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 enforcement – 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 fairly as a founder

If you’re considering giving yourself a salary bump, you should check whether your business has consistently been profitable for over six months, you have your debts covered, and you’re capable of taking more without dipping into reserves, first.

It’s also important to look at the company-wide picture. Paying staff fair rates shouldn’t just be a priority for fat cats. It should also be front of mind for small business founders, even if they’re squeezed by rising costs themselves. 

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.

The Government has just withdrawn the draft code it was working on to bring in stricter tipper policies with no warning, leaving hospitality businesses scrambling just three months before new laws were supposed to be introduced. 

The revoked draft code built on the Employment Act 2023, which requires businesses to pass on 100% of tips to workers. The new rules, due from October 1st, would have gone one step further by making staff consultation a legal requirement when a new tipping policy is created –  i.e discussing with workers about how that total gets divvied up.

With no rulebook to follow, the trade body UKHospitality (UKH) is calling on the Government for urgent clarity on the status of the draft code, having already been concerned about the law being introduced so last minute.

Hospitality sector tips into a limbo, as the Government scraps gratuity draft code

UKHospitality is calling on the Government to urgently clarify why the draft code on tipping practices was revoked shortly after it was published earlier this year. 

With less than three months before the October 2026 deadline, UKHospitality’s chief executive, Allen Simpson, was already warning that the draft code didn’t give businesses much notice to implement the changes. 

“We were already concerned about changing a law introduced so recently and working effectively for both teams and employers, and the withdrawal of a new code of practice just three months before its implementation leaves businesses in limbo”, Simpson said in a statement from UKHospitality.

The code was meant to build on the Employment (Allocation of Tips) Act 2023, which came into force in October 2024. The Act made it unlawful for businesses to withhold tips, gratuity, and service charges from staff, requiring workers to receive 100% of tips without deductions. 

Rather than reinforcing these existing rules, the draft revised code would have gone further by making it a legal requirement for employers to consult staff before creating or updating a tipping policy.

While the Government hasn’t explained its actions, the withdrawal came after the trade union Unite called for the “flawed” code to be scrapped, over concerns that it could disadvantage lower-paid workers on insecure contracts by allowing employers to redistribute tips to offset other staff’s pay.

How to consult your staff about your tipping policy, the right way

Despite the Government’s stalling, it’s likely some form of mandatory consultation will come into place before the October 1st deadline. So, preparing a game plan before you talk to your staff is worth doing now, rather than waiting for the final go-ahead.

Start by bringing them up to date with the potential new tipping laws, and be honest about that detail not being locked down yet. Explain that the direction of travel is clear: employers will likely need to consult staff before setting or changing a tipping policy, keep a record of that consultation, and review the policy every three years.

Crucially, it’s important to mention up-front that this won’t mean they get fewer tips. With take-home pay being a huge concern for hospitality workers, stress that they will still be getting 100% of gratuity, in line with the Allocation of Tips law.

You can simply explain that the questions up for discussion are focused on the divvying-up process, i.e., how the business should split staff between front-of-house and kitchen, how the split should vary between zero-hours or full-time staff, and how card vs cash handling should be tracked and recorded. 

Successful managers understand that workers are happier, more engaged, and more productive when they feel heard. So, leading with honesty and framing this as an open discussion, rather than a top-down announcement, will make staff more likely to respond positively and keep lines of communication open in the future.

Misleading weather forecast displays could be costing your hospitality venue business. That’s according to Chester Zoo’s chief operating officer Dom Strange, who met with the Met Office this week along with 16 of the UK’s top visitor attractions to find a solution. 

Strange believes the single rain icon that appears on weather apps urges potential visitors to stay at home, with the Zoo’s own survey finding that UK attractions lose up to half of their visitors over a rainy day symbol, even if it only signals a brief shower. 

For hospitality venues and stores, where the majority of footfall depends on people deciding to leave their house, a single drop of rain could be enough to dry up sales. Fortunately, there are actions you can take to ride out the storm.

UK attractions campaign to change how forecasts are displayed

Chester Zoo’s weather summit with the Met Office follows the attraction’s original warnings in March that misleading rain icons could be costing some attractions up to £137,000 a day in revenue. 

The campaign, which is backed by the likes of the Eden Project, Blackpool Pleasure Beach, and Blenheim Palace, argues that the issue doesn’t lie in forecast accuracy, but in misleading symbols which can lead potential visitors to think it’s going to rain for longer than it actually is.

There are numbers to back it up, too. A survey carried out by the zoo and tourism consultancy Navigate found that 60% of UK attractions reported that visitor numbers dropped after a “poorly displayed forecast”, with some losing over half their visitors on the back of a rainy day icon.

The solution? Chester Zoo, alongside 80% of other major UK attractions, believes that scrapping the UK’s single weather symbol in favour of a Norwegian model which breaks 24-hour periods into six-hour time slots will help recover visitor numbers, as it won’t skew the picture for the whole day. 

