit apprentices”.

“SMEs are the backbone of our economy and are often where young people get their first experience of work. Yet despite their vital role, their participation in apprenticeships has declined markedly,” the letter reads. 

“Without stronger support for SMEs, we risk losing these vital entry-level pathways that build skills, confidence, and careers for the next generation.”

How can SMEs hire without the hurdles?

While the complicated system may be dissuading SMEs from taking on apprentices, this doesn’t mean that hiring them is completely off the table.

Instead, businesses should assign a dedicated person to oversee the process. Specifically delegating the responsibility to manage contracts, learning plans, and reporting can make it a lot less intimidating. 

If you are concerned about cost, flexible apprenticeship models — such as part-time or shared apprenticeships — can help mitigate this. As apprenticeship wages are set to increase from April 2026, this approach can be especially useful for smaller businesses looking to bring in talent without stretching their budget.

Moreover, starting with interns or trainees on a learning plan similar to an apprenticeship can also be a good stepping stone. As long as interns are over 16, not in full-time education, and not enrolled in another funded apprenticeship, you can transition them into a full apprenticeship programme. This not only saves time when searching for suitable apprenticeship candidates in your recruitment process, but also lets you continue benefiting from the skills your intern already brings.

All it takes is the right approach. That way, SMEs can still tap into skilled young individuals and benefit from the productivity gains apprenticeships can offer, without drowning in paperwork.

On the 6th of April, the staggered roll-out of Making Tax Digital started. Many sole traders and SMEs have been rushing around for months trying to find the right software and digital tools for their businesses, and this is the week is the one they’ve all been waiting for. 

However, with concerns about lagging financial literacy in the UK, it’s fair to assume that some businesses may not have the information they need to understand what is required of them and when, or what MTD-compliant tools they need to purchase to keep up with the changes. 

In this guide, we’ll take a closer look at the first Making Tax Digital deadline, who it applies to, and what happens if you file late.

Ticking clock

As of the 6th of April, sole trader and landlords with annual turnovers of over £50,000 for the tax year 2024/2025 should have submitted their taxes. The deadline sees this group of earners joining the ranks of VAT-registered businesses who have been grappling with MTD since 2019. 

If you’re not sure how to get your affairs in order, we’ve published a detailed timeline for compliance – what sole traders need to do, and by when – to help you out. However, what are the consequences if you’re among the thousands of people who miss their tax deadlines each year? 

This year alone, there were one million people who did not meet the 31 January deadline, BBC News reported. There was also a frantic rush towards the end of the day, with HMRC revealing that 475,722 people filed on the final day out of a total of roughly 11.5 million submissions. Of these, 27,456 people filed in the final hour before the cut-off. 

What happens if you miss MTD deadlines?

While the penalty system for MTD still involves fines, like the system it precedes, experts are warning that there is a key difference. 

Accountancy firm, Grunberg, explains that the penalties are now modelled on a points system. “While a single missed deadline may not immediately cost you much, repeated breaches add up,” they share.

This means that although businesses might not feel the impact straight away, repeat offenders will receive greater financial punishments. 

The system will now see a point added every time a business misses a quarterly update or filing deadline. After four missed quarterly filings, businesses will be handed a £200 fine. However, only two missed deadlines for annual filings will result in the same fine. 

There is a separate scale of penalties for late payments. Those who pay within 15 days of the due date won’t be penalised. After 30 days, late payments will receive an initial dual penalty, after which daily interest will be accrued until the debt is cleared.  

Cumulative impact

As Money.co.uk writes, the change in approach “…aims to encourage businesses to be consistent, rather than punish one-off mistakes”.

Business owners need to know that their points record can be cleared after 12 months, but this is only if they meet each subsequent deadline (and have submitted all required returns for the past two years). As the team at Grunberg states: “This means that even one slip can have consequences that last well beyond the initial error.”

