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 eating exciting meals out.

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 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 at.

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. 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 shelves 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.

Prospective Prime Minister Andy Burnham plans to scrap business rates for over 140,000 small businesses in his bid to save the UK’s high street – but the move would cost the government around £880 million a year, new analysis finds.

Burnham’s proposal to expand Small Business Rates Relief would also shift the tax burden onto larger businesses, a gap he plans to plug by raising business rates on large warehouse developments like Amazon. 

For high street retailers and hospitality businesses that have been struggling to keep their doors open, this news should come as welcome relief. Yet, with the price tag just shy of a billion pounds, it raises fresh questions about what the trade-off may be for larger businesses.

Burnham’s business rates tax cut could cost around £880m a year

After a tumultuous few years for brick-and-mortar businesses, Makerfield MP Andy Burnham has pledged to tackle the decline of the high street head-on by overhauling business rates.

His proposals, which were first outlined during the Makerfield by-election campaign, include raising the threshold for 100% small business rates relief in England by 50%, allowing more small firms to qualify for the tax break. 

Forecasts from global tax firm Ryan suggest this policy could prevent over 140,000 additional small businesses from paying business rates altogether. It would also extend the upper threshold at which firms receive tapered relief from £15,000 to £21,000, at a total estimated cost of £880 million a year. 

When speaking to LBC this week, Burnham justified his proposal, explaining: “I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities, so that we can cut business rates for pubs… and lift some high street businesses out of business rates altogether.”

He added that the government should “prioritise and reward the businesses that bring social benefit,” including high street staples such as pubs, restaurants, cafés and hairdressers.

Central to Burnham’s mission is the idea that online retail giants like Amazon should shoulder more of the burden, in an effort to try and level out the playing field between e-commerce and traditional high street businesses. 

Who will really cover the bill for Burnham’s proposed business rates cuts?

On paper, Burnham’s funding plan is already accounted for. In April, the government added an extra charge of 2.8p onto business rates for properties worth over £500,000.

Since this levy already exists, tax experts argue that ministers could raise it as high as 10p without needing to create a brand new tax.

Yet, Ryan’s analysis flags a significant catch. The surtax isn’t just a warehouse tax: it also applies to offices, manufacturing sites, data centres, and larger retail premises.

This means that any blanket hike would land on a much wider range of businesses than just ecommerce, Amazon-style warehouses. 

Speaking to this tension, Alex Probyn, a practice leader for property tax at Ryan, said: “Supporting small businesses is a great policy objective. The concern is how that is funded if things have to be revenue neutral.”

“Larger commercial properties are already contributing more through the existing business rates surtax to fund lower liabilities for retail, hospitality and leisure. The obvious question is whether they are now going to be asked to contribute even more.”

Burnham’s proposed changes also land against a backdrop of what business groups are already calling a system under strain.

The Confederation of British Industry (CBI) has warned that the current tax landscape is a “growth killer” for investment, with 32% of firms saying business rates have resulted in them cancelling, reducing, or delaying investment in their properties.

Britain’s largest business organisations have warned that Labour’s proposed above-inflation minimum wage rises could push employers past breaking point, with many businesses still reeling from the 4.1% increase that was introduced in April of this year.

This comes as the Low Pay Commission (LPC) indicated it would recommend a rise of up to 5% in 2027, with a central estimate that would outpace inflation by roughly 3.7%

Business experts claim that outcomes of this potential hike, combined with the government’s plans to scrap minimum wage age bands for younger workers, could lead to costs being passed onto consumers and entry-level workers facing more barriers to employment, along with small firms being squeezed.

Above-inflation wage hikes could push more businesses into difficulty, BCC finds

The LPC, the independent body which helps to set the minimum wage, said it was likely to recommend a rise of up to 5% for April 2027. 

The Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC) have baulked at the suggestion. BCC deputy chief executive, Kate Shoesmith, told the Telegraph that “any further above-inflation increases to the national living wage will only tip more firms over the edge.”

She added that many employers have already reached the limit of what they could absorb, after a series of steep wage increases. To ease the burden on businesses, the BCC is pushing for a 2.4% rise next year, which would set the rate at £13.02 an hour, and is urging Labour to pause plans to get rid of lower minimum wage rates for younger workers. 

Matthew Percival, the director of the CBI, shared these concerns. 

“Recent increases in the National Living Wage have significantly outpaced productivity growth, at a time when firms are already dealing with rising energy prices, higher taxes and growing employment costs,” he told The Telegraph.

Fresh figures released by the BCC paint a similarly bleak picture of business confidence, with investment intentions reportedly at their weakest since the pandemic, and one in ten firms saying that this year’s 4.1% increase to £12.71 had already led them to make headcount cuts. 

The wider ripple effects of the minimum wage hike

With businesses already contending with rising business rates, surging energy costs, and higher taxes, firms are feeling financial pressure from all sides. Smaller firms are among the most vulnerable, unable to absorb the extra costs of these changes easily. 

For sectors like retail and hospitality, where a large share of the workforce is paid at or near minimum wage, even an increase of a few percentage points could translate to a noticeable price jump, especially for small independents who are only just breaking even or, in some cases, already operating at a loss. 

Labour’s plans to phase out lower minimum wage rates for under-21s have also been criticised amid concerns over youth unemployment, which has climbed to its highest level in over a decade. 

Cressida Hogg, chairwoman of the CBI, argues that youth rates exist for a reason, as taking on young, less experienced workers often demands more training and support than hiring someone with more experience. 

She warned that scrapping the current rates would disincentivise businesses from giving young workers opportunities, ultimately resulting in more young people being locked out of work altogether. 

The policy isn’t criticised universally, however. The LPC, for instance, maintains that the recent National Living Wage increases “have not had a significant negative impact on unemployment”. 

This chimes with research from the Organisation for Economic Co-operation and Development, which has found little evidence that moderate increases in minimum wages lead to higher youth unemployment, especially when changes are introduced gradually, and during periods of strong labour demand. The BCC and CBI would, of course, retort that labour demand is currently weak, and changes are being introduced too hastily. 

How small businesses can brace for the 2027 wage rise

The new minimum wage won’t be confirmed until later this year, but there are steps businesses can take to start preparing for the changes today, to avoid breaching compliance and getting named and shamed by the government in 2027.

No hard figures have been confirmed, but running the current estimate of £13.18 an hour on your payroll now, and factoring knock-on effects like higher National Insurance contributions, will give you a clearer picture of your personnel costs come April. 

It’s also wise to look at pricing strategically. If you need to pass some of the cost down to consumers to protect your bottom line, plan the timing and messaging carefully rather than making sudden changes. This could involve staggering price rises or bundling them in with stock changes, all while being as transparent as possible with your customer base. 