Encouragingly, the Met Office seem open to it. A zoo spokesperson said the Met Office has constructively engaged with the tourism sector since March, ahead of this week’s weather summit. But if you run a hospitality business, you know it’s not just attractions that are impacted by misleading weather symbols.

Rain cloud icons could be costing high street businesses more than they think

Bad weather isn’t just an inconvenience for hospitality businesses; it’s one of the biggest variables in day-to-day trade.

NIQ’s RSM Hospitality Business Tracker named dull and wet weather a major driver behind low footfall and falling sales in February this year, with England receiving 42% more rainfall than the long-term average for the month, and bars and takeout businesses seeing sales decline by 4.1% and 5% respectively. 

Pubs and restaurants with outside seating also have a lot riding on the forecast. The same tracker found that a damp bank holiday weekend last May was enough to send sales down by 10% on the Monday, as consumers stayed clear of beer gardens and terraces, while sunnier days on the same fortnight delivered double the growth. 

Rainy days can hit retail stores just as hard, with bad weather being found to cut UK high street footfall by over 13% on the worst days, over six times the drop seen on milder ones. Sole traders that operate at outdoor markets will see even sharper drops that align with poor conditions.  

Presenting a full day as “rainy” via a single icon, then, will inevitably deter customers from hitting the high street, making a trip to a local craft market, or booking a table in pub beer garden in the same way it’ll put them off going to tourist attractions.

There could also some sensible questions to ask about how longer-term forecasting is presented to the public. The Met Office’s own figures show that while one-day forecasts have strong accuracy, confidence drops with forecasts of five or more days. Rain is even harder to accurately predict, with researchers from the University of Reading finding that it’s harder to forecast precipitation than any other type of weather.

For hospitality and retail businesses alike, misleading weather icons and shaky five-day forecasts can deter customers from making plans way before a single drop actually falls. In hospitality specifically, these could even prompt cancellations, which themselves could have knock on impacts like overstaffing. 

Precisely how much these weather icons are impacting footfall, bookings and cancellations across the UK is hard to quantify, but if Chester Zoo’s eye-watering lost revenue figures are anything to go by, it’s likely to be significant.

Here’s how to take action against misleading forecasts

If you believe your business has lost visitors due to a rainy day icon, you don’t have to accept the washout. The Met Office accepts feedback on forecast accuracy through its website, and businesses are encouraged to get in touch.

Just visit their website feedback form and enter details like your contact information and a detailed description of the day in question. The more specific you are in stating your case, the better. This could include citing specific revenue, footfall estimates, or booking numbers, as well as the forecast on the day.

You can also voice your concerns publicly. The Met Office is active on all major social media platforms, such as X, Threads, and Bluesky. Joining the conversation that was initially kicked off by Chester Zoo could help bring hospitality businesses into the fold and help to protect your future bottom line from a misleading forecast.

Freelancers, self-employed workers, and landlords, this one’s for you. The first Making Tax Digital (MTD) quarterly update is around the corner. 

By August 7, sole traders with a combined annual income over £50,000 are required to submit their first quarterly update to HMRC.

This isn’t a tax return. You just need to report your totals to HMRC four times a year now instead of one. No tax is calculated, and nothing is owed on the day; that still happens at the end of the tax year, as always. 

The good news? It’s straightforward to submit, as long as you know what you’re doing.

The first MTD quarterly update deadline is around the corner

On August 7, all self-employed individuals and landlords earning over £50,000 a year will need to submit their first quarterly update to HMRC. This will include a summary of their income and expenses for the period from April 6 to July 5, 2026.

The update is quite simple. It doesn’t involve calculations or tax owed on the day. You’re simply reporting totals such as sales and expenses. Anyone running more than one business, or letting more than one property, will need to file a separate update for each.

Even better, there’s a soft landing for the first deadline. No penalty points will be issued for late quarterly updates in the first year of MTD, as sole traders get to grips with the new system. 

However, once the soft landing ends in 2027, you get a point. After you rack up four points, you’re hit with a £200 fine, and a further £200 charge for every missed deadline after that.

As of April 6, Making Tax Digital for Income Tax Self-Assessment (ITSA) became mandatory for self-employed individuals and landlords, but this is its first real test. It’s part of HMRC’s long-running program to shift the UK tax system away from annual paperwork and towards continuous reporting.

Here’s what to do before the deadline

Before the 7th of August deadline, check you’re registered with HMRC for MTD, as you won’t be able to do this on the day. 

To do this, you’ll have to already be registered for Self Assessment, and have a tax return filed within the last two years. You’ll also need a Government Gateway user ID and password (the same login you use for your Self Assessment) and the date you started your business, or started receiving property income. 

After that, we recommend choosing MTD-compatible software before you register, as you’ll need it authorised and connected before your first submission is due. 

