Business

The UK’s Big Four accountancy firms have slashed graduate recruitment and cut hundreds of early-career roles as artificial intelligence begins to automate the junior work once assigned to school-leavers and university graduates.

Deloitte, EY, KPMG and PwC — who together employ around 100,000 staff across the UK — have scaled back their graduate and school leaver intake over the past two years, with some reducing hiring by nearly a third.

KPMG made the steepest cuts, trimming its graduate cohort from 1,399 in 2023 to just 942 — a 33 per cent reduction. Deloitte cut its scheme by 18 per cent, followed by EY and PwC with cuts of 11 and 6 per cent respectively.

The drop in hiring is being fuelled by an industry-wide pivot towards cost-cutting, as firms look to maintain seven-figure partner payouts in the face of a post-Covid slump in consulting and tighter client budgets. Increasingly, those cuts are being delivered by generative AI tools like ChatGPT, which can automate tasks that were once the training ground for junior analysts.

“The Big Four are looking at AI very seriously to replicate junior work more cost-effectively,” said James O’Dowd, managing partner at executive search firm Patrick Morgan.

In parallel with AI expansion, all four firms are doubling down on offshoring, shifting work to lower-cost locations in India, Malaysia and the Philippines — further eroding the traditional pipeline for UK-based entry-level roles.

Job listings in the sector reflect the trend: graduate job adverts in accountancy have dropped 44 per cent year-on-year, significantly outpacing the wider downturn in graduate vacancies.

Despite scaling back recruitment, the Big Four are racing to position themselves at the forefront of the AI economy. Deloitte, PwC and EY are now developing AI assurance services — tools that audit and validate the performance, safety and bias levels of AI models.

Deloitte audit partner Richard Tedder described AI assurance as “critical to adoption”, while PwC is understood to be close to launching its own service.

The move reflects broader ambitions to make the UK a global AI hub. Government data suggests that AI could add £200 billion to the UK economy, with SME adoption alone offering a potential £78 billion boost over the next decade.

But challenges remain, particularly around public confidence. KPMG’s own research reveals that just 42 per cent of UK adults currently trust AI, and nearly three-quarters report having no formal training in it.

As firms pivot to monetise the AI boom, many in the graduate job market are left wondering what future roles will look like. While AI creates opportunity in some areas, it is rapidly erasing others — particularly at the bottom of the corporate ladder.

With fewer foot-in-the-door jobs, and automation only set to increase, a fundamental question is emerging: if AI is replacing the entry-level, where will the next generation of partners come from?

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AI takes entry-level jobs as big four slash graduate hiring

The sixth day of the ongoing High Court trial between PPE Medpro and the Department of Health and Social Care (DHSC) turned its focus to one of the central issues of the £122 million legal dispute — the sterility of the surgical gowns at the heart of the case.

PPE Medpro’s legal team called expert witness Professor Anthony Coates, a leading microbiologist, to give evidence on the government’s claims that the gowns were unfit for use due to microbial contamination. What followed was a detailed and at times pointed examination of the methodology and conclusions behind the DHSC’s gown testing regime.

Test samples ‘not representative’

Coates was highly critical of the government’s testing practices. Under examination by Charles Samek KC, he argued that the samples taken from the PPE Medpro gowns were not representative of the full shipment and were handled in such a way that made them unreliable as evidence of original contamination.

Central to his concern was the time lag between delivery and testing. Coates explained that some gowns were tested over a year after arrival and had been stored in unknown conditions — including open-air container parks — which could have exposed them to contamination after the fact.

“You cannot determine the sterility of a gown a year later when it’s been stored in containers without knowing the exact environmental conditions,” Coates told the court.

Questions over gown handling and testing controls

He also raised red flags about the lack of proper chain-of-custody documentation, noting that gown batch numbers and container IDs were not always linked to test results — a serious issue in sterility testing protocols. In the absence of these records, Coates said, the possibility of post-delivery contamination could not be ruled out.

The professor added that the lab handling the tests — Sheffield-based Swann-Morton — had no documented testing controls in place, no historical contamination data, and did not appear to conduct comparative testing against known sterile controls. This, he said, would be standard practice in such assessments and casts further doubt on the findings.

“The lack of positive and negative controls means we cannot know whether the lab environment itself contributed to contamination,” Coates said.

