Businesses planning major infrastructure and development projects should be aware of a new government consultation on the tax treatment of predevelopment costs.

The consultation follows the conclusion of recent litigation at the Supreme Court. The Court found that certain early-stage surveys and studies for offshore wind farms did not qualify for plant and machinery capital allowances because they were not sufficiently closely connected to the provision of the plant.

This could affect businesses incurring significant costs before construction begins and mean that some predevelopment costs are not deductible from business profits. This could include surveys, environmental assessments, feasibility work and other studies needed to decide whether and how a project should proceed. 

The consultation is particularly focused on understanding the predevelopment costs businesses incur, how well businesses understand the tax treatment following the Supreme Court judgment and whether the tax treatment of these costs affects business and investment decisions.

The government says it is not currently minded to change the tax treatment of these costs, but the consultation could lead to changes if the evidence shows that the current treatment creates significant problems for investment or the UK’s competitiveness.

Businesses with major projects should therefore consider how their early-stage costs are being treated and keep clear records of what the costs relate to. The consultation closes on 21 September 2026.

The latest figures from the Office for National Statistics suggest that conditions remain challenging for many UK businesses.

In July 2026, 15% of trading businesses reported an increase in turnover compared with the previous month. However, 22% reported that turnover had fallen.

Economic uncertainty remains an important concern, while businesses employing ten or more people were particularly likely to identify labour costs as a challenge. Energy costs are also moving back up the agenda, with 61% of businesses expressing some degree of concern about energy prices in early August.

These national figures are interesting, but the more useful question is how your own business compares.

Has turnover increased during the past year? More importantly, has profit kept pace?

Are higher wages, energy bills and other costs gradually reducing your margins?

And if costs are increasing, have your selling prices been reviewed recently?

It is easy to become accustomed to gradual changes in business performance. A small reduction in margin or steady increase in overheads may not appear significant from month to month, but the cumulative effect can be considerable.

Which makes this a good time to review your latest management figures and compare them with the same period last year.

Look particularly at turnover, gross profit margin, payroll costs and overheads.

If something has changed significantly, understanding why it has changed is the first step towards deciding what to do about it.

Cybercrime is no longer a problem that only affects large organisations. Increasingly, small and medium-sized businesses are becoming targets because criminals often see them as having weaker security and fewer resources to recover from an attack.

A successful cyberattack can have serious consequences. Customer information may be stolen, computer systems locked by ransomware, payments diverted or operations brought to a standstill. Even a short period of disruption can damage cash flow, customer confidence and a business's reputation.

Many attacks begin with something as simple as a convincing phishing email. An employee clicks on a malicious link or opens an infected attachment, allowing criminals to gain access to the business's systems. Artificial intelligence has made these fraudulent emails more convincing than ever, making staff awareness increasingly important.

Fortunately, there are several straightforward steps that every business can take to reduce the risk. Strong, unique passwords should be used for all accounts and protected by multi-factor authentication wherever possible. Software should be updated promptly to close known security vulnerabilities, and important business data should be backed up using secure, offline or cloud-based systems.

Staff training is equally important. Employees should understand how to recognise suspicious emails, unexpected payment requests and fraudulent telephone calls. Creating a culture where staff feel comfortable questioning unusual requests can prevent costly mistakes.

Business owners should also consider whether their cyber security arrangements have kept pace with the way they now work. Remote working, cloud software and mobile devices have all increased the number of ways that criminals may attempt to gain access.

Cyber security is not simply an IT issue. It is a business risk that should be reviewed regularly, just like insurance or health and safety procedures.

Taking sensible precautions today could prevent significant financial losses tomorrow. A modest investment in cyber security can protect your business, reassure your customers and help ensure that an isolated incident does not become a major crisis.

Employment law continues to evolve, and businesses should keep a close eye on forthcoming changes that may affect the way they recruit, manage and retain staff. Although many of the proposed reforms are still being developed, employers should not wait until new legislation comes into force before reviewing their existing arrangements.

For many businesses, employment contracts and staff handbooks may not have been updated for several years. As employment rights develop, older documents may no longer reflect current legal requirements or best practice. Reviewing them now can reduce the risk of future disputes and ensure that employees clearly understand their rights and responsibilities.

Businesses that employ part-time, temporary or casual workers should pay particular attention to any changes affecting working patterns and contractual arrangements. Even relatively small changes in employment law can have an impact on staffing costs, administration and workforce planning.

Good communication with employees is also essential. Explaining workplace policies clearly, maintaining accurate records and dealing with concerns promptly can often prevent misunderstandings from developing into formal grievances or legal claims.

Managers should receive appropriate training, so they understand the organisation's policies and apply them consistently. Inconsistent treatment of employees is one of the most common causes of workplace disputes and can expose a business to unnecessary risk.

This is also a good opportunity to review wider employment practices. Recruitment procedures, performance reviews, flexible working arrangements and absence management policies should all support the needs of both the business and its employees.

