“RAMageddon” – a term used to describe the global shortage of Random Access Memory (RAM) spurred on by the demands of AI data centres – is causing tech companies of all shapes and sizes to sweat.

And, while the focus at present has been on the consumer impact, any small business providing laptops, phones and other expensive hardware to their staff may see sharp price increases in the coming months if they need to replenish their stock.

Some sectors, like hospitality, may also find that POS systems and card machine prices tick up sharply, as these machines also rely heavily on RAM to stay operating.

What is RAMageddon, and why is it happening?

RAMageddon is a term that has been floating around tech circles since the beginning of 2026, coined in response to the global shortage of RAM chips caused by the dominance of AI data centres and the subsequent rise in hardware costs for consumers.

In short, AI infrastructure, such as data centres, needs memory chips to operate. And they don’t just need a few – running a platform like ChatGPT uses huge amounts of memory. In December, for instance, OpenAI’s Stargate project was slated to consume 40% of the world’s entire Dynamic Random Access Memory (DRAM) supply.

Essentially, this means that memory is incredibly scarce at the moment, and the way things are going, it looks like it’s only going to get scarcer.

What industries are going to be impacted?

Any company that provides laptops and smartphones for its staff are going to start to feel the pinch when it comes to the price of this technology. If you’re a business that has had to buy already this year, you may have already noticed higher prices. Some estimates suggest laptop costs could get 15-30% more expensive in the coming months.

Small businesses on a tight tech budget, buying the cheapest hardware out there, are likely to be disproportionately impacted. One of the knock-on impacts of the memory shortage and subsequent higher costs is the potential disappearance of the “entry-level” laptop market, as vendors and manufacturers simply can’t absorb the additional costs.

Businesses using backup drives and external storage – also used by a lot of small businesses – will also be affected by surging prices.

POS system hardware has already got more expensive over the past few years, and as the supply of memory gets even smaller, further rises could be right around the corner.

What can small businesses do to combat price hikes?

There are a few things businesses can do to ensure they’re prepared for these rising tech costs. An obvious first step is to extend the life of the computers, phones and servers where possible. If you can push your depreciation cycle a little further, now may be the time to do it. Replacing certain components, like batteries, rather than binning whole machines, may also be worthwhile as costs tick up.

The same goes for restaurants and other hospitality businesses using tablets and card machines for ordering; it might be smart to audit your stock and see where you can make some headway, if at all.

It may also be a smart move to buy what you had planned to buy in the next year as soon as possible. If you really do have devices that are on the way out, replacing them now is likely better than replacing them later. Another option, of course, is sourcing second-hand off-lease laptops, which typically cost significantly less but are perfectly serviceable for most use cases.

A final thing you can do is review what your teams are actually using their devices for. Sure, there will be people in your business that likely need high spec laptops – especially if they’re doing something like graphic design or animation – but a lot of small businesses are notoriously over spec’d, so you may be able to get away with using cheaper models.

The Fair Work Agency (FWA) was launched last month to uphold new employment law reforms under the Employment Rights Act 2025, including investigating breaches regarding the National Minimum Wage (NMW), holiday pay, and statutory sick pay (SSP).

Its enforcement comes at a time of heightened scrutiny over workplace compliance, with a recent University College London (UCL) study revealing that at least one in seven UK workers has experienced a violation of their employment rights in the last two years.

But while some violations aren’t deliberate and can be easily overlooked, it serves as a clear reminder to smaller businesses that employment law compliance can no longer be treated as an informal process – and that even small violations can lead to big consequences.

Millions of UK workers report employment rights breaches

A new study suggests that breaches of employment law aren’t isolated incidents, but part of a broader pattern impacting millions of workers across different sectors and job types.

The study, conducted by researchers at University College London (UCL), found that at least 14% of UK employees have experienced a clear breach of basic employment rights in the past two years.

Specifically, it found that around 5.4 million workers were paid less than the National Minimum Wage, charged illicit work-finding fees by recruitment agencies, and not provided with payslips, employment contracts, or key information documents – all of which are legally required.

Moreover, it found that 70% of employees have experienced other bad practices at work, including working extra hours unpaid, physical workplace injuries, paying unfair deductions, facing leave-related difficulties, and experiencing workplace bullying and harassment.

Interviews with employees during the study indicated that a variety of underlying issues had contributed to these problems – most notably understaffing, business pressures, and employees either not knowing their rights or not feeling confident enough to exercise them.

How compliance gaps can catch SMEs out

For smaller businesses, these findings show how easy it is for employment law risks to happen, even in well-intentioned organisations.

Of course, most small businesses don’t deliberately break the law, but these kinds of compliance gaps can often happen through informality or lack of human resources (HR) systems.

For example, the biggest risk areas for SMEs would be informal agreements instead of written contracts, misunderstanding holiday pay rules, incorrect payroll setup (especially for part-time staff), and a lack of documentation. 

The lack of awareness around the FWA – with 36% of SMEs saying they’ve never heard of it before – also means that small businesses are at risk of steep penalties or committing a criminal offence, even if they didn’t intend to violate employment rights.

What’s more, with hundreds of employers named and shamed by the Government for underpaying staff, even SMEs that unintentionally underpay staff could find themselves facing the same level of enforcement action, financial penalties, and reputational damage. Plus, with single claims in employment tribunals increasing by 33% year-on-year, there’s a clear risk of hefty legal penalties as well.

How businesses should prepare for increased enforcement

To avoid potentially breaching new employment laws, businesses should first familiarise themselves with the FWA so that they have a clear understanding of what it is, the powers it has, and what the penalties are.

Next, businesses should review their current HR and payroll processes to ensure they are fully compliant with employment law, particularly around pay accuracy, holiday entitlement, and statutory obligations (such as the sick pay and minimum wage requirements).

Additionally, contracts and onboarding documents should be audited so that they are up to date, and clearly reflect the current work arrangements – including pay terms, working hours, and statutory employee rights.

For those that don’t have an in-house HR team, speaking with an HR advisor or accountant can help ensure compliance, find any potential risks, and put the right systems and documentation in place to prevent costly mistakes.

In terms of employee protection, businesses should look into improving communications around workers’ rights (such as through workshops, employee handbooks or written statements), and providing easy and safe ways for employees to report concerns or potential breaches without fear of reprisal. Prevention is much cheaper than dealing with disputes or tribunals later, so businesses should act now to avoid potential issues later down the line.

Financial difficulties are all too common in today’s business world, with many SMEs reporting concerns over tight profit margins, rising costs, and delayed payments. 

However, a new study reveals that the problem has gotten so bad that three-quarters of small and medium-sized businesses aren’t sure whether they can pay their bills next month.

For a large number of smaller firms, this combination has created an environment where cash flow has become increasingly unpredictable, making it harder to invest, plan ahead, or even cover basic operating expenses.

