Business

The Open University (OU) has joined forces with NatWest and the Department for Work and Pensions (DWP) to relaunch the Open Business Creators Fund, a nationwide initiative offering early-stage women entrepreneurs financial support, mentoring, and access to training resources.

Launched in a video message by Baroness Martha Lane Fox, Chancellor of The Open University, the competition offers individual grants of up to £2,500, backed by £50,000 in sponsorship from NatWest.

The fund is open to women and those who identify as women aged 16 and over living anywhere in the UK, and is aimed at supporting those in the idea or early stages of starting a business.

“This is more than a competition – it’s a launchpad for women entrepreneurs,” said Chaitali Patel, Head of Prospects at The Open University. “With the support of our Validate platform, every applicant leaves with a stronger, clearer business concept and the confidence to take it forward.”

A learning-led approach to entrepreneurship

What sets this initiative apart is that every applicant is guided through the OU’s Validate business development platform — an interactive tool that helps users refine and test their business ideas.

Validate walks participants through identifying customer needs, developing value propositions, understanding key partners and resources, and producing a professional business portfolio. The completed portfolio then forms part of the fund application, meaning even those who don’t secure a grant gain practical skills and a tangible business plan.

The initiative builds on The Open University’s long-standing commitment to inclusive, accessible entrepreneurship, helping remove the barriers often faced by women, people of colour, and those from lower-income backgrounds when starting out in business.

Alongside the funding competition, the OU and NatWest will host a three-part webinar series across October and November — free and open to all — designed to inspire and equip new founders with practical skills.

The series, themed around Confidence, Capabilities, and Connections, features high-profile entrepreneurs, academics, and industry mentors:

Webinar 1: Confidence – Tuesday, 21 October (12:00–13:00)

Mags Byrne, Entrepreneur in Residence at The Open University, and Stef Genesis, a pioneer in the esports industry, will share their journeys. OU Business School’s Liz Moody will lead a hands-on workshop to help participants refine and strengthen business ideas.

Webinar 2: Capabilities – Wednesday, 5 November (12:00–13:00)

Ronke Maye, founder of Ronke Maye Ltd, will discuss audience engagement and relationship-building, followed by NatWest experts on managing costs and projecting revenue.

Webinar 3: Connections – Tuesday, 18 November (19:00–20:00)

A dynamic panel featuring Soyna Barlow, Justice Williams, Claudine Reid MBE, and OU Entrepreneur in Residence Russell Dalgleish will explore networking, visibility, and collaboration.

Anyone can register for the webinars through the Open Business Creators website.

Applications open until 21 November

To apply, participants must complete their Validate portfolio and submit it via the Open Business Creators entry formby midnight on Friday, 21 November 2025. Winners will be announced on 19 December 2025.

The competition provides more than just funding — it’s designed to foster a sense of community among new founders, connecting them with role models and professional networks through NatWest’s Enterprise team and The Open University’s entrepreneurship ecosystem.

Patel added that the initiative represents a broader push to democratise access to entrepreneurship: “Everyone should have the chance to turn an idea into a viable business — not just those with existing networks or resources. This fund is about levelling the playing field.”

The fund’s return comes at a time of rising interest in female entrepreneurship, with women starting businesses at faster rates than ever before but still facing significant disparities in funding access.

By combining NatWest’s business expertise with the OU’s education and mentoring framework, the partnership aims to support women from all backgrounds to build sustainable, scalable ventures — and, in turn, boost the UK’s entrepreneurial landscape.

To learn more and apply, visit: Open Business Creators Fund

Read more:
The Open University and NatWest launch £50,000 ‘Open Business Creators Fund’ to empower women entrepreneurs

The UK head of Fujitsu Services Limited, the company behind the Post Office’s disastrous Horizon IT system, has received a 50% pay rise — despite the firm still refusing to quantify compensation for hundreds of wrongly convicted sub-postmasters.

The Japan-owned technology giant handed its best-paid UK executive — believed to be Anwen Owen, Fujitsu’s UK chief — £591,000 in total pay for the year to March 2025, up from £388,000 the previous year.

Corporate filings show that Owen, who joined the board in 2022, was previously a senior government official, serving as head of engagement at HM Treasury between 2010 and 2012.

The revelation comes as Fujitsu continues to face widespread criticism for its role in what has been described as the biggest miscarriage of justice in British corporate history.

