Business

British ports are calling on the government to compensate for millions in wasted spending on post-Brexit border infrastructure that is now set to be rendered redundant under the UK’s new trade deal with the European Union.

The agreement, which includes a commitment to drop most sanitary and phytosanitary (SPS) checks on food, animal products and agricultural goods, has been broadly welcomed by port authorities. However, the deal has also sparked anger over the millions invested in facilities that may now never be used.

According to the British Ports Association (BPA), ports spent more than £120 million preparing for a regime of rigorous post-Brexit border inspections — spending that now appears unlikely to be recouped.

“While a new framework agreement is welcome, it means capital and operational costs, as well as opportunity costs, will likely never be recovered from traders as promised,” said Richard Ballantyne, BPA chief executive. “We are therefore calling on the government to meet the shortfall.”

The BPA represents ports responsible for 86% of UK trade, including most handling EU goods. While some larger ports already had the required inspection infrastructure, many smaller and regional ports were forced to build new facilities from scratch.

One of the most affected is Portsmouth International Port, which is owned by Portsmouth City Council. The port spent £6 million of its own funds — in addition to £17 million in government grants — to build a highly specialised border control post (BCP), which now stands mostly unused.

“This specialist facility cost over £23 million and takes up two acres of valuable operational land,” said Steve Pitt, leader of Portsmouth City Council. “If there’s no longer a need for inspections, we may be forced to consider demolishing a building that’s less than three years old.”

The port had originally expected to recoup costs through inspection charges levied on traders, but with SPS checks now removed, those revenue streams have vanished.

The ports’ expenditure came on top of the £200 million Port Infrastructure Fund provided by the UK government to help prepare for post-Brexit trade requirements.

But according to the National Audit Office, this is only a fraction of the broader public spending. Its 2023 report revealed that £4.7 billion has been spent by the government on implementing post-Brexit border systems — even though full controls on EU imports have been delayed five times since January 2021.

This prolonged uncertainty left many port operators unable to plan or budget effectively, ultimately investing in facilities under pressure from Westminster that now risk becoming white elephants.

The rollback of SPS checks is part of a broader effort to reduce post-Brexit trade friction between the UK and the EU. The change is expected to ease supply chain bottlenecks, reduce import costs for businesses, and simplify logistics for perishable goods. But for many ports, the question now is who foots the bill for a regulatory environment that never fully materialised.

Port authorities and local councils are urging the government to launch a formal compensation process and provide clarity on the future of border infrastructure, especially for smaller ports that sacrificed commercial land to comply with previous regulatory guidance.

Whether the Treasury will act on the calls remains unclear. But as the UK’s post-Brexit strategy continues to evolve, the financial legacy of its early implementation missteps is still being counted — and contested.

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UK ports demand compensation after Brexit border checks scrapped under new EU deal

Paul Avins is not your average business coach. After 20 years at the coalface of entrepreneurial development, the CEO of Massive Action Coaching has helped over 550 companies scale past £1 million in revenue — with many reaching £5 million, £10 million, and even exiting for eight-figure sums. But if you think this is another motivational speaker peddling mindset clichés and Instagram aphorisms, think again.

“I’ve never believed in the guru model,” says Avins. “I don’t want clients to think their success is about me. It’s about what we build together.”

We’re sitting in a quiet corner of his office just outside Oxford just ahead of his third Scale-Up Summit, where his team – dubbed “Team Purple” – runs a suite of mastermind groups, scale-up summits and business retreats aimed at entrepreneurs ready to build what Avins calls “grown-up businesses.”

If that phrase sounds unusual, that’s because Avins has spent the better part of two decades redefining what it means to scale responsibly. He’s as likely to talk about mitochondrial health and hydrogen water as he is gross margin or AI automation — all in pursuit of creating high-performance entrepreneurs who don’t just burn bright and burn out.

Nine years ago, Avins suffered a life-threatening asthma attack that led to cardiac arrest. He flatlined for over four minutes. “I’d bought into the classic founder lie,” he recalls. “‘I’ll trade off my health while I build the business, and fix the rest later.’ But later doesn’t always come.”

That experience changed everything. Today, Avins speaks openly about burnout, the mental health cost of leadership, and the critical role of what he calls “founder fitness.”