Professional advice can be invaluable where changes are expected. Employment specialists can help ensure that contracts and policies remain compliant, while we can assist in assessing the financial implications of changes to staffing structures and employment costs.

Preparing early is usually far easier and less expensive than reacting after new rules have taken effect. Businesses that regularly review their employment practices are generally better placed to adapt to legislative change while maintaining a positive and productive working environment.

Technology is changing the way businesses operate, and the pace of change is only increasing. While large organisations often have dedicated IT departments, many small businesses still rely on traditional methods that consume valuable time and limit productivity. Improving digital skills can help businesses work more efficiently, reduce costs and provide a better service to customers.

Digital skills are no longer limited to understanding computers. They include making effective use of cloud accounting software, collaborating online, managing customer relationships, using artificial intelligence responsibly, improving cyber security and automating routine administration.

One of the biggest benefits is the time that can be saved. Tasks such as issuing invoices, chasing payments, booking appointments and filing documents can often be automated, allowing owners and staff to concentrate on higher value work. Even small improvements can save several hours each week.

Better digital skills can also improve decision making. Most business software can provide real-time information on sales, cash flow and profitability, allowing problems to be identified before they become serious. Owners who have access to timely financial information are generally better placed to make informed decisions about pricing, investment and recruitment.

Customer service can also benefit. Businesses that use online booking systems, electronic quotations and digital communication often respond more quickly to enquiries and provide a smoother experience for their customers. This can improve customer satisfaction and encourage repeat business.

However, technology should be adopted carefully. Staff need appropriate training, and businesses should ensure that confidential information is protected. Strong passwords, multi-factor authentication and regular software updates remain essential safeguards against cybercrime.

Many organisations now offer free or subsidised digital skills training for small businesses. Taking advantage of these opportunities can be a cost-effective way to improve productivity without significant investment.

Businesses that embrace technology are often better equipped to respond to changing market conditions. Improving digital skills is not simply about keeping up with new technology. It is about working smarter, making better decisions and creating more time to focus on growing the business.

Economic uncertainty has affected the confidence of many small business owners. Rising costs, changing customer demand and pressure on cash flow have led some businesses to postpone investment until conditions improve. While this cautious approach is understandable, waiting for the economy to recover before taking action can mean missed opportunities.

A good starting point is to review profitability. Are all products and services making a worthwhile contribution? Have prices kept pace with increasing costs? Small adjustments to pricing or the product mix can have a significant impact on profits without requiring additional sales.

Cash flow also deserves regular attention. Reducing debtor days, managing stock more effectively and reviewing supplier payment terms can improve liquidity and reduce the need for external finance. Strong cash flow provides greater flexibility when opportunities arise.

Periods of slower growth are also an ideal time to review business processes. Many firms discover that routine tasks can be simplified or automated, freeing staff to focus on activities that generate income or improve customer service.

Customer relationships should not be overlooked. Existing customers are often the easiest source of additional business. Regular communication, prompt service and identifying changing customer needs can strengthen loyalty and create opportunities to introduce new products or services.

Investment in staff training is another area that often delivers long-term benefits. Developing new skills today can improve productivity and prepare employees for future challenges.

Finally, ensure that the business has realistic budgets and cash flow forecasts. Regularly comparing actual results against expectations allows problems to be identified early and gives owners greater confidence when making important decisions.

The businesses that emerge strongest from challenging economic conditions are rarely those that simply wait for circumstances to change. They are the ones that prepare, adapt and position themselves for success long before confidence returns.

Energy costs remain a significant overhead for many UK businesses. Although wholesale prices have eased from the exceptional highs seen in recent years, uncertainty in global energy markets means prices can still fluctuate sharply. For many small businesses, reducing energy consumption remains one of the simplest ways to improve profitability.

The first step is to understand where your energy is being used. Reviewing recent electricity and gas bills can help identify seasonal patterns and unusually high periods of consumption. If your business has a smart meter, you may be able to access more detailed information that highlights where savings could be made.

Lighting is often one of the easiest areas to address. Replacing older bulbs with LED lighting can reduce electricity consumption significantly, while installing motion sensors in less frequently used areas prevents lights being left on unnecessarily. Businesses should also ensure that external lighting is switched off outside trading hours unless it is required for security.

Heating and cooling systems deserve equal attention. Poorly maintained boilers and air conditioning units consume more energy than necessary. Regular servicing, combined with sensible temperature settings, can reduce running costs without affecting staff comfort. Improving insulation and eliminating draughts may also provide worthwhile savings, particularly in older premises.

Office equipment is another area where costs can quietly accumulate. Computers, printers and other devices should be switched off when not in use rather than left on standby overnight or during weekends. Many modern devices include power-saving settings that can reduce electricity consumption automatically.

Businesses should also review their energy contracts before renewal. The cheapest tariff several years ago may no longer represent good value today. Shopping around or using an independent broker may identify more competitive deals, particularly where fixed price contracts are available.

For businesses planning longer-term improvements, investment in energy-efficient machinery or renewable technologies may reduce operating costs over many years. While such projects require careful financial evaluation, they can also improve resilience against future price increases.