Fujitsu’s annual report, filed last week, also reveals the company faces a £4 million claim for damages brought by a sub-postmaster on 10 July 2025 — believed to be Lee Castleton, a former postmaster from Bridlington who was portrayed in ITV’s Mr Bates vs The Post Office, the BAFTA-winning dramatisation that reignited public outrage over the scandal.

The company stated that “it is not yet possible to predict the outcome” of the case.

The Horizon IT inquiry, led by Sir Wyn Williams, continues to investigate the Post Office’s use of Fujitsu’s flawed accounting software, which led to more than 900 wrongful prosecutions between 1999 and 2015.

Of those, over 230 sub-postmasters were jailed, and at least 13 are believed to have taken their own lives after being accused of theft or fraud that they did not commit.

Despite the ongoing scandal, Fujitsu’s UK business remains highly profitable. The company generated over £1 billion in revenue last year, primarily through government contracts.

The firm has paused bidding for new public sector work while the Horizon inquiry continues but remains a major supplier to UK departments.

In total, the company’s annual wage bill reached £500 million for its 5,800 employees, with average salaries rising 4.2% to £84,135.

Fujitsu’s Japanese parent company injected a further £80 million of capital into its UK arm last year, following a £200 million cash injection the year before, underscoring the scale of financial pressure amid mounting legal and reputational challenges.

Lord James Arbuthnot, the former Conservative MP who has long campaigned on behalf of wronged sub-postmasters, condemned the pay increase as “bizarre” and “deeply inappropriate.”

“The management of Fujitsu in the UK has been absolutely disastrous for Fujitsu itself and for Japanese business in general,” he said.
“It has shown itself to be unethical, dishonest, and completely uncaring about the disaster it has brought to the sub-postmasters and the cost to the taxpayer.

For some reason, which I cannot understand, the government still continues to think that it is a fit and proper organisation with which to do business. It is not — and it ought not to have any government contracts at all.”

His comments add to growing pressure on the government to ban Fujitsu from future procurement processes until its financial contribution to the compensation scheme is confirmed.

The government has said it will pursue Fujitsu for its share of compensation costs, which could total hundreds of millions of pounds once final settlements are reached.

A Fujitsu spokeswoman declined to comment on executive pay or ongoing legal cases.

She said: “We remain committed to providing our full co-operation to the inquiry as Sir Wyn Williams prepares his final report.
We continue to engage with the UK Government regarding Fujitsu’s contribution to compensation.”

The company insists it has already implemented internal reforms and strengthened governance processes, but critics argue its leadership has yet to demonstrate genuine accountability for the systemic failures that destroyed lives.

The Horizon case remains one of the darkest chapters in modern British business history — exposing the devastating human impact of digital failure, and prompting questions about corporate ethics, state procurement, and oversight of technology suppliers.

As Fujitsu’s top executive enjoys a near £600,000 salary, the long road to justice — and adequate compensation for those wrongfully accused — continues.

Read more:
Fujitsu boss gets 50% pay rise despite Horizon scandal fallout

VRFY Solutions Group UK, an AI-driven transcription and data intelligence platform founded by two veteran police officers, has secured £200,000 in pre-seed investment led by Fuel Ventures.

The funding will accelerate adoption of the company’s secure AI transcription solution within UK police forces and lay the groundwork for expansion into other critical sectors, including healthcare and the NHS.

VRFY’s technology addresses a growing crisis in UK policing — the combination of rising workloads, officer shortages, and the administrative burden created by legacy transcription processes. The platform can cut police transcription and report-writing time by more than 80%, freeing officers from hours of manual paperwork and allowing them to return to active duty faster.

The solution also reduces transcription costs by up to 70%, creating the equivalent of extra policing hours without additional budget expenditure — a critical advantage at a time when police resources remain under intense pressure.

Founded by Jeff Meyers and Mike Willford, who bring more than six decades of combined law enforcement experience, VRFY was created to solve the very problems they faced daily in the force.

Meyers explained: “Policing is facing a perfect storm of rising workloads, officer shortages, and increasing demands for speed and accuracy. We’ve built a secure AI solution with end-to-end encryption and strict access controls that doesn’t just save time. It protects officers’ wellbeing and improves the quality and speed of justice — ultimately helping to improve public safety.”

The mental health benefit of the technology is one of its most profound impacts. According to police sickness data, up to 95% of PTSD-related absences among administrative staff stem from manual transcription work, as employees are repeatedly exposed to distressing material — from violent crimes to domestic abuse cases — over extended periods.