To avoid redundancies or slashing staff hours, exploring government support schemes is another sensible step. The Employment Allowance, for example, lets eligible employers reduce their annual employer National Insurance bill by up to £10,500, which could offer a valuable lifeline to smaller businesses. 

Apprenticeship funding and grants for hiring out-of-work young people are also available to many businesses, and can help offset the cost of training younger or less experienced staff at a time when young people are facing disproportionate barriers when it comes to entering the world of work.

Ultimately, there’s no silver bullet for offsetting the cost of another above-inflation rise. Yet, revising your strategy and looking into available support now will place businesses in a far stronger position than those left scrambling to adjust when the new rate lands next April.

The pub scene in Wales continues to thrive, with three new venues opening since January, despite closures sweeping through the rest of Britain.

The growth has been dubbed a “much-needed ray of light” for the hospitality industry by the British Beer & Pub Association. An average of two pubs are closing every day in Britain, and a quarter of UK hospitality businesses are losing money, as financial pressures mount. 

According to Welsh pub owners themselves, the secret ingredient to defying the trend is turning away from tradition. However, whether a number of stand-out venues can be enough to turn the tide on closures remains to be seen.

The number of pubs in Wales continues to climb

The number of pubs in Wales has increased by three since January. In the same time period, Scotland has lost 41, and the south-east of England has lost 26, according to the BBPA’s Q1 2026 data. 

Abbie Nelson, landlady of The Nelson in Rhyl, Denbighshire, is responsible for one of these success stories. She opened the pub in May this year, taking over a previous pub that previously focused on the night-time trade.

Nelson tells the BBC that a change of tack is needed in order to keep up with the evolving industry. While there is still a solid customer base of spirit drinkers, younger generations are bringing different drinking habits with them, and for many, a pub trip is just as much about the “Instagram aesthetics” as the drinks on offer.

Pivoting away from a purely drinks-based offering, Nelson’s venue has a family focus: “Now we do barbecues, free food, we have entertainment on.”

Co-owners of the Pig & Swill in Cardiff, another new pub in Wales, have also appeared to defy trends by branching away from the traditional. Dwyer and his business partner Andy Aston already run Hiraeth, a Michelin Guide-listed restaurant on the other side of the road known for its focus on quality local produce, and saw an opportunity to complement the venue rather than compete with it.

Rather than a straightforward boozer, the Pig & Swill leans into the same elevated approach that’s worked for Hiraeth, offering craft beer alongside a more involved menu of small plates and nibbles than typical pub grub.

“Business has been really good since we opened a few weekends ago. We are really blown away by the positive reception and how the community has responded to us,” Dwyer told The Guardian.

However, despite these small wins, it doesn’t mean the wider hospitality sector is thriving in Wales. David Chapman, executive director of UK Hospitality Cymru, recently said the country’s restaurants and hotels are still struggling overall, with restaurant and hotel closures continuing to outnumber openings as business rates soar.

Is out-of-the-box thinking enough to save the UK’s struggling hospitality industry?

Recent figures highlight a stark reality for the sector. A total of 161 pubs closed their shutters in Britain in the first quarter of 2026, as energy bills, regulatory costs, and rising taxes continue to squeeze margins for pub owners. 

Business rates remain one of the biggest flashpoints. The 40% relief that cushioned the finances of many pubs through 2025-26 was discontinued at the end of March, while new revaluation methods were implemented. This left most operators relying on a smaller 15% discount, instead, with no guarantee it would be extended beyond this financial year. Others saw their rates go up significantly. 

Others, like celebrity chef Tom Kerridge, argue that lowering VAT rates in line with our European counterparts could be the winning ticket to easing the pressure. Kerridge’s #VATsTheProblem campaign has already gathered hundreds of thousands of signatories since its launch, becoming one of the sector’s most popular grassroots movements to date.

Not everyone believes the answers lie in Westminster, however. TV Presenter and pub owner James May believes the industry needs to look closer to home.

“The pub will be saved by the pub, nothing else. It would be nice if we could have lower rates and lower duties and so on, but that’s not really the issue. The issue is the quality of pubs themselves,” May tells LBC. 

Whether or not these measures materialise, and whether they’d be enough to tackle the closure rate remains to be seen. What is clear is that pub owners can’t simply rely on policy changes to keep the taps flowing. As Wales’s own growth suggests, remaining agile and adapting to shifting customer expectations could matter just as much as tax reform.

Labour’s hike to the minimum wage, alongside the surging cost of employment, has left over a third of small business owners almost unable to pay themselves a living wage, data from The Federation of Small Businesses (FSB) finds.

Entrepreneurship is often sold as a route to financial freedom, but the FSB is warning that many small business owners are having to make difficult financial trade-offs just to keep their doors open –  including cuts to their salary, pension fund, and hiring plans.

The findings, submitted as part of evidence to the Low Pay Commission (LPC), paint a stark picture of an entrepreneurial class being squeezed from every direction. So, what hope do small business owners have of the dial moving in the future?

Rising employment costs are leaving business owners with little for themselves

The FSB is arguing that rising employment costs are becoming a “major structural issue within small firms”.

As reported by The Telegraph, they express that the “costs of employment, including the national living wage, employer National Insurance contributions, and auto-enrolment, make it harder for a small business owner to make sufficient profit to pay themselves a living wage – let alone to fund a pension”.

This is borne out by the FSB’s 2025 submission to the Low Pay Commission, which revealed that 36% of small business owners generated less than £25,000 in gross profit over the past year. This is barely more than the £22,200 salary of a full-time worker on the National Living Wage. 

What’s more, with many owners working far longer than that, often 50 or 60-hour weeks, the hourly return on their labour can fall well below the minimum wage that they’re legally obliged to pay their staff.

With Labour also recently increasing the minimum wage for 18 to 20-year-olds to £10.85 per hour, and the apprenticeship wage for under 18-year-olds to £8 per hour, some experts believe this could make it harder for small businesses to expand by hiring younger staff members.

The Institute of Directors (IoD) also warns the LPC that this manifesto pledge could contribute to the recent surge in youth unemployment by removing the incentive for businesses to hire more inexperienced workers. 

Taken together, these findings point to a tough environment for anyone considering starting or running a small business right now, but could this change when Keir Starmer steps down from power?

What changes could be brought under a new Labour Government?

As Keir Starmer gears up to leave Downing Street and Andy Burnham emerges as the clear frontrunner to become the UK’s next Prime Minister, small business owners may be watching closely for signs of relief.  

Burnham has been a longstanding critic of the employer National Insurance rise introduced in Labour’s first budget, telling BBC Newsnight that he thought the “weight of the burden… wasn’t the right decision”. 