Thankfully, however, businesses will have a year of grace to become accustomed to the new system. The Association of Taxation Technicians adds: “If you’re joining MTD from April 2026, there will be no late filing penalties for quarterly updates during tax year 2026-27. This relaxation applies only to quarterly updates; penalty points will still apply if you’re late filing your MTD tax return for 2026-27.”

Beyond the standard penalty points system, businesses should also be aware that there are additional fines to consider. For example, if businesses are deemed not to have kept adequate digital records for their tax return, they can be hit with up to £3000 in fines each quarter. This fine can also be levied for not using compatible software and neglecting to send quarterly updates to HMRC through said software. 

If businesses are proven to have deliberately concealed information that HMRC needs to calculate their tax liability, a penalty of £300 will be issued.

Appealing against penalties

If business owners feel that they are being unjustly penalised, whether because a mistake has been made or they have a reason to justify a missed deadline, there is a process they can follow.

The first step is to visit the Government information page on penalties, but HMRC also advises paying the penalty straight away in case your appeal is rejected and you accrue interest. 

Business owners can appeal both online or by downloading a SA370 or SA371 form. Information required will include the details of when the penalty was issued, the date the tax return was submitted (if it has been), and the date that the tax was paid (if it has been paid). HMRC adds that it will also need “…details of your reasonable excuse for filing your return late, or not making your payment on time.”

However, as you would expect, it’s far less costly to avoid finding yourself in this position in the first place. While it may feel onerous, spending the time now to  put everything in place as soon as you possible can will ultimately save stress, money, and time. 

With rising costs and staffing pressures, the UK’s hospitality industry continues to face a storm of difficulties in 2026, yet optimism hasn’t disappeared just yet.

Research carried out by restaurant POS provider Toast — in partnership with business solutions provider Expert Market — reveals that while costs and labour challenges remain a significant concern for restaurant businesses, a large majority of business owners believe that some form of growth is possible in the year ahead.

This cautious confidence suggests that businesses are adapting their strategies — focusing less on survival alone and more on building long-term resilience.

Staffing and other issues continue to persist in hospitality

Hospitality firms are continuing to battle rising costs and labour shortages, particularly following the rise in employer National Insurance Contributions (NICs) and hiked business rates announced in the Government’s Autumn Budget.

Unsurprisingly, inflation is hitting businesses, too. According to the UK Restaurant Industry Predictions 2026 report by Toast and Expert Market — which surveyed 400 restaurant owners — 50% of firms believe rising ingredient and energy costs will be the biggest challenge to face this year.

Meanwhile, labour shortages are an ongoing problem, with 60% of businesses expressing their concerns about the reduced level of hirable employees. With the unemployment rate hitting 5.1% in the UK — the highest since the COVID-19 pandemic — jobs in hospitality have declined every month since October 2024, according to research reported by Bitget.

And with the Government’s business rates support package only applicable to pub venues, restaurants are continuing to face further cost difficulties. These pressures have pushed hundreds of businesses to close in the last year, with 382 less licensed premises at the end of December 2025 compared to three months prior — equating to four closures per day.

Restaurants remain optimistic about growth

Despite the bleak outlook and ongoing difficulties, a large share of restaurant owners expect their businesses to grow over the next year.

The Toast report indicates that 71% of businesses expect growth overall, including 51% predicting moderate growth and 20% anticipating significant growth.

And while labour shortages have persisted, further research by Toast and Expert Market into staff satisfaction reveals that clear career development, competitive salaries, and company benefits like flexible working are important factors to avoid staff turnover.

“A shortage of experienced staff has long been a feature of the restaurant industry.” Chris Mallard, Editor of Expert Market, told Restaurant Online.

“The hard work and unsociable hours don’t appeal to everybody, so it’s good to see that operators are thinking about this and coming up with ways to professionalise the career to attract and keep employees.”

What should restaurants prioritise in 2026?

While 2026 shows no shortage of challenges for restaurants, many are responding by adapting rather than retreating — changing their focus from simple expansion to the things that keep their customers coming back.

For example, Toast’s report states that 31% plan to improve customer experience. This could be something as simple as creating a unique atmosphere, utilising POS technology for more efficient ordering or introducing personalised services – all things that produce a sense of connection that big chains can’t easily match.