These transcription roles are typically held by junior civilian staff, with an overrepresentation of women in these positions. By automating the process, VRFY significantly reduces secondary trauma exposure and contributes to a healthier, more resilient workforce.

“Our platform doesn’t just make transcription faster,” Meyers added. “It helps mitigate the serious toll transcription can take on these employees’ mental health. That’s not just good for individuals — it’s essential for the long-term sustainability of policing.”

While VRFY’s initial focus is on law enforcement, the company’s founders see clear applications across other public sector domains. The firm is already exploring tenders in healthcare, where the administrative load is a growing crisis.

Meyers said: “The same challenge exists in the NHS — highly skilled nurses and doctors are spending hours on paperwork instead of patient care. With AI handling transcription and reporting securely, we can help return thousands of hours back to frontline work. During staff shortages, that’s not just efficient — it’s life-saving.”

Mark Pearson, Founder of Fuel Ventures, said his firm was backing VRFY because of its potential to deliver measurable, real-world efficiency to essential services:

“AI-first businesses like VRFY have the opportunity to bring direct efficiencies to some of the most important sectors. In law enforcement, up to six hours can be lost to transcribe a single hour of audio — a stark example of inefficiency that VRFY is tackling head-on.”

“We invest in founders who solve real problems with determination and insight, and Jeff and Mike are doing exactly that. VRFY is uniquely placed to bring wholesale change to public safety — and soon, to other sectors too.”

VRFY’s approach is rooted in security, trust, and operational impact. The platform uses end-to-end encryption, strict access controls, and locally hosted infrastructure, ensuring sensitive material never leaves secure environments — a crucial requirement for police and healthcare data.

As public sector organisations increasingly turn to AI to bridge resource gaps, VRFY’s model shows how innovation can enhance not just efficiency but human resilience and wellbeing.

By freeing people from repetitive, high-stress administrative work and safeguarding mental health in the process, VRFY represents a new frontier in how AI can strengthen public safety and serve society at large.

Read more:
VRFY Solutions raises £200,000 to transform policing with secure AI transcription that cuts admin time by 80%

A new €10 million (£8.6 million) initiative will accelerate the use of artificial intelligence (AI) in British science, business, and public services, marking a major collaboration between the UK and the European Union.

The University of Edinburgh’s EPCC, home to the UK’s first National Supercomputing Centre, has been awarded joint EU and UK Government funding to establish the UK AI Factory Antenna (UKAIFA) — part of a pan-European network designed to foster innovation, research, and practical adoption of AI across industries.

The project, coordinated by the European High Performance Computing Joint Undertaking (EuroHPC JU), aims to help UK businesses and researchers take their first steps in using AI to improve productivity and unlock new economic potential. It will focus on raising digital literacy, providing technical expertise, and creating a pathway for companies to embed AI safely and efficiently within their operations.

The AI Factory Antenna will employ 20 full-time staff at EPCC, offering services to startups, SMEs, large industrial firms, and public sector organisations. Its mission: to help organisations identify where AI can deliver tangible value — from automating administrative tasks to analysing complex data at scale.

With support from the Department for Science, Innovation and Technology (DSIT), which is contributing £2.5 million, the initiative will play a key role in ensuring the benefits of AI extend beyond the laboratory to real-world applications across the economy.

UKAIFA will target several strategic growth sectors, including health, fintech, energy, creative industries, advanced engineering, and robotics.

Professor Sir Peter Mathieson, Principal and Vice-Chancellor of the University of Edinburgh, said: “This significant investment underlines Edinburgh’s world-leading capabilities in supercomputing and AI. It also shows the important role universities play in deepening our understanding of cutting-edge technologies, blazing a trail for industry and the public sector, and driving economic growth and job creation.”

A bridge between UK and European AI innovation

The UK’s new AI Factory Antenna is part of the EU’s AI Factories initiative, which brings together computing, data and talent to accelerate AI development for the benefit of society.

Through the programme, non-EU countries such as the UK can collaborate with established AI Factories on shared research and innovation goals. The UKAIFA will work in partnership with the HammerHAI AI Factory, coordinated by the High-Performance Computing Center Stuttgart (HLRS) — Germany’s first National Supercomputing Centre — and supported by a consortium of major German academic institutions.