Three-quarters of SMEs aren’t sure they can meet next month’s bills

While most businesses remain trading, a growing number are finding it difficult to maintain stable cash flow or plan beyond the short term. 

According to data compiled by The Director’s Helpline, 76% of UK SMEs reported that they’re unsure whether they can meet their financial obligations over the next month, particularly those within the hospitality industry.

35% of respondents also said they are likely to miss payments in the coming weeks, while 32% said meeting costs would be “tight”. Moreover, just 33% say they are fully up-to-date with their payments.

Jonathan Cooper, Founder and Director of The Director’s Helpline, says that these findings “reflect a long-standing issue around access to timely, impartial advice when financial pressure begins to build”.

“What this data shows is that many directors are operating month to month under intense pressure,” he continued. “Most of these businesses are still trading, but without stability, clarity or confidence about what comes next.”

What’s driving the cash flow crisis?

While economic conditions and inflation may be the obvious factors behind SMEs struggling to catch up with payments, the problem also stems heavily from late payments from larger companies and customers.

Specifically, small businesses and sole traders are owed an average of £12,357 in late payments every year, while 70% of commercial disputes relate to late or non-payment of invoices.

Moreover, a survey by Hiscox found that late payments were cited as the biggest problem in cash flow, accounting for 58% of businesses. 37% of respondents also said they’re chasing between 10-20 late payments, and that as many as one in five invoices aren’t paid on time.

However, the survey from the Director’s Helpline also suggests that debt from borrowing is also a key contributor, as 78% of businesses reported outstanding debt – 57% owing over £25,000 and 39% reporting debts more than £50,000.

With small business borrowing up by more than 25% last year, it’s clear that many firms are increasingly relying on credit to bridge cash flow gaps, but in doing so are also becoming more exposed to repayment pressure and financial instability when income is delayed.

How SMEs can tackle late payments and improve cash flow

Businesses facing cash flow problems should contact the Office of the Small Business Commissioner, as it can help firms resolve disputes with larger companies, especially where invoices are being ignored or repeatedly delayed.

The OSBC also offers complaint service and can intervene informally to push for faster resolution without going straight into legal action. What’s more, with the Government promising a tougher crackdown on late payments – including fines and investigations – the OSBC has more power to ensure SMEs are paid fairly and on time.

Another useful framework is the Fair Payment Code – a scheme that recognises businesses that commit to paying suppliers on time, with bronze, silver, and gold levels depending on performance. For SMEs and sole traders, this can be useful to find reliable clients who are committed to good payment practices. 

Beyond legal entities, businesses should also set clear payment terms upfront and reinforce them in contracts, send structured reminders before invoices become overdue and charge statutory interest or late payment fees where appropriate. Together, these measures can help reduce reliance on unpredictable payment cycles and help ease struggling cash flows.

Get paid with Emma

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

Get paid with Emma

Starting a business has never been easy, but for many founders today, it can feel like the pressure is coming from all sides at once. And with this week marking Mental Health Awareness Week, it’s a timely reminder of just how closely business pressures and personal well-being are linked.

From cyber attacks and data breaches to inflation, supply chain disruption, and the risk of legal claims, SME owners are having to think much more broadly about what could go wrong. And with margins often tight, even one unexpected issue can have a serious knock-on effect on cash flow, confidence, and long-term plans.

A survey by Hiscox reveals just how widespread these concerns have become, revealing that over nine in ten business owners are losing sleep over these kinds of risks – showing a grim reality of founders having to constantly juggle everyday demands with larger and harder-to-control external risks.

SMEs fear cyber threats the most, but lack understanding of insurance

With cyber attacks growing increasingly sophisticated – and even major brands like Marks & Spencer and The Co-op falling victim – it’s no surprise that the threat is keeping many founders tossing and turning.

Surveying over 1,000 SMEs in the UK, the Global Protection Gap Report by business insurance firm Hiscox reveals that cyber attacks or data breaches were cited as the most common fear among 38% of businesses.

In just the last 12 months alone, around 612,000 businesses in the UK reported experiencing a cyber breach – including 42% of micro businesses and 46% of small businesses.

Concerningly, though, Hiscox’s report also found that 77% of SMEs say they don’t understand cyber insurance. As a result, over 60% of UK businesses still don’t have any kind of cyber insurance or security measures in place.

What else is keeping businesses up at night?

Cybersecurity is far from the only worry that SME owners are facing, as many also cite inflation and rising costs (37%), economic downturn (33%) and lawsuits or legal claims (28%) among their biggest fears.

Unsurprisingly, the conflict in the Middle East is painting a grim outlook for businesses across the country, particularly with the number of those in “critical financial distress” increasing by a third since the war started.

As a result, fear or recession among UK SMEs has hit a two-year high, particularly over energy costs and supply chain disruptions following the conflict in the Middle East.

According to a survey published by Credit Connect, 70% of SMEs are worried about the prospect of recession – the highest level since Q3 2023. The same percentage is also concerned about energy prices, while 78% expect supply chain disruption to have a negative impact on their business’s performance.

In terms of legal worries, Hiscox’s report found that 80% of businesses don’t understand professional indemnity insurance, and so risk being left exposed to costly claims, legal fees, and reputational damage if something goes wrong. After all, research published by The Legal Director reveals that SMEs are losing over £13.6bn a year by failing to address legal issues early, with firms facing eight legal challenges per year.

How businesses should manage these risks and get their sleep back

To help offset these anxieties, businesses should act now to strengthen their resilience across financial, operational, and risk management areas.

For example, those in need of cyber insurance or professional indemnity insurance should speak to either a specialist broker or take time to compare policies online. Providers such as Hiscox, AXA UK and Simply Business offer tailored cover for SMEs, with policies designed to protect against everything from cyber attacks and data breaches to costly legal claims and client disputes.

For those worried about inflation, it’s important to stay proactive rather than simply taking on higher costs, such as reviewing supplier contracts or improving cash flow forecasts. Diversifying suppliers can also help reduce exposure to geopolitical disruption and sudden price increases, and regularly reviewing pricing strategies – including communicating any changes clearly to customers – can help businesses protect profit margins without damaging trust. 

Lynsey Kitching, co-founder and director of CAPE People Development, also shares her advice on how business owners can handle everyday tasks with other important demands.

“Build a regular rhythm into the calendar and treat it as a non-negotiable. We often use the ‘glass jar’ model to illustrate this,” she advises.

“If you fill your time with ‘sand’ (the reactive, day-to-day demands), there isn’t enough room to fit in the ‘rocks’ (the strategic priorities, risk reviews and governance tasks). They need allocated space before reactive tasks fill the space. Protecting your energy is part of protecting your business.”

A new report from the Federation of Small Businesses (FSB) has found that more than one-third of SMEs are prepared to reduce or stop trading within the EU altogether, due to the differing regulatory environments, mounting red tape and compliance costs. 