“The focus for restaurants should be on creating dining experiences that are memorable for more than food alone.” Edward Brunet, Founding Director at Le Bab, told Toast. “It’s all about hosting guests, rather than simply serving them.”

Additionally, with 53% of hospitality businesses already using AI technology, this is set to become the norm for operations. Whether it’s tracking sales, managing inventory, or cutting down on admin to free up more time for staff, AI can help your business run more efficiently and give your team increased time to focus on serving customers. Ultimately, it’ll have a positive impact on both retention and loyalty. 

With 50% of consumers both eating out and ordering food at least once a week, delivery and off-premise dining are becoming increasingly relevant. In fact, restaurants view it as somewhat (47%) or extremely (41%) important, which is a clear indicator that businesses should treat these options as a core part of their offering. Doing so will support both profitability and customer expectations.

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A report from Starling Bank is urging business owners to get on board with digital financial tools as it claims it could reduce their admin load and save them money. 

The findings suggest that UK SMEs spend an average of £63,000 a year managing their finances, and, with the transition to Making Tax Digital, this could increase as businesses invest in new MTD-compliant software. 

However, Starling argues that rather than escalating costs, moving to digital practices will save businesses time and money, leaving them with more space to innovate. 

The report also argues that transitioning to digital tools will bolster the wider economy, allowing us to catch up with countries like France and Germany. Such a move could result in the generation of £10.4 billion in new tax receipts, giving us the means to significantly bridge the gap with our continental neighbours.  

Almost half of businesses don’t plan to increase digital tool usage

The study presented an overall healthy picture of the use of digital financial tools in the UK, with the survey taking in 1000 business owners and finding that 84% of SMEs already use digital tools for some financial tasks.

The Starling team says that it is microbusinesses that have the most to gain. Sole traders could see a £4.1 to £4.9 billion productivity boost from wider and deeper adoption, which is 20% of the total future benefit. However, businesses with 1-9 employees, could account for double this with £7.0 to £9.4 billion of benefit. 

However, despite the initial positive outlook, the survey also revealed that only around half of those businesses (48% of respondents) are planning on increasing their usage, even as the Government pushes ahead with its digital overhaul. 

While the impact of non-compliance with MTD is an issue in itself, the survey reveals that businesses are losing out in real time if they are wedded to manual processes. “Where digital tools are used for financial tasks, SMEs report an average time saving of 41% over manual processes,” state the researchers.

What is holding SMEs back?

Delving into SME owners’ concerns, the survey found that there are huge misconceptions about digital financial offerings – the most damaging of all being that they are simply too expensive for many ventures to afford. 

Researchers discovered that a large number of SMEs believe digital tax software could cost them nearly £12,000 a year. In reality, this is “fifteen times the price of some high-end solutions”. Not only does this reflect a lack of awareness of digital financial tools’ market offering, but also a more basic absence of understanding around the realities of digital financial management as an industry.

This sentiment is further emphasised by the report’s findings. It revealed that whilst 83% of SMEs and 78% of sole traders are aware of digital tax submissions tools and 77% are aware of digital invoicing tools, the “…depth of such knowledge was inconsistent, with some individuals possessing only a surface-level understanding.”

There is rising concern that a lack of financial literacy is holding some business owners back, something that this survey only serves to support. In October, we reported on data from Xero, which uncovered that more than a third of SME owners were unaware if their business was profitable last month, while 55% admitted that they avoid dealing with finances.

Education and support needed

Starling Bank is using the findings to advocate for the Government to push education to help dismantle preconceptions, and to give SME owners the knowledge and confidence to push ahead with their digital financial transformations. 

It is calling for the creation of a new online ‘Financial Tool Cost Calculator’ within the Government’s Business Growth Service, “to show SMEs the true, lower cost of digital financial tools.”

This would give businesses clear guidance on how much tools will cost them so that they can plan accordingly. In the meantime, some of the biggest providers in key spaces like invoicing have a large range of packages to meet different budgets. 