Professor Mark Parsons, Director of EPCC and UKAIFA Lead Coordinator, said: “EPCC and HLRS have led the use of national supercomputing services in Europe by industry for the past 30 years. The emergence of AI as a key application of supercomputing — and this joint funding from EuroHPC and the UK Government — allows us to embark on an exciting new collaboration. We’re honoured to be working with HLRS and the University of Stuttgart again.”

Dr. Bastian Koller, Managing Director at HLRS and Lead Coordinator of HammerHAI, added: “Given the shared commitment and expertise that HLRS and EPCC have in bringing HPC and AI to industry, the UKAIFA is a perfect match for HammerHAI. It enables us to focus on the most urgent challenges European companies face in adopting and scaling AI applications.”

The launch comes as Edinburgh cements its reputation as one of the UK’s leading technology and innovation hubs. The city is already home to ARCHER2, the UK’s most powerful national supercomputer, and is set to host an even more advanced system under development.

Kanishka Narayan, UK Government AI Minister, said: “This is another step in our plan to transform the UK into an AI maker. By working with our neighbours, we’re giving our best and brightest access to the processing power, data and training needed to drive breakthroughs in everything from healthcare to climate change.”

The UK AI Factory Antenna is expected to begin operations early next year, creating a bridge between academia, industry and government — and a new model for international cooperation in the age of artificial intelligence.

Dennis Hoppe, Head of HLRS’s Department of Converged Computing and project manager of HammerHAI, said: “Together, we will help accelerate AI adoption, providing secure and scalable AI resources for academia and business. This partnership represents a major step forward for AI innovation across Europe.”

Read more:
Major new UK–EU partnership to boost AI adoption and economic growth

Leading AI and tax specialists have warned that the government’s failure to reform the UK’s tax system for the age of automation could trigger what one expert calls a “fiscal collapse engineered by the Treasury itself.”

Ahead of the November Budget, Chancellor Rachel Reeves faces an unprecedented balancing act: investing billions in artificial intelligence to boost growth, while preventing AI-driven automation from hollowing out the country’s tax base.

The UK currently relies heavily on income tax and National Insurance Contributions (NICs), which together account for more than 40 per cent of government revenues. But as AI rapidly automates tasks in customer service, accountancy, law and software engineering, experts say the result could be a shrinking workforce — and a shrinking tax take.

Colette Mason, author and AI systems architect at Clever Clogs AI, said that while AI could boost productivity, it also poses a structural risk to the fiscal system.

“Both the OECD and the Institute for Fiscal Studies have shown that companies get significant tax breaks for automation equipment while paying heavy National Insurance on human workers,” she said.

“We’ve built a system that financially punishes employment and rewards replacement. That’s not innovation policy — that’s fiscal self-harm.

“If the Government fails to act, they won’t just create an unstable society. Get AI wrong, and the Treasury will engineer its own fiscal collapse.”

Mason argued that the UK’s tax model must be redesigned to capture AI-driven wealth and reward businesses that use technology to augment, rather than replace, human work.

“The question isn’t whether to reform the tax system for AI. It’s whether we do it strategically now, or desperately later when the damage is done.”

Luke James, tax director at Gravitate Accounting, said the Treasury’s dependence on income-based taxation had become a long-term vulnerability.

“Income tax and National Insurance now account for around 42 per cent of receipts, up from 36 per cent two decades ago. As AI reshapes the workforce, this base will erode — and marginal rate rises can’t fix it.”

James said an “AI levy” might provide a short-term revenue patch but warned that poorly designed taxes could stifle innovation and SME growth.

“Future frameworks should reward human-augmenting technologies and be paired with investment in skills, infrastructure, and retraining,” he added.

“As wealth concentration grows, balancing capital and corporate taxation will be vital to fund public services sustainably. This demands coordinated international action to prevent tax base erosion and protect competitiveness.”

Mitali Deypurkaystha, chief executive of Impact Icon AI, said too many companies were “outsourcing accountability” to consultants promising efficiency gains without assessing the human cost.

“Businesses get tax breaks for automation while paying heavy NI on people. That’s backwards,” she said.

“If your AI consultant talks only about time saved and profits — not your people or culture — ask yourself if that’s a long-term partner. When you cut roles without reinvesting freed-up capacity, you’re eroding your own future.”

She warned that removing entry-level roles could “cripple succession pipelines,” adding: “Who will be your future leaders if AI eliminates junior hiring? Build AI that assists, not replaces. Think human-first, not tech-first.”