He also has pledged to cut business rates for pubs by 20%, and raise the threshold at which other small, independent shops and hospitality businesses start paying rates, to take some pressure off business owners and support the high street.

However, it’s not all good news for employers. Burnham has recently expressed backing for banning zero-hour contracts, and has previously supported expanding the full adult minimum wage to 18 to 20-year-olds in his 2015 bid when he was a member of Labour’s shadow cabinet. While these changes are meant to help tackle job insecurity, both policies could pile further costs onto small firms.

For now, Burnham is appearing to walk the tightrope between supporting small businesses and staying loyal to Labour’s pro-worker agenda. Whether it’s enough to make life easier for struggling entrepreneurs remains to be seen.

The UK’s hospitality industry is showing clear signs of being in peril. As a quarter of businesses are losing money, and pubs close at an alarming rate, industry leaders are calling on the Government to slash VAT rates in half across the sector, from 20% to 10%. 

The rate reduction would bring the UK in line with other European countries, where average hospitality VAT sits around 12.8%. Campaigners argue it’s the biggest lifeline available to stop smaller venues being taxed out of existence. 

However, not everyone believes a cut would deliver on its promise. Critics counter it’s an expensive, poorly targeted fix that mostly benefits large chains, while ignoring smaller businesses that need it the most. 

So, the question that’s dividing the sector is: would a VAT actually help the small businesses it’s designed to protect, or are businesses looking in the wrong place for relief?

How a VAT cut could ease the pressure on small pubs and restaurants

Pubs and restaurants across the UK are navigating difficult waters. Recent data reveals that a quarter of hospitality businesses are losing money, while an average of two pubs have shut up shop since the start of 2026. 

This erosion in profitability can largely be attributed to a heady mix of rising energy costs, competition from high street retailers, and rising national insurance (NI) contributions. Yet, industry leaders argue that cripplingly high VAT rates are currently the main thorn in the side of the sector. 

Celebrity chef and pub owner Tom Kerridge believes that cutting VAT rates down to 10% would prevent hundreds of pubs from closing by freeing up cash for wages, hiring, repairs, and investment. His #VATstheproblem campaign calls on the government to halve VAT for hospitality businesses, and has already received backing from UKHospitality and almost 250,000 members of the public. 

The UK’s VAT rate of 20% towers above other European countries, with most of our continental neighbours charging closer to 10%, and the EU average sitting around 12.8%.

Kerridge argues bringing the rate in line with the rest of Europe would “reduce the cost pressures facing our sector” and “mean more venues are able to stay open”, and provide jobs to workers that need them, as well as valuable hubs for their local communities.

Many pub owners agree, with Roland Birks, owner of The Ship Centurion in Whitstable, telling Kent Online, “Some countries actually pay 5% VAT in Europe, so considering it’s 20% here, then halving it would make a massive difference.” 

Why a VAT cut doesn’t go far enough for many businesses

Despite widespread public support for Kerridge’s campaign, opinion on the topic remains split. 

Independent tax thinktank the Tax Policy Associates argue the VAT slash would overwhelmingly favour large chains, with founder Dan Neidle estimating that McDonald’s alone stands to gain £432m from the cut to 10%, and the pub group Mitchells & Butlers pocketing a further £246m. 

The core issue remains that many of the smallest, most vulnerable hospitality businesses don’t pay any VAT at all. Specifically, firms with turnover below £90,000 –  which represent roughly 45% of the hospitality industry – fall under the registration threshold, meaning that lots of independent businesses like cafes and micro pubs wouldn’t see any benefit from the rate cut whatsoever. 

Neidle also argues the VAT cut would be a very expensive tool. The Treasury estimates the cut would cost the public purse £10.5bn, and the TPA puts the true figure closer to £12bn – a significant burden which would ultimately be shouldered by taxpayers.

In light of these considerations, what else could be done to take some financial pressure off smaller hospitality venues?

Beyond VAT, what else could be done to help small hospitality businesses?

Instead of a blanket cut to VAT, many experts believe small, struggling hospitality firms would benefit from more targeted measures. 

For example, the industry has been calling for a further softening of business rates. While the Government’s £4.3bn support package has capped bill increases for the majority of hospitality venues at 15% or less, campaigners argue that relief slows down the damage rather than reversing it, warning that the rates could still “kill off the high street” if they continue as they are.

Others point to the rise in NI contributions, which has hit high-headcount hospitality businesses especially hard given how many staff they employ. Reversing this increase could help to ease pressure more directly than a VAT cut, as it targets a cost that hits every hospitality firm regardless of their size or turnover. 

Lastly, instead of a rigid VAT threshold which excludes a lot of smaller venues, the sector is lobbying for a sliding scale that gradually phases VAT in as turnover increases. This could take the financial burden off smaller, independent businesses, helping them to grow without a sudden cliff-edge tax bill the moment they own over £90,000 per year.

Almost a quarter of UK hospitality businesses are losing money, according to survey data from UK hospitality trade bodies, as pressures facing pubs and restaurants continue to bubble over.  

The cause? Celebrity chefs point the finger at value added tax (VAT) costs, with Tom Kerridge’s #VATistheproblem campaign calling on the Government to cut the tax from 20% to 10%, arguing it would relieve financial pressure for venues, and to bring the UK in alignment with its European counterparts.

But VAT costs aren’t the only thing eating into margins. Rising National Insurance (NI) contributions, a higher national minimum wage and soaring energy costs are also adding strain on pubs and restaurants this summer – meaning venues may still need to find savings of their own to stay afloat.

UK pubs and restaurants are haemorrhaging money

In yet more sobering news for the hospitality industry, a new survey from UK Hospitality, the British Beer & Pub Association, the British Institute of Innkeeping and Hospitality Ulster has found that 23% of pubs and restaurants are currently operating at a loss. The figure marks a sobering jump from 15% only three months prior. 

The survey also found that one in six businesses said they run the risk of going bust within a year, while 5% admit they are not financially viable. 

On average, two pubs have closed their shutters for good every day since the start of 2026, as the hospitality sector battles a perfect storm of heavy tax burdens, surging operating costs, and rising business rates. 

UK chefs claim axing VAT rates would help keep businesses afloat

These findings come as high-profile chef and pub owner Tom Kerridge calls for a permanent 10% VAT rate for the hospitality sector, launching his new #VATistheproblem campaign today.

The petition has currently secured over 240,000 signatures, and is backed by major trade bodies, such as the British Beer and Pub Association, UK Hospitality, and the British Institute of Inkeeping.

