Business

British autonomous driving start-up Wayve is in early talks with Microsoft and SoftBank over a potential $2 billion funding round, in a deal that would value the London-based AI firm at $8 billion, according to The Financial Times.

Founded in 2017 by Cambridge PhD students Alex Kendall and Amar Shah, Wayve has developed a breakthrough approach to self-driving cars, using machine learning and computer vision to teach vehicles how to drive through real-world video and data—rather than relying on pre-programmed rules.

The fast-growing company is already backed by an elite roster of investors, including SoftBank, Nvidia, Microsoft, Ilya Sutskever (OpenAI co-founder), and Yann LeCun (Meta’s Chief AI Scientist). Last year, SoftBank led a $1 billion round, with Nvidia adding another $500 million in September during CEO Jensen Huang’s high-profile visit to London with President Trump.

Wayve’s AI-powered software is designed to make any car hands-free. It is currently being trialled with retail and logistics partners including Asda, Ocado, and Uber, with UK road tests set for next spring. The company has also signed a landmark deal with Nissan, aiming to integrate its technology into Nissan vehicles by 2027.

From humble beginnings in a garage, Wayve now employs over 800 staff across six countries, making it one of the UK’s most internationally ambitious AI ventures. The planned investment—if finalised—would signal continued confidence in Britain’s AI innovation sector, at a time of intensifying global competition in autonomous driving and artificial general intelligence.

A key benefit of Wayve’s approach is its ability to handle unpredictable scenarios—such as pedestrians stepping into the road or sudden swerves from other vehicles—making it a strong contender in the race to scale safe and adaptable self-driving solutions.

Industry experts hope the rollout of driverless cars will dramatically reduce road accidents by removing human error, drunk driving, and road rage from the equation.

Wayve declined to comment on the fundraising talks.

Read more:
Wayve wheels in Microsoft and Softbank for $2bn cash injection

Britain’s renewable electricity generation hit a new record for the third quarter of 2025, with wind and solar output combining to deliver the country’s cleanest power mix on record, according to the latest data from Montel Analytics.

In the three months to the end of September, total renewable output — including wind, solar, hydro and biomass — reached 31.9 terawatt hours (TWh), the highest Q3 figure since records began in 2014. Renewables accounted for 51% of Britain’s total power generation, overtaking all fossil-fuelled sources combined.

Wind power led the charge with 17.7TWh, up 6% year on year and the highest third-quarter output ever recorded by Montel. The increase came despite several periods of curtailment, particularly in September when strong winds coincided with weak demand, driving electricity prices into negative territory for several hours.

Solar generation also saw exceptional gains, producing 6.2TWh — the second-highest quarterly total since records began, behind only Q2 2025. This marked a 32% increase on Q3 2024’s total of 4.7TWh, fuelled by prolonged sunshine and intense summer heatwaves in early July and mid-August that sent temperatures soaring and boosted cooling demand across the UK.

Phil Hewitt, Director at Montel Analytics, said the figures reflect Britain’s accelerating transition toward renewable energy and the growing impact of clean generation on the overall power mix.

“High levels of renewable generation are symptomatic of a long-term commitment to producing more of our power from clean sources,” Hewitt said. “Wind output would have been even higher had it not been for several curtailments across the quarter. Because of the high levels of renewable generation, the requirement for gas-fired power was significantly reduced.”

The surge in renewables has continued to displace gas-fired power. Combined cycle gas turbine (CCGT) plants produced 15.4TWh in Q3 — slightly up from the record low of 13.8TWh a year earlier, but still 25% below 2023 levels, when gas generation totalled 20.5TWh.

Meanwhile, output from Britain’s nuclear fleet fell to 7.8TWh, its lowest third-quarter level since 2014. Multiple reactors, including Hartlepool 2, Heysham 1 and 2, and Torness 1 and 2, were offline for maintenance and refuelling during the period.

As a result, Britain’s Q3 power mix was dominated by renewables (51%), followed by gas (24%), imports (13%), and nuclear (12%).

Hewitt noted that the high renewable share, combined with reduced summer demand, helped stabilise wholesale power prices during Q3.

“The quarter followed the expected seasonal trend, with warmer weather easing system demand and contributing to lower gas and electricity prices than seen in Q2,” he said. “We expect that stability to continue into Q4, unless geopolitical tensions — particularly in the Middle East — push gas prices higher.”