Tony Redondo, founder of Cosmos Currency Exchange, said the speed of the AI revolution meant the Treasury could not afford to delay reform.

“Gradual change over 20 years allows adaptation. But AI’s transformation is happening in five to ten — it demands urgent action,” he said.

Redondo rejected the idea of a “robot tax” as “administratively unworkable”, warning it could push capital offshore.

“How do you value AI’s labour-equivalent? Aggressive profit levies risk capital flight to low-tax jurisdictions,” he said. “A pragmatic middle ground is to broaden the corporate tax base to capture digital services, modestly raise capital gains and dividend taxes, and strengthen enforcement.”

Reeves faces a growing policy dilemma: how to fund the public sector sustainably in a world of falling payrolls, while encouraging the innovation the UK needs to compete globally.

As AI supercharges productivity but undermines traditional tax flows, economists warn that the government must modernise the fiscal framework before it breaks.

As Mason put it: “We’re standing on the edge of an automation boom — and the longer we wait to rebuild the tax base, the steeper the fall will be.”

Read more:
November Budget: “Get AI wrong and the Treasury will engineer its own fiscal collapse”

Beijing has issued a strong warning to Washington, promising retaliation if U.S. President Donald Trump follows through on his threat to impose 100% tariffs on Chinese imports by 1 November — a move that risks reigniting a full-scale U.S.–China trade war.

In a statement on Monday, China’s commerce ministry accused the U.S. of “wilful threats” that would “escalate tensions and damage global trade stability.”

“China’s position on the trade war is consistent,” the ministry said. “We do not want it, but we are not afraid of it.”

The warning came after Trump declared on Friday that his administration was preparing sweeping new tariffs and export controls, including measures targeting critical software and technology sectors. His comments were widely interpreted as a direct response to Beijing’s new restrictions on rare-earth exports, materials essential for U.S. defence, semiconductor, and electric vehicle industries.

The renewed tensions rattled financial markets worldwide. Wall Street suffered a steep sell-off on Friday, with $2 trillion wiped from U.S. stock values. The Dow Jones Industrial Average tumbled nearly 900 points, while the FTSE 100 fell almost 1% as investors braced for fresh disruption to global supply chains.

Analysts warned that the tariff threat could further dampen confidence among international investors already wary of slowing growth and tightening credit conditions.

Despite the escalation, Trump attempted to strike a softer tone on Truth Social, writing: “The U.S. wants to help China, not hurt it.”

However, U.S. Senator JD Vance, a prominent Trump ally, urged Beijing to “choose the path of reason” to avoid what he called “unnecessary damage to both economies.”

Mark McCarthy, Chief Revenue Officer at Basware, said that trade war rhetoric injects deep uncertainty into the corporate sector, particularly for global enterprises dependent on complex supply chains.

“Trade wars and tariff uncertainty introduce volatility into the global economy,” McCarthy said. “For major enterprises, especially those with international footprints, this creates hesitation around IT spending. CIOs and CFOs may delay major investments, reassess strategic priorities, and scrutinise every dollar of spend.”

He added that the smartest companies would “not stop investing, but refocus” — directing resources towards automation, operational efficiency and risk mitigation.

“Supply chains are not nimble, as we saw during the pandemic,” McCarthy continued. “CIOs and CFOs will be looking for suppliers capable of navigating complex tariff and tax regimes. Combining technology solutions with strong compliance expertise will be critical as these tariffs come into effect.”

Compliance experts warn of rising financial crime risks

Beyond corporate disruption, experts are warning that volatile tariff regimes could create fertile ground for financial crime and trade-based money laundering.

Michael Joseph, compliance expert at Napier AI, said shifting trade policies were inadvertently “creating new vulnerabilities” within global supply chains.

“Fluctuating tariffs, while designed to serve economic and national security objectives, have created unintended consequences,” Joseph said. “As supply chains reorganise, new opportunities for money laundering and fraud emerge.”

He noted that financial crime costs the U.S. economy more than $600 billion annually, and warned that changing tariff structures could exacerbate those losses.

“For compliance professionals, adapting financial crime risk mitigation strategies is critical,” he added. “Incorporating tariff policy changes into targeted risk assessments helps identify vulnerabilities tied to high-tariff jurisdictions and misrepresented commodities.”

Joseph said the coming years would demand “increased vigilance, technological innovation, and cross-border collaboration” as companies adapt to new regulatory realities.

