Businesses that engage freelancers, contractors and other self-employed workers may need to review their arrangements following a new Government consultation aimed at tackling bogus self-employment and improving protections for people who are genuinely self-employed.

Bogus self-employment can arise where an individual is described as self-employed, but the practical working relationship suggests that they may actually be entitled to employment protections. The Government estimates that as many as 900,000 people could be affected and is considering whether clearer rules are needed to help businesses and workers understand where the dividing line should be drawn.

The proposals are intended to make employment status easier to determine and could strengthen access to rights such as the National Minimum Wage and paid holiday where someone is, in substance, working as an employee or worker. The consultation also considers whether genuinely self-employed people should receive clearer written information about the terms on which they are engaged.

For businesses, the important point is that the label placed on an arrangement does not necessarily determine the legal position. The way the relationship operates in practice remains important, including the degree of control exercised by the business, whether the individual works exclusively for one organisation and how much freedom they have over when and how the work is carried out.

No immediate change has been made to the law, and the consultation concerns employment rights rather than tax status, which continues to operate under a separate framework. Nevertheless, businesses that make significant use of freelance or contract labour may find it sensible to review their existing arrangements now, checking both the written contracts and the reality of the day-to-day working relationship.

The consultation closes on 8 January 2027, giving businesses time to consider whether any of their current arrangements could become more difficult to justify if the rules are tightened.

Most businesses now depend on several software systems to manage everyday activities such as email, accounting, document preparation, customer records and internal communication, and as these systems become increasingly integrated it can become difficult and expensive to move from one supplier to another.

The Competition and Markets Authority announced in October that it is examining competition and customer choice in the business software market, with particular attention being given to Microsoft because of the widespread use of its products across UK businesses. The regulator is considering whether current licensing arrangements, software compatibility and the growing integration of artificial intelligence make it unnecessarily difficult for customers to combine products from different suppliers or move to alternatives.

No final decision has been made, but the investigation raises a useful question for business owners: how dependent has the business become on a particular software provider?

Integrated systems can offer substantial advantages, including simpler administration, easier sharing of information and better communication between different parts of the business. However, that convenience can create problems if subscription charges rise sharply, useful features are withdrawn or the business later wants to adopt a competing product that does not communicate easily with existing systems.

Businesses may therefore benefit from reviewing their software arrangements periodically rather than waiting until a problem arises. This could include checking whether data can be exported in a usable format, whether important systems can communicate with alternative applications and whether there are subscriptions being paid for that are no longer necessary.

The competition review may eventually lead to greater customer choice, but businesses do not need to wait for regulatory action before considering their own position. Understanding existing software commitments, maintaining access to business data and avoiding unnecessary dependence on one supplier can help control costs and preserve flexibility as technology continues to change.

Late payment of invoices remains one of the most persistent problems facing UK small businesses, and recent research suggests the situation is becoming increasingly difficult. 60% of UK small and medium-sized businesses report that customers are taking longer to settle invoices than they were a year ago. The average amount owed in outstanding invoices is now £72,000.

For smaller businesses, delayed payments can create serious financial difficulties, even when sales are increasing and the business is profitable. A business may have sufficient orders, healthy profit margins and a growing customer base, but none of these advantages will prevent cash shortages if customers consistently pay late.

The consequences can be considerable. Businesses may struggle to pay suppliers, meet payroll commitments or fund essential investment. In extreme cases, late payments can threaten their survival.

Fortunately, there are practical steps business owners can take to reduce their exposure. 

• Start by reviewing payment terms. Are customers clear about when invoices must be settled? Are invoices issued promptly and do they contain all the information customers need?
• Next, establish a consistent credit control process. Send reminders before invoices become overdue and follow up outstanding amounts quickly. Where appropriate, consider requesting deposits or staged payments. 
• It is also worth reviewing customer credit limits, particularly where payment patterns have deteriorated.
• Finally, prepare a rolling cash-flow forecast covering at least the next three months. This can highlight potential shortages early enough for corrective action.

Late payments may be beyond the complete control of individual businesses, but the consequences need not be.

Business confidence across the UK is showing signs of improvement, although many smaller businesses remain reluctant to commit money to new investment.

The latest British Chambers of Commerce Quarterly Economic Survey, published in October 2026, found that 47% of businesses expect their turnover to increase over the next 12 months. However, only 17% plan to increase investment in equipment, machinery or other business assets during the next three months, a post-pandemic low.

The findings suggest that business owners remain cautious despite growing optimism about future sales. Nevertheless, postponing investment indefinitely carries risks of its own.