FreeAgent is free if you bank with NatWest, RBS, or Ulster Bank and handles invoices, expense tracking and MTD submissions. Sage and Clear Books also offer free MTD-compatible software, while Xero and QuickBooks offer more generous invoicing limits and bank feed integrations, but at a premium.  

Once you’re set up, categorise your income and expenses as you go, rather than sorting out four months of records in one sitting. This is one of the best things you can do to make sure your updates are accurate, and to ensure a smooth submission. 

For a more comprehensive breakdown of the scheme, its different thresholds, and your list of responsibilities, check out The Startup’s guide to Making Tax Digital (MTD).

A new scheme has been announced by Rachel Reeves to support the thousands of export-based small businesses that struggle to secure finance.

The initiative, backed by UK Export Finance (UKEF) and the British Business Bank, will support businesses seeking lower-value working capital loans and term loans to expand into international markets. It aims to level the playing field for smaller firms, which have been hit particularly hard by post-Brexit red tape. 

Due to launch in spring, the scheme is one of several measures announced this month aimed at bolstering international trade. Learn exactly what the scheme involves, and how it stacks up to the support that’s already available to small exporters.

The government is launching a life raft for small UK export businesses

UK exporters have been navigating difficult waters. Due to the residual effects of Brexit and rising global trade tensions, the amount of goods we export fell by 12% from 2019 to 2025, despite goods exports growing by more than 7% globally during the same period. 

To take the load off small businesses, the new joint initiative for exporters combines the British Business Bank expertise in unlocking funding for smaller businesses, and the UKEF’s export finance specialism. Combined, the scheme will see UKEF guarantee a portion of eligible portfolio-level losses on export lending, while the British Business Bank assesses and manages the commercial lenders taking part.

Lenders will still carry a share of the risk themselves, but the guarantee focuses on bringing their costs down enough to make smaller, lower-value working capital gains worth offering. From spring 2027, it will be open to export-focused businesses across all sectors. 

The scheme is ultimately designed to make it easier for small exporters to compete internationally. As Business Secretary Peter Kyle puts it, “Smaller businesses across the UK have the ideas, ambition, and talent to succeed on the world stage, but too often they struggle to get the finance they need to reach their full potential.

“This new partnership will help more businesses break into overseas markets, win new customers and turn local success into global growth.”

The scheme was announced in Rachel Reeves’s Mansion House speech on the 12th of July, where the Chancellor also revealed the government would be expanding its Growth Guarantee Scheme by £6.5 billion. The extension of the initiative, which offers a 70% government guarantee to the lender, is calculated to help 33,000 businesses over the next three years.

How to access the support scheme next spring

The joint initiative isn’t live yet, so the official application process hasn’t been published. 

However, based on other UKEF and BBB schemes, it’s likely you’ll have to apply through a bank or accredited commercial lender, rather than the government bodies themselves. This is because the guarantee sits behind the scenes, covering a portion of the lender’s risk. 

Essentially, just treat the application as you would for a normal business loan. The British Business Bank will publish a list of participating lenders, helping to guide applicants in the right direction once the scheme goes live. 

In the meantime, you can register your interest and gain free regional one-to-one advice with UKEF’s Export Finance Managers. They’re a nationwide team of specialists who work directly with businesses to help them learn more about their export finance options.

What other help is available for small exporters?

This scheme doesn’t exist in isolation. It builds on a raft of policies designed to support UK exporters. 

The UK trade strategy already promises £5 billion in new export opportunities, including a Small Export Builder that gives smaller sellers automatic access to UKEF credit insurance, starting at £15,000 and rising in increments of 50% as buyers pay on time. 

As per Reeves’ recent announcement, the Growth Guarantee Scheme has also expanded its offering. Aside from being given a £6.5 billion boost, its eligibility has widened from businesses with £45 million to £54 billion turnover, and its loan terms have extended from six to ten years – widening the pool of businesses that will be able to receive relief. 

Taken together, these schemes should give small businesses in the export industry enough tools to weather the storm. But with the flagship UKEF BBB scheme still almost a year from launch, the real test will be whether the support arrives quickly enough for small export businesses already feeling the squeeze

Rachel Reeves is to announce a significant expansion of financial support for small and medium-sized businesses, potentially to the tune of “billions”, before she officially steps down as Chancellor.

Her “swansong” final speech as Chancellor is due to take place on Tuesday, 14th of July, with Andy Burnham expected to take over as Prime Minister as early as the 20th of July and replace the Chancellor with someone new. 

The main takeaway is expected to be a £6.5 billion uplift to the Growth Guarantee Scheme (GGS), the UK’s flagship government-backed lending program that provides a 70% government-backed guarantee on loans to small businesses. 

Here’s everything you need to know about the shifting funding landscape, including how to prepare your application for the Growth Guarantee Scheme.

