Business

The Financial Conduct Authority (FCA) has unveiled long-awaited plans to regulate the booming £13 billion ‘buy now, pay later’ (BNPL) sector — with proposals that could require affordability checks on even the smallest of loans.

Under the new rules, which form part of a formal consultation launched on Friday, BNPL lenders would need to conduct creditworthiness assessments on loans under £50 — a measure the regulator says is necessary to protect consumers from spiralling debt and financial harm.

The FCA said BNPL has evolved from a fringe product into a mainstream payment method, used by 10.9 million UK adults in the 12 months to May 2024. Around 1.1 million of these individuals had BNPL debts of £500 or more, while more than 5 million owed at least £50. Over half of all BNPL agreements currently involve loans under £50, which the FCA argues must be included in the scope of new rules to prevent widespread harm and “loan stacking” across multiple providers.

The proposals mark a significant shift in how short-term credit is treated, with firms like Klarna, Clearpay and Laybuy among the major lenders expected to come under the new regime.

Sarah Pritchard, the FCA’s deputy chief executive, said the regulator had been seeking oversight of the sector for some time amid concerns about its explosive growth.

“BNPL can offer flexibility, but our job is to ensure consumers are properly protected. People can benefit from BNPL while being protected,” she said.

The market has expanded rapidly from £60 million in 2017 to over £13 billion in 2024, often promoted at online checkouts to help customers spread the cost of purchases without interest. But critics have warned the ease of access can mask potential dangers for younger or financially vulnerable consumers.

BNPL is particularly popular among 25–34 year-olds, many of whom live in some of the UK’s most economically deprived areas. The FCA’s move is designed to ensure that those at greatest risk are not exposed to excessive borrowing without proper safeguards.

The new regime, due to take effect from 15 July 2026, will require BNPL lenders to become FCA-authorised. Once live, firms will have six months to register for authorisation or face losing the ability to lend.

Consumer groups have welcomed the proposals. Vikki Brownridge, chief executive of debt charity StepChange, said the regulation was long overdue.

“BNPL is now as common as using an overdraft. While it can be useful, it can also deepen financial difficulties. Struggling consumers must have the same protections as with any other form of credit,” she said.

The proposals also include mandatory support for customers experiencing financial hardship, along with the right to refer complaints to the Financial Ombudsman Service.

The FCA’s consultation is open until 26 September 2025, giving BNPL providers, consumer advocacy groups and industry stakeholders time to respond. The regulator is expected to publish its final rules early next year.

With the BNPL sector now firmly entrenched in the UK’s consumer finance landscape, the FCA’s intervention could mark a turning point — transforming a once lightly regulated payment method into a core part of the UK’s credit framework.

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New ‘buy now, pay later’ affordability checks may cover even smallest loans under FCA proposals

It is not easy to run a business that operates 24/7. A hospital, customer support centre, or manufacturing plant, whatever the setting may be, operating shifts 24/7 can be a real mess without proper tools.

This is the reason why most companies are currently spending on intelligent solutions to ensure scheduling is convenient and predictable.

Why Modern Workplaces Need Smart Shift Tools

Clear schedules are essential in places of work, such as hospitals. Manual scheduling usually results in mistakes, skipped shifts, or inequitable workloads. It is at this point that shift software turns into a game changer. This is because managers can use it to arrange shifts and monitor attendance.

Key Features of Shift Management Tools

Dealing with shifts in a 24/7 workplace is not an easy task. It doesn’t just need proper planning and continuous updating. It also requires tools that are friendly to both workers and managers. All this can be simplified by the right shift management software that will save time, reduce stress, and keep everything running smoothly. The main features that can support round-the-clock operations are:

User-Friendly Interface

The best shift management tool must be simple to use by anyone. Managers and staff must be in a position to log in, check schedules, or request changes without training. A simple dashboard is time-saving and less confusing. An easy interface makes it easy for employees to keep up-to-date without making phone calls or sending emails.

24/7 Support

This aspect will simplify daily management and minimise human mistakes. They also promote legality and workforce contentment. Custom settings allow you to customise the tool according to your business requirements. Consider software that provides:

Shift swapping and drop requests
Planning of break and rest periods
Role-based scheduling
Payroll integration

Real-Time Updates and Alerts

Real-time updates are required in those workplaces where the work is carried out 24 hours a day. A good tool must give immediate notifications when some changes occur, such as a swap shift or an open shift. This brings everyone to the same page and eliminates last-minute stress.