Outdated equipment, inefficient working practices and ageing technology can gradually undermine competitiveness. Businesses that fail to invest may eventually find themselves struggling to match more productive competitors.

The important question is not simply whether a business can afford to invest, but whether the proposed investment will generate sufficient benefits to justify its cost. For example, replacing outdated equipment might reduce production costs, improve quality or release staff time for more profitable activities.

Similarly, investing in digital systems could reduce administration, improve customer service and provide better information for management decisions.

Before committing funds, business owners should prepare a straightforward investment appraisal. Estimate the initial cost, identify the expected financial benefits and calculate how long it will take to recover the expenditure. Consider the effect on cash flow and whether external finance might be appropriate.

It is also sensible to consider what happens if anticipated benefits take longer to materialise. Economic uncertainty is unlikely to disappear completely. Waiting for ideal conditions could mean missing worthwhile opportunities. Carefully planned investment, supported by realistic financial forecasts, can help businesses improve efficiency, protect profitability and prepare for future growth.

A new system for recording waste movements came into operation on 1 October 2026.

The first phase of mandatory digital waste tracking applies to permitted or licensed sites receiving controlled waste in England and Wales.

Affected organisations must record details of every load they receive through the Government’s new digital service. In most cases, the information must be submitted within two working days, beginning on the day after the waste is received. More than 12,000 permitted waste sites in England are expected to be covered by the new arrangements.

Businesses can either enter information directly through the Government service or use compatible commercial software that connects to it. The immediate obligation falls mainly on businesses operating waste-receiving sites, but this is only the first stage of a much wider change.

The Government intends eventually to create a digital record covering waste from the point at which it is produced through collection, transport and final treatment or disposal. Waste collectors are expected to become subject to mandatory digital tracking from October 2027.

The aim is to improve transparency and make it more difficult for illegal operators to disguise where waste has come from or where it has gone.

Businesses directly affected should check that staff understand the new reporting deadlines and that their software or administrative procedures can capture the required information accurately.

Other businesses should also watch developments. Digital waste tracking is gradually replacing paper-based records with a more traceable digital audit trail.

For businesses that produce, move or receive significant quantities of waste, now is a good time to review existing record keeping and establish whether future changes are likely to affect them.

A business may have the finance, premises and customers for an expansion project, yet still face another obstacle: obtaining enough electricity.

The Government has announced Great British Grid, a new publicly owned organisation intended to help accelerate investment in Britain’s electricity network.

The issue is becoming increasingly important as businesses electrify heating, transport and manufacturing processes, while renewable generation, battery storage and data-intensive activities also require additional grid capacity.

One proposed change could directly affect businesses planning substantial projects.

The Government intends to expand the use of self-build electricity connections. This could allow developers and businesses, where appropriate, to arrange construction of their own connection rather than waiting for the network company to complete the work.

That does not mean every business will suddenly be able to obtain an immediate connection. Britain’s electricity network requires substantial expansion and many projects are competing for capacity. However, the announcement highlights something businesses should consider surprisingly early in an investment project.

If an expansion requires substantially more electricity, installing rapid vehicle charging, electrifying production or opening energy-intensive premises, available grid capacity should form part of the initial feasibility work.

There is little benefit in committing to premises, machinery and finance before discovering that the required electricity connection could delay the project significantly. For larger investments, energy capacity is therefore becoming another issue to examine alongside finance, planning permission, staffing and expected demand.

The earlier it is investigated, the greater the opportunity to adjust the project, consider alternative locations or explore other connection options before significant commitments are made.

When an employee develops a health problem, the consequences can extend far beyond a few days of absence. The Government published an update to its Keep Britain Working programme on 23 September, setting out plans for what it describes as Britain’s first Workplace Health System.

The scale of the problem is substantial. Around 300,000 people with health conditions leave employment each year, while approximately 2.8 million working-age people are economically inactive because of ill health or disability.

The Government argues that earlier intervention could help more people remain at work rather than waiting until health problems have developed into long-term absence.

There is a useful lesson here for individual employers.

A business may understandably concentrate on managing sickness absence once an employee has already been away for a significant period. Earlier conversations can sometimes be more productive. Managers should know how to respond when someone begins struggling with their workload or health. Relatively simple adjustments to hours, duties or working arrangements may sometimes help an employee remain productive.

Return-to-work arrangements also deserve attention. Government figures suggest that someone absent for four to six weeks has a 96% chance of returning to work, whereas fewer than half of those absent for a year return. 