Reeves more than doubles the Growth Guarantee Scheme’s funding limit

The government’s pre-briefing of tomorrow’s Mansion House speech has revealed a major cash injection for the GGS. It’s set to facilitate an additional £2 billion of SME lending per year by 2028/2029, bringing its total annual lending capacity to £3.35 billion, more than double the current £1.35 billion limit.

The British Business Bank, which administers the scheme, estimates the changes will support around 12,000 extra businesses per year by 2028 and 2029, representing a 150% increase on the current 8,000 businesses being helped annually. 

Key criteria of the loan scheme will be changing too: the maximum term for loans of up to £1.1 million will increase from six years to ten, and the maximum turnover for businesses able to apply will rise from £45 million to £54 million. 

Together, these changes will give businesses more breathing room to repay, and open the scheme up to a larger pool of mid-sized firms. 

Rachel Reeves framed the changes as central to her economic legacy, announcing the government approach has “put Britain on a stronger footing – restoring stability, getting investment flowing, and delivering reform.”

“When [small businesses] succeed, we all succeed, and today’s major reforms are the most significant step in years to unleash their potential,” Reeves adds.

Beyond the expansion of the loan scheme, several other measures are set to be unveiled in Tuesday’s speech, including the future rollout of a new finance scheme for small export businesses, £500 million in ENABLE Guarantees for IP-rich SMEs, and fresh backing for community lenders that support underserved businesses.

How can small businesses access the expanded scheme?

Unlike other government support schemes, businesses aren’t able to apply to the GGS directly through the government or British Business Bank.

Instead, you apply just as you would for any other loan – through a network of accredited commercial lenders like NatWest, Lloyds, Barclays, alongside smaller and community lenders. If you don’t qualify for the standard terms, the lender can choose to offer the loan under the GGS instead, with the government guaranteeing 70% of it. 

Crucially, if you default, the guarantee protects the lender, not the borrower. The scheme doesn’t reduce your obligation to pay it back, or offer any forgiveness. 

To be eligible for the GGS, your business needs to:

• Be based and trading in the UK
• Have an annual turnover of up to £54 million
• Have a viable business proposition, even if it doesn’t meet a lender’s standard criteria

Growth Guarantee Scheme checklist: what to prepare before applying

Think you’re eligible? Get your ducks in a row before you approach a lender by ticking off everything on this checklist first.

• ☐ 2–3 years of accounts or management accounts
• ☐ Recent bank statements (6–12 months)
• ☐ Cash flow forecast covering the loan period
• ☐ A clear explanation of what the loan will be used for
• ☐ Confirmation that turnover is under £54 million
• ☐ Up-to-date Companies House filings and no outstanding HMRC issues
• ☐ A shortlist of accredited lenders to approach

While the application process for the scheme remains unchanged, its recent expansion means it’s an ideal time for eligible businesses to apply, especially those who have previously been turned down for financing.

Still not eligible? Funding may still be in your grasp: consider other options like angel investing and P2P lending instead.

Businesses are fed up with the amount of red tape they’re facing, with a new government survey revealing that 96% of respondents say regulations in their sector are disproportionately creating problems. 

Top gripes include being required to submit the same information multiple times, waiting on frustratingly slow processes, and forking out for direct costs from schemes like the Extended Producer Responsibility (EPR) scheme.

It’s a burden that’s reportedly costing UK SMEs £36 billion and 379 million hours a year – and while the government has pledged to cut red tape, businesses say progress is falling short of what’s needed.

Businesses say mounting regulations are blocking growth

If you’re a small business owner frustrated with the UK’s slow, burdensome, and often complex regulatory system, you’re not alone, finds the recent Unlocking Business questionnaire by the Department for Business and Trade. 

According to the questionnaire, which surveyed 271 businesses, trade associations, and individuals across the UK, 94% of respondents said there are regulations that limit their ability to grow and innovate, while 89% complain that rules are imposing unreasonable direct costs on their business, as firms continue to be squeezed by economic pressures. 

One of the most common grievances was duplication. Due to the fragmentation of government agencies, business owners often have to submit data repeatedly to multiple regulators –  an issue compounded by differing UK and EU regulatory standards since Brexit. 

Sluggish turnaround times were another major concern. 61% of respondents had experienced delays to approvals, licensing, and authorisations, with waits ranging from weeks to years. Businesses complain that waiting in limbo stalls investments, delays product launches, and in certain cases, prevents products from entering the market altogether. 

There’s also the direct financial hit. There are real costs to toeing the line, especially

in sectors that require multiple licences and standards for a single premises, like hospitality businesses navigating food safety rules and hygiene ratings, and service businesses navigating health and safety legislation, beauty salon regulations, on top of local licensing. 

Among a raft of expenses like permitting fees, third-party compliance advice, and reporting costs, the EPR packaging scheme was flagged as the most resource-intensive obligation they face, as it requires producers to cover the full cost of managing household packaging waste.