“I started investing in my health the same way I’d invest in a marketing funnel. Your business can’t scale if the CEO is broken.”

His daily toolkit now includes red light therapy, IV vitamin drips, intermittent fasting and obsessive tracking using biometric wearables. “You’re not going to get to eight figures running on caffeine and chaos,” he says. “You need stamina, clarity, and a nervous system that isn’t fried.”

From “managing director” to “scale-up CEO”

But Avins’ sharpest insights aren’t just physiological — they’re psychological. His thesis is simple: to scale your company, you must first scale your identity.

“One of the biggest red flags I hear from business owners is, ‘I’m still putting out fires every day,’” he explains. “If you’re the one doing that, you’re not the CEO — you’re still the operator.”

He’s on a mission to eradicate the title of “Managing Director” altogether.

“It’s a disempowering title. It implies maintenance, not momentum. A scale-up CEO creates growth — they don’t get caught in the day-to-day.”

This isn’t just semantic. Avins runs the UK’s No.1 Scale-Up Mastermind, F12, where members report average growth of 300% in under 12 months. What’s different? Avins says it comes down to consistency, strategy, and community.

“The first thing I teach clients is this: what got you to £100k won’t get you to £1m. And what got you to £1m definitely won’t get you to £5m.”

He breaks the scale-up journey into distinct phases — each requiring a fresh set of tools, systems, and mental models. “People cling to the same tactics that got them early traction, but scaling is a different game. It’s about team, systems and culture — not hustle.”

That structured thinking is what’s made Avins a trusted mentor to CEOs across sectors — from e-commerce to education, healthcare to hospitality. The combined annual turnover of businesses in his masterminds is now close to £250 million.

But perhaps his biggest impact has been creating a genuine community of growth-minded leaders — people who cheer each other on, share vulnerabilities, and don’t posture or pitch.

“I’ve been to a lot of events full of ego and posturing. Ours aren’t like that,” says Carly Myers, one of Avins’ newest collaborators. “People walk into his world and feel seen, supported and challenged.”

That spirit is most alive at Avins’ flagship event: the Scale-Up Summit. Now in its third year, the two-day event in May brings together ambitious entrepreneurs, practical educators, and unexpected talent — including a robotic artist who recently sold work for £1m at Sotheby’s.

“We don’t do the bait-and-switch stuff. No one’s being pitched a £25k course every hour,” says Avins. “You come to learn, to grow, and to meet people who’ll expand your world.”

Why most advice fails to scale

He’s wary of generic business advice — the “just follow these five steps” school of thought that permeates social media.

“The truth is, the strategy to get from £0 to £100k is totally different from getting to £1m — and then to £5m, and so on,” he says. “There’s no universal formula. There’s just the right move at the right time, for the right business.”

So what are the constants? For Avins, there are three: consistency, evolving your strategy, and surrounding yourself with the right people.

“Entrepreneurship is lonely. At two in the morning, when payroll’s due and a supplier’s dropped out, who do you call? That’s why we built this community.”

His masterminds regularly include six- and seven-figure founders helping each other navigate global expansion, team challenges and industry disruption. “Sometimes a five-minute conversation in the bar saves you five months of stress,” he says.

Despite his aversion to hype, Avins has no shortage of ambition. He describes himself as a strategist, but also a sherpa — someone who’s climbed the mountain and knows how to help others ascend safely.

“I tell people: you don’t climb Everest on your first go. Start with a smaller mountain, build your muscle, and scale from there.”

And when the going gets tough?

“Hold the vision, do the work,” he says. “Your job is to look up and keep the dream alive — while doing the work to become the person who can achieve it.”

Whether it’s a retreat in Spain or a two-day summit in London, Avins creates environments of deep transformation. “The best ideas happen when you step out of your routine and into a room where everyone’s thinking bigger.”

It’s why he places such value on in-person events, even in a digital-first world.

“You don’t know who you’re going to sit next to — but they might just change your life,” he says.

Paul Avins may be one of the most trusted names in scale-up coaching, but what sets him apart isn’t just his track record — it’s his refusal to put himself at the centre of the story.

“I’m not here to build a cult of personality,” he says, matter-of-factly. “I’m here to help people build businesses that last — and lives they love living.”