Coates also offered an alternative explanation for the bacteria found on the gowns. Rather than indicating manufacturing or packaging failures in China, the organisms identified — such as Staphylococcus epidermidis — were consistent with environmental or skin flora, suggesting they may have been introduced through handling in the UK.

He questioned the presence of several bacteria types that appeared only in one or two samples, calling this distribution “random and inconsistent with a single-source manufacturing contamination.”

Useability not properly explored

During cross-examination by DHSC’s counsel, Coates stood by his opinion that the data could not support the conclusion that the gowns were non-sterile at the point of manufacture. He also reinforced a point raised by PPE Medpro earlier in the trial — that the DHSC never explored whether the gowns could be repurposed for non-sterile use.

When pressed about whether he could guarantee the gowns were safe, Coates was clear that he could not — but argued that the DHSC had not proved they were unsafe either, at least not at the point of delivery.

“If the government’s case is that these gowns were unsterile at manufacture, they need better evidence,” he said.

Professor Coates’ evidence marks a crucial moment in the trial, as sterility concerns are central to the DHSC’s claim for breach of contract. If the government cannot convincingly establish that the gowns were contaminated before delivery — or that it followed appropriate testing protocols — its justification for rejecting the PPE Medpro shipment could come under serious legal challenge.

The court will continue on Wednesday 25 June, when further expert witnesses are expected to be cross-examined.

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Expert witness casts doubt on DHSC’s sterility testing in PPE Medpro case

Business Secretary Jonathan Reynolds has thrown his weight behind proposals to strengthen the UK’s steel import protections, stepping in to tighten trade safeguards beyond those recommended by the Trade Remedies Authority (TRA) in response to mounting concerns over redirected global steel supply.

The move, welcomed by industry leaders as a “tremendous outcome,” will see the government reduce the annual liberalisation of steel quotas from 3% to just 0.1% — aligning the UK’s approach with the European Union and helping to shield domestic producers from a surge in cheap imports, particularly in the wake of new tariffs on steel imposed by US President Donald Trump.

In a letter to TRA Chair Nick Baird, Reynolds confirmed the government would also introduce a cap on residual quotas to prevent individual countries from dominating UK import volumes and damaging the competitiveness of British steelmakers. The Secretary of State further backed TRA recommendations to prevent unused quarterly quotas from rolling over and to stop countries with their own specific quotas from accessing residual volumes in the final quarter.

UK Steel, the sector’s leading trade body, had lobbied for the tougher measures amid growing fears that global oversupply — exacerbated by US protectionism — could result in a flood of cheap, state-subsidised steel entering the UK market.

“This is a tremendous outcome and a demonstration of the Secretary of State’s commitment to our industry,” said Gareth Stace, Director-General of UK Steel. “These measures will reduce the pressure of steel diversion from the US and EU and prevent countries that flood international markets with unsustainably cheap steel from swamping the UK and driving our steel manufacturers out of business.”

The strengthened safeguards are viewed by industry as essential to defending the UK’s remaining steelmaking capacity, which employs over 33,000 people and supports critical supply chains in construction, automotive, defence, and energy.

Stace added that the measures must now be underpinned by longer-term reforms, calling on the government to introduce a new trade defence mechanism when the current safeguards expire. “This should be introduced in January. The forthcoming Trade Strategy has the potential to deliver new legislation that will equip Government with the tools it needs to defend our companies from the subsidised steel that is currently flooding steel markets at unsustainable price levels.”

The announcement comes at a time of significant pressure on global steel markets. President Trump’s new wave of tariffs has prompted fears that redirected supply — particularly from China, Turkey and India — could overwhelm smaller markets like the UK.

Industry insiders say the intervention by Reynolds signals a shift in tone from the new Labour government, suggesting a more proactive, interventionist approach to strategic industrial sectors such as steel.

The Department for Business and Trade said further details on the Trade Strategy — including potential legislative proposals to reinforce UK trade defences — would be published later this summer.

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Government backs UK Steel call to tighten import safeguards amid threat of global oversupply

Across the UK and internationally, homeowners are rethinking how they use their outdoor spaces. Gardens are no longer simply areas for planting or summer barbecues.

Increasingly, they are being transformed into functional, stylish extensions of the home. This growing focus on outdoor living presents clear opportunities for businesses across design, retail, landscaping and property services.

Consumer expectations are evolving, and companies that respond to this shift with practical, personalised solutions are well placed to benefit.