“For compliance teams, this environment represents not just a challenge but an opportunity to demonstrate their strategic value in an increasingly complex global economy.”

Analysts say the next few weeks will determine whether Trump’s threat signals a genuine policy shift or a negotiation tactic designed to pressure Beijing. Some see echoes of his earlier “escalate-to-de-escalate” strategy, where extreme measures were used to accelerate talks.

Either way, global markets are braced for turbulence. The risk, say experts, is that neither Washington nor Beijing blinks first — and that the world’s two largest economies end up dragging global trade into another prolonged period of uncertainty.

Read more:
China warns U.S. of retaliation over Trump’s 100% tariff threat

The Chancellor, Rachel Reeves, risks fuelling inflation and damaging small business growth if she reduces the VAT registration threshold in the Autumn Budget, according to leading audit, tax and business advisory firm Blick Rothenberg.

The warning comes amid growing speculation that the Treasury is considering lowering the current £90,000 VAT threshold in a bid to raise revenue and bring more small businesses into the tax system.

However, Gabby Donald, a partner at Blick Rothenberg, said that such a move would be “immediately inflationary”, forcing thousands of small firms to raise prices and burdening them with complex new compliance requirements.

“Despite advocacy from some think tanks, the Chancellor must not reduce the VAT threshold in the Autumn Budget,” Donald said. “The initial impact would be inflationary as more businesses become obliged to charge 20% VAT on top of any price increases to cover their additional compliance costs.”

She added that consumer-facing sectors — including hospitality, personal services, trades, and the creative industries — would be hit hardest.

Donald said the argument that lowering the VAT threshold would drive economic growth was “far from clear-cut”.

“A sudden, material reduction in the current £90,000 VAT threshold would bring large numbers of small businesses into the scope of quite a complicated tax,” she said. “The impact of higher prices on consumer spending is likely to hit business profitability and, in turn, investment and employment.”

Lowering the threshold could also have the opposite effect on productivity, Donald warned, as smaller firms already operating on tight margins would struggle with new administrative costs and the need to manage cashflow around VAT payments.

“Reducing the threshold is unlikely to yield a significant increase in the tax take for the Government,” she said.

According to HMRC’s latest VAT statistics, more than 77% of the total VAT revenue of £168 billion in 2023–24 came from large businesses with annual turnovers above £10 million. By contrast, companies with turnovers below £150,000 contributed only about £3.9 billion in total.

“If the threshold was reduced materially, greater demands would be placed upon HMRC, but very little would be gained fiscally,” Donald said.

Blick Rothenberg said comparisons with other economies — often cited by advocates of VAT reform — were misleading.

“Many of the think tanks and academics that favour bringing the threshold down significantly or removing it altogether often talk about the benefits seen in smaller countries like New Zealand,” Donald said.

“But the UK economy and VAT system differ significantly from New Zealand, which operates a much less complex Goods and Services Tax (GST) system, and has far fewer registered businesses.”

New Zealand, with a population of just 5.3 million, has a small business ecosystem that is vastly different from the UK’s, where 2.7 million companies are VAT-registered and would face widespread administrative disruption if the policy were implemented.

While some economists have argued that the high VAT threshold disincentivises business expansion — with small firms deliberately capping turnover to avoid registration — Blick Rothenberg said the evidence for cutting the threshold in a large, diverse economy like the UK was weak.

“While there is some evidence that the current threshold inhibits growth, the case for a drastic reduction in a large economy like the UK’s is far from proven,” Donald said. “To implement this type of change quickly would be an extremely bold experiment.”

The comments come as the Chancellor faces pressure to find new revenue sources without breaching Labour’s self-imposed fiscal rules ahead of the Autumn Budget.

Analysts said a cut to the VAT threshold might appeal politically by appearing to target tax avoidance among microbusinesses — but warned it would almost certainly backfire by raising prices, increasing red tape, and hitting consumer demand.

Donald concluded: “Lowering the VAT threshold may sound like a simple fix, but it risks being an own goal for the Treasury. The short-term revenue boost would be outweighed by inflationary pressure, lower consumer spending, and reduced investment from small businesses that form the backbone of the UK economy.”

Read more:
Cutting the VAT threshold would fuel inflation, warns Blick Rothenberg

Japanese investors have poured almost £118 million into Greater Manchester over the past year, in a fresh sign of the region’s growing international profile — but business leaders say Whitehall must match that confidence with long-term support for regional growth.