This finding lays bare the cumulative toll that post-Brexit trading conditions have taken on Britain’s smallest firms. Unlike larger corporations, they can’t absorb compliance costs by spreading them across high trade volumes or by employing dedicated in-house specialists, and often lack the margins and the administrative capacity to navigate this regulatory maze. 

This unfortunate state of play is leading many small firms to conclude that the European market is simply no longer viable for them.

UK-EU trading: a bleak picture for small businesses

The FSB’s new report, Ticket to Trade: Making EU trade easier for SMEs, found that just one in ten UK small businesses sees an opportunity to grow in the EU, as opposed to more than one-third who are going to reduce or stop trading within the bloc. 

Just under half (45%) of the firms the FSB surveyed said that they were going to maintain their current trading levels in the EU. 

Overall, more 63% of businesses said they face “significant barriers” to trading in the EU.

Costs continue to pile up

Among the barriers making trading in the EU harder are “taking equipment overseas when travelling for work” (19%) and the differing regulatory environments enforced in British and European markets (34%).

85% of businesses importing and exporting goods say they’re facing issues, with problem areas including customs documentation (64%), physical inspections of goods (21%) and product marking and labelling rules (17%). 

More than a third of businesses say their compliance costs stack up to more than £5,000 per year.

“Small firms are not short of ambition, but they’re being worn down by a system that feels stacked against them”, explains FSB Policy Chair Tina McKenzie. “Many want to grow into EU markets, but don’t have time to be swallowed by paperwork, creeping costs and delays that put hard-won customer relationships at risk.

“The EU should be a natural market for our small firms as it’s so close and accessible. When it works, it opens doors, drives growth and helps businesses thrive. For some firms, those EU orders are what keep things going when it’s slow at home.”

Solutions on the table

The FSB has called for several urgent measures to ease the burden on UK businesses exporting to the EU. 

They include standardising regulatory requirements for products between the UK and the EU, which almost a third of businesses said would be beneficial, as well as a new UK-EU de minimis rule that would allow small packages to be imported into the EU without UK firms being hit with duties and fees. 

Other changes touted include export grants for small businesses looking to launch in new European markets, which would take care of at least some upfront costs, and creating a single digital customs system to cut down on the mountains of often repetitive paperwork small businesses are forced to fill in at present. 

The necessity of VAT middlemen –  locally established persons appointed by non-resident businesses to handle VAT obligations in the EU by acting as the official link with tax authorities – is also being called into question. 

Italian food chain Pizza Express has recently announced the opening of its new “Quick Service Restaurant” (QSR) in Brixton.

The new site opened on Saturday, offering customers a self-ordering system for eating in, takeaway, and delivery.

The opening marks a noticeable change for the brand, moving away from the traditional sit-down restaurant experience and towards a faster and more convenience-focused model. 

It also reflects a wider shift happening across the hospitality industry, as more restaurant businesses look at QSRs to cut costs, speed up service, and keep up with changing customer demands.

Pizza Express launches its first QSR in Brixton

On Saturday, Pizza Express launched its first QSR in Brixton, London – marking a shift for the casual dining brand as it experiments with faster and more efficient operations.

The new restaurant, which opened on a former LEON site, swaps full table service for self-order kiosks, a simplified menu (containing fan favourites like dough balls and the Sloppy Giuseppe pizza), and a setup that offers dine-in, takeaway, and delivery options. 

The interior design features Pizza Express’s signature black-and-white stripes, as well as a dynamic lighting system that will also change throughout the day – moving from warm lighting during daytime trading to cooler tones as the evening sets in.

The move follows the success of the brand’s smaller-format restaurants in Hong Kong, which inspired the launch of its UK “Pod” concept in 2024, which now operates across three sites nationwide. 

Further Pizza Express QSRs in Finsbury Park and Earl’s Court are expected to open in the following months.

What is a QSR?

QSR stands for “Quick Service Restaurant”, which refers to a fast food establishment that focuses on speed, convenience, and affordability. Some popular examples of a QSR are big names like McDonald’s, KFC, and Burger King.

Pizza Express aren’t the first casual dining restaurant to go down this route, as QSRs have seen immense popularity in the UK in the last few years. 

According to statistics by Resos, 61% of all UK restaurants are limited service, and 94% of them are QSRs. However, just 28% of these are chains, meaning that independent operators still make up the majority of the UK’s quick-service market despite the dominance of major brands.

Moreover, branded QSRs represent over a third of turnover for food services, and market projection is expected to hit $48.56bn by 2031, making it the strongest performing segment in British hospitality.

What does this mean for small hospitality businesses?

Brands like Pizza Express dipping their toes into the QSR format may get the cogs whirring for smaller, independent hospitality ventures, especially for those jostling for position in an increasingly convenience-led market. 

It may also prove to be an increasingly utilised way forward for restaurant businesses looking to expand to new sites without shouldering all of the costs needed to truly replicate their existing casual or fine dining experience. 

Compared to traditional restaurants, QSRs typically require smaller sites, fewer front-of-house staff, faster table turnover, and simpler menus and kitchen operations. Much like food halls, which are bucking broader hospitality trends and actually growing in the UK, this kind of set-up can help reduce labour costs, improve service speed, and operate in high-footfall locations where larger restaurants may no longer be financially viable.

What’s more, the growing consumer demand for convenience and speed – particularly in city centres where takeaway and delivery services are more popular – could mean that serving your product in a “different way” may not have the same dilutative effects in terms of your core brand image that it would have five or ten years ago. 

But with any move like this, there’s still some risk of losing what makes independent hospitality businesses stand out in the first place. There’s always the chance that some may struggle to maintain their brand’s personality and the customer experience that originally built up loyalty and connection in the first place.

The biggest challenges, however, will be competing with established chains that already dominate the market, particularly giants like McDonald’s and KFC that already have nationwide recognition and large marketing budgets.

All in all, it boils down to adapting to changing customer habits without being indistinguishable from the chains they’re competing against.

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

The rapid advancement of artificial intelligence (AI) in the last few years has helped small businesses in many ways – from marketing and customer service to automating routine tasks and analysing data more efficiently.

However, the rise in AI technology also means that there’s been a greater number of cyber attacks on businesses across the UK, with even long-standing giants like Marks & Spencer, The Co-op and Pandora being hit by increasingly sophisticated threats last year that both disrupted operations and led to significant financial losses.

Naturally, this has caused significant anxiety among founders and small business owners, yet a new survey by Moneysupermarket reveals that just 10% of SMEs offer AI security training to employees – highlighting a widening gap between AI adoption and what’s needed to use it safely.

The ongoing risk of cyber attacks for SMEs

Big names being targeted by cyber attacks means that smaller businesses with fewer resources are especially vulnerable to increasingly sophisticated cyber threats.

According to the latest government figures, 43% of businesses reported cyber breaches or attacks in the last 12 months – equating to around 612,000 firms. It also reported that while medium and large businesses were more likely to have experienced this, 42% of micro businesses and 46% of small businesses also reported a breach or attack during the same period.

