As social commerce continues to disrupt traditional retail, over 300,000 UK small businesses are now selling on TikTok Shop, while the number of new sellers joining has increased 200% year-on-year, TikTok has reported.

From butchers’ shops racking up millions of likes, to beauty bloggers earning six figures in a day, it’s clear that no sector is off-limits when it comes to success. TikTok also argues these wins can extend to brick-and-mortar sales through something it dubs the “TikTok Shop halo effect”.

As the growth of social commerce platforms like TikTok Shop shows no signs of slowing down, we explore what’s fueling this rapid rise, and how sellers can position themselves to benefit.

Sellers are Flocking to TikTok Shop

To use internet parlance: sellers are running, not walking, to TikTok Shop. 

After launching on this side of the pond in September 2021, a total of 300,000 small UK businesses are selling on the platform, a decent proportion of the UK’s total four million online sellers. 

But what’s driving this rapid rise? According to TikTok, live shopping – the platform’s built-in feature that lets creators broadcast real-time videos and interact with viewers through live chats – is doing much of the heavy lifting. Sales through TikTok Live are up 55% year-on-year, with more than 6,000 live broadcasts running on the platform every day in the UK. 

As you’d expect, beauty and fashion brands continue to thrive, but it’s not just your usual suspects that are benefiting from TikTok Shop. Tradesman shops are also making a killing, like Wolverhampton-based Malik Butchers 

“Recently, we did a TikTok LIVE for three hours and sold £8,000 worth of meat which would typically take 3-4 days in my high street shop.” Manny Malik told ChannelX. 

According to TikTok, successes aren’t limited to the virtual world, either. Traction on the app is spilling over to growth elsewhere, in a pattern it’s describing as the “TikTok Shop halo effect”. 

While the initial discovery happens on TikTok Shop, TikTok argues that visibility can result in a corresponding uplift in branded search queries, wholesale partnerships, listings with larger retailers, and even an entry point into physical shops. 

It’s a compelling illustration of the power of social commerce: what starts as a 60-second video can reshape a business’s entire trajectory, as long as they know what they’re doing.

How to sell effectively on TikTok Shop

TikTok Shop has an extremely low barrier to entry. But as the growing number of sellers on the platform raises the competition, standing out requires more than just showing up. 

As a general rule of thumb, users are drawn to authentic content. Forget repurposing polished ads; opt for native, low-budget content that clearly displays your product in action. 

Some quick tips include:

• Post consistently – TikTok’s algorithm favours shops that have an active presence on the platform 

• Show, don’t tell – Avoid boring viewers. Keep videos interactive with product demos, unboxing clips, or before-and-after videos 

• Engage with your audience – Reply to and like comments to build trust, and please TikTok’s algorithm

• Use trending sounds and hashtags – Tap into what’s already circulating to boost your chance of getting on the For You Page

For TikTok Live, treat it as a digital storefront. Run sessions at consistent times so followers know when to tune in, answer questions in real time to build trust and establish a connection with your viewers, and use limited-time offers to create a sense of urgency during the stream. 

As more sellers pile onto the platform, standing out will only become harder. However, fundamentals remain the same: posting authentically, regularly, and being willing to experiment with different formats will make your content more likely to break through. 

If you’ve been on LinkedIn recently, you’ve probably noticed that a lot of posts look and sound like they’ve been written by AI, rather than real people. 

You’re not going crazy – data has found that around half of long-form posts on the platform are computer-generated, and LinkedIn has finally decided to do something about it.

LinkedIn’s “seems like AI slop” feature offers users a way to flag posts that seem completely AI-generated. The professional networking platform also quietly retired its generative AI post tool, replacing it with a simpler proofreading feature. 

As other content platforms like Substack crack down on the proliferation of AI content, LinkedIn’s recent changes will undoubtedly improve the user experience for users of the platform. However, it could also have ramifications for professionals who have been leaning heavily on AI to churn out content.

LinkedIn is waging a war against AI-slop

LinkedIn has an AI problem. Research from Pangram Labs has found that over 41% of long-form posts on the platform are machine-generated – nearly double the AI-content rate of other social media platforms. 

This is no coincidence: LinkedIn has spent the last three years encouraging users towards AI content generation. The platform rolled out content generation features as early as 2023, going further in 2024 with its “Enhance Your Post” tool, which used AI to generate a fully polished draft on the user’s behalf.  

Now, LinkedIn is making a sharp U-turn. The platform’s new “seems like AI slop” button lets users flag AI-generated-looking content from a three-dot menu. These reports feed directly into new classifiers LinkedIn is building to identify and reduce low-quality content. 

The platform is also ramping up its automation defences, blocking hundreds of thousands of automated comment attempts daily, and millions of other automation attempts in recent months, as it clamps down on its bot issue. 

In addition, LinkedIn has gone after the root of the AI problem – its “Enhance Your Post” feature has been retired, replaced by a proofreading tool that polishes writing without rewriting it wholesale.

For LinkedIn users, these changes will be a welcome shift. Scrolling through the platform’s feed should start to feel like engaging with real people again, rather than wading through endless bot content. However, the fix isn’t without its wrinkles.

The problems with LinkedIn’s new anti-AI feature

The biggest risk with crowdsourced flagging is its accuracy. AI deduction tools are far from foolproof, and with most users going off a simple “gut feeling” rather than any real evidence, flags are likely to misfire. 

Research has also shown that AI detection tools have a greater tendency to misclassify writing by non-native English speakers, with a Stanford Study finding that foreign language speakers face a false positive rate of 61% – far higher than the rate for English speakers. 

The other issue is the fallibility of human classification. While you may think you have a strong idea of what an AI LinkedIn post looks, sounds and “feels” like, someone else may have a very different take on the telltale signs. The possibility for content to be incorrectly flagged is vast. 

Others argue the bigger issue isn’t accuracy at all, but human nature. Since the button relies on people reporting what they don’t like, it could easily be used to silence posts someone simply doesn’t agree with. 

Waldemar Ingdahl, senior communications officer at the Institute for Futures Studies, raised this directly with LinkedIn’s Chief Product Officer Hari Srinivasan.

Speaking to Inc Magazine, he argued the real challenge lies in maintaining trust that these signals reflect content quality rather than popularity, disagreement, or coordinated reporting – calling it a governance problem as much as a technical one.

 What happens if your post gets reported as AI slop?

If your post is flagged by a user, it won’t disappear outright, but its reach may quietly shrink. 

According to a LinkedIn spokesperson, posts flagged through the new tool will experience reduced algorithmic reach, similar to what happens if someone responds “not interested” to a post. 

On top of that, the flag privately shows up on the poster’s own analytics dashboard to let them know others feel their content came across as overly AI-generated or inauthentic. 

While using AI won’t see you getting banned on LinkedIn, it’s still worth taking steps to ensure your LinkedIn posts sound as human as possible.