Gas storage levels across Europe are now nearly full ahead of winter, but analysts warn that emerging La Niña conditions could bring colder-than-normal weather to the UK and northern Europe later in the year.

“A La Niña event typically occurs every three to five years and can bring a colder winter,” Hewitt said. “That could increase demand, speed up storage drawdowns, and add upward pressure on wholesale prices. However, this appears to be a weak La Niña event and may fizzle out.”

The new data underlines the resilience and importance of renewables in the UK’s energy system — even amid market volatility and infrastructure constraints.

Analysts said the record-breaking quarter reinforces the UK’s position as a global leader in clean energy generation, while also highlighting the need for greater grid flexibility and storage to prevent curtailments during high-output periods.

As the UK heads into the winter months, the balance between renewable generation, system demand, and gas market stability will be critical to maintaining energy security — and to sustaining the downward trend in wholesale prices that consumers and businesses are hoping will continue.

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Wind and solar power drive UK renewable electricity record

Instagram is introducing a PG-13-style content rating system to give parents greater control over what teenagers see on the platform, Meta has announced.

The change marks one of the company’s most sweeping efforts yet to align social-media content moderation with the kind of age guidance familiar from the cinema. All users under 18 will automatically be placed into a “13+” setting modelled on the US parental guidance film rating. Teens will only be able to opt out with explicit parental consent.

The PG-13 system, created in the United States more than four decades ago, has become shorthand for content considered broadly suitable for teenagers but containing material that may be inappropriate for younger children. Meta said its new approach would mirror that framework online.

“While there are obvious differences between movies and social media, we made these changes so teens’ experience in the 13+ setting feels closer to the Instagram equivalent of watching a PG-13 movie,” Meta said. “We wanted to align our policies with an independent standard parents are already familiar with.”

Instagram already restricts sexually suggestive, graphic, or adult content such as tobacco or alcohol promotion on teen accounts. The new settings go further, tightening filters around strong language, risky stunts, and imagery linked to harmful behaviours, including posts featuring marijuana or drug paraphernalia.

Search results will also be restricted more aggressively. Keywords such as “alcohol” or “gore” — and even common misspellings — will be blocked under the new moderation system.

The approach has been designed to resemble the UK’s 12A cinema classification. Just as films such as Titanic or The Fast and the Furious may feature fleeting nudity or moderate violence but remain accessible to teenagers, the new Instagram rules will not prohibit all instances of partial nudity or stylised aggression.

Meta said the system would launch first in the US, UK, Australia and Canada, before being expanded to Europe and other regions early next year.

The move comes amid growing scrutiny of Meta’s child-safety record and the effectiveness of its moderation tools.

A recent independent review led by Arturo Béjar, a former senior Meta engineer turned whistleblower, concluded that 64% of new safety tools on Instagram were ineffective. Conducted alongside academics from New York University, Northeastern University and the UK’s Molly Rose Foundation, the study found persistent exposure to harmful content among teenage users.

Béjar said: “Kids are not safe on Instagram.”

Meta rejected the findings, insisting that parents already have “robust tools” to manage teenagers’ accounts and monitor activity.

The UK communications regulator Ofcom has also warned that social media companies must adopt a “safety-first approach” under the forthcoming Online Safety Act, saying platforms that fail to protect children will face enforcement action and potential fines.

Child-safety campaigners welcomed the intent behind the PG-13 system but questioned whether it would deliver meaningful change.

“Time and again Meta’s PR announcements do not result in meaningful safety updates for teens,” said Rowan Ferguson, policy manager at the Molly Rose Foundation. “As our recent report revealed, they still have work to do to protect young people from the most harmful content. These further updates must be judged on their effectiveness — and that requires transparency and independent testing.”

Critics argue that parental controls can be effective only if they are easy to use and clearly communicated to families, while some digital-rights advocates warn that over-blocking could limit teenagers’ access to legitimate health or educational resources.

The rollout of a PG-13-style content standard reflects Meta’s wider strategy to bring its platforms closer to traditional media norms amid rising pressure from governments and watchdogs.

By borrowing a familiar system from the film industry, Instagram hopes to reassure parents that it is taking responsibility for the wellbeing of its youngest users — and to set a benchmark other social platforms may now feel compelled to follow.

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Instagram to introduce PG-13-style controls to protect teen users, says Meta

In today’s job market, employers want more than enthusiasm. They want professionals who can analyse data, manage teams, and deliver results.