The Lifestyle Shift Behind Outdoor Living

The idea of using outdoor space more intentionally is not new, but the momentum has grown substantially in recent years. With more people working from home and spending time in their local environment, gardens are now being viewed as places to relax, work, socialise and unwind.

Retailers are adapting to meet this demand. The Best Backyard, for instance is an Australian brand who have achieved success by focussing on helping families get outside with outdoor furniture and children’s play equipment that fits into everyday routines. Other brands such as Garden Trading in the UK and Outer in the USA have embraced this same ethos, offering curated outdoor collections that blend indoor comfort with outdoor durability. These examples show how aligning with lifestyle shifts can create strong, future-facing brand propositions.

The Garden as a Personal Retreat

For many homeowners, outdoor spaces are becoming a retreat from busy lives and constant screens. Even small gardens are being adapted to support relaxation, mindfulness and wellbeing. Features such as quiet seating areas, water elements and soft lighting are now high on the wish list.

This shift presents an opportunity for businesses involved in outdoor design, landscaping and home improvement. There is strong demand for services and products that help people build calming, personalised outdoor environments. Garden consultants, furniture designers and wellness brands can all tap into this need by offering packages that combine aesthetics with emotional value.

Boosting Property Appeal and Value

Beyond lifestyle improvements, there is also a financial incentive. Well-designed outdoor areas are increasingly viewed as long-term investments. A garden that includes quality decking, smart lighting, shaded seating or a functional dining space can significantly improve a property’s appeal to potential buyers.

This has opened up new opportunities for businesses in construction, landscaping and real estate. Firms that can communicate the added value of garden enhancements are better positioned to attract homeowners who see their gardens as part of a broader investment in their home.

Rising Demand for Quality and Durability

With increased spending on outdoor spaces, homeowners are placing greater emphasis on quality. Products must now offer both style and longevity. There is growing interest in weatherproof materials, modular designs and sustainable choices that stand up to daily use without losing their visual appeal.

This creates room for businesses that can supply high-end finishes and durable materials. Whether it is outdoor kitchens, furniture, lighting or textiles, the message is clear: consumers are willing to pay more for products that perform well and reflect their design values.

Personalisation and Flexibility Are Priorities

Homeowners are also looking for outdoor spaces that feel personal and tailored to their needs. Generic layouts and one-size-fits-all designs are no longer enough. Instead, people want spaces that reflect how they live, entertain and unwind.

Businesses can meet this demand by offering custom-built features, modular furniture and design consultation services. The goal is to help clients create outdoor areas that evolve with their lifestyle. This personal approach not only supports customer satisfaction but also helps build long-term brand loyalty.

What Businesses Can Take Away

The rise of outdoor living is part of a broader shift in how people think about home, wellbeing and personal space. It is about creating environments that support day-to-day life, reflect individual style and bring value beyond aesthetics.

Companies like The Best Backyard, Garden Trading and others have demonstrated that success in this space comes from understanding the changing needs of modern households. Businesses that provide well-designed, adaptable and durable products will continue to find opportunities in this growing sector.

The message is clear. Outdoor living is no longer a luxury or seasonal trend. It is a core part of how people want to live. For businesses, it is a chance to innovate, connect and grow by helping customers make the most of their space, just beyond the back door.

Read more:
Why More Homeowners Are Investing in Their Gardens and What Businesses Can Learn from It

In today’s competitive world, modern professionals are no longer just upgrading their resumes, they’re upgrading themselves. From mental clarity to physical confidence, self-optimization is becoming a defining feature of the high-performing workforce.

As career paths become more demanding and the line between personal and professional success blurs, one trend is clear: investing in yourself is the new business strategy.

Why Self-Optimization Is the New Business Strategy

Professional growth used to mean job promotions, certifications, and new skills. But now, the smartest individuals in business are looking inward. They’re improving sleep, refining appearance, mastering emotional resilience, and optimizing their day-to-day choices not for vanity, but for value.

A recent article by Startups Magazine UK underscores this shift, stating that investing in personal development directly improves leadership, resilience, and productivity, making it a core strategy for business success rather than a personal indulgence. This further supports why CEOs, founders, and rising professionals alike are embracing holistic self-optimization as a pillar of modern career growth.

CEOs, startup founders, and corporate leaders alike are prioritizing holistic development. This includes physical health routines, mental wellness check-ins, and high-performance habits. The mindset shift is evident: hustle culture is fading, and in its place comes a focus on longevity, energy efficiency, and sustainable growth. It’s not just about working harder’s about working sharper, clearer, and more confidently.