Avoiding the LinkedIn AI slop button: a checklist

• Write in your own voice first – don’t use an AI tool to generate content from start to finish; save it for editing and polishing instead.
  

• Avoid generic openers and closers like “in today’s fast-paced world”, or “let’s dive in”. These overused terms are AI hallmarks that readers instantly clock.

• Think carefully about formatting. A post full of neat bullet-pointed lists and em dashes will instantly read as AI. Keep your structure loose instead.
  

LinkedIn’s anti-AI tools are far from perfect. By taking steps to produce more human content and flagging other AI-generated posts you see, you can help nudge the platform back towards what it’s meant to be – a place for real people, not bots.

It may be holiday season, but creators aren’t taking a break from social media. Platforms like TikTok and Instagram continue to churn out fresh formats for businesses to draw on for their social media marketing.

This month leans heavily into nostalgia and irreverence, from decade-old reality TV clips resurfacing as viral audio to slowed-down throwback songs setting the scene for cinematic, holiday-ready content.

With the social media landscape transforming every day, it’s easy to miss the top trends resonating with your target audience. To help keep your finger on the pulse, we’ve rounded up six of the hottest social media trends worth trying this August.

Viral moments don’t last forever, but strong audience connections do. Read our TikTok for Business guide to discover how to create impactful content that keeps your brand relevant.

A new heatwave is seeing temperatures soar to dizzying highs of 35C in some parts of England this week, leaving hospitality business owners scrambling to make conditions bearable for staff and customers. 

With only 3% of pubs, restaurants, and cafes having registered as having air conditioning on Where’s Cool, many business owners are resorting to emergency measures like scrapping certain dishes from the menu, reducing staff hours, or temporarily closing their shutters. 

And for businesses looking to invest in air conditioning units in response to the extreme weather, obstacles remain – from steep up-front costs to lengthy planning permission delays.  

Between rising costs and staff shortages, hospitality owners have enough to sweat about this summer. But with heatwaves becoming the norm rather than the exception, doing nothing is no longer an option.

Hospitality owners are feeling the heat as temperatures continue to soar

The UK is entering its fourth heatwave of the year, marking an unprecedented run for the climate, as well as a mounting crisis for hospitality managers.

While many restaurants, pubs, and cafes have been making do with temporary measures like standalone fans and increasing shade, these stopgaps are no longer capable of keeping pace with severe heatwaves. As a result, many business owners are turning to air conditioning units to provide relief to their workforce and customers. 

According to the Financial Times, the pizza takeaway franchise Caprinos has added air conditioning units to 20 existing sites this year, while others remain stifled by planning permission. “Going forward, air conditioning will be a key focus for all new sites,” Rehman comments.

Investing in AC units isn’t an option for every venue, however. Many traditional or listed buildings face lengthy and complex planning applications before any cooling system can be installed, with some businesses waiting over a year for approval. 

For others, the price tag is simply too high. Commercial air conditioning installation typically costs £3,500 to £70,000+, depending on the system and building size, making it a difficult investment for businesses already grappling with other costs like increasing business rates and National Insurance contributions.

What happens when venues can’t keep their cool

Heatwaves are no longer an occasional inconvenience; they’re a recurring threat to revenue, and even a safety risk to staff and customers when left unaddressed. 

When the mercury gets too high, seeking refuge from the heat is a top priority for customers. Many are turning to platforms like Where’s Cool to find restaurants, pubs, and cafes with air conditioning in their local area, to avoid being caught out in the heat. 

With nearly 300,000 venues already mapped on the platform, appearing as an AC-confirmed listing could be the deciding factor for heat-conscious customers deciding where to spend their money. 

In more extreme cases, some businesses have been forced to close entirely during heatwaves – a costly decision for smaller businesses where a handful of lost trading days can be the difference between staying afloat and shutting up shop. 

TOAD Bakery in Camberwell, for example, shut for a day during last month’s heatwave due to “crazy temperatures”, before running a reduced menu when they opened up again with “no bread”, and “no sandwiches”.

Staff wellbeing is another pressure point. Without proper cooling, venues are forced to shorten shifts or build in more frequent breaks to keep employees safe. These measures can strain already tight staffing levels and risk denting morale, adding to the list of pressures for venue owners. 

Ultimately, heatproofing isn’t just about comfort. It’s a non-negotiable for businesses looking to stay profitable and safe during the summer season.

How hospitality businesses can prepare for the next heatwave

For most businesses, retrofitting air conditioning units is not a quick fix. Dale Hunnings, hospitality sector manager at the chartered accountant HaysMac, told the Financial Times that installation can be a time-consuming process due to construction delays, especially during the summer months. 

If your venue is planning to install units, we recommend booking installations in the autumn or winter, when contractors have more availability, and up-front costs will likely be lower. 

If you can’t front these costs yourself, it’s worth looking into what support may be available. Many local councils offer grants for ventilation and cooling upgrades, particularly for businesses located in regeneration areas. The UK government’s business finance support finder is a good place to start. 

AC aside, simple, low-cost measures like using blackout blinds or placing reflective film on windows are effective ways to block the heat out, especially for glass-fronted premises. Stand-alone pedestal fans near prep areas and dining spaces can also provide short-term relief for staff and customers, at a fraction of the cost of lofty AC units. 

For venues that can’t act immediately, it’s worth using this year’s disruption to inform next year’s planning. If this year’s summer is anything to learn from, UK heatwaves won’t be letting off any time soon. 

Planning ahead and rethinking how your venue operates on the hottest days will help you keep a cool head in the future, whatever next summer brings.

YouTube has just launched a UK version of its “Shopping Affiliate Programme” – a scheme which lets creators unlock revenue by recommending products inside videos, Shorts, and livestreams. 

Major UK retailers like Debenhams, M&S, Boots and Next have already become partners, and the programme is open to other retailers in the coming months. Moreover, creators need just 500+ subscribers to be eligible, lowering the bar to entry for YouTubers looking for new ways to monetise their content. 

YouTube’s affiliate marketing programme already delivered strong results for the U.S. and countries across the Asia-Pacific and Latin America. But with the programme finally coming to UK shores, we explore its details and break down how creators and retailers can make the most of it.

YouTube has launched its Shopping Affiliate Programme in the UK

It’s now even easier to make money on YouTube, as the platform’s Shopping Affiliate Programme was finally brought across the pond on the 26th of July. 

This expansion allows UK creators to tag products directly within their videos – whether it’s an ingredient used in a recipe or a product featured in a haul.

For creators, this means no more burying links in their description box: they can embed clickable stickers and timestamps right into the content itself, giving viewers a route to purchase without leaving the platform. Beyond the added convenience, the financial upside for creators is real. 

Commission rates are set individually by retailers, but range between 5% and 20% across product categories. In addition to earning on tags, creators can also profit from the wider basket of qualifying purchases a viewer makes after clicking through, boosting their earning potential even further.