That’s what he calls real success. And in a noisy world of business bravado, it’s a message worth hearing.

Read more:
‘My job is to grow this, not run it’: Paul Avins on why scale-up success starts with identity

British exporters have voiced deep frustration over post-Brexit border checks, blaming unclear customs guidance, rising costs, and poor communication from HMRC for supply chain delays and growing operational stress.

A new report commissioned by HMRC and carried out by Ipsos offers one of the first detailed “warts and all” appraisals of the UK’s border processes since leaving the EU. The study, based on interviews with 35 traders and freight agents, found that while most reported goods movements to be “generally smooth”, many also described the system as costly, opaque and emotionally draining for staff.

“It gets to staff”: cost and confusion on the frontlines

Several businesses described being left in the dark when their goods were stopped at the border, with no clear information on who to contact or how to resolve the issue.

“One member of staff told me he doesn’t want to work in this area as he ‘can’t stand the stress of it all’ — it really gets to staff,” said one large exporter.

The financial impact of delays was also severe. A medium-sized export agent said: “If you have issues, there’s usually a financial penalty. Storage fees escalate quickly. A single £600 fine can wipe out all your profit on a job.”

Several traders said it was difficult to find accurate contact information for HMRC, with one small agent describing the process of resolving issues as “painful” and saying: “They won’t speak to us. Even finding the right email required speaking to three different people — and then it just went to Border Force, not even the relevant desk.”

Border-related delays and red tape have led to logistical uncertainty, making it harder for companies to plan transport schedules and fulfil delivery commitments.

From hiring additional drivers to covering fines for missed delivery windows, businesses are now facing a post-Brexit trade landscape riddled with hidden costs and inefficiencies.

Despite the pain points, a number of traders noted improvements in recent months. One said, “It was mayhem after Brexit, but recently, it’s been a lot better.” Another added, “It might have just slowed things down ever so slightly every now and again.”

However, William Bain, Head of Trade Policy at the British Chambers of Commerce, warned that the Ipsos interviews were conducted before full UK import controls came into force, including physical checks on food and plant products.

“Customs and border processes remain a daily pain point. That’s why we’re urging the UK-EU leaders’ summit to agree on a robust agri-food deal and to scrap safety and security declarations in both directions,” Bain said.

Such reforms, Bain argues, could simplify border processes for both UK and EU businesses — especially SMEs that lack the resources to navigate complicated customs regimes.

In a statement, HMRC said: “Businesses told us moving goods across the border was generally a smooth process. We’ll continue to use feedback to streamline procedures, improve guidance, and support the flow of legitimate goods. We’re committed to simplifying customs and reducing burdens while maintaining effective checks.”

Still, as full post-Brexit customs protocols continue to roll out, many businesses feel unprepared and under-supported. A large exporter summed up the mood:

“We get customer complaints due to border delays — but we get loads of complaints about loads of things.”

Read more:
‘HMRC won’t speak to us’: exporters frustrated by post-Brexit border checks and red tape

UK house prices rose for a fifth consecutive May, hitting a new record as sellers raced to list properties before the new lower stamp duty threshold took effect.

According to the latest figures from Rightmove, average new asking prices increased by £2,335 in May — a 0.6% monthly rise, taking the national average to a record-high £379,517. However, it was the smallest May increase since 2016, reflecting a cooler market favouring buyers.

Rightmove said the rise was driven largely by a 14% surge in new property listings, the highest level in a decade. The increase in supply has intensified competition among sellers, while buyer demand has softened due to higher mortgage rates, global trade uncertainty, and recent changes to stamp duty thresholds.

“This month’s price increase being the lowest in May for nine years is a sign of a market that favours buyers,” said Colleen Babcock, property expert at Rightmove. “Sellers need to be aware of the level of competition they’re facing for the attention of buyers.”

Buyers cautious amid economic uncertainty

Despite the overall rise in listing prices, demand dipped in April following the reduction in stamp duty thresholds in England and Northern Ireland. According to Nationwide, average house prices fell 0.6% last month.

Uncertainty surrounding President Trump’s tariff policies, as well as anticipation of a Bank of England interest rate cut, contributed to subdued market activity. However, May has seen demand begin to recover, aided by the Bank’s rate cut to 4.25%, which in turn has helped push the average two-year fixed mortgage rate down to 3.72% — from 4.75% a year ago.