In terms of the most common types of cyber attacks, Bridewell’s Cyber Security in CNI Report 2026 reveals that phishing and business email compromise (BEC) are used the most to target businesses, with organisations experiencing an average of 11 phishing or BEC attacks per year.

Meanwhile, research by Samsung found that one in five SMEs would have to close down within three months if they experienced a cyber breach, while a cyber security attack would cost them a combined £100k annually in lost revenue and fines.

Stephen Libby, former cybersecurity expert and recent winner of the BBC show The Traitors, told the phone manufacturer that “a single incident can disrupt operations or even force businesses to close”, and that it’s “crucial that businesses make sure they’re using devices with strong built-in security and privacy protections to keep sensitive information safe.”

Small businesses are falling behind in AI security training

Unsurprisingly, the high number of cybersecurity-related incidents has left many small businesses worried about their ability to protect sensitive data, maintain business continuity, and respond effectively if they become the next target of an attack.

In a survey of 250 sole traders and business owners with 1-49 employees, Moneysupermarket found that 44% of respondents are concerned that adopting AI without adequate safeguards may leave their businesses more exposed to cybersecurity risks.

However, it also found that just 10% of SMEs are providing staff with AI security training. Concerningly, one in five respondents also reported that they’d feel underprepared if their business were targeted by a cyber attack.

This gap boils down to a few things. Many small businesses simply don’t have the time, budget, or specialist staff to prioritise cyber security training, especially when day-to-day operations already stretch their resources.

Additionally, the skills gap in cybersecurity – reported to be up 8% year-on-year in late 2025 – means many business owners are lacking clear guidance on how to safely integrate AI tools into their workflows, which can lead to inconsistent security practices rather than structured measures.

How can businesses strengthen their cybersecurity?

Businesses should focus on building stronger cyber resilience in manageable steps, rather than trying to overhaul everything at once.

For example, using basic cybersecurity practices, such as using strong and unique passwords, enabling multi-factor authentication (MFA), and regularly updating software to close any security vulnerabilities.

Training is also essential. Even short and regular awareness sessions can help employees recognise any suspicious emails, unsafe links, and social engineering tactics. Human error is often the weakest link, so improving day-to-day awareness can have a significant impact.

As for AI technology specifically, businesses should introduce clear policies on how tools should be used, what data can be shared, and which platforms are approved (such as ChatGPT, Claude, and Gemini).

Finally, small businesses don’t have to spend a fortune on security, as affordable tools like endpoint protection, secure cloud services, and automated backups can help protect information efficiently without a hefty cost. Having a recovery plan is just as important as prevention, as it ensures the business can quickly recover if an attack does happen.

Women are still a long way from equal representation at the very highest levels, even as more make it into the workforce and early management roles.

Progress has been steady in some areas, but when it comes to CEO positions, the numbers still show a clear imbalance – and in many cases, not much has changed in years.

A new study by Cognism reveals that CEOs named “David” exceed one-tenth of all female CEOs. And while the UK outperforms the rest of Europe for female representation in leadership roles, women still account for less than a quarter of CEOs across UK businesses – underlying how far there is still to go before female leadership reflects the wider workforce.

The scale of the gender gap in leadership roles

Women remain significantly underrepresented in Europe’s top business roles, with progress towards gender balance in leadership slow and uneven across industries and countries.

B2B data specialist Cognism, which analysed 1.3 million C-suite roles, including 418,000 chief executive officers, found that there are enough CEOs named David across Europe to account for more than one in 10 of all female CEOs. 

The data also found that women occupy just 18% of CEO positions, and the executive roles most commonly seen as “stepping stones” to the top job remain heavily male-dominated, with women making up just 26% of Chief Financial Officers (CFOs) and 25% of Chief Operating Officers (COO).

And while the UK leads Europe on female CEO representation at 22% – ahead of France (16%) and Germany (13%) – women remain heavily underrepresented at the very top of British business. According to Russell Reynolds Associates, the FTSE 100 ended 2025 with just eight female CEOs – the same number reported in 2021.

Why hiring more women isn’t solving the problem

In the UK, there’s only a relatively small gap in employment rates between men and women, with male employment at 77.6% and female employment at 72.4%.

This might suggest the problem is simply about hiring more women, but Cognnism’s data suggests that the real drop-off happens later, with fewer women progressing into senior roles and executive positions once they’re already in the workforce.

While women accounted for 47% of entry-level jobs, this figure declined to 41% for team leads, 38% for middle management, 37% for senior leadership, and then 29% for executive-level positions.

Viktoria Ruubel, Chief Product, Data & Technology Officer at Cognism, explains: “The fix isn’t about hiring more women at the bottom and hoping it works out. 

“It’s about looking hard at how you promote, who gets visibility on high-stakes projects, and whether your leadership criteria are actually measuring what matters or just pattern-matching to what’s worked before.”

What needs to change in leadership pipelines?

Improving gender balance in leadership will need more than increasing the number of women entering the workforce. Instead, businesses will need to address the structural barriers that limit progression into senior roles.

This includes reviewing how promotions are divided, who is given visibility on high-profile projects, and who is given visibility on high-profile projects, and whether leadership criteria unintentionally favour traditional (meaning often male) career paths.

After all, female-led businesses were found to have smaller gender pay gaps in late 2025, while companies run by women also saw lower insolvency rates than male-led firms, which was 0.41% compared to 0.7%, meaning male-led businesses were 71% more likely to become insolvent.

“Nobody sets out to narrow diversity – but the urgency of growth does it quietly if you’re not paying attention,” Ruubel adds. “The companies that maintain diversity through scaling are the ones that treat it as an operating discipline, not an afterthought.”

For a long time now, mental health and wellbeing in the workplace have been a fundamental part of fostering a positive organisational culture.

However, even with initiatives in place, stress and burnout persist in the UK’s workforce – and part of it is coming from employees struggling to switch off after work.

And while organisations may encourage switching off after contracted hours, the issue isn’t just about workload or individual habits. Instead, it’s about how work is designed, communicated, and reinforced day-to-day – and the subtle cues that shape when people feel they’re “allowed” to log off.

Why are employees struggling to switch off?

In many workplaces today, being “off” doesn’t really mean being unavailable. Even with wellbeing initiatives in place, the reality of how people work day to day often tells a different story about when you’re actually expected to be reachable.

According to data published by Blackhawk Network, 48% of UK employees respond to emails or messages whilst being on annual leave, while 39% say they’ve had to respond to work messages while off sick.

Meanwhile, a study published by People Management found that just one in five employees work their core hours. With the Government’s “right to switch off” initiative scrapped last year, this paints a worrying picture that the boundaries between work and personal time are rapidly blurring.

Fineas Tartar, leadership expert and co-founder at Viva Talent, says the issue lies less in individual willpower and more in the signals organisations send.