Crucially, the barrier to entry has been lowered too. Creators need just 500 subscribers to be eligible, opening the door to smaller channels and micro-influencers rather than just established content creators.

According to YouTube, other markets have already seen results. According to their data, tagging products directly using the Shopping Affiliate Program can drive up to 50% more clicks than listing links in the description alone. 

Current watch time suggests that expanding into the UK market is a no-brainer, too. Global viewers already watch an average of 110 million shopping videos on the platform every day, with UK watch time for the category surging by 50% in 2025. 

Given this appetite for shopping already exists in the UK, it’s little surprise that YouTube sees the country as fertile ground for its next wave of creator-led commerce.

How to get started with YouTube Shopping

With YouTube’s new Shopping Affiliate Program being live in the UK, creators and retailers have a fresh opportunity to turn engaged audiences into revenue. 

For content creators, the first step is to ensure you’re eligible. You’ll need at least 500 subscribers to be accepted into the Partner Programme. From there, we recommend starting small by tagging products you’d genuinely recommend, rather than overloading products with unrelated items. 

YouTube offers AI-tagging tools to save time, but don’t skip reviewing suggested tags before publishing, as mismatched products can easily undermine viewer trust. 

Retailers are able to join the programme by partnering with supported affiliate networks like Awin and having an active Google Merchant Centre feed. 

If eligible, the programme opens up opportunities for retailers to use creators as an extension of their marketing team, rather than a one-off investment. Brands already onboard are building longer-term creator partnerships, rather than single sponsored posts. 

For example, M&S plans to build on its existing “Love That” social series by working with creators who share the brand’s focus on style and quality, while Boots has framed the move as part of its wider push to meet customers wherever they already discover products. 

Given the programme is still expanding in the UK, the retailer pool remains relatively small. This means early movers will likely benefit from less competition and have more chance of standing out to creators still building their roster of brand partners.

The Government is planning to rewrite legislation that would force companies to publish salary information on job adverts – a move that would bring the UK in line with the EU, where a new directive already requires member states to disclose salary ranges. 

In an already tough job market, the government argues that pay transparency rules are one of the most effective ways to close the gap between genders, while campaigners agree that being up-front about salaries prevents both candidates and recruiters from wasting time. 

Not everyone is convinced, though. In Jersey, business owners are complaining that mandatory salary disclosure could pile on red tape at a time when firms are trying to cut costs and simplify operations.

Failing to disclose salaries on job ads fuels discrimination, says the Government

Data from Adzuna has revealed that nearly 6 in 10 UK job vacancies hide key pay details. 

For many candidates, this has turned searching for a new role into a guessing game – with job seekers left hanging on to vague phrases like “competitive salary” and “mid-to-senior level” to gauge whether a role is even worth applying for.

Now, the Government is considering putting an end to this with new legislation, as part of a wider push to lower discrimination in the workplace. Under the proposed rules, companies could be legally required to publish exact salaries or a pay range on every job advert, giving candidates clarity into what they can expect to earn.

According to the Government, pay secrecy is one of the key barriers standing in the way of closing the gender pay gap. Ministers argue that when salaries stay hidden, unfair pay differences between men and women can go unnoticed and unchallenged for years.

The UK wouldn’t be breaking new ground, though. Since 2023, the EU has required all of its member states to disclose salary ranges in job ads as part of its Pay Transparency Directive, and Austria has been enforcing strict pay transparency since 2011. 

However, while the mandate may seem like a no-brainer for applicants, according to many UK businesses, the issue isn’t black and white.

The case for and against pay transparency: does it pay off for businesses?

For businesses advertising job roles, there are clear incentives for being transparent about pay. Being honest from the get-go can build trust between employers and employees. 

For example, Simon Soar, director of music venue The Sundown, told the BBC that publishing salaries and benefits on his job ads has helped with staff retention and attracted more applicants, “because they know what they’re applying for.”

There is data to back this up too, with research from the Society for Human Resource Management (SHRM) revealing that 70% of businesses reported posting salary ranges led to more people applying for their job postings, and 66% saying it improved the quality of the candidates applying. 

Yet, for many business owners, the reality is more complicated. David Warr, owner of Cooper & Co coffee bars, warned that mandatory disclosure risked bringing “more bureaucracy at a time when efforts are being made to cut red tape”. He told the BBC he’s already happy to discuss pay directly with candidates who ask, without it needing to be a legal requirement.

There’s also a concern that displaying an exact salary could cause an upset for existing staff members. “Employers don’t want to publicise how much they pay, in part, because it’s going to create resentment among organisational members,” Eddy Ng, the Smith Professor of Equity and Inclusion in Business at Queen’s University, Canada, told the BBC.

Ultimately, the debate doesn’t centre around whether transparency is a good thing in principle; the real question is whether legislation is the right way to get there

How businesses can prepare, even before it’s mandatory

While the Government’s pay transparency legislation is still very much up for debate, there are clear incentives for businesses to reveal salaries in job listings, without it being enshrined in law.

If you haven’t landed on a number or range, start by benchmarking roles against similar positions in your industry and region using tools like Glassdoor, LinkedIn, or PayScale.

Rather than publishing a single figure, consider posting a realistic pay range that accounts for factors like experience, qualifications, and seniority. Doing so will give candidates clarity, without boxing them into one single number. 

It could also be worth doing an audit of existing pay structures. Do a recce of your current employees’ salaries, and address any pay gaps internally – specifically among genders – before advertising it publicly. By doing this, you won’t be caught off guard by any awkward questions further down the line. 

Finally, it’s important to be consistent. Once a pay range is public, be ready to explain to candidates and existing staff why someone might sit at the bottom or top of it.

By taking these simple actions, you can get ahead of the curve whether or not the Government’s legislation makes it into law, while positioning your business in a better place to attract and keep the right talent. 

British retailers reported the smallest downturn in sales since January, bucking a sustained downward trend that has been taking place for five years, a recent survey by the Confederation of British Industry (CBI) has found.

The biggest improvements came for wholesalers, with the sector seeing stable volumes for the first time in over two years. 

However, before retail owners run to the bank, the broader picture remains subdued. Experts predict recovery is still a way off, as sellers continue to face weak consumer confidence and rising costs – with further drops expected to last into Autumn. 

For shop owners, the findings offer a glimmer of hope in an otherwise gruelling year. Yet, any real relief will likely hinge on new Prime Minister Andy Burnham’s plan to save the high street by overhauling business rates.

Retail sales dropped by just -26% in July, its smallest decline in six months

The UK’s retail sector has been grappling with a sales slump for years, with many shop owners being caught in a bind between weaker consumer spending and elevated cost pressures like rising National Insurance contributions and minimum employee wages. 

However, new findings from the CBI show signs of relief. The CBI’s headline distributive trades balance, which tracks activity against the previous year, climbed to -26 in July, from -54 in June, representing its strongest reading since January.