There are also embedded finance options that cover more aspects of business finance, including account reconciliation and tracking expenses. 

Business owners need to consider exactly what their needs are and then find tools that match. It’s possible that they simply want to digitise common manual tasks, but they may also need software that delivers more. For example, some businesses may benefit from forecasting tools that crunch data to help strategic planning, or inventory tools that help deliver cost savings. 

Starling is by no means alone in calling on business owners to push ahead and get financially savvy. However, the bank is also urging those who have taken the first steps to keep on top of what is on offer to stay ahead of the game. 

Businesses are being urged to review their current business rates valuation before the deadline at the end of March, ahead of the new rates which will come into force from 1 April.

This follows widespread calls from businesses, particularly those in the hospitality industry, for reforms to the business rates system, which has been labelled unfair.

For small businesses, this marks an important, but narrow, window to straighten out errors that could otherwise lock in higher-rate bills for years to come.

Why this matters for small businesses

Business rates have been a topic of ongoing discussion among small businesses. In the last Budget, the revaluation of rates was announced and is set to come in from this April.

Business rates have long been a high fixed cost that many SMEs struggle to manage. This is particularly true for RHL (Retail, Hospitality, and Leisure) businesses, which face higher overheads than online businesses due to having physical premises. This imbalance has only been further amplified by the end of the 40% RHL relief on 31 March. 

Going forward, the relief will be replaced with permanently lower multipliers for these sectors, alongside a support package worth billions. The new business rates system will take effect from April 1, which means there will be a major reevaluation of all non-domestic properties.

Those valued at under £500,000 will then pay lower rates, which will be compensated by increased rates for properties with higher rateable values.

Now, the Valuation Office Agency (VOA) is allowing businesses to correct any inaccurate information it holds about business properties, such as their size, layout or usage. This information will be used to determine the revaluation, which in turn will decide which multiplier your property will fall under.

This means that if there’s any inaccurate information held by the VOA that’s left unchecked, it could lead to paying higher rates than necessary.

What businesses need to do now

To check the details on file or request a change, you need to have a business rates valuation account, which requires you to have a Government Gateway or One Login account. 

It can take up to 15 working days to register and claim a business property. This means that if you’ve not already set this up in good time, you may risk missing the 31 March deadline. If you miss the deadline this year, the next revaluation is in three years. So if you think your valuation could be wrong, start the process immediately.

Reviewing the details held by the VOA is the only way to ensure that your business rates bills are accurate and in line with your property. Acting now will make sure that businesses don’t miss the opportunity to access the fairest rates. 

Social media makes it easy for customers to share their experiences online, which can be both a blessing and a curse. 

Happy customers can boost your reputation and attract new business, but a single negative post can also spiral into reputational damage overnight, even when complaints are exaggerated, misdirected, or even untrue. 

And while large brands can more easily bounce back with PR teams and legal support, small businesses may lack the resources to recover so quickly. So, how can small businesses best respond in the case of online criticism to minimise impact?

Why small businesses are uniquely vulnerable to online backlash

Small businesses often rely heavily on local reputation, customer retention, and word of mouth. This means a viral post on platforms such as TikTok, Instagram, or X can quickly dominate the online conversation and have serious real-life consequences. 

The Guardian recently reported that several US businesses had been victims of online criticism. One example was a California-based sandwich shop that was forced to close after its menu prices were mocked in a viral Reddit post.

While closing down is the worst-case scenario, negative online reviews can very easily result in reduced footfall and damaged profits.

That’s not to say that customers shouldn’t share honest criticism. In many cases, the problem lies with the fact that social media algorithms reward polarising content that provokes strong reactions. This leads to more creators making extreme comments for the sake of engagement, and for small businesses, this can spiral out of control. 

How to respond — engage, ignore or escalate?

Ignoring criticism can signal that customer experience isn’t your priority. But responding publicly can push engagement and attract more eyes to the initial complaint.