For smaller businesses, losing an experienced employee can be particularly disruptive. Recruitment costs are only part of the problem. Knowledge, customer relationships and productivity can disappear with them.

Workplace health should therefore not be viewed solely as an HR matter. Supporting employees effectively can also be part of protecting the skills, experience and resilience of the business.

Businesses waiting for cheaper borrowing may need to reconsider their plans.

The Bank of England kept Bank Rate unchanged at 3.75% in September, but three members of the Monetary Policy Committee voted for an immediate increase to 4%.

The concern is inflation. UK inflation has moved above the Bank’s 2% target and higher energy costs are creating additional pressure. If those costs continue feeding through into wages and prices, interest rates may need to remain higher for longer.

For businesses, the important point is not to try to predict precisely what the Bank will do next. Instead, make sure that borrowing and investment plans remain viable under more than one interest-rate assumption.

A business considering new finance could prepare three forecasts. One might assume rates remain broadly unchanged; another could model a modest increase and a third could show the effect of rates eventually falling.

This can materially affect an investment decision.

A project that looks comfortably affordable if borrowing costs fall may leave little financial headroom if rates remain at present levels. On the other hand, an investment that still produces an acceptable return under a higher-rate scenario may be worth pursuing rather than waiting indefinitely for cheaper money.

Existing borrowing should also be reviewed. Businesses with fixed-rate loans approaching renewal need to understand what refinancing might cost. Variable-rate borrowing and overdrafts should be monitored because higher finance costs can gradually erode profit and cash flow.

The practical message is simple. Rather than basing decisions on hopes of lower interest rates, businesses should stress-test their plans.

Knowing what happens if borrowing remains expensive provides a much stronger basis for making investment and financing decisions.

Cyber security is sometimes treated as a problem for large organisations with specialist IT departments. In reality, smaller businesses can be particularly vulnerable because they often have fewer resources available to detect an attack and recover afterwards.

The Government continues to strengthen its approach to cyber resilience, including the planned Cyber Security and Resilience Bill. However, individual businesses can take several practical steps now.

Start by asking what would happen if staff could not access the accounting system, customer records or email tomorrow morning.

Backups are essential, but having a backup is not enough. Businesses should periodically test whether important data can actually be restored.

Access controls also matter. Multi-factor authentication should be used wherever possible, particularly for email, banking, accounting software and other systems containing sensitive information.

Employees remain another important line of defence. A convincing email asking for an urgent payment or a change of bank details can bypass sophisticated technology if the recipient acts without checking it independently.

Businesses should therefore have simple procedures for verifying unusual payment requests and any change to supplier bank details. It is also worth preparing for what happens after an incident.

Keep contact details for IT support, insurers and other key advisers somewhere that can be accessed if the main computer network is unavailable. Decide who will take responsibility for communicating with staff, customers and suppliers.

Cyber security does not require every business owner to become a technology expert. However, it does require preparation.

A short discussion about what the business would do if its systems became unavailable can quickly expose weaknesses that are relatively inexpensive to correct today. The aim is not to guarantee that a cyber-attack will never succeed, but to ensure that one incident does not bring the entire business to a halt.

The British Business Bank has launched a £210 million investment fund to help smaller businesses in the South East of England start, develop and grow.

The South East Investment Fund will offer loans ranging from £25,000 to £2 million, together with equity investments of up to £5 million. The area covered includes Buckinghamshire, Oxfordshire, Berkshire, Hampshire, the Isle of Wight, Sussex, Surrey and Kent.

Although this particular fund is restricted to the South East, British Business Bank-backed investment funds are now operating across every UK nation and region outside London. Businesses elsewhere may therefore find that comparable sources of finance are available in their area.

The announcement provides a useful reminder that funding should form part of a business’s wider growth strategy. External finance might be used to purchase equipment, recruit employees, develop a new product, enter another market or provide additional working capital.

Before applying, the owners should be clear about how much money the business needs, what it will be used for and how the investment will improve its performance. Borrowing more than necessary increases costs, while borrowing too little may leave a project unfinished.

The choice between a loan and equity investment also requires careful consideration. A loan will normally need to be repaid with interest, but the owners retain control of the business. Equity investment does not usually require regular repayments, although the investor receives a share of the business and may have a say in important decisions.

Prospective funders are likely to expect current management accounts, financial forecasts, a business plan and evidence that the owners understand the risks involved. Preparing this information can also help management decide whether the proposed investment is commercially sensible.

If you are considering raising finance, early planning is important. We can help you assess the funding requirement, prepare forecasts and present the financial case clearly to prospective lenders or investors.