Postgraduate study can build those career-ready skills, preparing individuals for leadership and specialist roles in industries ranging from healthcare to technology.

Institutions like the Walbrook Institute London reflect this change. Their postgraduate pathways go beyond classroom knowledge. They are designed to help individuals build the practical skills needed for today’s professional environments, where careers demand more than enthusiasm.

Research careers in transition

Careers that once relied only on experience are changing fast. Technology firms, healthcare providers, finance organisations, and even public services now expect staff to show advanced expertise. Postgraduate qualifications prepare professionals to meet these expectations, helping them move into senior or specialist positions.

Take healthcare as an example. Hospitals and providers expect staff to handle data, improve operations, and contribute to decision-making. Without postgraduate training, many professionals find themselves limited in how far they can progress.

Why advanced study counts

An undergraduate degree gives a foundation. It teaches the basics of critical thinking and introduces students to analytical methods. Employers increasingly look for postgraduate qualifications as proof of advanced ability. These programmes build leadership, analytical, and communication skills that directly transfer to the workplace.

They are able to learn on a part-time basis, continue working, and put into practice what they have learnt at the same time. That balance between theory and practice is hard to match.

According to the UK government’s Graduate Labour Market Statistics, postgraduates enjoy higher employment rates and are more likely to secure highly skilled roles compared to those with only an undergraduate degree.

Connecting research and business

Postgraduate study bridges theory with practice. Businesses rely on professionals who can analyse problems, test ideas, and implement solutions.

The postgraduate degree portfolio at Walbrook offers flexible pathways for professionals who want to strengthen their career skills while advancing into senior roles. Graduates understand how findings feed into real decisions. They can analyse data in the morning and explain its meaning to a board of directors in the afternoon.

An analysis by Universities UK shows that postgraduates often outperform undergraduates in both earnings and employment stability, especially in roles combining research and commercial strategy.

A portfolio of postgraduate options

The range of postgraduate pathways is vast. Some focus on the sciences, others on social issues, business, or technology. Each one offers the chance to specialise while sharpening research skills.

At Walbrook, the postgraduate portfolio reflects this diversity. The programmes are built to meet both academic and professional needs. Graduates often use their qualifications to secure promotions, pivot into new industries, or specialise in high-demand areas such as management, healthcare, or technology.

London’s academic setting

London has long been a hub for trade, business, and innovation. Its professional networks attract people from across the globe. That environment shapes careers just as much as the courses themselves.

The river Walbrook’s history shows how closely the city has always been linked to trade and growth. That same spirit continues today, shaping opportunities for professionals who study here.

For international students, the pull is even stronger. A degree earned in London carries weight with employers worldwide. Add the cultural exposure and professional connections, and it becomes more than just study; it becomes a career launchpad.

A global trend

The value of postgraduate study is not limited to the UK. Globally, employers see these qualifications as proof of advanced ability, making graduates more mobile and competitive.

This international trend is also beneficial to people. A postgraduate degree is internationally recognised, giving graduates greater mobility and the chance to join international organisations and specialist roles in different countries. To those students wishing to work in foreign countries, such recognition can be worth more than the knowledge itself.

Accessibility and flexibility

A major reason for the rise of postgraduate study is flexibility. Decades ago, students had to relocate and often give up work to continue studying. Now, part-time, blended, and online options make it possible to keep careers on track while gaining new qualifications.

For professionals, that is a game-changer. A data analyst can enrol in a postgraduate programme without leaving their role. They bring classroom knowledge into their office the next day. The result is a stronger, more adaptable workforce that keeps evolving.

A healthcare professional can study an online MBA in Healthcare Management while working. A data analyst can complete an MSc in Computer Science with AI and apply new skills directly to projects.

Why postgraduate study is now essential

Employers and recruiters now expect higher levels of training. A degree can open doors, but postgraduate qualifications are often what help professionals secure long-term career growth.

A postgraduate degree shows employers that a candidate is ready to manage projects, lead teams, and handle complex responsibilities.

For employers, postgraduate training often signals readiness for more complex responsibilities. Those with advanced qualifications are typically better prepared to contribute to projects, manage teams, and present findings with confidence.

Conclusion

Careers across industries now demand more sophisticated training and adaptable skills. Postgraduate study bridges the gap by developing critical thinking, leadership, and problem-solving abilities that employers value. Institutions like Walbrook focus on flexible, career-driven education, giving professionals the tools to move confidently into their next role. For anyone serious about career progression, postgraduate study has become essential.