Can the government’s £6bn “blitz” actually fix the problem?

The report is careful to note that businesses aren’t looking to throw out the rulebook altogether, but are campaigning for “a more practical, efficient, and proportionate system”.

Yet, with the Federation of Small Businesses finding that the UK’s SMEs collectively spend 379 million hours, and up to £36 billion a year navigating red tape, it’s clear something needs to budge. 

Fortunately, the government isn’t ignoring pressures entirely. Last year, Chancellor of the Exchequer Rachel Reeves announced a “blitz on business bureaucracy” deregulatory drive, designed to save businesses nearly £6 billion a year by the end of Parliament. 

The Labour government has built on this by pledging to reduce the administrative cost of regulation by 25% by the end of the same time frame. If successful, this could slash approximately £5.6 billion from the estimated £22.4 billion annual compliance burden according to the government’s own findings – a significant saving for cash-strapped small to medium-sized businesses (SMEs). 

However, despite these promising claims, the government has yet to walk the talk. Just last month, the government declared that all companies, regardless of size, will be required to file profit and loss accounts with Companies House from April 2028 – just one example of an extra regulatory burden that will eat into the businesses’ time and resources. 

The Federation of Small Businesses (FBS) have welcomed the government’s admission, but its policy chair, Tina McKenzie, has also been quick to address the potential gap between rhetoric and delivery. 

“It can feel like box-ticking for box-ticking’s sake,” McKenzie said, “Past governments have made all the right noises about simplifying and easing regulation, but their efforts have fallen short of what’s needed.”

Ultimately, with billions of pounds and hundreds of millions of hours on the line, the government’s targets represent a step in the right direction. However, whether this becomes the reform businesses have been waiting for, or another false start, depends on what actions are taken next.

 Quick ways you can tackle red tape

If you feel like you’re drowning in bureaucracy, there are practical steps you can take to reduce the burden of compliance. 

To ease frustrations around duplication, centralising your compliance records by keeping a single, up-to-date file of licences, certifications, and data will help you avoid repeating yourself every time a different regulator asks for submissions. 

With 61% of businesses facing delays to approvals and authorisations, it’s also sensible to factor realistic waiting periods into your plans, instead of assuming a quick turnaround.

Seeing what free government resources are at your disposal is a sensible approach, too. The Get help and support for your business page on GOV.UK connects businesses to a free, multi-channel Business Support Helpline, designed to tailor guidance on schemes and publicly funded support to your business type and location.  

Business networking platforms like LinkedIn are useful – but they’re no substitute for real-world connections. A comment on a post or a cold DM will never carry the same weight as a genuine, in-person conversation.

August, in particular, is a great month to get out from behind the screen. The pace slows down, people are more relaxed, and a lot of organisers move their events outdoors to make the most of the (hopefully) good weather.

From walk-and-talks around city centres to cosy co-working mornings, networking events have come a long way from the rigid name-and-badge mixers of old. We’ve rounded up the best free networking events for August to help you grow your address book without emptying your wallet.

England are still riding high after a dramatic win against Mexico at the Azteca on Monday morning. A quarter-final clash with Norway is on the horizon, and all things considered, it couldn’t be going much better. 

If England do go deeper into this tournament – and reach the final, even – one thing that will continue to be praised is Thomas Tuchel’s team selection. The England manager was much derided in the British press prior to the tournament for his selections, with many fans left bemused as several major talents were left at home.

But so far, it seems that the pundits were wrong, and Tuchel was right. The squad has not only got through to the quarter-finals, but it’s done so in a manner that is distinctly and uncompromisingly his. So, with this in mind, what can the England manager’s selection teach us about hiring staff and building a winning culture? Well, it turns out, quite a lot.

Choose cultural fit and cohesion over raw talent

The biggest takeaway from England’s squad selection – and the purported vibes at the camp so far – is that Tuchel has prioritised culture and cohesion over raw talent. Those who remember the England teams of the mid-2000s – often called the “golden generation” – will know what happens when that camaraderie doesn’t arise.

It’s easy to hire a roster of stars and assume the results will just follow. But a collection of brilliant individuals who don’t trust one another and collaborate poorly isn’t the same thing as a team.

Talent doesn’t compound when your business is awash with rivalries, silos, and competing agendas. Just as Tuchel picked Jordan Henderson to knit his squad together rather than for what he’d add on the pitch, the strongest organisations treat culture and cohesion as capabilities in their own right, not soft extras that just arise out of thin air alongside the “real” work. Nowadays, most leaders recognise this; according to People Management, 96% of managers say hiring for culture fit is important. 

A glittering CV is less important than recent, relevant performance

England players of the past have often been selected on their past reputations. But this time, it has been recent high-level performances in key positions that have helped players find their way into the squad. Ollie Watkins and Kobbie Mainoo are good examples. 

The reputation trap catches organisations constantly. It’s tempting to hire and promote on the strength of a glittering CV full of big names and prestigious past roles. 