The UK housing market has proven remarkably resilient, despite fears of recession and a multi-year cycle of rising interest rates. According to the Office for National Statistics, house prices were up 5.4% year-on-year in February to an average of £268,000.

Knight Frank forecasts a 3.5% rise in house prices for 2025, supported by falling interest rates and gradually improving real household incomes.

“We’re seeing more homes coming to market due to landlords exiting, homeowners trying to beat stamp duty changes, and vendors revisiting plans delayed by last year’s political uncertainty,” said Tom Bill, head of UK residential research at Knight Frank.

While price momentum remains positive, the UK’s housing supply pipeline is under pressure, with the government’s 300,000 homes per year target now in doubt.

Hamptons reports that off-plan sales fell to 31% in 2024 — the lowest since 2012, and well below the 49% peak seen in 2016.

“Housebuilders rely on forward funding to progress on-site,” said David Fell, analyst at Hamptons. “Falling off-plan demand, especially from small landlords, threatens future delivery — and puts Labour’s housebuilding ambitions at risk.”

As the market enters the summer months, buyers and sellers alike will be closely watching interest rate trends, policy developments, and inflation to gauge how long this latest price run can continue.

Read more:
UK house prices rise in May for fifth year running amid rush to beat stamp duty deadline

Britain’s leading retail, luxury, and fashion groups are calling on Chancellor Rachel Reeves to reinstate tax-free shopping for international visitors, warning that mounting pressure from US tariffs is eroding UK competitiveness and forcing businesses to scale back transatlantic operations.

In a joint letter four major trade bodies — the British Retail Consortium, British Beauty Council, British Fashion Council, and Walpole, which represents UK luxury brands — urged the Treasury to act swiftly. Their message: restoring VAT-free shopping is not a luxury, but a “proven growth strategy” needed to help the UK economy weather worsening global trade disruption.

“US tariffs will negatively impact our businesses’ profitability,” the organisations wrote. “We are considering how we, as associations, and the UK government could best support businesses at this time.”

The plea comes amid rising concern over the economic fallout from President Trump’s trade policies, which have seen tariffs imposed on a range of UK goods. British businesses in fashion, beauty and luxury sectors are reporting falling demand from American buyers, rising pressure to reduce wholesale prices, and order cancellations.

Some UK companies have already reduced exposure to the US market, while others report a shift in American consumer behaviour — opting to travel abroad for luxury purchases rather than pay higher prices at home. But with the UK no longer offering tax-free shopping, those dollars are increasingly being spent in Paris, Milan and Madrid, where tourists can still reclaim VAT on purchases.

A missed opportunity for British business?

Tax-free shopping for tourists was scrapped in 2021 following Brexit, despite widespread opposition from business groups. The policy had allowed international visitors to reclaim the 20% VAT on purchases made in the UK, providing a crucial incentive for high-spending tourists.

The industry argues that removing the scheme has made the UK less competitive as a shopping destination — just as other European cities double down on tax rebate schemes to attract global consumers.

“Introducing this policy is not a luxury,” the letter stated. “It is a proven growth strategy.”

According to Bain & Company, for every £1 spent by high-value tourists, £8 flows into the wider UK economy, with affluent international travellers spending 14 times more than the average visitor. Over half of their spending typically goes to shopping, culture, and entertainment — sectors under increasing strain from reduced international trade and falling visitor numbers.

VisitBritain forecasts that tourist spending in 2024 will remain nearly 10% below pre-pandemic levels, a worrying trend for a sector vital to the UK’s high streets and hospitality industries. Trade groups say the loss of tax-free shopping has compounded this shortfall, contributing to downsizing, weaker supply chains, and declining revenues across multiple sectors.

As chancellor, Jeremy Hunt previously commissioned a review of the scheme by the Office for Budget Responsibility (OBR). Although the review followed hundreds of calls from business leaders, Hunt opted not to reverse the decision, citing OBR estimates that scrapping the scheme would save £540 million per year by 2025-26, and reinstating it could cost up to £2 billion.

A Treasury spokesperson reiterated this stance on Thursday: “We have no plans to introduce a new tax-free shopping scheme in Great Britain. Visitors can continue to claim VAT relief where the items purchased are shipped directly to their home country as exports.”