Read more:
Why Postgraduate Study is Becoming Essential for Research Careers

UK unemployment has risen to its highest level since the 2021 lockdown, while wage growth has cooled to its weakest pace in more than three years, according to the latest data from the Office for National Statistics (ONS).

The figures, released on Tuesday, show the unemployment rate increased to 4.8% in the three months to August, up from 4.7% in the previous quarter — the highest reading since the three months to May 2021. A single-month estimate put joblessness even higher, at 5.3%, marking the steepest rise since October 2020.

At the same time, regular pay (excluding bonuses) rose by 4.7%, its slowest pace since early 2022, while total pay growth (including bonuses) edged up slightly to 5%. The ONS said that while earnings growth remains well above pre-pandemic norms, momentum has clearly weakened in recent months.

The combination of higher unemployment and softer pay growth will provide some comfort to policymakers at the Bank of England, who have been concerned that wage pressures are fuelling persistent inflation.

Inflation has remained stuck at 3.8% for two consecutive months and is expected to rise to around 4% in September, still nearly double the Bank’s 2% target.

Economists said the latest labour market data could strengthen the case for interest rate cuts in 2026, as hiring slows and pay settlements ease.

“We think it’s only a matter of time before the loosening in the labour market leads to a more marked easing in wage growth,” said Ashley Webb, UK economist at Capital Economics. “That would allow the Bank to cut rates from 4% now to around 3% next year.”

Younger workers hit hardest as vacancies fall

According to the ONS, the increase in unemployment was driven primarily by younger workers, while the number of over-65s in work hit a record high.

“After a long period of weak hiring activity, there are signs that the falls we’ve seen in both payroll numbers and vacancies are now levelling off,” said Liz McKeown, director of economic statistics at the ONS. “We’re seeing different patterns across age ranges, with record numbers of older people in work, but more young people out of work.”

The total number of job vacancies slipped by 9,000 to 717,000, the lowest level since 2021. Meanwhile, the number of payrolled employees fell by 10,000 in September and is now down by 126,000 compared with October 2024 — shortly after the government announced £40 billion in tax rises.

Economists said the rise in employers’ National Insurance contributions (NICs) and last year’s 6.7% increase in the minimum wage have added to cost pressures for employers, contributing to the slowdown in hiring.

“The increase in employers’ NICs and the minimum wage have clearly weighed on hiring,” said Martin Beck, chief economist at WPI Strategy. “Figures over the summer suggest the worst of the damage is passing, but the overall trend is one of stagnation.”

The private sector saw wage growth slow to 4.4%, the weakest in nearly four years, while public sector pay rose faster, reflecting several delayed settlements from 2024.

The ONS also noted that August recorded the fewest working days lost to strikes in almost six years, signalling easing industrial tensions across the economy.

The data underscores the delicate economic backdrop facing Chancellor Rachel Reeves as she prepares her November 26 Budget, which is expected to include tens of billions of pounds in tax rises to restore fiscal balance.

The pound weakened by 0.4% following the release, trading at $1.32 against the dollar and €1.14 against the euro. UK government bond yields slipped slightly, with the 10-year gilt yield down by two basis points to 4.65%.

Pat McFadden, the pensions secretary, said the figures showed “record numbers of people in work and looking for work” but admitted “too many people remain locked out of employment or training.”

Analysts said the overall message was clear: the labour market is cooling, and while that may help tame inflation, it also highlights the fragility of the UK’s post-pandemic recovery.

Read more:
UK unemployment rises to 4.8% as wage growth cools to three-year low

The UK economy is losing as much as £3.5 billion a year as tens of thousands of women leave the technology sector amid stalled career progression, unequal pay and weak leadership pipelines, according to a new landmark report released to mark Ada Lovelace Day.

The 2025 Lovelace Report: Unlocking £2–3.5 Billion, published on Tuesday, reveals that between 40,000 and 60,000 women are quitting the industry annually — an exodus that experts warn is undermining the country’s ambitions to become a global leader in artificial intelligence and digital innovation.

Despite making up just 20% of the tech workforce, women are leaving at twice the rate of men, with the losses hitting hardest among mid-career professionals who should form the backbone of Britain’s digital economy.

The report’s authors say the problem is not that women are failing to enter tech, but that the system is failing to retain them. More than three-quarters of women with 11–20 years’ experience said they had waited over three years for a promotion, while half earned below-average pay for their seniority.