But a track record tells you what someone used to be capable of, and doesn’t necessarily give you an indicator of what they’re able to deliver now. Past glories do count for something, but it shouldn’t earn a starting place on its own. The question you should ask isn’t “how good were they?”, rather, it’s “how good are they right now, for what we need right now?”

Align your personnel to your system, not the other way around

Thomas Tuchel has a way he wants to play, and he refuses to compromise on this. His squad selection has, crucially, come downstream from this initial vision, rather than an attempt to shoehorn in players who may not be able to execute his game plan.

Even if someone is wonderfully talented, if they’re not going to be able to come into the office –  and that’s something you see as essential –  there’s no point in pushing forward with the hire. Principles must come first, and person-organisation fit has been associated in many studies with greater organisational commitment, employee retention, citizenship behaviours and task performance.

Outline expectations from the get-go

One of the most striking differences between Thomas Tuchel’s squad and those that have been taken to previous World Cups is that it includes more players than usual who are happy to not be starting, and never thought they would be.  

While other managers would want top players fighting for a place, it seems Tuchel has gone for balance, ensuring every player understands their role intimately.

At every stage of the hiring process, expectations must be managed. There’s no point in promising the world or exaggerating the scope of the role, only for your new employee to quickly realise this wasn’t what they signed up for. The fewer surprises, the easier it is to bed someone into an existing structure and ensure they stick around. In fact, been long established that honest, realistic job previews have the ability to significantly reduce employee turnover.

Understand why you need both generalists and specialists

It’s really clear since the tournament began that Tuchel has a deep understanding of specialists and generalists, and how they both play roles in this team. The BBC recently wrote an article about how England’s game against Mexico was, in fact, five “mini games”, during which Tuchel has deployed “specialists” who work well in specific game states. 

6’7 defender Dan Burn is one of the squad’s most obvious specialists. He has only been used once this tournament, against Mexico, to defend balls coming into the box. But multiple generalists bring this squad together. Jude Bellingham is the perfect example of this – he can do everything from score goals to make last-ditch tackles in defence. 

Just as Tuchel wins by knowing exactly when to send on a Dan Burn and when to lean on a Bellingham. Companies love to tout their specialists, but expertise sitting in silos rarely wins anything on its own. There’s no perfect ratio of one to the other. But teams that start to think about precisely what they need, using the generalist-specialist binary, tend to get where they’re going far faster.

Discover the ales and ails of hospitality

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

Read Whining and Dining

Business rates are still on track to rise by 52% over the next three years across England’s retail, hospitality and leisure sector. On 7 July, Parliament’s Business and Trade Committee pushed back on a government response that only fully accepted six of its 36 recommendations, urging ministers to think again on business rates and other cost pressures. 

While an Andy Burnham premiership could see rates for hospitality businesses and music venues drop by 20% and be scrapped altogether for a further 140,000 small businesses, doubt still remains whether this will be enough to turn the tide.

In the meantime, small businesses can’t afford to wait idly in the hope of change. Writing to your local MP costs nothing and takes minutes – and with Parliament already pressuring the government on this issue, MPs need evidence to back their case. Use our free template to get started.

As business rates continue to rise, small businesses are feeling the squeeze

As if business owners needed another headache, on top of other financial pressures like rising minimum wages, National Insurance contributions, and energy costs, the Federation of Small Businesses (FBS) calculated that business rates are on track to rise by an average of 52% before 2028.

This is due to a confluence of different factors, including the loss of the 40% Covid-era discount for RHL businesses, a revaluation of rateable values, and changes to the business rates formula. In practice, this could mean a bill rising from around £4,790 to over £7,000 by 2028/29 for a typical brick-and-mortar shop. 

This issue hasn’t gone unnoticed in Westminster. Parliament’s Business and Trade Committee has been applying pressure over this problem, and was unimpressed by the government’s response in April, where they accepted only six of the committee’s 36 recommendations in full. 

On the 7th of July, the committee escalated the case further, issuing a formal demand for a proper response within the next two months, aimed to coincide with the Business Secretary Peter Kyle appearing before them in person. 

Following Keir Starmer’s recent resignation, Prime Ministerial hopeful Andy Burnham has already previewed his own rates reform: a 20% cut for pubs, hospitality, and music venues, and raising the threshold for full business rates relief, allowing around 140,000 additional small businesses to be exempt from the fees. 

However, tax analysts have raised alarms over whether Burnham’s plan is properly funded. And with a change of government only weeks away and the numbers not adding up yet, there’s no guarantee that reform will arrive quickly.

Instead of waiting, sending a letter to your MP can help you make sure your case is heard today, whoever ends up leading government.

Use this free template to talk to your MP about business rates

Sending a letter to your MP is a straightforward task. Never done it before? Don’t worry, just follow the steps below.