But with British exporters under pressure from tariffs and international shoppers turning to European rivals, industry leaders believe the cost of inaction may far outweigh the savings.

As Chancellor Reeves weighs her first major economic decisions, the restoration of tax-free shopping may become an early test of her commitment to supporting UK exporters, revitalising the high street, and retaining Britain’s global retail appeal.

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Businesses urge Rachel Reeves to restore tax-free shopping as US tariffs hit UK exports

Prominent British entrepreneurs and Rich List members have issued a stark warning to Chancellor Rachel Reeves, claiming her proposed tax hikes on capital gains and inheritance will cripple family businesses, fuel an exodus of wealth creators, and trigger an “existential crisis” for UK enterprise.

In the wake of the latest Sunday Times Rich List, which revealed a record drop in the number of British billionaires, industry leaders are urging the Chancellor to rethink her approach — warning that her tax policies are already driving investment, talent and businesses abroad.

The Rich List recorded 156 billionaires, down 21 from the 2022 peak, and nine fewer than last year. It also revealed a 3% decline in total wealth across the top 350 entries, bringing combined fortunes to £772.8 billion — the third consecutive annual drop, something never before seen in the list’s 36-year history.

Among the most vocal critics is Tony Langley, head of the £1.7 billion Langley Holdings, who condemned a proposed 20% tax on family business transfers exceeding £1 million as a “catastrophic blow” to long-established firms.

“You’re killing the goose that lays the golden eggs,” said Langley. “Family firms employ 14 million people and are the backbone of the UK economy. Many don’t have the cash to pay such taxes — they’ll be forced to sell to private equity, with job losses to follow.”

Inventor and billionaire Sir James Dyson labelled the plans a “tax grab” that threatens “the very fabric of our economy”, while David Sullivan, co-owner of West Ham United, warned: “Starmer has driven dozens of my friends out of the UK with his attack on family businesses and pensions.”

Sullivan added that although he intends to remain in the UK, he is “very close to saying enough is enough”.

The backlash comes amid wider fears over Labour’s abolition of the non-dom tax regime, a move that has reportedly accelerated the departure of high-net-worth individuals. Christian Angermayer, the German-born investor, recently relocated to Switzerland, calling the change “the death blow to London.”

Lakshmi Mittal, the steel magnate, is also said to be considering departure after nearly 30 years in the UK. Sir Rocco Forte has already moved to Italy, slamming Labour’s economic stance as “anti-growth”.

Although Reeves has hinted that the phasing out of non-dom benefits might be softened, Treasury insiders say her room to manoeuvre is shrinking. Rising public debt (£2.8 trillion) and a growing deficit (£151.9 billion), combined with new US tariffs on UK exports, are likely to erode the £9.9 billion fiscal headroom she held just weeks ago.

Former Downing Street adviser Nick Williams has suggested Reeves may now have no option but to raise taxes further, given the constraints on cutting public spending or slashing benefits.

Even Jamie Dimon, CEO of JP Morgan and a Labour ally, has urged caution — suggesting a one-off charge of up to £400,000 for wealthy non-doms as an alternative to complete abolition.

Younger entrepreneurs join the revolt

Tech entrepreneur Barney Hussey-Yeo, a Rich List “40 under 40” member worth £161 million, said Reeves’s approach is chasing away the next generation of business leaders.

“Scrapping entrepreneurs’ relief, abolishing non-dom status, and hiking CGT was reckless,” he said. “The UK must compete — or watch its top talent walk.”

Latest HMRC figures show CGT receipts dropped 10% in 2024–25, raising questions over whether the Treasury’s policies are achieving their intended results.

The appeal of lower-tax jurisdictions is growing. Property developer James Stephens, who made his fortune in the UK but now lives in Dubai, said: “Scrapping non-dom status and expanding IHT to global assets is driving high-net-worth individuals to Dubai. But it’s not just tax — it’s safety, lifestyle, opportunity. I can’t see one reason to live in the UK right now unless you have to.”

Others are heading to Jersey, Guernsey, Monaco, and Italy, where favourable tax regimes now outshine post-Brexit Britain’s.