Although 90% of women in the sector say they want to lead, only one in four believe they can, citing a lack of sponsorship, opaque promotion pathways, and workplace cultures that undervalue women’s contributions.

The report estimates an annual cost of £1.4–2.2 billion in lost productivity from women leaving tech, and a further £640 million–1.3 billion from turnover as women move between employers in search of better pay or opportunity.

Elizabeth Anderson, chief executive of the Digital Poverty Alliance, said the findings highlight how structural inequality and digital exclusion reinforce one another.

“With women being 14–22% more likely to be in digital poverty than men, Ada Lovelace serves as an important reminder of the need to close the gender gap in access to technology,” Anderson said.

“Without the right tools, connectivity and digital literacy, many women face a self-perpetuating cycle of exclusion that limits their ability to participate in the workforce.”

She added that the issue goes beyond workplace access to devices, noting that digital exclusion now “deepens existing inequalities” by limiting access to education, healthcare, and financial planning.

“Celebrating Ada’s legacy is not just about honouring the past — it’s about ensuring every woman can thrive in a digitally connected world,” she said.

The report warns that the UK’s inability to retain female tech professionals comes at a dangerous moment. The government’s AI and Digital Skills Strategy aims to scale the national AI workforce twentyfold by 2030, yet the sector already faces a shortfall of 98,000–120,000 skilled workers across AI, cybersecurity, and infrastructure.

Industry leaders say the country risks falling further behind the US, Canada and Singapore unless it tackles workplace inequality and embeds retention incentives into industrial policy.

“This isn’t just about fairness — it’s an economic emergency,” one senior tech executive told Business Matters. “If half of your skilled workforce leaves before reaching senior level, you’re not just losing talent, you’re sabotaging your own growth strategy.”

Each year, Ada Lovelace Day celebrates the pioneering mathematician who in the 19th century imagined machines that could process ideas as well as numbers — a vision that prefigured the birth of modern computing.

But 184 years after Lovelace’s notes on Charles Babbage’s analytical engine, the report argues that the UK is still failing to build the inclusive innovation ecosystem she envisioned.

The researchers conclude with a stark warning: unless companies address career stagnation and gender inequity, the UK will continue to “bleed talent and opportunity.”

“On Ada Lovelace Day, this research is both a celebration and a call to action,” the report states. “Women have been at the heart of technology since its inception — and the UK cannot afford to lose the next generation of its brightest minds.”

Read more:
UK Losing £3.5bn a Year as Women Exit Tech Sector, Warns 2025 Lovelace Report

Larry Ellison, the billionaire founder of Oracle, is deepening his commitment to Britain’s innovation economy with an additional £890 million investment in the Ellison Institute of Technology (EIT), dramatically expanding its footprint at Oxford Science Park.

The move comes as the 81-year-old tycoon faces scrutiny over the institute’s leadership and direction following a year of internal upheaval. Yet the fresh capital injection underlines Ellison’s determination to anchor a world-leading hub for AI, health, and climate research in the UK.

The expanded development — designed by renowned architect Norman Foster — will cover 2 million square feet, up from initial plans of 300,000 sq ft announced in 2023. The site will accommodate as many as 7,000 scientists, technologists and entrepreneurs, making it one of Europe’s largest private R&D campuses.

Ellison’s stated ambition is to tackle some of the world’s most “enduring and challenging problems,” including food security, global health and environmental sustainability. The scale of the project — now valued at close to £1 billion — aligns with the UK government’s strategy to make life sciences and technology central pillars of post-pandemic growth.

The institute has forged close ties with Sir Tony Blair, a long-time ally of Ellison’s, and senior Whitehall officials. Sources close to the discussions describe the project as a cornerstone in the UK’s bid to attract “mission-led” global research investment.

In an interview with The Times, Professor Santa Ono, who became Global President of the Ellison Institute in August, described the initiative as “the most exciting investment in research and innovation anywhere in the world.”

“A research enterprise of this size will have spin-offs, licensing deals and start-ups worth billions,” he said. “When you aggregate the activity of thousands of people living and working there, the economic impact is measured in billions, not millions.”

The renewed investment follows a turbulent year at the institute, which has faced allegations of high staff turnover, poor management culture, and operational delays.

