Categories: Blog

Small business news.

Here's a roundup of the latest UK small business news as of this week:

Spring Statement & Economy

Chancellor Rachel Reeves delivered the 2026 Spring Statement on 3 March, with the OBR downgrading its economic growth forecast for 2026 from 1.4% to 1.1%. The OBR also forecasts unemployment rising to a peak of 5.3% in 2026, though inflation is expected to fall to 2.3% this year. Crucially, the OBR’s forecasts don’t account for the impact of rising energy prices from the Middle East conflict, which it described as potentially having “very significant impacts on the global and UK economies.”

Cost & Cashflow Pressures

A survey by Novuna Business Finance found that 79% of small business owners in London say they are losing sleep over business challenges, with economic volatility and geopolitical uncertainty cited by 50% of respondents. Despite this, around 40% of business owners still expect their companies to grow in the early part of 2026.

The tax burden on businesses is described as being at a century-long high, compounded by rising energy and supply costs — with 82% of small business owners reporting cost surges over the past year.

Energy & Global Pressures

UK firms are grappling with rising taxes, higher employment costs, and pressure from business rates, while the Middle East conflict is pushing up oil and gas prices, threatening further inflation.

Upcoming Law Changes

Several changes hitting small businesses from April 2026:

Making Tax Digital (MTD) begins from April 2026 for those with qualifying income over £50,000, shifting businesses to quarterly digital reporting.
The National Minimum Wage rises again on 1 April — to £12.71 for over-21s, £10.85 for 18–20-year-olds, and £8 for 16–17-year-olds and apprentices.
Pubs and music venues will receive a 15% discount on business rates from April 2026, followed by a two-year real-terms freeze.

Social Media & AI

A survey found that 71% of UK SMEs admit to not using social media to track viral trends, with many still relying on instinct to stay ahead of consumer demand.

In short, it’s a tough environment — costs are high, growth forecasts have been trimmed, and a wave of new compliance requirements is on the way. The businesses most likely to weather it are those focused on cashflow management and early preparation for the regulatory changes coming in April.

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