“[Employees] read who gets promoted, who gets praised, and who’s online at nine in the evening,” he explains. “When availability is quietly treated as commitment, switching off starts to feel like you’re missing out.”

Tartar also points out that even a manager sending a “no pressure to respond” message at 10:00 pm is still signalling that this is a working hour, and so high performers will calibrate to what their leaders consistently do. Additionally, most wellbeing programmes put the responsibility of switching off on employees, meaning the people most at risk of burnout are left to fix the problem on their own.

The real cost of burnout and not switching off

The inability to switch off after work can have significant consequences for both workers and employers.

Research by Mental Health UK’s Burnout Report 2026 reveals that 91% of employees reported “high” or “extreme” pressure or stress in the last year. While high workloads were cited as the top driver for stress for 42% of respondents, regularly working unpaid overtime and beyond contracted hours followed closely behind at 33%.

As a result, the UK hit five million mental health sick days in the first four months of 2026, with 4% due to stress and burnout. The UK workforce was also listed as the second saddest workforce in Europe last year, with 41% of employees reporting that they experienced stress daily. 

Mental Health UK’s report also found that employees say there’s a gap between good intentions and actual effort. Specifically, 29% of workers say that while their employers raise awareness around mental health, managers don’t have the time, training, or resources to provide adequate support.

Fixing the system that keeps people “always on”

Ensuring employees switch off properly goes beyond simple wellbeing initiatives. Instead, businesses should treat it as a leadership and systems issue – not an individual responsibility bestowed upon employees. 

First, they should look at the last 30 days of messages sent after a certain time by managers (such as 6:00 pm or 7:00 pm). If there’s a consistent pattern of messages being sent during late hours, it’s a clear sign that after-hours communication is being normalised rather than actively managed.

Moreover, businesses should also set clear “quiet hours” where non-urgent communication is discouraged or even technically restricted. Another good approach would be to ensure that managers schedule messages written after hours, so that they’re sent the next working day.

Workload design also matters just as much as policy. If people have to work late to keep up, no policy will fix that. That means setting realistic deadlines, treating after-hours activity as a sign of poor planning rather than dedication, and evaluating performance based on outcome, not on responsiveness.

“Most cultures don’t need another wellbeing initiative. They need fewer decisions landing on the same handful of people after 6pm.” Tartar adds. 

“Fix the workflow and the behaviour follows. Leave the workflow broken and no amount of messaging about balance will change what people actually do.”

A concerningly high number of UK businesses now consider themselves to be in “critical financial distress”, according to a new report. 

Rising operating costs within the UK – including wages, energy bills, and business rates – are adding even more strain, and while some government assistance is on hand, you’d be hard-pressed to find people who believe it’s sufficient. 

Middle East conflict deepens financial strain on UK businesses

Recent economic data and commentary from analysts suggest that the UK business environment is becoming increasingly fragile, with a growing number of firms experiencing unsustainable financial strain.

According to corporate restructuring firm Begbies Traynor Group’s Red Flag Alert research, businesses considered to be in “critical financial distress” increased by 36.9% in the first quarter of 2026. Businesses facing “significant financial distress” also surged by 9.6% year-on-year, equating to a total of 634,867.

Among the most heavily hit sectors is Hotels and Accommodation, which saw a 69.3% rise in businesses reporting they’re in dire financial straits. In total, all 22 industries monitored by the firm saw a double-digit increase in “critical” financial stress compared to the same period the year prior. 

Julie Palmer, managing partner at financial and real estate advisory firm BTG, says that the “threat of rising energy bills, inflation, interest rates, and unemployment will see people tightening their belts” and warned that we’re likely to see an uptick in “zombie” businesses “tipped over the edge this year”. 

Skyrocketing prices for heating oil have led trade bodies and business federations to predict that SME bills could more than double over the next few months. Meanwhile, inflation has jumped to a three-year high, further squeezing household budgets and increasing costs across supply chains.

The impact of the Middle East conflict has inevitably affected consumer confidence as well, dropping to its lowest level since October 2023. 

What else is pushing businesses to breaking point?

Along with external pressures spurred on by the conflict in the Middle East, businesses have found themselves under strain as a result of domestic policy changes, particularly around rising taxes and operating costs.

Celebrity chef Jamie Oliver recently criticised ministers, warning that ongoing tax pressures “batter” entrepreneurs, and that there’s a lack of understanding about what supports economic growth. He also added that the current tax system has no distinct difference between multinational chains and small, local businesses.

Speaking to Times Radio, Oliver commented: “What’s interesting is the tax system and the government see no difference between, say, Domino’s or Starbucks and Linda and Paul down the road that run a small independent sandwich shop.”

Meanwhile, changes to how coworking spaces are taxed under business rates reforms could leave some businesses facing cost increases of more than £5,000 a year.

Labour has also become one of the most significant pressures for UK firms, particularly with the rise in the National Minimum Wage and higher employer National Insurance Contributions (NICs) – the latter of which pushed 20% of companies to cut their staff last year.

How the Government is supporting struggling businesses

The Government is attempting to support businesses through a mix of tax reliefs, subsidies, grants and sector-specific schemes. Many argue these schemes do not go far enough, however, and in some cases, have made things worse. 

For example, the Government has replaced its business rates relief scheme with a permanent system of lower business rates multipliers for properties with rateable values below £500,000. But as businesses have seen their properties reevaluated as part of this change, for many, rates have actually gone up rather than down. 

Unlike others, pubs and live music venues are still eligible for a 15% cut to their new business rates bill, followed by a two-year real-terms freeze. But you’ll be hard pressed to find anyone in the industry that views this as anything other than papering over the cracks, ones which exist due to deeper, long-term problems that demand more than just temporary, relief-based fixes. 

For SMEs, government-backed finance is available through the Growth Guarantee Scheme, which allows businesses to access loans and other forms of funding where commercial borrowing may otherwise be more difficult. 

Schemes such as R&D tax relief and enhanced capital allowances, on the other hand, continue to reduce the cost of investment in innovation and equipment. But unless more drastic measures are taken, the downward spiral will unfortunately continue. 

If you want to check what support your business may be eligible for, you can find the full range of government-backed support packages on the government website.

Ongoing conflict in the Middle East continues to have a knock-on effect in the UK – especially for pub businesses, where rising fuel and supply costs are starting to hit hard.

New data reveals that businesses are being hit by a “tidal wave” of cost increases in the supply chain, with the war in Iran pushing fuel prices higher in recent months and driving up transport and delivery costs across the board.

This comes as the number of licensed pub premises falls drastically, with over 300 pubs, bars, and restaurants closing their doors since the start of the year.

The average pub delivers £1.3m of economic and social value in the country, but these worrying figures risk speeding up closures, hitting local communities, and putting even more pressure on pubs that are already struggling to stay afloat.