The UK’s VAT rate is currently 20%, and applies to most food, alcoholic and non-alcoholic drinks, and hotel accommodation. This is the second highest rate in Europe, with our neighbours France, Spain, and Italy all currently charging 10%. Kerridge argues that 

Kerridge, best known for his two-Michelin-starred gastropub, The Hand & Flowers, argues the disparity is unsustainable: “Our hospitality culture in the UK is the best in the world, but we continue to be hit with unfair levels of tax. Almost every other country recognises the need to support hospitality with a lower rate of VAT.”

The potential VAT cut is estimated to cost the Treasury between £10.5bn and £12bn, a hefty price tag, but one some senior figures appear to be willing to consider. Andy Burnham, prime minister hopeful, previously claimed he would back a VAT cut for hospitality, arguing for a rate “more consistent with what you find in Europe”.

Yet, despite the growing chorus of support, a VAT cut is far from guaranteed. So far, the Treasury has rejected calls for a sector-specific reduction, and Burnham’s own team has failed to confirm whether he’d commit to the policy if he reached Number 10.

The government has also been criticised for not going far enough in the past, with its temporary VAT reduction on children’s meals being dismissed by venues for not moving the needle on the sector’s wider cost crisis.

What can pubs and restaurants do today to cut costs?

Ultimately, despite valid concerns, Kerridge’s latest campaign should provide ground for cautious optimism for business owners. But, in the meantime, there are still practical measures operators can take to ease pressure on their own margins.

Energy remains one of the highest controllable costs for hospitality businesses. Switching to LED lighting and using smart thermostats are practical ways venues control energy costs. The government has also recently launched an energy-saving scheme aimed at helping pubs and restaurants slash their energy bills, with the scheme’s pilot program seeing participating businesses cut bills by an average of £2,500 a year.

To tackle the burden of staff costs, business owners could consider cross-training staff to cover multiple roles and reduce reliance on agency workers. Reviewing rotas against actual footfall data can also help avoid overstaffing during quieter shifts.

Menu engineering is another lever. Cutting low-margin dishes, renegotiating supplier deals, and reducing waste through stronger portion control are all practical ways to protect margins without compromising the customer experience. 

For struggling venues, it should be emphasised that none of these changes are quick fixes. But taken together, they can buy the breathing room needed to ride out a difficult year, rather than passively waiting on the government to act.

As the UK emerges from yet another heatwave, the social media landscape shows no signs of cooling down. Platforms like Instagram and TikTok are brimming with new trends for businesses to draw upon for their social media marketing. 

This month is dominated by FIFA World Cup energy, alongside a wave of nostalgia-led trends that are shaping the way users watch and create content.  

With new trends popping up every day, emerging moments are easy to miss. To help you stay one step ahead, we’ve rounded up the hottest social media trends businesses shouldn’t be missing this July.

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

Visual search engine Pinterest has recently launched a new international shopping product suite, designed to help ecommerce businesses expand their marketing campaigns across new markets.

The new features aim to simplify everything from campaign management and product localisation to performance tracking, allowing retailers to reach international audiences without the need to manage separate product catalogues for every market.

What is Pinterest’s international shopping product suite?

For online stores looking to grow internationally, Pinterest is launching new performance and localisation tools to simplify campaign management across multiple markets.

This includes its new “Markets View” element, which offers insights from multiple regions in one place. With this, marketers can track campaign performance (such as impressions and Pin clicks) divided by specific countries or regions. They can also compare cross-border performance, adjust budgets and strategy as needed, and download performance reports.

Additionally, its AI-powered localisation tool that automatically translates product titles and descriptions into the local language and converts prices into the local currency for each market.

Pinterest’s multi-currency campaigns and ad groups also allow businesses to “test and learn” several new markets, as the platform allows users to run a single shopping campaign or ad group to several markets at once, as well as handle bidding, budgets and delivery through Pinterest Performance+.

The opportunities for ecommerce businesses

As Pinterest continues to expand its shopping offerings, the latest updates aim to make it easier for retailers to connect with customers around the world.

According to data by Technology Checker, while Pinterest only holds a 0.08% share of the social media marketing technology market, there is ample opportunity to reach a new market without the burden of juggling multiple product catalogues or heavy investment that can come with usual international expansion.

It also found that the US and UK have the highest number of Pinterest customers, each accounting for 39.2% and 9.6% of users, respectively. Among non-English-speaking countries, Brazil leads the way at 7.0%, followed by France (6.1%), Spain (5.4%) and Germany (5.1%). 

Promoting products in local languages and currencies can also create a better customer experience, particularly for those who may not understand English well, in turn increasing engagement and conversion rates.

Moreover, as Pinterest is increasingly positioning itself as a shopping and product discovery platform, localised listings could help businesses reach consumers earlier in the buying journey. After all, 80% of users have made a purchase via Pinterest, making localised product information an important factor in turning inspiration into sales.

What to consider before expanding into new markets

Despite the benefits, retailers will still need to think carefully about how they manage international growth.

For example, automatically translating product information isn’t enough, as retailers still need to make sure sizing, legal requirements, imagery, promotions and customer messaging are appropriate for each market.

Better international visibility may be good for brand awareness, but businesses need to consider that this may lead to demand that they aren’t operationally prepared to fulfil. 

53% of ecommerce businesses also say that fulfilment costs that come with international expansion have become their biggest barrier for growth, so retailers will have to carefully balance growth opportunities with investment in logistics and cross-border fulfilment capabilities to avoid hurting profit margins.

Overall, Pinterest’s new international shopping tools could lower some of the technical barriers to selling across borders, but success will still depend on a business’s cross-border strategy, including logistics, pricing and local market knowledge. While the technology simplifies merchandising, it doesn’t eliminate the complexities of international ecommerce.

Mayor of London Sadiq Khan has pledged to invest £500,000 into London hospitality firms, as part of this year’s Summer Streets initiative.

The campaign, which was introduced last year to support restaurants, pubs and bars across the capital, will be used to boost footfall, expand outdoor trading, and help businesses make the most of the busy summer season.

Alongside the investment, Khan has also allegedly secured new licensing powers to support London’s night-time economy, including al fresco dining and longer opening hours across the capital.

What is the Summer Streets fund?

The Summer Streets fund is an initiative introduced by the Mayor of London to support al fresco dining and events in the city over the summer period.

The initiative was first introduced last year, when Khan announced a £300,000 investment to help encourage spending. Through traffic-free zones and special licenses for extended outdoor service, the fund allows businesses to expand outdoor seating, increase footfall, and strengthen trading during the peak summer months.

Now, Khan is bringing Summer Streets back for 2026 – this time with a heftier £500,000 investment, shared across 15 streets in the capital. 