To make matters worse, SMEs don’t often have dedicated PR teams on hand to deal with complaints, which can lead to your reply being subject to further scrutiny if it misses the mark.

It’s important to remember that you’re under no obligation to respond publicly. Equally, don’t feel the pressure to match the customer’s tone. It can be tempting to defend your business with a fierce comeback, but it’ll often add fuel to the fire and come across as unprofessional.

Instead, it can be best to move conversations offline and limit responses, rather than engaging in a back-and-forth. 

Practical lessons for SMEs

You can’t stamp out online criticism entirely, but you can reduce its impact by taking some practical steps.

Building a strong base of loyal customers and actively encouraging them to share positive experiences can balance out criticism, making it less likely that a single negative post will tank your reputation.

It also helps to set clear protocols about how and when to respond publicly and when to step back, rather than reacting emotionally in the heat of the moment. 

Finally, don’t ignore the very real emotional impact of online criticism. Receiving negative comments online can feel overwhelming, but maintaining perspective, leaning on support networks, and taking time away from social media can help you stay grounded and recover more quickly.

In a bid to support employee wellbeing, some UK employers are going well beyond free gym memberships and fruit bowls. As reported by The Guardian, companies across the UK are working with professional beekeepers to install beehives at their offices. 

While some might baulk at the prospect of sharing the office with a colony of bees, the initiative is designed to reduce stress, build community and reconnect staff with nature. Demand for unusual workplace wellness schemes is rising, as employers look for more meaningful ways to fight burnout and disengagement, especially among hybrid workplaces. 

In support of beehives specifically, advocates say that the shared responsibility for maintaining the fragile living ecosystem creates a calm sense of focus and collective purpose that more conventional HR perks may fail to deliver.

Beehives and other ‘off-piste’ wellbeing ideas

Office apiaries are just one example of a growing list of unconventional workplace wellness initiatives. They sit alongside everything from cold water plunging and forest bathing to sound healing, breathwork workshops, and digital detox retreats. 

While some might view these as more niche practices, they often share a common thread: creating distance from screens, encouraging presence and togetherness, and offering something symbolic and memorable rather than purely transactional.

Emma Buckley, chief executive of Buckley’s Bees, a provider of office beehives, said: “Our motivation is improving people’s mental health, which employers increasingly understand is closely linked to nature.” 

And this approach clearly resonates with businesses adopting hives. Phillip Potts, general manager of Park House on London’s Oxford Street, told The Guardian: “A gym discount or fruit bowl is nice, but the bees create a shared story and a sense of stewardship.”

However, while such initiatives may work well for larger organisations with space and the budget for specialist partners, they’re likely to be impractical for small businesses.

In addition, beehives require professional care, suitable environments and careful consideration of environmental impact. From a biodiversity standpoint, conservation groups have warned that an influx of managed apiaries can also put pressure on fragile wild insect populations.

What small businesses can realistically learn from this trend

For SMEs, it may be less about rushing to hop onto the beehive bandwagon and more about understanding and gaining inspiration from why it resonates with employees. Then, you can explore more manageable ways to make a similar impact.

Clearly, initiatives that foster shared experiences and a reconnection with nature, as well as encouraging a sense of care, work well – especially when they interrupt the monotony of the working day.

Examples include protected time for non-work activities, team volunteering days, walking or outdoor meetings, creative lunchtime clubs, or rotating responsibility for something communal, such as a shared project or local cause. 

Crucially, many of these activities require little time and financial investment, but cultivate a sense of trust and intentionality in the workplace

Accessible wellbeing ideas that actually work

The office beehive trend is part of a broader shift towards wellbeing strategies that create meaningful space to breathe throughout the working day. 

But it’s important to note that while more symbolic wellness trends are legitimately beneficial, they shouldn’t replace tangible, and often essential, benefits such as healthcare plans, parental leave, and flexible working.

A combination of both practical and more thoughtful benefits hits the sweet spot. And the most effective benefits can often be the simple things that make work feel more human, such as minimised out-of-hours communication, meeting-free time, and simply giving employees more control over how work is done.