Wholesalers saw the biggest rise, with sales volumes growing to +2% from -20% the previous month, potentially indicating that businesses are starting to rebuild stock levels after months of cautious ordering. 

The survey results were far from overwhelmingly positive, though. Despite retail sales volumes falling at a “markedly” slower pace in July, the CBI still described trading conditions as poor, and expects that sales will continue to fall by a similar percentage in August. 

According to CBI lead economist Martin Sartorius, retail owners shouldn’t expect sales to recover fully anytime soon. He said that “recovery still looks some way off as gloomy sentiment and elevated cost pressures weigh on activity,” highlighting that the sector is still very much under strain, despite the downturn easing slightly.

As sales continue to slump, could Burnham provide a lifeline to retail businesses?

Retail has had little to cheer under Labour so far, with Keir Starmer overseeing a rise in employer National Insurance contributions, an increase to the National Living Wage, and the expiry of Covid-era business rates relief.

However, new Prime Minister Andy Burnham aims to do things differently, and has pledged to take drastic measures to support high street businesses. 

Central to Burnham’s plan is a shake-up of business rates. He’s proposed raising the threshold for 100% small business rates relief from £12,000 to £18,000, with the upper threshold for tapered relief also rising from £15,000 to £21,000. Together, the changes would lift more than 140,000 small premises out of paying business rates altogether.

To fund this relief, the former Mayor of Manchester intends to raise property taxes on large warehouses – a move aimed at online giants like Amazon and ASOS who Burnham argues should pay their fair share to support brick-and-mortar retail. 

For retailers already grappling with weak consumer demand and rising employment costs, lower business rates could provide some much-needed breathing room. However, since business rates are only one of several challenges facing the sector, the proposals are unlikely to provide an immediate fix.

For now, retailers will take the smallest downturn in six months as a welcome pause – but with confidence still fragile and costs still climbing, the high street’s recovery is far from secured.

Food and drink prices rose by 1.8% across the hospitality sector in June, as a heady mix of supply issues, unpredictable weather, and structural concerns bear down on UK supply chains, new data finds. 

Price rises were recorded among nearly every food and service category, but were the starkest for white fish and seafood produce, driven by strict quota restrictions across North Atlantic whitefish fisheries. 

While warmer weather can benefit hospitality businesses by boosting impulse buying, these supply chain issues add to a growing stack of cost pressures for venues this summer, with June’s price jump coming on the heels of April’s hike in employer National Insurance contributions and ongoing increases to business rates.

Hospitality prices rise 1.8% in June as UK supply chains buckle under pressure

As temperatures continue to climb, so does the list of pressures squeezing hospitality businesses this summer. 

Despite a modest easing of prices in May, the latest Foodservice Price Index from NIQ and Prestige Purchasing has revealed that unpredictable weather and global events have seen costs rise month-on-month for nearly every food and beverage category in June. 

Fish and seafood saw the steepest climb, as a combination of fishing restrictions in the North Atlantic and persistent biological challenges constraining farmed salmon output drove costs higher.

The meat and poultry sector was also impacted, as strong global demand and tight cattle availability pushed up prices, while the coffee, tea, and cocoa category witnessed similar price hikes due to adverse weather and structural plantation issues in Brazil, Vietnam, and West Africa.

Closer to home, vegetable and dairy products recorded significant month-on-month increases in June, as extreme European heatwaves put pressure on weather-intensive crops and reduced milk yields further tightened supply.

Commenting on the findings, Reuben Pullan, senior insight consultant at NIQ, said: “The upward movement in virtually all food and beverage items adds yet more weight to the burden of costs carried by businesses across the supply chain and will further reduce the confidence of businesses and consumers alike.”

For an industry still recovering from a turbulent few years, this summer’s supply chain squeeze looks set to test resilience further – but could Burnham’s new Prime Ministership offer struggling businesses a way forward?

Could a new Prime Minister ease cost pressures?

Just a week into his new role as Prime Minister, Andy Burnham has already hit the ground running by unveiling a 20% cut to business rates for pubs, clubs, and live music venues across England. 

The relief is part of a wider £100 million package aimed at protecting high streets and easing cost of living pressures for both businesses and consumers.

Due to come into effect from April 2027, the discount is expected to benefit nearly 32,000 venues, and save the typical pub around £1,100 a year. For an industry that’s faced relentless cost pressures in recent years, this will come as welcome news. 

The move has been praised by trade bodies, with The Night Time Industries Association describing it as a much-needed relief for businesses trying to stay afloat. 

However, the relief isn’t extended across the whole of hospitality. Restaurants and hotels have notably been left out of the cut, despite facing similarly steep rises in food and produce costs, prompting criticism that the policy favours some parts of the sector over others.

While Burnham’s rates cut may offer a lifeline to pubs and clubs, it does little to ease the pressure on the wider hospitality industry – suggesting that venue owners may also have to take matters into their own hands to protect their margins.

What can hospitality operators do to weather the storm?

With prices unlikely to significantly ease in the short term, operators may be forced to look inwards to shore up their bottom line before passing the buck onto customers. 

Reviewing supplier contracts and diversifying sourcing is a practical way to mitigate supply chain issues. 

Alternatively, leaning on ingredients less affected by current pressures offered another way to reduce costs without compromising on quality. 

Energy procurement is another area ripe for scrutiny. Speaking on the findings, Pullan urged operators to take a longer-term view: “Operators must look beyond headline energy prices and focus their procurement strategies on mitigating climate and structural risks, which will undoubtedly dictate market pricing as we move through the second half of the year.”

Passing costs on to customers may ultimately prove unavoidable for some. But with consumer confidence already fragile, operators who exhaust other options first will be best placed to protect both their margins and their footfall.

Monzo and the Centre for Inclusive Money at Nest have paired up to research practical ways freelancers can future-proof their finances. 

Pensions are a notorious sore point for sole-traders. With no auto-enrolment options available, and contract-based workers often earning patchy incomes, research shows self-employed workers set aside an average of £208k less than full-time employees.

To address this problem, the pair are currently researching whether automated features could transform saving from a monthly decision into a background habit. It’s a simple idea – but if it works in practice, it could prove to be anything but small change for the UK’s 4.4 million-strong sole-trader workforce.

Monzo and Nest join forces to help tackle the freelance pension problem

Leading digital bank Monzo and the Centre for Inclusive Money at Nest understand that there’s a huge issue facing self-employed workers: most simply aren’t saving for retirement.

Data from the Pensions Commission and the Department for Work and Pensions reveal that just 17% of the UK’s 4.4 million self-employed workers save into a private pension. 

In an attempt to close this gap, the coalition is exploring whether automated saving options, built into the banking app, could make it easier for self-employed workers to regularly save for their retirement – without feeling too rigid for their work arrangement. 