There will be four large investments of £100,000 for streets in Barking & Dagenham, Brent, Greenwich and Lambeth, and 11 further “pocket” schemes in Newham, Waltham Forest, Camden, Brent, Sutton, Haringey, Ealing, Hounslow, Islington and Lewisham. 

“I’m delighted that we’re working with boroughs and local businesses to bring al fresco dining, live music, events and later opening hours to streets across our capital.” Khan comments, as quoted by Restaurant Online.

“From Woolwich to Willesden Green, Finsbury Park to Feltham, and right in the heart of the capital in Waterloo, this investment will create new outdoor spaces, support local businesses and give Londoners and visitors even more reasons to get out and enjoy our city.”

Summer Streets could offer relief for struggling hospitality firms

The return of the Summer Streets initiative could lend a major helping hand to struggling businesses across London, particularly with high value-added tax (VAT) and rising costs pushing many hospitality venues to the brink.

According to a survey published by The Morning Advertiser, 16% of hospitality firms across the UK say they are at risk of failure in the next 12 months. Additionally, 23% say they’re operating at a loss – up 15% from three months ago – while 5% say their business is no longer viable.

“We are seeing the devastating impact of hospitality’s heavy tax burden escalate before our eyes.” UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster, said in a joint statement.

“The reality is stark. The number of businesses now operating at a loss is accelerating rapidly and too many businesses are facing the gut-wrenching decision of whether they have to close their doors for good.”

However, with the return of the Summer Streets fund and the World Cup expected to surge hospitality spending, businesses could receive a much-needed lifeline during one of the busiest trading periods of the year.

Licensing powers could strengthen Khan’s influence over night-time economy

As well as financial support, Khan has also gained licensing powers that strengthen his influence over licensing decisions and borough policies.

This includes a London-wide Strategic Licensing Policy, allowing him to make formal representations and be consulted on changes to borough licensing policies. Decisions by councils to refuse later opening hours for pubs and clubs could be overturned.

Earlier this month, Khan proposed new Government-backed powers that would allow him to override objections to new licence applications for restaurants, pubs, and bars in Soho.

Moreover, despite concerns over pedestrianisation in the area – with residents’ group Soho Society complaining about noise caused by people drinking and dining outside – The Guardian reported that restaurant businesses will be allowed to place chairs outside during the summer from 2027. 

Kate Nicholls, chair of UKHospitality, comments: “It’s fantastic to see so many London boroughs taking advantage of the mayor’s summer streets fund.

“From food markets and al fresco dining to World Cup screenings, it shows the power of hospitality to drive activity and bring our communities together. I look forward to seeing the success of all the events this summer.”

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

A UK freelancer has successfully recovered £7,000 in unpaid fees using an AI lawyer, in what is believed to be a world first.

The claim was won by Garfield AI, an AI-powered law firm that helps individuals and businesses pursue debt claims at a fraction of the cost of traditional legal services, marking a potentially significant moment for freelancers and small businesses struggling with late payments.

The case comes against a backdrop of persistent payment delays across the UK economy. Small and medium-sized enterprises (SMEs) are owed an estimated £70.4bn in late payments, despite initiatives such as the Fair Payment Code, which aims to encourage prompt payment practices among businesses.

AI law firm lowers the barrier to entry for debt recovery

As artificial intelligence continues to reshape professional services, a landmark court case has highlighted its potential to make legal action more accessible for freelancers and small businesses.

The claimant, freelance HR consultant Tamires Camal Taquidir, was awarded £7,000 after spending just £400 on legal fees. By comparison, traditional solicitor fees for pursuing a claim can easily run into the thousands of pounds, making debt recovery uneconomical for many freelancers and sole traders. 

Garfield AI carried out all of the legal work leading up to the trial, including drafting four witness statements and preparing the relevant court documents. The firm then instructed a human barrister to represent the claimant in court, in what the barrister described as “a fundamentally human exercise”. 

Despite being in operation for little more than a year, Garfield AI says it has already supported around 600 claims and helped users recover more than £500,000. 

The case touches on a longstanding issue for freelancers. Research suggests that around 85% have experienced late or missed payments at some point in their careers, with many spending significant amounts of time chasing invoices or writing off debts altogether. 

The Garfield AI case suggests that AI-powered legal services could help lower the barrier to entry for debt recovery, making it more practical and affordable for freelancers and small businesses to pursue the money they are owed. 

How to use AI tools safely when chasing or recovering late payments

Garfield is the UK’s most prominent AI tool designed to help users pursue debt claims.

The platform operates within the court system, helping users prepare documents, generate evidence bundles and guide them through the claims process. It also offers lower-cost services such as “polite chaser” letters for as little as £2 and court claim filing support from around £50. 

Alongside specialist legal tools, many freelancers are also turning to general-purpose AI platforms such as ChatGPT or Gemini to draft emails, organise evidence or understand legal processes. However, caution is essential when handling sensitive material.

Contracts, invoices, client correspondence and financial records may contain confidential or commercially sensitive information. So, before uploading any documents, it’s important to review a platform’s privacy policy, understand how data is stored and whether it may be used to train future models.

To comply with the Data Protection Act, it’s also safer to anonymise documents by removing names, addresses, account numbers and other personal or client-identifying details before inputting them into an AI system.

Other effective ways to reduce and secure late payments

AI tools are increasingly part of the freelancer’s toolkit, but they are not the only option when it comes to getting paid on time.

Get Paid With Emma, a fortnightly Startups.co.uk column written by the UK’s Small Business Commissioner, Emma Jones CBE, regularly highlights practical steps for dealing with late-paying clients and securing payments. 

You’re also able to involve the Office of the Small Business Commissioner for free, once an invoice is overdue. The Commissioner’s office can engage with the debtor and help chase outstanding payments on your behalf, offering a practical route to resolving late-payment issues, rather than just preventing them.

UK law also provides additional protections. The government is rolling out a series of payment reforms in what it’s claiming to be its toughest crackdown on late payments in more than 25 years. Changes include introducing a new 60-day cap on payment terms and giving the Small Business Commissioner greater powers to investigate and adjudicate disputes.

Under the Late Payment of Commercial Debts legislation, freelancers and small businesses can also charge statutory interest on overdue invoices, as well as fixed compensation and debt recovery costs. Even referencing these rights in a follow-up email has the potential to prompt faster payment.

More broadly, taking proactive steps to avoid late payments remains key. This includes checking if companies are signed up to the Fair Payment Code, issuing invoices promptly, and ensuring contracts clearly set out payment deadlines and penalties for late payment.

As the UK’s pub sector continues to battle rising costs and a growing number of closures, a new bill has been proposed to protect historic venues from demolition or redevelopment without planning approval.