1. Find your MP: Head to theyworkforyou.com or parliament.uk to find your local MP’s name and contact details. All you have to do is enter your postcode.
2. Use the free template below: Fill in the bracketed sections with your own details. The more specific you make it to your business, the better.
3. Send it by email: Most MP’s prefer being contacted by email. However, you can also post it if you prefer being old-school.
4. Follow up if you don’t hear back: If you haven’t received a response within a couple of weeks, we recommend sending a polite follow-up message. MPs’ offices deal with a lot of correspondence, and it’s easy for emails or letters to fall through the cracks.

Dear [insert your MP’s name],

My name is [insert your name], and I am a constituent in [insert your constituency].

I am writing as the owner of [insert your business name], a [insert type of business], to ask for your help with a change that threatens the survival of small businesses like mine: the sharp rise in business rates.

Following the 2026 revaluation and the end of the 40% retail, hospitality and leisure relief, the Federation of Small Businesses estimates that small firms in these sectors face an average business rates increase of 52%. For a business like mine, that is not a manageable adjustment. It’s the difference between staying open and closing. 

[Explain your specific situation here. That could include your current rates bill, what the increase means in pounds, jobs at risk, or how it compares to your margins. It doesn’t need to be overly detailed, and two to three sentences will suffice.]

Small and independent businesses are the backbone of our high streets and local economy, yet we are being asked to absorb a rise of this scale at a time when energy, wages and supplier costs are all climbing. Transitional relief softens the first year but does not remove the underlying burden, and many of us simply cannot pass these costs on to customers.

I would be grateful if you would raise this in Parliament and press the government to go further, whether by extending meaningful relief for small properties, reforming the multiplier, or accelerating the promised overhaul of the business rates system so that it no longer penalises smaller firms. 

This would make a real difference to your constituents and to the future of our high streets. Action has to be taken now and taken swiftly, or we risk losing what we have left. I would welcome your response and your support.

Yours sincerely,
[insert your name and address]

Major multinational brewers are misleading drinkers about their “craft beer” credentials, muscling out the 1,600 small independent breweries struggling to survive, argues consumer group the Campaign for Real Ale (CAMRA). 

This call comes at a time when the majority of the UK’s best-selling “craft” beers are actually sold by major global manufacturers like Heineken and Asahi – despite Britain’s heritage as one of the world’s best beer-producing nations.

With the term “craft beer” proving to be all froth, no substance, trade groups believe embracing the term “indie” beer could help set truly independent breweries apart from their foreign rivals, while also making it easier for everyday drinkers to know who’s behind their pint.

Big brewers are misleading beer drinkers, CAMRA claims

Craft beers remain a firm fixture on pub taps and supermarket aisles in the UK, with 65% of beer drinkers preferring their unique flavour profiles to mainstream options.

According to surveys from the Society of Independent Brewers (SIBA), customers define “genuine craft beer” as beer made by small, independent brewers, over large global manufacturers. But CAMRA argues that belief is increasingly out of step with what’s actually on shelves.

According to CAMRA’s latest beer report, seven of the UK’s top 10 selling craft beers are actually being produced by four multinational conglomerates: Heineken (owner of Meantime), ABInBev (owner of Camden Town & Goose Island), Asahi (owner of Meantime), and Molson Coors (owner of Blue Moon). 

In contrast, independent breweries hold just 7% of the market – a stark mismatch with what consumers actually believe the term craft beer should mean. 

For smaller brewers, this results in a competitive landscape that is nearly impossible to break through, while the knock-on effect reaches drinkers too, who end up with far less genuine choice than they may have thought they have.

“Ordinary drinkers are being short-changed when it comes to choice and quality at the bar,” claims CAMRA’s chair, Ash Corbett-Collins.

“Our report proves how the global players are exploiting the status quo to squeeze out independent brewers, to the detriment of ordinary publicans and beer drinkers.”

With British-owned breweries manufacturing half as much beer as they did in 1979, CAMRA also believes this foreign takeover is threatening our home-grown beer industry at-large, and is calling on Westminster to take action. 

“The government needs to step up, start taking the issue seriously, and take action that matches up to their statements about supporting pubs and the communities they serve.” Corbett-Collins continues. 

So what can actually be done to level the playing field?

 Is an “indie” rebrand enough to save independent brewers?

SIBA has previously argued that adopting the word “indie” could help small breweries cut through, as the term craft beer continues to lose meaning.

Speaking on the rebrand two years ago, Andy Slee, chief executive of SIBA, told the Guardian, “for lots of breweries across the UK, ‘independent’ has become a lot more valuable and relevant to what they do than ‘craft’ – the meaning of which has been blurred by macro-ownership of craft beer brands”.

To support this shift, the trade association launched the Indie beer campaign – an initiative which helps verify independent breweries by allowing them to display a distinct logo on beer cans and pub pump clips, in turn helping consumers make informed choices to support local businesses, not foreign conglomerates. 