Jordan Shwide, General Manager of Monzo, says the partnership reflects a broader mission to make saving easier for the self-employed: “We’re excited to explore simple ways to help sole traders build retirement savings while contributing evidence that could shape future policy.” 

Monzo’s impressive track record suggests it can put its money where its mouth is. The popular digital bank has already had success with similar automated tools. For example, its customers have already saved over £360 million a year with the bank’s automated Savings Challenge, while Monzo Business users have set aside approximately £450 million through automated Tax Pots. 

While no feature launch has been released, the partnership’s ongoing research intends to shape future product development and is already feeding into the Government’s Pension Commission as it explores ways to improve long-term retirement outcomes.

Don’t wait for Monzo’s automation feature to build up a pension pot

Saving for retirement is far from straightforward when you’re self-employed. With research showing that half of the UK’s self-employed workforce faces low hourly pay or severe income volatility, for many it’s a case of living paycheque to paycheque.

Yet, even if you can’t commit to large monthly contributions, putting a small amount of money away can make a huge difference in the long term. Crucially, self-employed workers receive exactly the same tax relief on pension contributions as employees, making putting a small sum aside consistently the most tax-efficient way to save for the future. 

If you’re ready to get started, there are several options available: a stakeholder pension allows for low, flexible contributions, making it ideal for workers with fluctuating income, while a Self-Invested Personal Pension (SIPP) offers more control and a wider range of investments.

Nest, the government-based scheme, also offers self-employed workers a low-cost way to start saving for the future. (As always, conduct your own independent research or consult a financial professional before making these decisions). 

Beyond formal pensions, dividing up savings using “future pots”, and leveraging automated tools like round-up saving apps lets you fence off a percentage of each invoice the moment it’s paid, turning saving into more of a background habit than a monthly decision.

Ultimately, rather than waiting for the perfect moment or income, saving whatever you can spare, consistently, will put self-employed workers on a far more secure path to retirement.

AI is prevalent in UK startups right now, and so are anxieties around its use. Half of business founders have shared sensitive information with public AI tools in the past month, despite the vast majority expressing fears around the privacy of these models, our new survey, in collaboration with Sage, finds.

Startups looking to sidestep the risks of public AI with custom stacks are also facing roadblocks, with 62% wasting AI budgets on fixing broken connections between isolated tools. This is leaving business founders with a dilemma: accept the risk, or absorb the costs.

To help you navigate this quandary, we’ve proudly partnered with Sage to release the definitive 2026 report and playbook for founders: ‘The Startup AI Paradox’.

Building on the survey results of over 400 business founders, owners, and C-suite executives from UK startups, this report unpacks issues being felt by current business owners using AI, and explores potential solutions. This is what we’ve revealed.

 90% of SMEs using AI worry that private data is being used to train global models

As startups increasingly lean on public AI tools for quick productivity wins, one in two business founders admit to leaking sensitive company information with chatbots like ChatGPT and Gemini in the last 30 days, and for over a quarter of them, it’s becoming a weekly habit. 

This isn’t down to naivety, though. 90% of AI users are concerned that the private information they enter into tools could end up training someone else’s model, and over a quarter (27%) say they have little-to-no trust in AI handling core business processes. 

The risks are tangible. Once sensitive company information is entered into a public model, it can’t be recalled, deleted, or contained. This can result in client data resurfacing in another user’s output, as well as potential GDPR penalties. 

This gap is being driven in part by competitive pressure. As the business landscape rushes to fold AI into their daily workflows, standing still can feel like an ever bigger risk. Our survey also found that 83% of business leaders feel overwhelmed by the number of options available, resulting in many of them defaulting to whatever’s available. 

Whatever’s informing their decision, the findings lay bare the fact that founders know the risks of using public AI, and they continue using it anyway.

Businesses face a catch-22 when it comes to choosing how to use AI

For founders drawn to the speed and accessibility of public AI, using it safely isn’t impossible – it’s just burdensome. Public tools offer no data security guarantees, requiring founders to anonymise sensitive figures, scrub internal documents, and remove confidential details before a single prompt is sent.

Our survey results highlight how tedious business founders find this process, with over half (56%) of respondents spending a moderate amount of time on manually preparing data, and almost a quarter (23%) finding it completely self-defeating.  

To avoid these issues, some businesses build their own AI tech stack, where each model can handle different information streams, from customer data to finances, giving founders more control over where sensitive data goes.

However, while a step in the right direction, company-made AI infrastructure can increase costs as quickly as they improve efficiency, with 62% of businesses with dedicated AI budgets reporting wasting significant time trying to fix broken connections between their tools. 

Ultimately, whether businesses absorb the risks of public AI tools or invest in fragmented custom stacks, trade-offs remain. Neither path solves the problem, but our findings point to another alternative.

 Get the full picture with our expert-led AI playbook

Whichever stage your company is at in its AI journey, there is help at hand. Our free report, “The Startup AI Paradox”, acts as a comprehensive AI playbook for founders navigating the trade-off between speed and security. 

It features insights from Startups 100 winners, a starter checklist for founders looking to create an AI policy, and legal guidelines explained in clear English, all designed to remove the guesswork around adopting and thriving with AI. 

We also look at the solution that could resolve this paradox for good. Download ‘The Startup AI Paradox’ for free and get the complete findings from our survey in collaboration with Sage.

After months of whisperings from Westminster, new Prime Minister Andy Burnham has officially announced a 20% cut in business rates for pubs, clubs, and music venues, as part of a broader £100 million package designed to support the hospitality sector. 

The changes are estimated to support almost 32,000 hospitality businesses from April next year, and save the average pub an estimated £1,100 in tax next year – a welcome relief as the industry continues to buckle under surging wages, National Insurance contributions, and energy costs. 

The trade-off? Fulfilment warehouses run by businesses like Amazon and Asos could see their business rate bill rise, as Burnham looks to shift more of the tax burden onto online retail giants to support the high street.

The wait’s over for hospitality businesses demanding lower business rates

On the 20th of July, Andy Burnham pledged he would slash business rates for hospitality businesses if he was elected. Just a few days into his tenure, the Prime Minister has stayed true to his word, with Labour officially announcing a 20% cut in business rates for pubs, clubs, and live music venues across England. 

The major policy move is part of a strategy to help hospitality businesses manage growing operating costs, while encouraging investment and safeguarding jobs, according to Ministers. 

32,000 hospitality businesses are estimated to benefit from the relief from April 2027, with the average venue seeing around £1,100 slashed from their business rates bill in the following year, according to figures published by Downing Street. 

When it comes to who is footing the bill for this relief package, Chief Secretary to the Treasury,  Emma Reynolds, claims the tax cut “will be funded in a couple of ways”.

“Firstly, by looking at business rate reliefs on businesses that cause social harm, such as vape shops, and secondly by cracking down on those online businesses who are not paying VAT,” Reynolds told Sky News.