The legislation has been quick to receive backing from the Campaign for Real Ale (CAMRA), which argues that pubs are a vital part of Britain’s cultural heritage and community life.

The proposal comes amid wider concerns about the future of the industry, with an average of two pubs closing every day since the start of 2026 despite a series of government support measures.

CAMRA backs new bill which aims to prevent heritage pubs from closing down

CAMRA, the consumer group that supports over 145,000 pubgoers, is calling on MPs and ministers to support a new law saving heritage and outstanding pubs from closure.

The bill, which was recently introduced by Conservative MP Mike Wood, prevents historic venues from being demolished or repurposed into shops or homes without proper planning consent or community consultation. 

Wood represents Kingswinford and South Staffordshire, the constituency where the 260-year-old Crooked House pub was recently demolished following a fire in 2023. The decision sparked pushback from the local community and campaign groups, after the demolition was ruled illegal by the South Staffordshire Council.

Commenting on their support for the bill, CAMRA chairman Ash Corbett-Collins said “CAMRA and our 145,000 members are giving our full backing to this desperately needed bill that will give better protections for pubs, which are a vital part of our heritage and of community life up and down the country.”

What support has the government offered struggling pubs?

With an average of two pubs closing every day since the start of 2026, the UK’s hospitality industry is facing a perfect storm of soaring operating costs, shifting consumer behaviour, and competition from supermarkets and other low-cost alcohol retailers. 

In response, the government has introduced a series of measures aimed at easing financial pressures on pubs. In January 2026, it announced a 15% reduction in business rates bills for eligible pubs, alongside a two-year real-terms freeze on those rates to provide greater certainty for operators. 

The government has also maintained support through alcohol duty relief on draught products served in pubs. While alcohol duty rates continued growing alongside inflation in January, the temporary reduction helped to keep the tax burden on pints lower than on equivalent drinks sold in supermarkets. 

Responding to concerns about the pace of pub closures, a Treasury spokesperson said: “We have the right economic plan. We’re backing hospitality by cutting VAT on family attractions and kids’ meals this summer, reforming business rates, extending World Cup opening hours, and taking action on the cost of living to boost the sector.”

While some of these measures have been welcomed, many, including the cut on VAT for kids’ meals, have been ridiculed. Few think they’re enough to offset the long-term pressures facing Britain’s pubs.

The BBPA claims further support is needed to avoid more closures

The British Beer and Pub Association (BBPA) argues that more fundamental reform is necessary to prevent a new wave of pub closures.

Emma McClarkin, the chief executive of the BBPA, told The Telegraph that while the support packages and two-year business rates freeze provided  by the government have reduced the burden somewhat, “they do not solve the long-term problem, which traps pubs in a cycle of uncertainty and shocking increases.”

“Our analysis shows that if the underlying methodology is left unchanged, we could see around 2,300 pubs close in 2029-30. We cannot emphasise enough what a devastating blow to communities, jobs, and local economies across the country [that would be].

Calls for greater government intervention come in contrast to comments made by presenter James May, who recently suggested that the industry’s challenges are not solely down to economic pressures, but also reflect the quality and relevance of some pubs themselves. 

Whichever side of the debate you fall on, it’s clear that the stakes extend far beyond the businesses themselves.

Given that the average pub is estimated to generate £1.3 million in economic and social value for its local community for many towns and villages, the loss of a pub represents not just another shuttered storefront, but the disappearance of a vital community hub.

Keir Starmer’s resignation has thrown Westminster into uncertainty, but for small business owners, the focus is already shifting to what comes next.

Andy Burnham, Starmer’s likely successor, claims Labour has previously “got it wrong on business” and has been a vocal supporter of measures aimed at helping retail and hospitality businesses, like reviving the high street and lowering business rates.

At present, of course, there’s no formal manifesto or plan in place, so what we can discern about Burnham’s policy platform largely comes from statements made during the Makerfield by-election period, as well as his time as the Mayor of Greater Manchester. So, here’s what Labour’s latest shake-up could mean for small businesses on the ground.

Keir Starmer: a rose or a thorn for small businesses?

Since Starmer’s landslide victory in 2024, his government has made a series of changes affecting small businesses, receiving a mixed reception from the sector.

One of its most popular actions has been creating legislation to tackle late payments. The bill, currently progressing through Parliament, would cap payment terms at 60 days for large companies dealing with SMEs and sole traders, and introduce penalties for persistent late payers. With UK small businesses owed, by some estimations, £70.4bn in late payments, the reforms have been widely welcomed as a step towards creating fairer trading relationships.

Starmer’s government also made efforts to support hiring challenges in the hospitality industry by making improvements to the government’s hospitality apprenticeship scheme. The £725m reform package saw the removal of the 5% levy on apprenticeships for under-25s, and the introduction of foundation apprenticeships for younger and lower-skilled entrants. 

But not all of Labour’s reforms have been received well by small businesses in particular. The party’s Employment Rights Act, which strengthens workers’ rights through measures such as day-one sick pay and more secure contracts, is a prime example. While supporters credit the legislation for improving job security, critics have noted that it disproportionately disadvantages small businesses by driving up operating costs, while reducing flexibility when it comes to making staffing decisions.

Changes to the rateable value of properties, on the other hand, remain one of Labour’s biggest sticking points among SMEs. The party initially promised to replace business rates with a fairer business property tax system, but ultimately reformed the existing system instead.

While rates for many retail, hospitality, and leisure properties did drop from April 2026, the withdrawal of generous Covid-era relief schemes resulted in some businesses facing higher bills than they would have been accustomed to. This ultimately led many to complain that the government’s approach did not have the interests of small businesses at heart.

Crucially, these changes were all part of Chancellor Rachel Reeves’ economic plan. There were murmurs some weeks ago that Burnham was considering keeping her on if he were to take a spot at the helm of government – she has, to an extent, maintained market confidence in a way he would presumably like to preserve  – but successors are already being discussed openly. 

If the fledgling PM decides to ditch Reeves and reshuffle the cabinet pack more broadly, which is highly likely, a clear question emerges: what will these changes mean in practical terms for UK businesses?

Burnham’s biggest pledge is to cut business rates

During the by-election campaign, Burnham proposed a 20% reduction in business rates for pubs, clubs and music venues. 

He also suggested raising the threshold at which businesses begin paying rates, potentially removing thousands of smaller retailers and hospitality firms from the system altogether.

The policy is designed to address what Burnham sees as an unfair advantage enjoyed by large online retailers. To fund the tax cuts, he has proposed increasing rates on large out-of-town distribution centres and warehouses used by ecommerce giants like Amazon, shifting more of the tax burden away from town centre businesses.