As the Chancellor prepares for her next fiscal steps, business leaders are urging her to reverse course before permanent damage is done to the UK’s attractiveness as a global hub for entrepreneurship, wealth creation, and family business.

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Rich List tycoons warn Reeves that tax plans threaten family firms and UK wealth creation

Inflation in the UK is forecast to accelerate sharply this month, with figures due next week expected to show the steepest monthly rise since October 2022, as households absorb a fresh wave of bill increases.

City analysts predict that the Office for National Statistics (ONS) will report inflation climbing to 3.6% in April, up from 2.6% in March — marking the largest month-on-month jump in more than two years.

This surge is being driven by widespread increases to energy and water bills, alongside rising employer payroll costs, higher minimum wages, and other administrative charges introduced at the start of the new financial year.

In April, Ofgem raised the energy price cap by 6.4% to £1,849, while the average annual household water bill rose by 26% (£123) to £603 — both major contributors to the expected inflation jump.

Sanjay Raja, chief UK economist at Deutsche Bank, forecast inflation to reach 3.4%, citing “historically large increases in energy and water bills” and additional inflationary pressure from changes to council tax, vehicle excise duty, and air passenger duty.

“Index-linked and administrative bills will be on the rise,” said Raja. “A later than usual Easter will also add to price momentum.”

Asset manager Investec anticipates a 3.3% reading, noting that the rise “will not come as a surprise to the Bank of England.” Economists expect several Monetary Policy Committee (MPC) members to comment on the data next week.

While global energy prices have eased, and the pound has strengthened against the dollar — lowering the cost of imports — domestic pressures are intensifying.

From April 6, businesses have faced a £25 billion rise in employers’ national insurance contributions, alongside a 6.7% increase in the minimum wage — both policies introduced by Chancellor Rachel Reeves in last year’s October Budget.

These increases are expected to hit sectors such as retail, leisure, and hospitality, which employ large numbers of low-paid and part-time workers.

Analysts at Pantheon Macroeconomics echoed these concerns: “Payroll tax hikes and the minimum-wage increase that kicked in at the start of April are likely to be the perfect excuse for a range of firms to jack up prices.”

Raja also suggested price increases could filter into cultural services, including concerts and gallery admissions, noting the Bank of England previously estimated that the NIC changes would add 0.2 percentage points to inflation.

Despite the near-term spike, inflation is forecast to hover around 3% for the rest of 2025. Investors still expect the Bank of England to deliver two further quarter-point interest rate cuts before the year ends, following cuts in February and May, which brought the base rate to 4.25% — its lowest level in over two years.

While short-term pressures remain, the overall inflation trajectory is expected to stabilise. However, policymakers will need to weigh the impact of domestic fiscal changes and global trade tensions — including tariff uncertainty following President Trump’s policies — as they navigate the path toward sustainable growth and price stability.

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UK inflation set for sharp rise in April after surge in household bills

Global businesses are delaying payments and rejecting invoices at record levels as they react to escalating trade tensions and cost uncertainty sparked by President Trump’s tariff policy, according to new data from Basware.

The invoice processing firm reported that 2.9 million invoices were rejected globally in the first quarter of 2025 — an increase of 2 million compared to the same period last year. The total rejection rate surged to 7% of all invoices, up from just 1.9% a year earlier, signalling mounting financial strain across international supply chains.

According to Basware, the spike in rejections is directly linked to the April 2 announcement of sweeping US tariffs, which have disrupted trade relationships and led many businesses to renegotiate contracts, defer payments, and reassess supplier terms.

“The reality is that the US tariff policy is creating huge strains for international trade, hitting business finance teams hard,” said Jason Kurtz, CEO of Basware. “Companies are using payment delays as a financial buffer against wider economic uncertainty.”

Invoices denominated in US dollars were particularly affected, with rejection rates climbing from under 1% in 2024 to 11% in Q1 2025. Basware noted that US importers have become increasingly cautious, rejecting bills from overseas suppliers as they reassess the viability and costs of existing contracts.

Businesses can reject invoices for multiple reasons, including pricing disputes, incorrect tax details, or as a temporary measure to preserve liquidity amid uncertainty.

Despite the volatility, overall transaction volumes rose 5%, as companies attempted to stockpile goods ahead of expected tariffs. US imports surged by 41%, led by metals and pharmaceuticals, as importers raced to beat the April 2 deadline.