According to Ministers, tightening tax compliance rules for ecommerce giants like Amazon and ASOS will help create a fairer tax system across sectors, and fund the support for hospitality businesses without deepening the deficit. 

Not all venues will qualify, however. To target support where it’s needed most, the very largest entertainment venue will not qualify for the 20% relief. A major subset of hospitality businesses – restaurants and hotels – also remain exempt from the cuts, with full eligibility criteria expected to be confirmed in the autumn budget.

Will £1,100 a year really make a difference to struggling venues?

While the announcement has been largely welcomed by hospitality organisations, the praise isn’t universal. 

Tom Kerridge, celebrity chef and pub owner, argues the relief package won’t touch the sides for the pubs that need it most. Speaking about the new policy on BBC Radio 5 Live, Kerridge said, “It will come as welcome news. But £1,000 on a yearly revenue doesn’t really make a difference.”

Kerridge has been one of the loudest voices on tax reform across the sector. His campaign, ‘VAT’s the Problem’, calls for hospitality VAT to be halved to 10%, and has gathered over 270 signatures online. 

Kerridge isn’t completely critical of Burnham’s new policy, voicing that “it shows the government are beginning to listen and have an understanding that hospitality is at the core and heart of so many communities.”

However, his message is clear: business rates alone won’t be enough to fix the sector’s underlying cost pressures. This sentiment is echoed by UKHospitality chief executive, Allen Simpson, who described the policy as a “good start”, but expressed that it falls significantly short of the much-demanded reduction in VAT that has become a clarion call from the hospitality industry.

This scepticism is understandable. With the relief working out to average savings of £21 per week, this cut barely dents a bill inflated by growing wages, National Insurance contributions, energy costs, and 20% VAT.

Instead of waiting for next year, control your costs today

Whether you need to wait until the next tax year to see savings, or you’re excluded from the deduction altogether, there are steps your business can take today to ease the financial strain. 

Many hospitality businesses haven’t negotiated their energy prices since wholesale prices were peaking. To make sure you’re getting the best deal possible, we recommend comparing your current rates against the market, or using a business energy broker to negotiate on your behalf.

If you run a unique or very small venue, you may be eligible for other forms of support. Many venues still qualify for things other than small business rate relief, such as transitional relief or local authority discretionary schemes. These government programmes can have a significant impact on your bottom line, so it’s worth checking your eligibility directly with your local council, or visit the gov,uk business rates relief checker.

For struggling pubs, clubs, and music venues, Burham’s new relief package won’t act as a silver bullet for recovery. Yet, the measure, combined with proactive cost-cutting measures, will hopefully buy the sector breathing room before substantial reform comes through.

eBay is rolling out a new and improved international shipping programme for private sellers in the UK, a move that will make it even easier for side hustlers and small businesses alike to reach more than 136 million buyers across over 195 countries and territories.

For small online sellers in the UK, this is huge. The new eBay International Shipping (eIS) will waive international selling fees for private sellers,  handle customs documentation, post-sale support, and international returns – a major thorn in the side of most retailers trying to sell overseas without the resources of a dedicated logistics team. 

Of course, there are things sellers should know before diving in – from understanding how the programme actually works, to knowing which products you’re able to list.

How does eBay International Shipping work?

Global online marketplace eBay has just launched its most comprehensive international shipping programme yet – eBay International Shipping (eIS) – in the UK. 

Following a successful rollout in the US and Canada, the programme builds on its former system, Global Shopping Programme, which let sellers ship items to a UK shipping centre where eBay handled customs clearance, duty payments, and international tracking.

eBay International Shipping (eIS) also expands seller reach from 105 countries to over 195, giving sellers access to nearly double the number of overseas markets without having to set up shipping arrangements for each one.

Another major update is that the eIS will manage returns. Previously, if an international buyer wanted to send an item back, sellers had to print on-country return labels themselves – a process that would incur extra costs and make sellers more exposed to refund abuse. Now, when an overseas buyer requests a return, eBay takes ownership of the process at no cost to the seller. 

eBay is also waiving the extra fees it previously charged for selling internationally. Instead of paying international shipping fees, retailers will only have to cover the costs of shipping products to eBay’s domestic shipping centres. 

This new price structure will undoubtedly make a huge difference to smaller online sellers, who are already cripped with fees like seller taxes, postage and packaging costs, and buyer protection fees.

 How to make the most of eBay International Shipping

With eIS making it even easier for micro sellers to tap into the global marketplace, there’s never been a better time to test the waters overseas. 

However, before you decide what to list, we recommend considering where demand is at its strongest. According to data from eBay, the biggest growth in international buyer demand over the past year has been seen in Australia, Germany, and Switzerland, so it’s worth keeping these markers in mind when deciding how to price items for your chosen audience. 

It also pays to be mindful about what sells well overseas. Collectables, retro technology, and unique vintage pieces tend to gather strong demand internationally. On the other hand, some items should be avoided altogether: many toys and games are frequently excluded from eIS due to UK Conformity Assessed  (UKCA) marketing requirements, while many countries restrict the imports of furs. 

Sellers should also be aware that even though international selling fees have been foregone, they’re still responsible for paying domestic postage to get items to eBay’s UK shipping centre. HMRC have also been cracking down on online sellers retailing more than 30 items, or making over £1,700 on marketplace platforms. 

Despite these hurdles, eBay International Shipping is designed to remove a lot of the friction involved with going global. So, with the right selling strategy and financial planning, there’s a good chance the new programme could turn your side hustle into a genuine money maker.

The Commercial Payments Bill, designed to force big companies to pay smaller suppliers and freelancers faster and make that cap legally binding, officially entered the Committee Stage at the House of Lords this week. 

Similar legislation has already been met with success in Japan and the Netherlands, but the UK’s approaching bill goes one step further by pairing a mandatory 60-day cap with non-waivering interest, all backed up by an empowered Small Business Commissioner. 

With small businesses being owed an estimated £70.4bn in late payments, it’s no surprise the bill is being welcomed with open arms. However, as previous attempts like the Fair Payment Code have shown, a law is only as strong as its enforcement, so we also look at what freelancers can do today to protect their cash flow.

 Inside the bill: what’s changing for freelancers?

For small suppliers and freelancers, the frustration of being sat on unpaid invoices is almost universal, with data from the Federation of Small Businesses showing that over half of UK small-to-medium-sized businesses (SMBs) experience late payments regularly.  

With the impact of late payments rippling out to the wider economy, the government has stepped into action. The upcoming Commercial Payments Bill, which began being examined by members of the House of Lords on the 21st of July, will strengthen existing laws around cracking down on delayed payments.

In addition, the bill also introduces a legally binding 60-day cap for large firms paying smaller suppliers, mandatory interest on anything paid late, and penalties for clients who raise last-minute invoice disputes to buy more time. 

The new piece of legislation will also give the Small Business Commissioner new powers to adjudicate payment disputes, and provide freelancers with a genuine, hard-hitting route to enforcement.