New figures show a surge in Japanese investment in the North West, led by companies such as Astemo, Daikin and Mizkan, which have expanded their presence or established new operations in the area. The wave of funding underscores Manchester’s growing appeal as a global hub for advanced manufacturing, innovation and green technology.

The region now hosts more than 25 Japanese firms, including NGK, Hitachi, Shimadzu, Sharp, Dentsu, Brother and Sun Chemical, reflecting deepening commercial ties between Japan and the North of England.

“While London dominates the headlines for productivity, international businesses are increasingly betting on Manchester,” said Ed Foulkes, managing partner at law firm Clarke Willmott in Manchester. “This highlights the city’s potential and the need for more balanced national support.”

Foulkes, whose firm advises major UK and international clients across manufacturing, energy and infrastructure, said the Japanese vote of confidence in Manchester demonstrated how regional economies can compete globally when they receive sustained investment and attention.

“Attracting investment like this shows that regions outside London can compete on the world stage,” he said. “With targeted infrastructure and government backing, the North West could secure the next wave of international business and innovation.”

He added that Japanese investment was not only bringing capital but also strengthening local skills, research and development, and supply chains, supporting Greater Manchester’s transition into an innovation-led economy.

“The confidence shown by Japanese companies should encourage other international investors to consider Manchester as a strategic base in the UK,” he said. “Companies are already showing confidence — now it’s time for the government to match it with strategic support.”

Greater Manchester continues to cement its position as the UK’s most successful destination for foreign direct investment outside London, topping national rankings for the third time in five years in 2024.

Analysts point to a mix of factors behind the city’s success: its world-class universities, innovation hubs in advanced materials and AI, and strong transport and logistics links make it a magnet for global manufacturers and technology firms.

The region’s export relationship with Japan has also deepened in recent years. According to official trade data, Greater Manchester exported £99 million in goods to Japan in 2022, alongside £151 million in service exports in 2021 — spanning professional services, digital industries and life sciences.

This economic partnership has been bolstered by the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), which came into force after Brexit, and Japan’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), further strengthening trade routes for British exporters.

Despite this momentum, regional leaders have warned that central government must do more to support Manchester’s growth trajectory. While the area benefits from devolution through the Greater Manchester Combined Authority (GMCA) and Mayor Andy Burnham’s leadership, local businesses have called for additional investment in infrastructure, skills, and transport links to sustain international confidence.

Foulkes said the government’s “levelling up” rhetoric must now translate into real outcomes.

“Japanese businesses are placing big bets on Manchester’s potential,” he said. “The government must now make sure that domestic policy — from transport and housing to R&D funding — supports that same level of ambition.”

With the region’s growing reputation for science, technology and green industry, and international interest continuing to rise, business leaders believe Manchester is entering a pivotal decade.

If the government matches foreign investors’ enthusiasm with equal commitment, Foulkes said, “the North West could define the next chapter of Britain’s industrial future.”

Read more:
Japanese investors bet on Manchester — now UK must follow

The Co-op has warned that Britain’s high streets face a tipping point, with new research revealing that 60,000 small shops and 150,000 jobs could vanish without urgent reform of the business rates system.

The warning comes ahead of the Autumn Budget and follows YouGov research commissioned by the Co-op showing that seven in ten Britons (69%) doubt the Government will deliver meaningful rates relief, despite repeated promises in recent years.

The retailer said the findings should act as a wake-up call to ministers, urging them to “finish the job” and deliver maximum levels of support for small businesses that form the backbone of local communities.

“Local shops aren’t just businesses; they’re part of the social fabric of Britain,” said Shirine Khoury-Haq, chief executive of the Co-op Group. “For some people, a visit to a local store is one of the few chances they have to chat to someone and feel connected.”

“This research shows a clear public mandate for action. Regardless of how they vote, the majority of people want the Government to do more to protect their high streets.”

The Co-op’s report paints a bleak picture of life for small high street retailers in England, finding that 77% of owners believe rates reform is essential for survival.

If no changes are introduced, one in ten small businesses said they would have to lay off staff, while one in eight warned they could close entirely — a wave of closures that could devastate towns and cities nationwide.

The data also underscores the social cost of inaction. Over half of UK adults (56%) — around 30 million people — said their local shops are important to their wellbeing, while three in four (74%) said their community would lose part of its identity without them.

The findings form the basis of the Co-op’s new campaign, “On Your Corner, In Your Corner”, which champions small businesses and calls on government to prioritise community retail in its economic policy.