Confidence as Currency in Professional Settings

You’ve heard it before: first impressions matter. But in business, they do more than that. They set the tone for trust, authority, and competence. Whether you’re presenting in a boardroom or networking at an industry event, the way you carry yourself influences how others see you and how you see yourself.

Smiles, posture, grooming, and personal presentation have become tools of influence. That’s why professionals are increasingly investing in aesthetic enhancements that are both subtle and impactful.

Many are choosing teeth straightening UK to discreetly improve their smiles without the social awkwardness of braces. A straighter smile doesn’t just enhance your appearance boosts your confidence in front of clients, peers, and investors. Public speaking and digital visibility (think video calls and media interviews) demand a high level of self-assurance. Professionals who feel good about themselves naturally project more confidence, which in turn builds credibility and influence.

Mental Clarity and Physical Wellness Go Hand-in-Hand

Mental clarity isn’t a bonus in business; it’s essential. Decision-making, communication, and stress management all rely on a sharp, focused mind. That’s why self-optimization for professionals often starts with wellness fundamentals.

From daily mindfulness apps to tailored morning routine,s professionals are curating habits that support clarity and calm. Executive coaching, once limited to top-tier leadership, is now accessible to mid-level professionals looking to refine their performance under pressure.

But mental health doesn’t exist in a vacuum. Physical wellness through sleep, nutrition, and movement is the engine behind professional stamina. More professionals are tracking sleep cycles, following clean diets, and incorporating exercise as a non-negotiable part of their week.

Simple practices like breathwork before big presentations or cognitive tools for managing stage fright are giving professionals a secret edge.

The takeaway? A healthy body and focused mind are not separate pursuits; they fuel each other.

Low-Maintenance Tools with High Impact

The modern professional values time. Tools that improve performance without disrupting routines are in high demand. That’s where low-maintenance, high-return tech comes in. From smartwatches that track stress to posture trainers that correct slouching during long meetings, professionals are building mini ecosystems of productivity.

Among the most popular tools today are  Clear Aligner Plans. These near-invisible, time-efficient aligners are perfect for busy professionals who want straighter teeth without constant visits or lifestyle changes. They fit into your schedule overnight in some cases and deliver long-term benefits in confidence and health.

Other low-lift tools like hydration trackers, habit reminder apps, and digital planners also contribute to this optimized lifestyle. Together, they create an infrastructure of self-support around the modern professional.

The ROI of Self-Investment in the Workplace

In business, everything comes down to return on investment, which also includes how you invest in yourself. Professionals who prioritize self-optimization are seeing measurable gains in performance, presence, and even profit.

A well-rested, confident, and focused individual makes sharper decisions, communicates with more clarity, and handles stress with resilience. This doesn’t just benefit you; it also boosts the bottom line of the teams and companies you’re part of. In fact, companies are increasingly recognizing that employees who take care of their health, mindset, and appearance contribute to stronger cultures, better leadership, and longer retention.

Let’s break it down:

Enhanced productivity: When you sleep better, eat smarter, and manage your stress, your output improves, both in quality and efficiency.
Stronger professional relationships: Confidence in your appearance and communication makes you more influential in meetings, client pitches, and negotiations.
Higher visibility: Whether it’s internal promotions or external media opportunities, self-assured professionals are more likely to be chosen to represent their brand or company.
Reduced burnout: Sustainable habits like mindfulness, physical wellness, and clarity routines prevent mental fatigue, which lowers attrition and improves long-term career growth.

In short, self-investment isn’t just a personal upgrade; it’s a professional strategy. And like any great investment, the returns speak for themselves.

Building Your Own Self-Optimization Plan

You don’t need a personal coach to start optimizing your life. What you need is a plan, a realistic, intentional, and tailored one. The following plan can be followed by anyone who wants to optimize their life without any paid plans.

Audit your current habits
Where are you lacking energy, confidence, or focus? Is it poor sleep, unclear routines, or physical discomfort? Pinpoint the areas that hold you back.

Set measurable goals
Decide what to improvewhether it’s waking up energized, reducing stress before meetings, or speaking more confidently in public. Set timelines and track progress.

Start small with powerful tools
You don’t need to overhaul everything at once. Add low-lift tools like aligners, wearable tech, or sleep apps. These changes offer quick wins and boost motivation.