Speaking to Startups.com, Small Business Commissioner Emma Jones welcomed the bill’s progress: 

“It is exciting to see the Bill tackling late payments going through the Committee Stage in Parliament this week. Currently, late payments cost the UK economy £11 billion a year, with founders spending over 86 hours chasing overdue invoices.

“I am committed to get money moving in the economy and free up small businesses’ time to grow and thrive. Ending late payments will be critical to realising this goal, and this Bill is on the path to achieve this.”

For freelancers, these changes mark a meaningful shift: less time wasted chasing unpaid invoices, and real financial consequences for clients who drag their feet.

How similar laws around late payments have worked elsewhere

The UK isn’t the only nation to enshrine payment protections into law. At least 54 countries already have some form of law restricting maximum payment terms in place, whether for government or private contracts.

In Japan, proactive government enforcement slashed the rate of late payments from 25% of businesses affected to 12% in 18 years. 

Similar results were recorded in the Netherlands. After the government introduced a law capping payment terms at 30 days in (insert date), the country achieved the lowest rates of payment problems in the EU, with just 31% of companies being affected. 

What’s more, a report by the Enterprise Research Centre has found that the UK’s upcoming Commercial Payment Bill intends to go further than anything implemented in the G7 or the EU, by combining a mandatory cap with non-waivable interest and an empowered regulator. 

However, this doesn’t mean challenges don’t remain.

Here’s how to get control over your payments today

While the bill has widely been met with optimism, according to Phillip King, the interim Small Business Commissioner during the pandemic, the problem lies in enforcement. 

King warns that the Government’s previous attempts to resolve the issue fell flat because they weren’t enforced properly:

“There’s all sorts of risks, it needs to be done really carefully. And enforcement is really important. If there’s a clear set of rules and an accountability factor to it, I think that would push things forward,” he told The Times.

King should know better than most. During his time as Small Business Commissioner, he set up the Prompt Payment Code, a voluntary scheme which relied on companies self-reporting their payment practices – but with no real consequences for ignoring it.

This time could be different, though. The legislation currently making its way through Parliament isn’t voluntary, and involves strict enforcement and mandatory reporting – safeguards that codes never had.

Either way, for freelancers wanting to get ahead of their invoices today, there are steps you can take to take the control back, according to Emma Jones. 

Of course, clear contract terms that set out reasonable payment timelines are essential. You should also always ask for a purchase order (PO) number before you start work, to ensure your invoices don’t get lost in large payment systems. 

Automating your chasing with accounting software is also highly advised, as is sending off “polite-but-firm reminders” given days before an invoice is due. 

If you have an outstanding late payment, and you’re getting nowhere with your avenues of contact, reaching out over social media to senior members of the company is often highly effective.

Jones also heavily encourages making contact with her office, and well before it becomes a serious financial strain on your business. If you suspect a large client is taking you for a ride, or simply stops replying to you once your payment is due, report them directly to the Small Business Commissioner’s office. 

Ultimately, there is hope that these workarounds become less necessary when the new law is finally in place. 

But until then, freelancers are best served treating the upcoming bill as a work in progress rather than a done deal, and staying on top of their invoicing habits in the meantime. 

New research has revealed that 47% of Gen Z and millennial shoppers have used TikTok Shop to browse or buy products in the past three months, in comparison with just one in five shoppers overall.

The findings, published by Savvy, highlight how social commerce is reshaping how younger generations shop, and serve as a wake-up call for traditional ecommerce sites failing to adapt to this new landscape. 

While next year’s under-16 social media ban will see Gen Alpha shut out of these platforms, older shoppers aren’t going anywhere. There are also actions you can take to leverage the consumer trend, even if you aren’t selling on TikTok Shop directly.

Gen Z and Millennial shoppers are using TikTok Shop more than ever

If you’ve ever had a scroll on TikTok Shop or Instagram Reels, you’ve witnessed social commerce in action. The social media ecommerce practice has been steadily on the rise amongst most demographics, but it seems to have taken a particular hold on younger users. 

Savvy’s report, which surveyed 1,005 UK shoppers, has found that 64% of Gen Z and millennial shoppers have watched product reviews or recommendations on social media in the past month, and half (49%) have clicked links to view products in featured posts or videos.

Its previous May 2026 Shopper Panel report also found that 57% of younger shoppers enjoy watching live shopping events such as TikTok Live – an interactive format which lets users see product demonstrations, ask questions in real time, and buy items without leaving the app. 

According to Alastair Lockhart, insight director at Savvy, social commerce combines discovery, entertainment, social proof and instant purchase in a way that makes traditional ecommerce feel increasingly functional by comparison. 

He points out that “For retailers, the challenge is not about whether to sell through TikTok Shop. It is how to make every channel – websites, apps and stores – feel more engaging, responsive and confidence-building.”

For retailers sticking to traditional websites to convert customers, that’s a telling sign. Relying on the old model in 2026 risks leaving sales on the table, which is a risk many online sellers can’t currently afford to take.

How can ecommerce retailers cash in on the social commerce boom?

With platforms like TikTok Shop creating clear opportunities for online retailers, now would be a good time to consider a presence on the platform if you haven’t already.

The pivot would require you to adapt to the new landscape. We recommend keeping listings punchy and succinct rather than copying over standard product copy, leaning into trending sounds rather than polished studio ads, and posting consistently so your presence builds momentum. 

Partnering with micro-influencers or creating genuine customer content represent other ways to reach new audiences online, while foregoing the cost of a big-budget marketing campaign. 

Selling directly on TikTok Shop isn’t the only way to benefit from the shift, however. Lockhart believes traditional retail experiences can actually be harmonious with social discovery, not at odds.  

“The retailers that come out on top will be those that turn viral moments into real-world shopping experiences. Consumers are already discovering what they want on social media – now they expect retailers to make finding and buying those products effortless, wherever they shop,” he explains. 

Ultimately, the rise of TikTok Shop isn’t a passing trend. It represents a fundamental shift in how the younger generation expects to discover and buy products. The more brands invest in showing up where potential customers actually spend their time, the more hope they have in turning casual scrollers into loyal customers. 

The average median pay for Financial Times Stock Exchange (FTSE) 100 chief executives is now £5.06 million a year – a shocking 130 times more than the average full-time worker earns, new figures from the High Pay Centre show.

With CEO salaries increasing for a fourth year on the trot – driven in part by inflating bonus payments – the figures are being framed as a wake-up call for policymakers. 

Yet, with over a third of small business owners struggling to pay themselves, the picture looks a lot different down the scale.

So, what’s the balance between fairness, survival, and reward? We take a look at what founders should actually be paying themselves, based on business stage and industry norms.

FTSE 100 CEOs are paying themselves over £5m a year on average

For top CEO’s, rank definitely has its privileges. New research from the think tank the High Pay Centre has found that the median average pay for a chief executive of a FTSE 100 company has reached a new record of over £5 million a year. 