For small hospitality firms in particular, lower business rates could provide welcome relief at a time when operators are grappling with rising wage costs, high energy bills and weaker consumer spending. 

In addition, Burnham has made proposals to slash the value-added tax (VAT) contribution for hospitality businesses when he becomes Prime Minister. The plans have already received praise from leading chefs, including Tom Kerridge, who told The Guardian that Burnham’s proposed changes show that he “is somebody who understands nightlife, food, hospitality and entertainment”.

These reforms chime with the MP’s criticism of the increase in employers’ National Insurance Contributions introduced in the 2024 Budget, and his support for reducing some of those costs for businesses.

A renewed focus on high streets and independent businesses

Alongside business rates reform, Burnham is expected to place greater emphasis on reviving Britain’s high streets. 

One likely area of focus is bringing vacant retail units back into use. Burnham has previously supported measures to make town centres more attractive, with a mix of shops, leisure venues and housing aimed at drawing more people into local communities.

He has also signalled that he wants tougher action on illegal stores and unregulated vape shops, with plans for stronger enforcement and tighter licensing rules to protect legitimate retailers and improve the quality of high street offerings. 

For brick-and-mortar retailers, this could be good news. Higher footfall, improved town centres and lower occupancy costs could help independent shops compete more effectively with online rivals.

However, some businesses may be disappointed if high street support comes at the expense of wider reforms. Regeneration projects can take years to deliver, meaning retailers facing immediate pressures such as rising wages, energy costs and weak consumer spending may see little short-term benefit. 

 A long way still to go

Ultimately, Burnham’s agenda points to a clearer shift toward protecting the high street and small independent businesses, but the real test will be whether those ambitions can deliver meaningful relief in time to ease day-to-day pressures.

While many of his statements, such as a desire to slash VAT, have gone down well in sectors such as hospitality, some tax experts aren’t convinced that doing so is really the medicine restaurants, bars and pubs really need. It will also mean £12bn has to be recouped from somewhere else in the economy. Tough decisions will have to be made, and at the national level, the stakes are, of course, significantly higher.  

Although it’s feeling more and more like a formality, there is still a Labour leadership contest to win (allegedly). And, while many expect Burnham to coast into No.10 with an heir of messianic inevitability about him, for all we know, there could be further twists and turns to come. 

Following in the footsteps of Australia, the UK government has announced it will be banning social media platforms from providing services to under-16s from next spring, in an effort to protect children from the harmful consequences of social media.

As younger social media users brace themselves for a future without the infinite scroll and potentially more staring at walls, the changes are also likely to cause shockwaves for online retailers, specifically those that rely on platforms like TikTok and Instagram for customer acquisition. 

A further knock-on effect is likely to be a slowing down of fast-moving trend cycles, which have traditionally been accelerated by social platforms and have underpinned much of the demand in fashion, beauty, and lifestyle retail.

How does the UK government plan to keep under-16s off social media?

The government’s regulations, which will come into effect in spring 2027, will prevent apps like TikTok, Instagram, YouTube, and X from providing services to users born after 2011. 

The crackdown follows a similar ban introduced in Australia and tighter age-verification rules adopted in Brazil, as global governments respond to growing concerns about social media’s impact on young people’s mental health, wellbeing, and online safety.

Yet, according to Prime Minister Kier Starmer, the UK’s ban will be better enforced than those of other countries. According to the BBC, the platforms are required to use “highly effective age assurance” measures, which could involve users proving their age through government-issued identification, credit card checks, or biometric age-estimation technology such as facial scans.

Many chronically online under-16s will likely attempt to bypass the restrictions using VPNs or other workarounds. However, with Gen Alpha consumers being 1.5 times more likely than other generations to discover brands through social media, any widespread reduction in access will create ripple effects across the retail sector.

Which retailers will bear the brunt of Gen Alpha’s social media ban?

Online retailers that rely heavily on platforms like Instagram and TikTok for customer acquisition will likely be stung the most. 

This includes fast-fashion businesses that derive a large share of their purchases from TikTok trends and influencer content, like Cider, Shein, and White Fox, as well as beauty and skincare brands like Beauty Pie and BYOMA.

However, its smaller retailers utilising platforms like TikTok Shop and TikTok Selling that may be particularly vulnerable. The 28% of small businesses that cite social media as their primary driver of sales may struggle to compete against brands with a larger online presence, especially if they lack the marketing budget to diversify their customer pool.

The bans wider consequences for online sellers

According to Sharon Iles, Senior Apparel Analyst at GlobalData, the social media ban could also decelerate the pace of trend cycles in younger shoppers. She explains that platforms such as Instagram and TikTok have “sped up the cycle between trend discovery and purchase”, and that without these platforms, trend adoption among under-16s is likely to “heavily slow down”.

This could be particularly challenging for smaller online sellers that rely on younger generations making predictable purchases. Although Iles adds that retailers still have time to mitigate potential damage ahead of the ban. 

Another factor to consider is that with under-16s removed from platforms, the audience that fuels viral distribution will shrink, likely lowering overall reach and making it harder for content to achieve the same scale of organic virality as before.

This change will not affect all players equally; smaller businesses are likely to feel the impact more acutely as tighter competition for attention makes organic reach harder to sustain. This is why, for many small and independent online sellers, rethinking their marketing playbook will be essential for maintaining growth.

What steps can online retailers take to remain resilient?

One of the most important shifts for online retailers will be rethinking how they acquire customers beyond social media. 

Brands that have relied on TikTok or Instagram for discovery will need to refocus their digital marketing strategies towards more stable channels such as search, email, affiliate partnerships, and other performance-led activity.

Online sellers should also ensure their website is capable of taking on a larger role in discovery and conversion by simplifying checkout, improving product pages, and using first-party data to personalise the shopping experience. 

Another key priority will be pivoting marketing spend and messaging towards parents rather than younger audiences. For example, retailers selling toys, fashion, or beauty products aimed at Gen Alpha may need to focus more on parental decision-makers. Reassessing paid social targeting, influencer spend, and creative strategy to reflect this shift will be critical.

If you’re freelancing in 2026, you are probably already aware that the real challenge isn’t doing great work; it’s securing consistent clients.

While self-employment still offers unparalleled freedom, flexibility, and uncapped earning potential, it also comes with its fair share of challenges. Survey results have revealed that for many sole traders, keeping their pipeline full is emerging as their number one concern. 

As businesses tighten budgets and competition intensifies, freelancers are often among the first to feel the squeeze. 

The good news? While the market has changed, opportunities haven’t disappeared; they’ve simply shifted. The freelancers succeeding in 2026 are the ones willing to adapt and think outside the box when it comes to finding their next client.