Aside from ditching the term “craft”, independent brewers are also being encouraged to lean into what makes them unique. Local sourcing, closer ties to the communities they serve, and smaller batch sizes: these are all things that set genuine independents apart from mass-produced brewers.

Put simply, in a market where most “craft” beer is owned by multinational giants, ditching the term and flexing your independence could be the best tool at your disposal.

As temperatures climb across the UK this summer, so does consumer spending, but not in the way most businesses assume. 

Studies suggest that a sun-soaked “treat yourself” mentality can be just as powerful a driver of spending as high street footfall, especially for businesses that are smart enough to adjust their marketing strategy accordingly.

However, as unprecedented temperatures force many shoppers into survival mode, it appears that the opposite can also be true. So, with a third heatwave already hitting southern parts of the UK, we explore what impact surging temperatures have on spending, and how businesses can weather-proof their sales strategy this summer.

Heat hedonism: the psychological reason why sales spike in the summer

When the sun comes out, so do the crowds – flocking to parks, beer gardens and high streets. But a major reason shoppers spend more in the summer isn’t purely their closer proximity to shops and venues.

According to research published in the Journal of Retailing and Consumer Services, longer daylight hours and a boost in serotonin can result in a “treat-yourself” mentality, where impulsivity surges as people look for ways to reward themselves. Compare this with the cognitive control that melts away when temperatures rise above 26 degrees Celcius, and you’ve got a recipe for looser purse strings. 

Amelia Christie-Miller, founder of Bold Bean Co, describes this summer optimism in a recent LinkedIn post. When she found that supermarket footfall in the bean category was down 5% throughout the summer period, yet her foodservice sales to fancy delis like Farmer J, Atis, and The Salad Project were up 160% in the same week, she put it down to a shift in consumer mindset. 

“We stop thinking ‘I’ll cook something simple at home’ and start thinking ‘let’s eat out properly,'” Christie-Miller explained when talking about how Brits are trading grocery aisle traipsing for quicker eats.

What happens when we reach melting point? How the UK’s heatwaves impact spending

Summer spending doesn’t remain consistent as the mercury rises, however. 

With the UK already witnessing several periods of excessively hot weather this summer, and the government recently sounding the amber heat alert for what could be one of the longest heatwaves since 1976, experts have found that in certain markets, hikes in temperature can have an adverse effect on customer spend.

For example, researchers from the University of California found that while alcohol sales surge when temperatures reach up to 32 degrees Celsius, beyond which the positive effect was much smaller.

There’s a ceiling to how much heat actually works in a brand’s favour, as Marten Lodwijks, president of drinks market research firm IWSR, told Reuters: “Generally, warm weather is good for consumption. But there is also an upper limit … beyond which it’s just uncomfortably hot.”

But not every sector wilts during unprecedented heatwaves. Major retailers have seen the opposite effect, with electronics retailer Curry’s reporting, unsurprisingly, that fan sales spiked by nearly 3,000% during peak heatwave weekend.

Online retailers selling lightweight bedding and summer clothes have seen similar successes, with online non-food sales jumping by 10.6% during May’s heatwave alone as physical stores struggle to compete with the comfort of shopping from home. 

It’s proof that UK heatwaves don’t switch spending off; it just redirects it – opening up opportunities for brands to meet shoppers where their habits are.

What businesses can do to cash in on the summer sun

With the UK’s extreme climate changing like the, well, weather, building flexibility into your offering is the best way to keep pace with shifting demands. 

For drinks retailers, as extreme heat pushes drinkers away from full-strength alcohol, adapting quickly is vital. Carlsberg is one example, with the Danish brewer switching gears to focus on low-and-no-alcohol beers and soft drinks, Kristan Henningsen, the company’s Head of Public Affairs, told Reuters. 

This same tactic can be used by retailers and ecommerce stores. Using dynamic demand forecasting based on live weather data and short-term sales trends allows businesses to spot changes in customer behaviour early, before adjusting stock and pricing accordingly. This allows retailers to have the right products at the right price before a heatwave hits, rather than scrambling to restock once inventories are already empty. 

The customer experience is equally important. With temperatures expected to exceed 30°C  in certain areas of the UK during the next heatwave, retailers and hospitality venues alike should look to create ‘cool spaces’ for customers seeking refuge from extreme heat. This could involve positioning fans by the doors in a retail environment, or offering ample shade in outdoor venues. 

Finally, brands can harness this “treat-yourself” mindset with their marketing. This can be as simple as fashioning a pub chalkboard advertising a frozen cocktail, or advertising a discount on meals, or as sophisticated as launching a marketing campaign that taps into impulsive spending once the temperature reaches a certain threshold. 

Ultimately, higher temperatures won’t impact spending in a single, predictable way. But staying attuned to changes in the forecast and acting accordingly can help business owners keep a cool head this summer.