“The proposed system would improve the financial position of 99% of retailers,” said Khoury-Haq. “To boost local economies, create jobs and strengthen communities, we need inclusive growth — and that means giving corner shops, precinct stores and high street independents the relief they need to thrive.”

Industry leaders have echoed the Co-op’s call for urgent intervention. James Lowman, chief executive of the Association of Convenience Stores, said the sector faced “significant further increases” in bills without government action.

“In the last year alone, business rates bills for convenience stores have increased by over £100 million,” he said. “Essential local shops are now facing another rise with the expected reduction in Retail and Hospitality Relief, coupled with next April’s revaluation.”

“It’s essential that the Budget includes a meaningful, long-term reduction in rates bills for convenience stores to incentivise investment and provide certainty for the future.”

Independent shopkeepers warn of closures and “broken promises”

Small business owners across the country have joined the call for change. Benedict Selvaratam, who runs Freshfields Market in Croydon, said many shopkeepers had expected ministers to follow through on manifesto commitments to redistribute the tax burden more fairly.

“Without rates relief and reform, we’ll see more closures, more risk-averse owners, and less investment in our towns,” he said. “We were expecting the government to ensure online giants pay their fair share and to support bricks-and-mortar businesses.”

Jack Matthews, owner of Bradley’s Supermarket in Quorn, Leicestershire, said small convenience stores play a vital role in rural life.

“For many elderly people, we’re the only conversation they have in a day,” he said. “Losing a convenience store in a rural community could have a huge impact — and those are the stores that need government support the most.”

The Co-op’s research also found widespread concern among its 6.9 million members, with 67% believing their high street is dying, 78% saying it’s worse than five years ago, and 83% viewing it as vital to community wellbeing.

Khoury-Haq said the message from the public could not be clearer: “This is an opportunity for the government to prove it will do what it takes to make a difference to people’s communities and to their wellbeing. The future of Britain’s high streets depends on it.”

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Co-op warns 60,000 small shops and 150,000 jobs at risk without urgent business rates relief

Lloyds Banking Group is putting its entire senior leadership team — including chief executive Charlie Nunn — through an intensive six-month artificial intelligence (AI) bootcamp as the bank commits to embedding generative AI across its operations.

The programme, created by education technology firm Cambridge Spark in collaboration with experts from the University of Cambridge, is designed to teach Lloyds’ most senior executives how to “reimagine the future of banking” through the use of AI.

According to the bank, around 300 senior managers will take part in the bespoke course, which requires 80 hours of study over six months. More than 110 leaders have already completed the training since its launch in March, with the full executive committee — including Nunn, finance chief William Chalmers, and Scottish Widows boss Chirantan Barua — expected to finish by the end of 2026.

“This is a huge signal of intent from Lloyds,” one industry source said. “They’re not just delegating AI to data scientists — they’re training the people making the strategic decisions.”

The move is part of Lloyds’ broader digital transformation strategy, which has seen it accelerate branch closures, expand online banking services, and designate Bristol as its UK ‘AI capital’, home to its largest cluster of technology specialists.

The bank has grown a team of nearly 1,300 tech and data experts, alongside hundreds of new apprentices and graduates, as it pushes to integrate AI into areas such as fraud prevention, customer service, and risk management.

Industry leaders have praised Lloyds’ initiative as a model for AI adoption in financial services.

Kenny MacAulay, CEO of Acting Office, said: “Mastering AI should be a top priority for every CEO. With financial services facing seismic challenges, learning how to deploy disruptive technology to streamline services and deliver better customer experiences must be at the top of every boardroom agenda.”

Raj Abrol, co-founder and CEO of Galytix, which works with several major banks, said: “Being equipped with the latest AI knowledge is no longer optional for senior banking executives. With complex regulation, data privacy and risk management challenges mounting, AI capabilities are essential to stay ahead of the competition.”

Lloyds’ push into AI follows similar moves by global rivals such as JPMorgan Chase, HSBC, and Barclays, which have all invested heavily in machine learning and automation tools to boost efficiency and improve customer experience.

For Lloyds, the AI bootcamp signals a long-term commitment to educating its leaders at every level in the technology that will define the next phase of banking transformation.

As one senior source at the bank put it: “The future of finance isn’t just about adopting AI — it’s about understanding it.”

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Lloyds puts CEO and top bosses through six-month AI bootcamp