Pubs hit by supplier surcharges and fuel costs

Since February, Brits have been feeling the pinch of fuel prices, and now these high costs are feeding through the supply chain and hitting pubs with hefty surcharges.

According to RAC data published this week by The Morning Advertiser, petrol prices were around 135p per litre in January, and jumped to 158p by mid-April. Similarly, prices for diesel climbed to 191p within the same period.

There have been warning signs for some time. In March, businesses were warned to expect price increases for products including beer, food and furniture due to the conflict in the Middle East.

SALT Brewery managing director Edd Simpson told The Morning Advertiser that he’s “already seeing surcharges being introduced by wholesalers” and that financial woes will only become “more pronounced”.

This couldn’t really come at a worse time for pubs, as they continue to battle against rising business rates and an increase in alcohol duty. Meanwhile, value-added tax (VAT) continues to hurt businesses, with establishments reportedly keeping just 28p out of every £6.80 pint.

Hospitality closures rise as cost pressures take their toll

Unsurprisingly, the bleak economic picture has led to a rise in hospitality businesses closing their doors for good in the past few months. 

Market research group CGA by NIQ reveals that the number of venues across the UK declined by 0.3% in the first three months of 2026. 

In March, the total number of venues stood at 98,609 – down 305 since December 2025, which equates to a net loss of around 3.4 closures a day. Casual dining was reported to be hit the hardest, with outlet numbers dropping by 0.9%.

“Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned.” Karl Chassel, director of hospitality operators and food for EMEA at NIQ, told Restaurant Online.

“Many pubs, bars, restaurants and other outlets have shown remarkable resilience in the face of unprecedented challenges, but thousands are now nearing breaking point. Without targeted support, more closures can be expected over the rest of 2026.”

How pubs can adapt to survive rising costs

Surviving these new cost challenges won’t be solved in one fix. Instead, it will need a mix of smarter pricing, tighter operations, and better supplier management.

While businesses may be reluctant to raise prices for fear of losing customer loyalty, being selective can help soften the impact. For example, raising prices on higher-margin or less price-sensitive items (such as premium spirits, cocktails, and speciality drinks) and using peak-time or event-based pricing can help offset rising costs without putting off customers and still protecting profit margins.

At the same time, pubs should actively renegotiate with suppliers, consolidate orders, or consider switching to more local sources to reduce exposure to transport costs. Cutting down on delivery frequency or using cash-and-carry options can also help to offset fuel-related surcharges.

Moreover, pubs’ strong social value means businesses should consider events or themed nights to encourage people to visit and spend more.

In this sense, it’s as much about innovating as it is finding ways to raise prices that don’t impact footfall. The pubs that adapt quickly and keep giving people a reason to visit are the ones most likely to survive this difficult patch.

Discover the ales and ails of hospitality

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

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Starling Bank has released new data suggesting that more than half (60%) of co-founders met by chance, rather than during a dedicated search for a business partner. 

The survey, carried out by Censuswide, revealed that 34% of co-founders met through friends and family, and 25% through school or university. Former workplaces also made the top three, as was where 26% of the 500 interviewees bumped into each other. 

However, traditional networking opportunities are not delivering the same hit rate. Just 17% met through a professional association or community event; 16% at a co-working space, and only 15% at a dedicated networking event.

Happy coincidence

Looking further into the data, it seems that many co-founders simply found each other in the right place, at the right time. 

Indeed, 43% of respondents said they were “open to finding” a co-founder but not actively looking, while a further 19% said that they were not looking at all when they met their co-founder. 

This is a much larger proportion than the number that said they were on the hunt for someone to help bring their business idea into being (35%). 

The co-founder advantage

The experience of working with a co-founder has brought the vast majority of entrepreneurs a host of advantages. Topping the list was the additional skills and expertise they brought with them, listed by 51% of respondents. However, it was a hard-fought battle for top place, with reduced stress and pressure coming a close second with 47%. 

Improved business growth, new perspectives, handling problems and making faster decisions all gained very close numbers, suggesting that, actually, all of these advantages are potentially interrelated. Having a new perspective on an issue, for example, would often make it easier to solve. 

Daniel Hogan, co-founder of accounting tool, Ember, and now Head of Business Tools at Starling Bank, revealed that “growing the company taught us that you don’t need to be identical to be aligned”. 

“[Ember co-founder] Aaron and I are opposites in many ways, but that’s why it works – we didn’t just fill gaps in experience; we complemented each other’s instincts. Where I hesitated, he pushed; where he overextended, I anchored. This synergy made us stronger and ultimately allowed us to be sold and become Starling’s Making Tax Digital proposition, now serving thousands of SMEs.”

Gender divide

Help with funding and investors was less of a priority in survey respondents’ search for the perfect business partner, but this isn’t something that all founders find equally challenging. 

Recent findings from a comprehensive survey of female entrepreneurial voices would suggest that this concern might be higher up the list if it were only female founders who had been interviewed. 

78% of the 2,000 women surveyed said that their bidding experience had been “opaque, bureaucratic or time-consuming”. Just under half (45%) said that getting capital was the primary barrier to getting their business off the ground.

However, the Rise survey did paint a far rosier impression of the networking and peer mentoring opportunities for female founders. 39% of founders shared that they had received support from peer and founder networks. This was named as the most helpful tool in their journey with family and close personal support at 13%. 

Social boost

While this Rise report suggests that female founders are perhaps more likely to actively seek support from peer networks (as the funding process is harder for them than for men), both reports could be read as a call for more events. While many have chanced upon their co-founder, more opportunities to network might bring more people together. 

Hogan adds: “It’s not always easy to meet co-founders and there aren’t enough opportunities to discuss ideas and meet potential business partners. If I hadn’t met my business partner, I wouldn’t have become an entrepreneur – that right there shows the power of a partnership.”

Perhaps this is also a call for entrepreneurs with an idea to consider what they would want in a co-founder, to then make it easier to spot the right fit. While fate has delivered for many of those interviewed, doing this bit of groundwork and then getting themselves out there with an idea to discuss will definitely increase the chances of finding someone to help make the idea a reality. 

Finding a new job is being made even more stressful by the arduous processes that businesses are using to sift out good candidates, new research suggests.  

The data from Omni RMS reveals that nearly one in two applicants reports finding the application process difficult. 49% say that long application forms have put them off, while 46% listed poor communication as the most frustrating part of the recruitment process. A further 30% lambasted prospective employers for a lack of feedback during the process.

Crucially for businesses, the application processes seem to be driving away good talent before they have even had the opportunity to be considered for roles. 

Bad first impressions lead to lost talent

If you ask anyone you know who’s recently got themselves a new job, odds are they had to fire off hundreds of applications before they heard anything back. One of the things contributing to the arduous and tedious process is the fact that businesses are struggling to manage their recruiting processes. 

Louise Shaw, Managing Director of Omni RMS, shares in the introduction to Omni’s report that “rising candidate volumes, driven by the labour market and AI, are putting strain on organisations’ ability to manage, assess and convert talent at scale.”