UK freelancers face an uphill battle in 2026

Research has shown that sole traders are finding it harder than ever to secure their bread and butter. 

According to a survey by The Accountancy Partnership, which involved more than 1,000 freelancers, almost half (43.6%) of respondents reported that finding consistent work was their biggest career challenge, outranking other hurdles, like the accelerating threat of AI, and the rising cost of software. 

In the creative and digital sector, they found 50.2% of freelancers said they’re finding client budgets to be their biggest challenge, which is making project-based work harder to come by. Nearly half of the freelancers they spoke to working in the digital and creative sectors said they were doing five hours of unpaid work a week. 

This dilemma isn’t affecting all freelancers equally, however. Reports show that experts with deep specialisms are still in high demand, while businesses facing tighter budgets are becoming more selective about which talent they hire. The result is a “squeezed middle” of general freelancers who are neither niche enough to charge a premium rate nor inexpensive enough to compete on price alone. 

In addition to the shifting client landscape, the recent rollout of Making Tax Digital (MTD) is appearing to place additional pressure on sole traders, with data from Tarifix finding that the stress caused by tax returns is causing one in six freelancers to consider giving up their self-employment altogether. But fortunately, for those sticking to it, there are a number of creative ways to stay competitive. 

Reliable ways to find consistent work as a freelancer

When it comes to securing consistent work, the key is often taking a different path from the competition. While popular freelance platforms like Fiverr, Upwork, and PeoplePerHour have provided creatives and freelancers with reliable streams of work for years, the truth is these job sites are becoming increasingly oversaturated. 

To stand out, consider reaching out to editors and marketing managers directly, whether it be by messaging them on LinkedIn, sending them an email, or even making a traditional cold call. In a reality where 70-80% of job roles are not publicly advertised, bypassing crowded job boards helps you tap into the hidden market, maximising your chances of finding valuable job leads. 

Direct is only effective if you have a strong offering to back it up. This is why, before pitching for work, we recommend building a strong portfolio that provides tangible evidence of your past work and demonstrates the breadth of your capabilities as a freelancer. The good news is that creating a polished portfolio is easier than ever, with small business website builders allowing freelance talent to create a professional site with zero coding experience. 

To avoid getting trapped in the “squeezed middle”, developing a specialist skill set is also one of the most reliable ways to find consistent work. Upskilling or becoming more of an expert in your chosen field will see your competition drop rapidly. Clients will also be willing to pay a premium for expertise, with freelancers with a niche commanding 40% or more pay than their generalist counterparts. 

Other ways to protect your cash flow

Finally, while this isn’t strictly a pointer about finding work, protecting your cash flow is just as important as winning clients in the first place. This is why chasing missed or late payments is essential. What’s more, finding consistent work is often just a matter of search time; spending time chasing payments will slowly chip away at this. 

According to the UK’s Small Business Commissioner and the founder of Enterprise Nation, Emma Jones, three practical ways to increase your chances of getting paid on time include making sure your invoice is crystal clear, knowing your terms of payment back-to-front before you start the work, and contacting the right person when chasing up about late payments. 

Unsure of the company’s chain of command? Don’t be afraid to ask who approves invoices. Leading with assertiveness is critical. Whether you’re pitching to clients or negotiating rates, being proactive can spell the difference between an inconsistent pipeline and a steady stream of income.

The UK Government is planning to make further changes to its food advertising and labelling rules, as it claims market forces alone aren’t sufficient in encouraging children to make healthier food choices. 

The reforms arrive against a backdrop of increasing regulations for food and beverage producers in the UK, with many businesses already feeling the pinch from tighter packaging laws and compliance measures that came into force at the start of the year.

But as these changes quickly approach, what impact will the new food business rules actually have on the factory floor, and what actions startups can take to avoid getting caught short?

What new healthy food rules are the government proposing?

In a bid to tackle poor diets and obesity among children, the Government is considering making changes to its Nutrient Profiling Model (NPM) — a scoring system that measures the healthiness of foods and drinks based on their levels of salt, calories, saturated fats, protein, and free sugars. 

Under these new changes, which are expected to take effect later this month, products such as fruit juices, yoghurts with fruit compost, and bran flakes could be reclassified from the “less healthy” to “unhealthy” category. This revision directly impacts which items can be sold on promotion, displayed in high-traffic areas in-store, and advertised on television during peak times. 

After dropping plans to encourage supermarkets to roll out voluntary food price caps on staple products like bread, milk, and eggs in May, these new regulations take another stab at tackling the drivers of obesity by making healthier products more accessible and appealing to consumers.

How the Government’s new rules could impact prices and investment

The food and drink industry, which is already grappling with rising labour costs, packaging taxes, and stricter recycling rules, is unsurprisingly finding these changes hard to digest. Industry groups argue these reforms risk fueling inflation and dampening investment in the sector, while adding costs that will ultimately be passed onto consumers.

These worries aren’t unfounded. Major manufacturers have already voiced concerns about these new rules, with Jon Hughes, managing director at Haribo, telling the Financial Times that the company would invest less in Britain as a result of the proposed changes, commenting that “The goalposts are moving every year from how we advertise to run promotions”, creating “a huge amount of distraction”.

Changes to NPM scoring criteria may also force manufacturers to spend more on reformatting products, revising packaging, and reconsidering supplier relationships, while retailers could face tighter rules on promoting and displaying less healthy products.

While the Government maintains that these new regulations would only affect large and medium-sized UK businesses, these changes would likely create downstream effects for smaller pubs and restaurants. If manufacturers face stricter rules, the higher costs they face could be passed onto hospitality businesses, forcing venues to raise food prices, switch suppliers or adjust menus to offset costs.

How can your business prepare for the new rules?

While the proposed changes are primarily aimed at larger food businesses, smaller manufacturers and hospitality operators should still consider taking steps to reduce disruption.

For small food manufacturers, we recommend reviewing the proposed Nutrient Profiling Model changes and assessing which products could potentially be reclassified as less healthy or unhealthy. 

You could also explore reformulation opportunities to reduce levels of sugar, salt, or saturated fat in your products, where possible. This could have a direct impact on how retailers you work with market, display, and promote your items.

The rules could also affect small restaurants, pubs, and independent shops slightly differently, potentially affecting which products you’re able to buy and sell. To keep disturbances to a minimum, keep in close contact with suppliers about product availability, recipe changes, and price changes.

You could also stay one step ahead of the curve by reviewing current menus and product ranges, so you’re able to act fast if key products become unavailable, more expensive, or face display regulations when the new regulations come into effect.  

Ultimately, while these looming changes may prove unsavoury for parts of the manufacturing industry, the sooner businesses prepare, the easier it will be to absorb the impact of the new rules.