This figure is 8.6% up from £4.66m in 2024/25, when CEOs earned 124 times more than the average worker – that ratio has now climbed to 130 times.

Top earners include CEO of AstraZeneca Pascal Soriot, earning £17.7 million, and CEO of GSK Emma Walmsley, who took home £15.7 million in the past year. 

In comparison to their multi-million-pound earnings, it was found that full-time employees in the UK are paid an average of under £40,000 a year, and are seeing their pay packages increase 5% more slowly than top bosses.

While pay-setting committees at big firms argue competitive salaries for top-dogs are necessary to compete with other countries like the U.S., Andrew Speke, interim director at the High Pay Centre, says the figures should stand as a “wake-up call to those who’ve turned a blind eye to rising executive pay”.

The answer? The High Pay Centre believes it lies in a “fat cat tax”, which would involve firms paying a corporation tax surcharge on their yearly profits if the total pay exceeds a specified multiple of the average worker’s salary.

According to Speke, “Not only would this incentivise firms to scale back the levels of corporate wealth flowing to a small handful of individuals but also could be used to raise funds to be invested in education and early years provision, helping to tackle inequality at source”.

How much do small business owners actually earn?

Unlike FTSE 100 CEO’s most founders are working out how to portion a wage without sinking the business. 

When it comes to how to pay yourself as a business owner, things will look a lot different depending on your business structure. For instance, sole traders draw from their profits, partners split the share, and limited company directors combine a modest salary with dividends.

According to Glassdoor, most small business owners earn around £39,000 a year, though totals can range anywhere from £28,000 to £54,000 depending on experience, industry, and how established the business is. Early-stage founders often pay themselves considerably less, or nothing at all, to keep the business viable.

This isn’t the only survey indicating small business founders are taking home very little. Research from the Federation of Small Businesses (FSB), for instance, found that 36% of small business owners made less than £25,000 in gross profit over the past year. According to recent figures from Payscale, which looked at gross pay, UK CEOs earn around £73,178 per year – just 2.2 times the average UK employee salary.

To put things into perspective, this is only just above the average salary of a full-time worker on the National Living Wage (£22,200), and a world away from the multi-million-pound packages awarded to chief executives at the UK’s biggest firms. So, while the FTSE 100 figures have made all the headlines, lower down the chain, things look a lot more balanced. 

How to pay yourself – and your team – fairly

If you’re a founder considering giving yourself a salary bump, you should first ask yourself some tough questions. Has your business has consistently been profitable for over six months? Are your debts covered? Are you capable of taking more out without dipping into reserves, and how will doing so impact your runway? If you’re not considering these things, it could end disastrously. 

Consistent scheduling is also important. You shouldn’t be paying yourself on an “as and when” basis – it should be measured, controlled and calculated. This should be paired with regular reviews, where you revisit how much you’re taking out and whether this is optimal in the context of your business’s trajectory. Distributing profits throughout the year will allow you to adjust this easily.

It’s also important to look at the company-wide picture. Staff teams dutifully contributing to rising profits – and only seeing your lifestyle change, rather than the team grow – will naturally breed resentment and may ultimately impact turnover. It’s essentially the old adage of leading by example – taking lump sums out of the coffers whenever you please isn’t going to engender good tea morale. 

To put it another way, when you’re a founder, there’s a lot more to consider than just how much you’re taking home. 

Despite summer usually welcoming a pick-up in trade, high street confidence remains stubbornly low, with just 21% of hospitality and retail businesses predicting growth for the next three months, according to a recent study from Novuna Business Finance. 

While green shoots were found across industries like manufacturing and transport, overall growth forecasts have fallen to their lowest level since the Business Barometer study began in 2014 – a trend described as a “concern” by the Head of Insight at the asset finance provider.

For high street businesses, as rising business rates and minimum wage costs continue to weigh heavily on bottom lines, it’s unclear whether Andy Burnham’s new Prime Ministership is enough to swing the balance.

Hospitality and retail businesses aren’t hopeful about summer growth

Every quarter, Novuna Business Finance tracks small business sentiment in its Business Barometer survey. Its latest findings make for a grim reading: retail confidence dropped sharply from 38% to 21%, while hospitality fell from 25% to 21%. 

This dip is particularly unusual for the summer months, where warmer temperatures typically usher in a welcome uplift in high street footfall, impulsive spending, and more bums on seats in pub gardens. 

But it’s not just high street businesses that are struggling. Despite a brief bounce following Labour’s election victory in July 2024, and a modest rally at the start of the year, overall small business confidence has been on a steady downwards trajectory. 

Now, the percentage of businesses saying they are contracting or struggling to survive is equal to the percentage predicting growth – the first time the two measures have been equal since the pandemic began.  

Speaking on the trend, Jo Morris, Head of Insight at Novuna Business Finance, said: “Following a quarter-on-quarter slide in small business growth forecasts during 2025, this year promised hope of recovery” 

“However, the fall to 24% this quarter is a setback and growth forecasts now stand at their lowest level since the Business Barometer study began in 2014.”

For hospitality operators, costs are only going up

For many working inside the hospitality sector, this slump in confidence won’t come as a huge surprise.

In recent years, pubs, restaurants, and cafes have been squeezed from every direction, with the National Minimum Wage increasing again in April, while rises to employer National Insurance contributions have added further strain to already tight payrolls.

On top of this, business rates remain a source of ongoing uncertainty. Analysis from UKHospitality shows the average pub’s bill rose by 15% from April 2026, tacking roughly £1,400 to annual costs. With further increases on the horizon, little room is being left for operators to plan ahead with confidence. 

These cost pressures are being compounded by shifts in consumer habits, too. Changing drinking habits – including a rise in a bring your own booze culture and a broader move towards lower alcohol consumption have hit pubs for revenue and bars particularly hard.

The result is a perfect storm that’s proving too much for many operators to weather. Britain is currently losing 3.4 pubs and restaurants a day, and closures are showing little sign of slowing.

Where does the high street go from here?

As costs are unlikely to ease in the short term, experts suggest hospitality businesses focus on what’s in their control. 

This can involve reviewing supplier contracts to ensure you’re getting the best deal, cutting food waste through smart menu engineering, and adapting to changes in demand – i.e, by catering to the growing demand for low-and-no-alcohol options, or doubling up as informal workspaces to bring in trade outside of peak hours.

Whether or not a shifting political backdrop offers any relief remains to be seen. The new Prime Minister, Andy Burnham, has proposed raising the threshold for business rates, a move that could result in 140,000 additional small businesses being exempt from paying the rate altogether. 

He also floated a 20% cut to rates for pubs, clubs, and music venues, funded by higher taxes levied on large warehouses and online retailers. Until then, however, as hospitality businesses continue to navigate a difficult summer, it’s uncertain whether these proposals will translate to meaningful action.