Integrate long-term habits

Cultivate habits like daily walks, mindfulness, hydration, and morning journaling into your daily routine. These activities lay the foundation for sustainable performance.

The beauty of self-optimization is that it’s personal. There’s no single path, only the one that fits your values, goals, and pace.

Conclusion: Your Growth Is Your Edge

The modern professional doesn’t just chase success; they prepare for it. In a fast-moving world where burnout is common and superficial wins fade fast, self-optimization for professionals is a true game-changer. It’s not about perfection, it’s about alignment. A better smile, clearer mind, and healthier lifestyle won’t just improve how you feel, they’ll enhance how others perceive you and how you perform under pressure.

Reference

Miller, E. (n.d.). Physical and mental health go hand in hand. Pediatrics East. https://www.pedseast.com/blog/posts/physical-and-mental-health-go-hand-in-hand

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The Rise of Self-Optimization in Business

Baroness Michelle Mone and her husband Doug Barrowman are selling off UK properties and scaling back their presence in Britain, amid reports they are planning a new life in Miami.

The couple — at the centre of an ongoing High Court case over a controversial PPE contract during the Covid-19 pandemic — have offloaded several high-profile assets in recent months, fuelling speculation they are preparing to relocate to Florida.

Among the disposals are two grand townhouses in Glasgow’s Park Circus area, which have reportedly been sold or let to celebrity friends. One buyer is understood to be the photographer Nick Haddow, known for shooting many of Mone’s publicity images. Another is a prominent Scottish musician.

They have also sold a Chelsea mews property linked to a company owned by Mone’s son Declan, their £19 million townhouse in London, and their luxury yacht, the Lady M, which had been listed for £6.8 million.

Sources close to the couple told the Mail on Sunday that they are seeking a “fresh start” in Miami, though neither Mone nor Barrowman have publicly commented on the speculation.

The reported move follows a turbulent period in which the couple have faced intense scrutiny over their links to PPE Medpro, the company at the heart of a £203 million government contract awarded during the pandemic.

Barrowman, who led the company, was able to access the government’s so-called “VIP lane” for fast-track PPE procurement, following a referral from Baroness Mone. The couple deny any wrongdoing, but the National Crime Agency has since frozen £75 million of their assets as part of its investigation.

The High Court is currently considering a civil case brought by the Department of Health and Social Care (DHSC) over the PPE Medpro contract. Mone and Barrowman have maintained their innocence throughout and say they are confident of clearing their names.

While the legal process continues in London, reports suggest the couple are eager to start anew in the US, far from the glare of British media and the growing political fallout. Their luxury lifestyle — previously characterised by lavish parties, superyachts, and high-profile business ventures — now appears to be in transition.

For Mone, once celebrated as a self-made lingerie tycoon and Conservative peer, a potential departure from Britain marks a striking shift — and raises further questions about the future of her political and business legacy.

Read more:
Mone and Barrowman ‘plotting fresh start in Miami’ amid ongoing PPE probe

The UK’s services sector returned to modest growth in June, defying broader economic concerns and offering a glimmer of hope amid a backdrop of rising taxes, falling employment and geopolitical instability.

According to S&P Global’s latest flash purchasing managers’ index (PMI), business activity reached a three-month high, with the composite index rising to 50.7 from 50.3 in May. Any figure above 50 indicates expansion.

While the numbers suggest some resilience following a turbulent spring – marked by President Trump’s global tariff hikes and Chancellor Rachel Reeves’ sweeping tax rises – economists warned the recovery remains fragile and uneven.

Service providers reported a rise in client demand, marking the first monthly increase since November last year. However, firms remain reluctant to hire, with private sector employment falling for the ninth consecutive month – and at a faster rate than in May.

The latest data shows that while new business orders edged up domestically, foreign demand fell for the eighth month in a row, suggesting continued unease in global markets since Trump’s so-called “Liberation Day” trade announcements.

Prices also rose at their slowest rate in over four years, a sign that inflationary pressure within the private sector may be easing.

Chris Williamson, chief economist at S&P Global Market Intelligence, said the figures reflect an economy struggling to gain momentum: “UK growth remains disappointingly lacklustre. Second-quarter GDP is now expected to rise just 0.1 per cent, with business confidence subdued compared to a year ago.”

He added: “Employment continues to be cut as firms navigate a tough environment of higher staffing costs, weaker demand, and mounting global uncertainty.”