Finally, involve your employees. Simple measures such as turning off unnecessary equipment, reporting maintenance issues promptly and adopting energy-conscious habits can make a noticeable difference over time.

Every pound saved on energy costs falls directly to the bottom line. At a time when many businesses continue to face rising employment, borrowing and operating costs, reviewing energy usage is a practical exercise that can improve cash flow and profitability without increasing sales. A regular review could reveal savings that are easier to achieve than you might expect.

Many successful businesses eventually reach a point where additional finance is needed. Whether the objective is purchasing equipment, expanding premises, recruiting staff or improving cash flow, access to funding can often determine how quickly a business can grow.

Unfortunately, many applications are rejected, not because the business lacks potential, but because lenders are unconvinced by the information they receive.

Before approaching a bank or other lender, it is worth taking time to understand what they are likely to assess. Profitability is important, but it is only part of the picture. Lenders also want reassurance that the business generates sufficient cash to meet future loan repayments. A profitable business can still experience cash flow difficulties, making cash flow forecasts an essential part of any application.

Up-to-date financial information is equally important. Management accounts, current balance sheets and realistic forecasts demonstrate that the owners understand their business and actively monitor performance. Out-of-date figures can quickly undermine confidence.

Lenders also look closely at the purpose of the borrowing. A well-prepared application should explain exactly how the funds will be used and how the investment will improve the business. For example, purchasing equipment that increases productivity or investing in technology that reduces operating costs presents a stronger case than borrowing simply to cover recurring losses.

Existing borrowing will also be reviewed. Businesses should understand their current commitments and be prepared to explain how any new borrowing fits within their overall financial position. Demonstrating sensible financial management can improve credibility considerably.

Credit history matters too. Paying suppliers, lenders and HMRC on time helps build confidence, while resolving any historic issues before applying can improve the chances of success.

Business owners should also remember that banks are no longer the only source of finance. Asset finance, invoice finance, Government-backed lending schemes and regional investment funds may all provide suitable alternatives depending on the circumstances.

Finance providers want confidence that a business is professionally managed and capable of repaying what it borrows. By preparing thoroughly and presenting clear, well-supported financial information, businesses can significantly improve their chances of obtaining the funding they need to support future growth.

Artificial intelligence (AI) has dominated business headlines over the past year, with many suggesting it will transform the way companies operate. While there is no doubt that AI has enormous potential, recent research indicates that many small businesses have yet to experience significant commercial benefits.

For some business owners, the challenge is knowing where to start. Others have invested in AI tools only to discover that they do not automatically save time or reduce costs. Like any technology, AI is most effective when it is applied to specific business problems rather than simply because it is fashionable.

There are, however, areas where AI can make a genuine difference. It can help draft marketing content, answer routine customer enquiries, summarise lengthy documents, automate repetitive administration and assist with bookkeeping and data analysis. Used sensibly, these tools can free up valuable time for higher value work.

It is important to remember that AI is not a substitute for professional judgement. Financial decisions, legal matters and strategic planning still require human expertise and careful consideration. Businesses should also ensure that confidential information is protected before entering data into AI systems.

Before investing in new technology, business owners should identify the tasks that consume the most time and consider whether AI could improve efficiency. Starting with one or two simple applications often produces better results than attempting a complete overhaul.

The businesses that benefit most from AI are likely to be those that adopt it thoughtfully, train their staff properly and regularly review whether it is delivering measurable improvements.

If you are considering introducing AI into your business, we can help you assess where it may add value, evaluate the likely financial benefits and ensure that any investment supports your wider business objectives.

Economic conditions remain uncertain and many business owners are understandably cautious about the months ahead. Although there are signs of improvement in some sectors, rising costs, changing customer demand and ongoing economic pressures mean that confidence remains fragile.

When uncertainty increases, it is tempting to postpone important decisions until conditions become clearer. However, delaying action can sometimes create bigger problems. Businesses that monitor their financial performance regularly are generally better equipped to respond to changing circumstances than those relying solely on annual accounts.

A good business plan is not simply a document prepared for a bank. It should be a practical management tool that helps owners understand where the business is heading, what risks may lie ahead and how future opportunities can be developed.

Regular cash flow forecasts, profit projections and key performance indicators provide valuable early warning signs if trading conditions begin to change. They also enable business owners to make informed decisions about pricing, recruitment, investment and financing before problems become urgent.

Periods of uncertainty can also create opportunities. Competitors may reduce investment, delay product launches or cut marketing activity. Businesses with a clear strategy and a good understanding of their financial position are often well placed to strengthen their market position while others hesitate.

Planning does not eliminate risk, but it does help reduce surprises. Even a short quarterly review of financial performance and future objectives can identify issues that might otherwise go unnoticed.

We can help you develop meaningful management information, prepare realistic forecasts and review your business strategy throughout the year. Regular planning discussions can provide greater confidence when making important decisions and help ensure your business remains resilient whatever economic conditions lie ahead.