Concerns reported by insiders include “cumbersome” HR processes, “cavalier” hiring practices and tension between academic and commercial priorities. The most high-profile departure came in September, when Professor Sir John Bell, one of Britain’s leading life sciences figures, resigned as institute president.

In his resignation statement, Bell said: “It has been a very challenging project as no one has attempted to create such a vehicle for sustainable innovation before. I think we have done a very good job in identifying programs and bringing in the best scientists to tackle them.”

Ono and Lisa Flashner, EIT’s Chief Operating Officer and a former executive of the Ellison Medical Institute in Los Angeles, have sought to stabilise the organisation and reaffirm its commercial focus.

Flashner, who recently relocated to Oxford, acknowledged that “rapid growth inevitably brings friction,” but said the team was united around delivering “a culture of innovation and respect.”

“It’s natural to have some people who love the place and others who find the pace of change difficult,” she said. “Our focus now is to build a thriving organisation that delivers lasting impact.”

Ono added that Ellison’s leadership style — often described as intense and uncompromising — was part of what made the project ambitious.

“Larry expects people to be focused and dedicated. That expectation is appropriate. He remains deeply committed to delivering a commercial impact soon.”

The expanded Oxford campus marks one of the largest private investments in UK science in recent years, with construction expected to begin in 2026.

Government officials believe the project could anchor a new wave of spin-out companies, mirroring the success of Cambridge’s biomedical cluster and strengthening Oxford’s role as a global centre for deep tech and health innovation.

For Ellison, who has long admired the British university model, the institute represents both a philanthropic legacy and a commercial bet on the future of applied science.

“This is not just a campus,” one adviser said. “It’s Ellison’s moonshot for human progress — and it’s happening in Oxford.”

Read more:
Larry Ellison commits extra £890m to Oxford science institute amid leadership turmoil

Retail sales growth cooled sharply last month as households tightened budgets ahead of Chancellor Rachel Reeves’s November Budget and heavy storms kept shoppers off the high street.

Figures from the British Retail Consortium (BRC) and KPMG show retail sales rose 2.3% year on year in the five weeks to October 4, down from 3.1% in the previous period. Although still above the 12-month average of 2.1%, the slowdown underscores weakening consumer confidence heading into the key Christmas trading season.

The BRC said speculation about a fresh round of tax rises had depressed consumer sentiment, while Storm Amy, which brought days of wind and rain across Scotland and northern England, further dented footfall.

Helen Dickinson, BRC Chief Executive, warned: “Rising inflation and a potentially taxing Budget is weighing on the minds of many households planning their Christmas spending.”

A separate BRC report this month suggested heavy rainfall may have played an even larger role than Budget anxieties in depressing sales, with many high streets and retail parks reporting double-digit footfall declines during early October.

The sector faces mounting concern that households will cut back over the festive period — traditionally the “golden quarter” when retailers earn the bulk of annual profits.

Inflation has remained stubbornly high at 3.8%, the strongest level in 19 months, while food inflation stands at 5.1%, its highest rate since January 2024. That has squeezed disposable income and curbed appetite for discretionary purchases.

The BRC said food sales rose 4.3% year on year in the five-week period, down from 4.7%, with growth driven largely by price increases rather than higher volumes.

Non-food sales — covering clothing, homeware and technology — grew by just 0.7%, compared with 1.8% in the previous month. Electronics sales bucked the trend, boosted by the release of Apple’s iPhone 17 and new Apple Watch, but demand for apparel and household goods remained subdued.

“Consumers are trading down, prioritising essentials and cutting back on larger purchases,” Dickinson said. “The Christmas period will be a critical test of confidence.”

Reeves is preparing a November 26 Budget expected to include up to £40 billion in tax rises, roughly matching the scale of her first Budget last year. The Chancellor is reportedly seeking to rebuild fiscal headroom eroded by weak growth and higher debt servicing costs.

Retailers remain wary after Reeves’s October 2024 Budget, which raised employers’ National Insurance contributions by £25 billion — a move that hit labour-intensive industries such as retail and hospitality particularly hard.

Since then, the UK has shed about 150,000 payroll jobs, according to HMRC, with most losses concentrated in consumer-facing sectors already struggling with rising minimum wage costs and declining footfall.

Separate data from Barclays revealed that overall retail spending fell 0.7% in September, led by a sharp decline in non-essential purchases. Spending on public transport fell 2.6%, the steepest drop since the 2021 lockdown, due largely to strikes on London’s Tube network.