The weak labour market trend comes as firms deal with higher employer national insurance contributions and reduced investment thresholds, part of Reeves’ efforts to rebalance the tax system. The increase in labour costs appears to be weighing on staffing decisions even as demand recovers slightly.

Tensions in the Middle East, rising oil prices, and ongoing doubts about global trade are adding to the cautious sentiment, particularly among manufacturers, who remain vulnerable to external shocks.

Pantheon Macroeconomics’ Elliott Jordan-Doak said the PMI data hints at a tentative rebound after a sharp slowdown in April, when official figures showed GDP shrank by as much as 0.3 per cent in a single month.

“The PMI suggests that business confidence is staging a fragile recovery after being battered by tariff threats and tax increases,” he said. “That said, rising geopolitical stress is likely to be added to the growing list of worries facing businesses, particularly in manufacturing, where oil price fluctuations can be damaging.”

While the modest uptick in services activity offers a welcome boost, analysts warn that the UK’s growth path remains vulnerable to derailment from both domestic policy pressures and international volatility. The challenge for policymakers will be to nurture this fragile recovery without undermining it through further fiscal tightening or regulatory shocks.

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UK services sector shows signs of ‘fragile recovery’ despite job cuts and weak growth

A group of farmers and family business owners is challenging the government’s controversial inheritance tax reform in court, claiming ministers failed to properly consult before announcing sweeping changes in the Autumn Budget.

The legal claim, served on Tuesday to Chancellor Rachel Reeves and HMRC, calls for a judicial review of the government’s decision to cap long-standing tax reliefs for farmland and family businesses without a full public consultation.

The challenge targets changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) — two key tax exemptions that have, for decades, allowed farms and small businesses to pass down assets without incurring inheritance tax. Under new rules set to come into force in April 2026, the combined value of assets protected by the reliefs will be capped at £1 million, a move ministers say is necessary to tackle tax avoidance among the ultra-wealthy.

The claimants, represented by law firm Collyer Bristow, argue that the government has a legal obligation to conduct proper consultation on significant tax changes — something they say was denied to the sectors most affected.

“This claim does not seek to overturn the government’s decision to amend APR or BPR,” said James Austen, a partner at Collyer Bristow. “It simply asks that affected individuals and groups can contribute to a proper consultation process to ensure the government has the best possible evidence when developing tax policy for UK farms and businesses.”

The inheritance tax shake-up has sparked uproar among farmers, who have dubbed the reforms a “family farm tax”, warning it could jeopardise generational handovers and force the sale of farmland to cover tax bills.

Family Business UK, which represents family-run firms, has also condemned the move. It estimates the changes could put 200,000 jobs at risk, as small and medium-sized businesses divert cash from investment to meet looming liabilities.

Rachel Reeves has defended the changes as a fair and necessary modernisation of the tax system, claiming that the reliefs were being exploited by wealthy landowners and investors to sidestep inheritance tax altogether. The Treasury insists that the majority of ordinary farms and businesses will still be protected by existing exemptions — such as spousal relief and the ability to pay tax bills in instalments over a decade.

However, critics argue that the government’s limited engagement with the sectors affected — restricted to a narrow technical feedback process — falls short of proper consultation.

The judicial review request says the decision to bypass a full consultation “risks flawed legislation” and could undermine the long-term viability of farming and family enterprises.

The legal action follows a similar challenge over the imposition of VAT on private school fees, which was dismissed earlier this month. While the High Court acknowledged the policy could infringe some students’ rights, it found these were outweighed by the wider public benefit of increased state school funding.

While the judicial review does not seek to overturn the tax changes outright, it adds to growing pressure on the Treasury to revisit how it engages with key sectors on major tax reforms.

Industry leaders argue that poor consultation risks undermining trust in the government’s policymaking process — and could ultimately damage vital parts of the UK economy.

The Treasury did not immediately respond to a request for comment.

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Farmers seek judicial review over inheritance tax clampdown

A growing number of business owners are turning to employee ownership trusts (EOTs) to sell their companies tax-free, as changes to capital gains tax (CGT) rules and rising national insurance costs prompt entrepreneurs to seek more efficient exit strategies.

New figures reveal that applications to set up EOTs — the model famously used by John Lewis — jumped 40 per cent last year, from 474 in 2022/23 to 671 in 2023/24. The data, obtained by accountancy firm RSM through a Freedom of Information request to HMRC, suggests a significant shift in how entrepreneurs are planning for succession.