She adds that this first experience of a business is when a candidate will form their initial impressions, and if negative, it could be enough for them to walk away. She adds: “Hiring is one of the most visible ways an organisation shows who it is. For many candidates, it is their first real insight into how it operates.”

For example, 49% of interviewees said that they will simply walk away if the process is taking too long.

Businesses need to rethink the process

Shaw states that businesses must streamline processes to give candidates the best impression of how they work. She targets long application processes as “a sign that hiring journeys have evolved over time without being deliberately designed for candidate experience”. 

Instead, businesses should simplify their application stages, starting by publishing clear job descriptions. More than a third of the young people interviewed (17-25 year olds) shared that finding a relevant role to them was the most frustrating aspect of job searching, and this is where clarity would play a huge role. 

Shaw also states that companies should use assessments that deliver proper insight into abilities. This will also help to differentiate among candidates when an increasing number of people are using AI to help write their applications. This study, in fact, reveals that it is as many as 47%. 

This has been a well-known and growing trend, with studies as early as 2023 revealing the impact that tools, including ChatGPT, were already having on how people apply for jobs. Three years later, you’ll be hard pushed to find any job seekers who aren’t using AI to craft their applications. What this has meant is that CVs and cover letters are not the indicators of ability that they used to be, and recruiters must adapt accordingly. 

Better recruitment might also require some internal changes, Shaw suggests, especially when it comes to communications. She argues that businesses must treat recruitment “…as an end-to-end process rather than a series of disconnected steps”. This requires better communications between teams, which will then have a positive impact on team members’ abilities to communicate effectively with candidates. 

The AI conundrum

AI tools can play a part here in streamlining the process for businesses, but Kerri O’Neill, Chief People Officer for UK & Ireland at Ipsos UK, reveals in the report that there are caveats. 

In particular, problems abound when businesses are not open about how they are using AI. She writes: “When candidates are unsure if they are interacting with a machine or a human, it creates anxiety and can damage the employer brand.”

Instead, businesses should use technology to improve the recruitment process and ensure they keep candidates interested, but also keep human interactions front and centre. As O’Neill states succinctly: “The secret [to effective recruitment] is putting AI where it improves effectiveness, and people where they can  be more meaningful.”

Accessories brand and former high street stalwart Claire’s confirmed this week that it was the closure of all of its UK stores, culminating in a loss of 1300 jobs. 

It was one of many high street brands that fell into hard times after the pandemic, along with other big names like Debenhams and Topshop. Claire’s was eventually rescued by Modella Capital last summer, but the US firm still could not prevent the brand from falling back into administration this January. 

But what went wrong for this quirky accessories brand, which was once the favourite among British teens? 

Style clash

While the business has pointed to the tough conditions for physical stores and the implementation of policies like the NICS hike, which have piled on more costs, fashion experts have highlighted how Claire’s slow evolution and outdate styled contributed to its downfall. 

Fashion journalist Priya Raj, for instance, told the BBC this week that younger shoppers have “moved away” from the kind of novelty jewellery with which Claire’s made its name. 

Instead, this is a generation which is constantly surveying social media trends, so style evolves much more rapidly. Instead of the mass-produced, colourful products that Claire’s sells – or “the cutesy, juvenile look” as Raj calls it – they are looking at more curated products that usually have a favourite influencer’s backing. 

When they are on the lookout for something more low-value, however, the first port of call is rarely a high street name like Claire’s. 

Instead, Gen Z and Gen Alpha are more likely to look further afield, specifically to Chinese giants like Shein and Temu. Along with incredibly low prices, these retailers produce and deliver a huge ecosystem of products at dazzling speeds – including copies of more expensive, viral products – which has left retailers like Claire’s lagging behind. 

A brand not built for Gen Alpha

Claire’s simply wasn’t cut out to compete for the attention of younger shoppers with a world of choice at their feet, both online and on the high street. 

Much like Gen Z, Gen Alpha use social media to follow trends and guide their buying decisions, perhaps even more religiously than their generational predecessors. YouTube is still a go-to for many, with as many as 60% of parents reporting that their children flock to the site for “shopping-related content, such as hauls, unboxings and shopping vlogs.” 

For this generation, online storefronts like TikTok Shop, which prioritise ease and impromptu purchases, are not new frontiers, but simply one of many channels they grew up with. Trends from other markets that used to take months to get to the UK now explode across the globe in a matter of days. 

Some legacy brands have adapted well to the new state of affairs. John Lewis, for example, is a recent big-name retailer to invest in AI-powered shopping and launch its own TikTok shop. Claire’s simply didn’t jump on the bandwagon. 

All this isn’t to say that Gen Alpha aren’t seeking in-person shopping experiences, but crucially, Claire’s didn’t roll with the punches here either. 

According to research published by Numerator in September 2025, two-thirds (66%) of Gen Alpha parents say shopping in-store is something their child prefers, in part because they appreciate family time outside the home (47%), and also the sense that shopping trips are fun (45%). 

Stores like Primark and Superdrug have capitalised on this by becoming places where teens can find trending products they see on social media, and in doing so, are surviving. Shops that are simply selling what many people would affectionately call “tat” – trinkets untethered from the internet trends of the day – have no place in the current market. 

For smaller businesses, this is the latest reminder that Gen Alpha is constantly being bombarded with content pushing products. Cutting through that noise with an authentic, relevant brand message and high-quality products is absolutely everything. 

If you don’t keep moving, unfortunately, you’re going to be outflanked in the algorithm and in person, too. 

Four of the UK’s most prominent trade bodies have written to the Government to urge a rethink on upcoming changes to zero-hours contracts. 

Part of the Employment Rights Act and set to come into force in 2027, the reforms will see a guaranteed hours rule enforced alongside stipulations that shifts cannot be changed or cancelled without notice. 

The reforms have been lauded by many as offering workers long-overdue protection from exploitation. But there has also been pushback from trade bodies, notably in recruitment and hospitality, which argue that the measures will have damaging consequences for firms.

Substantial threat

In a letter addressed to Peter Kyle, the Secretary of State for Business and Trade, the British Retail Consortium, Food and Drink Federation, Recruitment and Employment Confederation, and UKHospitality have all urged the Government to rethink its move.

As well as calling for more engagement, the letter warns that “…concern is deep and growing that the current approach risks stripping flexibility from the labour market at precisely the wrong moment.” 

They argue that the guaranteed hours model should not apply to workers who are employed for fewer than eight hours a week, as it will hit businesses hard and force them to pay for time they do not need. They also say this will take flexibility away from employees and, in the worst-case scenario, stop businesses from employing workers at all. 

“With demand already weakened, poorly designed guaranteed hours measures could become a tipping point, pushing employers to reduce hiring, limit hours or withdraw flexible roles,” they write, as reported by This Is Money. 