On April 9, the Trump administration announced a 90-day pause on new tariffs for more than 100 countries, and last week confirmed that tariffs on Chinese imports would be set at 30%, down from the initially proposed 145%.

The UK was the first to secure a partial exemption, winning zero tariffs on imported steel and aluminium and a reduced 10% tariff on cars, down from a proposed 27.5%. However, the US will maintain a 10% base tariff on all other UK imports.

According to Allianz Trade, the effective US tariff rate on UK goods will rise from 1% before Trump’s presidency to 6.1%, even after the revised agreement. Without the exemption, the effective rate would have been 9.1%. Despite the concessions, the UK still faces an estimated £2.3 billion export loss, while US exporters stand to gain around $700 million through enhanced access to the UK market.

The broader impact of these trade disruptions is now being felt in boardrooms and finance departments around the world, as companies reassess their exposure and implement short-term cash preservation strategies — with invoice rejections becoming a clear sign of the strain.

As policymakers and negotiators grapple with the longer-term implications of protectionist trade policies, the private sector is already adapting in real time — and for many, that means rethinking how and when they pay their bills.

Read more:
US tariffs drive invoice rejections to record highs as businesses scramble to preserve cash

The average debt burden of small businesses seeking loans is now more than twice pre-pandemic levels, leaving many firms unable to access the finance they need to grow or even survive, according to new data from Funding Xchange.

The marketplace lender’s latest quarterly lending monitor, based on thousands of loan applications, found that the debt-to-turnover ratio for small businesses has “settled” at elevated levels — a legacy of the Covid-19 pandemic and the extensive government-backed borrowing that followed.

Funding Xchange warned that this rising indebtedness is blocking access to finance, with many small businesses now deemed too risky or financially weak to secure additional funding.

“We are seeing more businesses applying for loans not to fuel growth, but simply to survive,” said Katrin Herrling, CEO of Funding Xchange.

Pandemic loans still weighing down UK firms

During Covid, the UK government implemented some of the most generous emergency loan schemes in Europe. As a result, one in three British firms took on debt — compared to just one in ten in France and Germany. The uptake was especially high among micro and small businesses, many of which are now struggling under the weight of that borrowing.

The report reveals that cash reserves have been depleted, with median balances now below pre-pandemic levels, leaving many businesses without a financial cushion.

While finance availability has improved in technical terms, actual access remains “stubbornly below” pre-2020 levels, especially for short-term working capital. The report blames this on a sharp shift in borrower profiles — with a growing number of businesses either unprepared to borrow or unable to afford new loans.

The research also shows that startup funding requests have increased, but most lenders still require at least two years of trading history, pushing up rejection rates for newer businesses.

Meanwhile, higher interest rates in the UK compared to the eurozone mean British SMEs now face steeper borrowing costs than their European counterparts.

“UK SMEs are not only more indebted — they also face higher costs to service that debt,” the report notes.

This environment is leading to a dangerous long-term shift, where firms permanently turn their backs on external finance, potentially stifling innovation, productivity, and business investment.

Despite widespread belief that banks aren’t lending, Funding Xchange argues that the main issue isn’t lack of supply, but that many businesses are not financially ready or eligible to borrow. The report stresses the need for greater transparency in lending decisions to help businesses understand why they’ve been turned down — and what they can do to improve their chances.

A separate study by Allica Bank last month highlighted a related issue: a “dysfunctional” lending market increasingly focused on low-risk, property-backed loans, such as residential mortgages, rather than supporting business growth.

It estimated that UK SME lending is £90 billion below historic trends, citing a sharp retreat from unsecured and growth-oriented lending since the early 2000s.

“Based on our experience, the impact of a negative lending experience can be long-lasting,” Herrling added. “Businesses begin to believe they’re not good enough, and they stop applying altogether.”

As the UK seeks to stimulate growth and productivity, the findings underscore the urgent need for a more inclusive, transparent and risk-calibrated lending environment that doesn’t punish small businesses for pandemic-era survival decisions.

Read more:
Small business debt load doubles since pandemic, hampering access to finance

For small and medium enterprises across the UK, optimising operational costs remains a constant challenge.