EOTs allow company owners to sell a controlling stake in their business to employees, avoiding a CGT bill entirely. Under standard rules, higher and additional rate taxpayers face CGT of 24 per cent on a sale, although business asset disposal relief (formerly entrepreneurs’ relief) can reduce this to 14 per cent. However, the relief has been steadily eroded: once available on gains up to £10 million, the lifetime allowance was cut to £1 million in 2020, and from April 2026, the relief rate will rise from 14 per cent to 18 per cent.

In contrast, EOTs offer full CGT exemption and allow sellers to be paid in instalments — typically over seven to eight years — while often retaining a board seat and partial ownership. The number of people declaring a sale to an EOT on their tax return soared by 149 per cent last year, from 249 to 619.

“There’s no doubt EOTs have taken off because the tax relief is now far more attractive,” said Martin Cooper, a partner at RSM. “Sellers benefit from a zero per cent CGT rate, and they get to leave a lasting legacy by handing over the business to the people who helped build it.”

There are now more than 2,250 employee-owned businesses in the UK, according to figures from the White Rose Employee Ownership Centre and the Employee Ownership Association. Alongside John Lewis, other well-known EOT-run companies include Richer Sounds and Riverford Organic Farmers.

While the tax advantages are a major draw, supporters of the model also highlight benefits for employees and long-term business performance. Research suggests employee ownership can boost productivity and engagement, with staff having a direct stake in the company’s success. The trusts are typically overseen by a board of trustees, including company executives, employee representatives and often an independent professional trustee.

The increase in EOT sales comes against a backdrop of higher taxation for business owners. In addition to the CGT changes, Chancellor Rachel Reeves has announced national insurance reforms that will increase the contribution rate from 13.8 per cent to 15 per cent, and lower the employer threshold from £9,100 to £5,000 — a move expected to raise £25 billion annually.

Those tax pressures are encouraging owners to explore alternatives to traditional trade sales or private equity deals, particularly as EOTs offer a way to reward employees while avoiding hefty tax bills.

Cooper said many owners are also motivated by values as well as numbers: “It’s not just about tax. It’s about continuity, culture, and confidence that the business will be run by people who truly care about it.”

With the next rise in CGT rates due in April 2026, advisers expect a further uptick in EOT sales over the next 18 months, as more entrepreneurs move quickly to secure a tax-free exit.

Read more:
Surge in employee ownership as business owners seek tax-efficient exits

A small business owner from Liverpool has been ordered by global fashion house Hugo Boss to take down his website over alleged trademark infringement for using the word “Boss” in the name of his pet wellness company.

Ben McDonald, who launched Boss Pets earlier this year, said he was left “devastated” after receiving a legal notice from Hugo Boss demanding that he stop using the brand name and take down his website within 10 days or face legal action.

McDonald, from Bootle, said he had invested all his savings into launching the online business, which sells pet health products. “My whole world collapsed,” he said of the cease-and-desist letter. “I’m just a lad from Bootle trying to get a business off the ground.”

The term boss is a well-known piece of Scouse slang, meaning something excellent or impressive — but that local usage has not stopped Hugo Boss, which owns the trademarks Boss and Hugo, from pursuing the case.

McDonald’s lawyer, Francis McEntegart, argued the legal threat was disproportionate. “My client is a small local business that is just starting out selling pet wellness products. It’s not going to interfere with the profits of Hugo Boss in any way,” he said.

Hugo Boss defended its actions, saying it was standard practice to monitor and protect its trademarks globally. A spokesperson for the company said: “We are aware that the English word ‘boss’ is one that is commonly used. Nevertheless, it’s our responsibility to monitor and protect our brand rights globally and address unclear cases where needed.”

The company added: “As an international fashion company, we need to – like any other corporation – take measures to protect our existing trademark rights. These measures apply to both of our brands, Boss and Hugo.”

The incident echoes a previous backlash in 2020 when comedian Joe Lycett temporarily changed his name by deed poll to Hugo Boss in protest at the company’s aggressive trademark enforcement against smaller firms and charities using the word boss.

Despite the growing criticism, Hugo Boss has shown little sign of softening its stance. For McDonald, the next step is uncertain. “It’s heartbreaking. I chose the name because in Liverpool we say something’s ‘boss’ if it’s good. It’s got nothing to do with suits or fashion,” he said.

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Hugo Boss targets Liverpool pet brand over use of ‘Boss’ in trademark dispute