One-third of Londoners told Barclays they had cut their overall monthly spending as a result of transport disruption.

Still, some categories bucked the slowdown. Spending on health, beauty and small luxury items jumped 9%, reflecting the so-called “lipstick effect” — when consumers seek affordable indulgences during periods of economic stress.

Economists warn that retailers could face a subdued Christmas, as lingering inflation and uncertainty over tax policy sap household confidence.

“With inflation sticky and the Budget looming, consumers are unlikely to loosen their purse strings until they know what’s coming,” said one retail analyst.

The BRC said the sector was bracing for a tough fourth quarter but remained cautiously optimistic that early promotional activity and online sales events such as Black Friday could offer some relief.

“Retailers are doing everything possible to deliver value for money and encourage festive spending,” Dickinson said. “But it’s clear that both the weather and the wider economic climate are weighing heavily on the nation’s tills.”

Read more:
Storms and tax fears cool retail growth to 2.3% as households rein in spending

Retail technology platform Patchworks has secured £5 million in new funding to accelerate its expansion into the United States and scale its next generation of AI-powered integration tools for enterprise retailers.

The round, led by existing backer Gresham House Ventures with growth lending from Palatine Growth Credit, comes as the company reports a 41 per cent year-on-year increase in annual recurring revenue and deepening adoption across ecommerce and omnichannel retail.

The latest investment will be used to expand sales and marketing in North America, enhance product innovation, and embed new AI capabilities into its integration platform. Patchworks helps retailers connect and automate systems across ecommerce, ERP, POS, CRM, PIM and fulfilment channels — a critical layer for businesses managing complex, multi-system operations.

Many retailers still rely on disconnected legacy systems that cannot share information in real time, resulting in overselling, delayed orders, and costly manual processes. Failures in integration have been linked to some of retail’s biggest collapses, including Target Canada, Debenhams, and BHS, where poor data flow contributed to stock and fulfilment crises.

Patchworks’ platform aims to remove that friction by offering retailers a single, scalable integration layer. Its software connects core systems in days rather than months, giving merchants faster access to accurate data, smoother customer experiences and reduced operational risk.

The company said the new investment would help retailers “future-proof their infrastructure” and respond to fast-changing consumer behaviour.

By layering AI into its system, Patchworks plans to introduce smarter automation tools and enable large language models to query retail data directly, helping teams identify insights, streamline fulfilment, and eliminate repetitive manual tasks.

“Retailers and brands need flexible, future-proof infrastructure to stay competitive,” said Jim Herbert, chief executive of Patchworks. “This follow-on investment is a huge vote of confidence in our platform and our strategy. We’re doubling down on the US market, scaling our partner ecosystem, and continuing to enhance the platform with AI so our customers can connect, adapt and grow faster.”

Patchworks’ momentum has been driven by what the company calls its “partner flywheel” — a model that incentivises digital agencies and technology providers to deliver the platform at scale. This partner-first approach has helped it achieve global delivery coverage and maintain close alignment with the evolving needs of the retail tech ecosystem.

Caroline Tulloch, Investment Director at Gresham House Ventures, said: “Patchworks has gone from strength to strength since our first investment in 2021. The business has built strong fundamentals and a clear path to scale. This additional funding will accelerate growth, particularly in North America, and we are excited to continue supporting Jim and the team.”

William Chappel, Managing Partner at Palatine Growth Credit, added: “Patchworks sits at the heart of the modern commerce ecosystem, helping retailers unlock efficiencies and innovation. We are delighted to back its expansion strategy as it captures more market share in the fast-growing iPaaS segment.”

Patchworks has emerged as a key player in the shift toward composable and MACH-based retail technology stacks, which allow brands to assemble best-in-class tools rather than rely on monolithic systems.

The platform’s ability to integrate these modular systems has made it a go-to choice for enterprise retailers seeking agility and resilience. The company already counts several global brands among its clients and continues to strengthen its presence through partnerships with major digital agencies.

With sustainability-focused backers and a strategy aligned to long-term digital transformation, Patchworks is positioning itself as a critical enabler of retail’s next phase — one defined by connected data, automation, and adaptive infrastructure.

Herbert said: “Our mission is simple — to help retailers stay connected in a fragmented world. The commerce ecosystem is evolving fast, and our platform ensures our customers are always one step ahead.”

Eversheds Sutherland advised on the deal.

Read more:
Patchworks raises £5m to power US expansion and future-proof retail technology

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