While digital transformation initiatives often take centre stage in efficiency discussions, one significant overhead frequently flies under the radar: the true cost of paper storage.

The Hidden Expenses of Paper Archives

When calculating document storage expenses, most businesses focus solely on the obvious costs – filing cabinets, folders, and perhaps dedicated storage rooms. However, the real financial impact extends far beyond these visible elements.

Prime Real Estate Wastage

Commercial property in the UK continues to command premium rates, particularly in business hubs. Many SMEs dedicate valuable office space to document storage, which could otherwise generate revenue through productive activities.

Office space in major UK cities represents a significant operational expense. The square footage devoted to storing files and archives effectively removes that area from revenue-generating activities, creating an ongoing overhead cost that many businesses fail to accurately calculate when assessing their document management approach.

Administrative Inefficiency

The time employees spend searching for, filing, and managing paper documents represents a substantial hidden cost. These administrative tasks divert staff from core business activities, resulting in productivity losses that accumulate significantly over time.

The administrative burden extends beyond simple file retrieval. Document duplication, version control issues, and the maintenance of filing systems all consume valuable employee time that could be directed toward business development or customer service.

Compliance and Risk Factors

With data protection regulations becoming increasingly stringent under GDPR and UK data laws, improper document storage presents serious financial risks. Non-compliance can result in substantial penalties, regulatory scrutiny, and reputational damage.

Beyond regulatory concerns, inadequate physical storage creates business continuity risks. Paper documents are vulnerable to damage from water, fire, pests, and environmental factors. For SMEs, the loss of critical business documents can create existential challenges that digital or professional storage alternatives help mitigate.

Environmental Impact

As sustainability becomes increasingly linked to business success and consumer preference, the environmental footprint of paper storage represents another cost dimension. Paper-intensive operations not only consume resources but can damage brand perception in an eco-conscious marketplace.

Strategic Solutions for Document Management

Forward-thinking SMEs are addressing these challenges through strategic approaches that balance practicality, compliance requirements, and budget constraints.

Audit and Rationalise

The first step involves conducting a thorough document audit to determine exactly what needs to be retained and for how long. Many businesses discover they’re storing significant volumes of documents beyond their legal retention requirements, consuming space and resources unnecessarily.

Establishing clear retention policies aligned with regulatory requirements can substantially reduce storage volume, immediately decreasing associated costs.

Selective Digitisation

While complete digitisation may seem overwhelming, a targeted approach focusing on frequently accessed documents and those with the highest business value offers substantial return on investment.

Modern scanning technologies with optical character recognition (OCR) capabilities transform static documents into searchable digital assets, dramatically improving accessibility while reducing retrieval time.

Professional Storage Solutions

For documents requiring physical retention, professional document storage services offer compelling economics compared to in-house storage. These specialised facilities provide optimal preservation conditions along with sophisticated tracking systems that improve document governance.

Hybrid Approaches

Many successful SMEs are implementing hybrid strategies that combine on-site storage for frequently accessed documents, professional off-site document storage for less active files, and digital solutions for collaborative working materials.

This approach optimises both space utilisation and operational efficiency while maintaining compliance with retention requirements.

The Bottom Line

The true cost of paper storage for UK SMEs encompasses far more than the visible expenses of filing systems. When accounting for space utilisation, administrative inefficiency, compliance risk, and environmental impact, the financial burden becomes significant for businesses operating with tight margins.

By implementing strategic document management solutions, businesses can reduce these costs while simultaneously improving document security, accessibility, and compliance.

Implementation Considerations

When reviewing document management approaches, SMEs should consider:

Immediate vs. long-term cost savings
Staff training requirements for new systems
Business continuity improvements
Compliance with sector-specific regulations
Scalability as the business grows

Taking Action

For most SMEs, document management optimisation represents a high-return initiative that delivers both immediate cost savings and long-term operational benefits.

By addressing the true costs of paper storage through strategic solutions, UK small and medium businesses can redirect valuable resources toward growth initiatives while improving their resilience and compliance positioning in an increasingly competitive marketplace.

The most successful implementations typically begin with small, targeted projects that demonstrate value before expanding to comprehensive solutions, creating momentum while managing change effectively for sustainable improvement.

Read more:
The True Cost of Storing Paper and What SMEs Can Do About It