Young people impacted

The trade bodies argue that it is young people who will be hit disproportionately by the changes. “To avoid the double whammy of increasing unemployment and fewer young people entering the labour market, we would like to see the government send an urgent and clear message to businesses that they should continue to hire with confidence,” they write. 

They point to consistently high levels of unemployment among people under 25. BBC News reported last November that almost one million young people are not in work or education (NEET). According to the Office for National Statistics, between July and September 2025, there were 946,000 NEETs, down slightly from 948,000 in the three months before. 

This equates to one in eight young people, and has been consistently above 900,000 since early 2024. More recent figures suggest the youth unemployment rate is as high as 15.8%. 

The trade bodies argue that the zero-hours rules will compound this issue, as it is young people who are often looking for flexibility from work as they juggle studying or are looking to decide where their career future lies. They also contend that carers will be among those severely impacted, as they too need flexibility on a weekly basis. 

The changes will hit hospitality and food production businesses particularly hard, as they are a go-to for many young people looking for part-time or seasonal jobs. 

Sweeping changes

The trade bodies suggest that the Government needs to look at the specifics for different industries. As Personnel Today reports, they argue that many industries are built upon flexible working models, especially those with lots of entry-level roles. This needs to be taken into account, and a balance found between protecting employees and protecting businesses. 

They also suggest that the reference period for assessing regular hours should be a minimum of six months, but ideally 12 months.

Whatever the specifics, a balance must be sought that facilitates better job security for workers while ensuring that businesses aren’t shouldering extra costs. In the long run, of course, businesses stretched to the limit will end up creating fewer jobs, and at a time when young people in particular are already struggling to get into the workplace, this isn’t a good outcome either. 

As many as one in four Brits have a criminal record, but it can often be an unfair disadvantage in getting hired.

This week, a national campaign will encourage UK business owners to be more open-minded to hiring ex-offenders.

The ‘Unite 1K’ initiative from the Fair Chance Business Alliance (FCBA) is calling on 1,000 employers to adopt more inclusive attitudes to hiring and not overlook a largely untapped talent pool, as it could address both skills shortages and cut long-term costs.

A potential solution to skills shortages

Fairer hiring practices could stand to benefit both those out of work due to their criminal records and businesses themselves. 

Many sectors are facing persistent labour shortages, with many businesses struggling to fill roles due to shortages of specialised skills. 

FCBA’s campaign argues that excluding candidates based on whether they’ve had a previous conviction is limiting access to a substantial and often overlooked talent pool. By ‘substantial’, we’re talking around 9.6 million people.

There’s also a strong macro-economic case to be made beyond plugging skill gaps. Reoffending is estimated to cost the UK £26.3bn every year, and stable employment is widely recognised as one of the most effective ways to reduce it. 

“The UK cannot afford to sideline a ‘waiting workforce’ the size of Greater London” explains FCBA Chair Keith Jones. 

“Many of these records stem from minor or historic incidents. For instance, in 2022, 30% of all convictions for women were for non-payment of a TV license. Fair Chance Week is about raising awareness and championing the benefits of opening doors to opportunity, whilst proving that across every sector, there is resilient, trustworthy talent ready to work.” 

Growing employer support and practical tools

Through the Fair Chance Charter, described as a “Disability Confident” equivalent for the justice sector, businesses are encouraged to formally introduce inclusive hiring practices and remove barriers that are no longer relevant.

A new digital platform has been developed in collaboration with Accenture to provide businesses with tools, guidance, and access to partners to help seamlessly adopt a fair chance approach in their recruitment process.

The campaign has widespread support from a coalition of businesses, charities and government stakeholders, with early adopters citing that hiring based on potential rather than criminal record status can lead to stronger teams and high retention.

Shifting perceptions and reducing barriers

One of the main barriers to the successful uptake of the campaign will be employer perception and the stigma facing those with criminal records. 

However, importantly, campaign leaders highlight that often, criminal records relate to minor or historic offences, and may not reflect a candidate’s current capabilities or reliability.

As confidence in the campaign grows, there’s hope that it can normalise fair chance hiring, because beyond being socially rewarding and economically beneficial, it also supports wider government ambitions to increase employment and reduce welfare dependency.

So if you’re a business owner struggling to recruit or retain reliable staff, it’s worth getting on board with this initiative. As well as helping you become a more socially responsible business, fair chance hiring opens doors to an enormous untapped candidate pool, which can help address skills gaps within your business.

Reforms to the business rates system have been a hot topic of conversation among businesses, big and small, as they’re set to raise costs across the country for many.

One unexpected consequence of the rate changes is that they are also set to increase costs for the UK’s coworking sector. 

By taxing coworking spaces as single entities rather than individual units, the changes effectively remove access to Small Business Rates Relief, which has raised concerns about the access and affordability of shared workspaces for smaller businesses.

Cost increases threaten coworking model

The Valuation Office Agency (VOA) has changed how coworking spaces are taxed, meaning that owners may face overall higher tax bills. The likelihood is that these increases will be passed on to tenants through higher desk rates and rents. 

Analysis from ChamberlainWalker Economics estimates that the change could add a not-insignificant £600m a year in costs across the sector. Spread across businesses, this could work out to individual small businesses facing increases of more than £5,000 each year.

This completely undermines one of the key advantages of opting to use coworking spaces over a fixed office: the low upfront costs and flexibility.

As Joe Phelan of money.co.uk warns, treating spaces as a single taxable entity risks pushing a “significant cost burden” onto small businesses, many of which are already operating on tight margins. 

Even relatively small increases, he notes, could have a direct impact on cash flow and force businesses to rethink whether these spaces are still a sensible option, or if they should explore cheaper or free workspaces.

For coworking spaces, the situation is equally challenging. Higher vacancies could lead to the real potential of site closures, if rents become unaffordable and tenants scale back or leave altogether. 

Wider economic impact extends beyond offices

The ripple effects go beyond coworking spaces and their tenants. These hubs often play a key role in supporting local economies, particularly high streets, by driving daily footfall to local cafés, shops and services.

Estimates suggest up to 150,000 workers could be pushed out of shared offices as costs rise, leading to a potential £260m annual hit to high street spending if people revert to working from home. 

Phelan highlights this broader risk, noting that if businesses are priced out, the impact “won’t be contained to the workspace itself,” but will affect surrounding businesses that rely on the steady flow of weekday customers that coworking spaces attract.

Policy tension raises concerns for SMEs

The changes have sparked criticism throughout the sector, with industry bodies and coworking spaces themselves warning that they contradict the government’s intentions to help drive economic growth.

Startups, freelancers, and high-growth smaller businesses use coworking spaces the most, and are also exactly the sorts of businesses that the government hopes to encourage.

And despite ongoing discussions with the government, no resolution has been publicly announced as of yet, which leaves both coworking spaces and their users in the dark as higher costs begin to trickle down.