The employees can also be reminded of their shifts through mobile alerts. This will avoid the no-shows, and time will be given to find substitutes.

Time and Attendance Tracking

Time tracking is another important feature. An effective tool keeps track of both the clock-in and clock-out times of the employees. This, in turn, helps in keeping track of the attendance and minimising errors in the payroll.

It also helps managers to detect late comers, early leavers, or absence. Businesses are able to change the number of staff with the right data. The time management tools are cost-effective and increase productivity.

In conclusion, your choice of shift management software has a significant effect on your business. It helps in minimising scheduling issues, helps the team communicate better, and maintains smooth operations. In the case of 24/7 workplaces, these tools are not useful, but a necessity. So, try to find a solution that suits your organisation’s size, working style, and objectives.

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Top Features to Look for in Modern Shift Management Software for 24/7 Workplaces

In a digital landscape where attention spans are shrinking, distractions are constant, and competition is fierce, startups don’t have it easy. To survive, let alone succeed, businesses must find compelling ways to capture user interest within seconds.

Yet online entertainment platforms are thriving. From Netflix to Spotify to Twitch, today’s top platforms have seemingly cracked the code on how to keep users engaged, entertained, and coming back for more. The big question is: what exactly are they doing right, and what can startups learn from their playbooks?

Core Business Model Lessons

It’s not about what entertainment companies offer consumers; the key to success is often in the core business model’s design:

Subscription-Based Revenue Models

The gold standard for subscription-based success is Netflix. The company revolutionised entertainment with its subscription-based approach, completely novel when launched, and now the go-to strategy for online entertainment (see: Hulu, Amazon Prime, Apple TV, even YouTube, etc.).

Subscription models have the advantage of providing predictable revenue streams and higher customer lifetime value. Instead of a one-and-done, subscriptions keep the money coming in.

Startups should consider recurring revenue models even in traditional transactional industries, even if it’s contrary to the traditional setup. What you’ll have to do is give added value, a real reason why consumers should stick around for the long haul.

Companies outside of entertainment have copied this model. Like Dermatica or Skin+Me, for instance, where subscribers get skin products every month. Consumers don’t just get the skin care range, but also receive expert consultations from qualified dermatologists, an extra that you don’t get at your local Boots.

Free-to-Play (But with Premium Monetisation!)

From Netflix, our next stop is Epic Games. You may not know the company, but you’ll undoubtedly know the game: Fortnite. The company allows users to access the game at no cost, but still generates revenues through in-game purchases and microtransactions.

The strategy is simple: build a massive user base through free-to-play, with the bulk of the income coming from a smaller, engaged group. Startups can do something similar by offering basic free services, showing off the utility of their products, and then charging for the premium features.

This strategy works in a range of industries, being particularly effective in the iGaming space. At SkyCity Online Casino, for example, users can play in a demo mode, without initial costs, playing with virtual credits, only to switch to a real money game later on.

Acquisition and Retention

Companies like Netflix, Steam understand that it’s not just about that initial sale; retention is key to long-term success. These are their primary strategies that startups can learn from:

Data-Driven Personalization

You know why it’s easy to stay on TikTok and YouTube for hours without even noticing? It’s because of the data they have on you; they know you better than you know yourself.

Sounds scary, but it does mean that you’re served with content that’s right up your alley. Companies are now leveraging AI and machine learning to fine-tune personalisation even further, with real-time recommendations now the norm.

Startups won’t have the cash to get to this level of personalisation (yet!), but it does highlight the importance of investing in data analytics to understand and predict customer behaviour. It not only matters behind the curtain, but 71% of consumers expect it.

Community Building and User-Generated Content

Successful platforms build communities, not just a product/service for cash exchange. User-generated content is a great way of building your community and leveraging the power of existing customers.

It has loads of advantages, including the building of trust and credibility for brands. Platforms like Twitch build their entire ecosystems around creator communities; without this, the company wouldn’t work.

Now, we’re not saying a startup should be entirely community-driven, but community should be a key component of growth. Organic marketing and strong user participation are far more effective than paying for expensive campaigns.

Authentic Storytelling and Brand Purpose

It’s cheesy to some, but authenticity and having a real story are both important in today’s seemingly faceless corporate world. Simon Sinek’s message of finding your Why was one of the key drivers of how you can build a movement, not just a company.

Entertainment companies don’t always do this in an in-your-face manner, but you’ll recognise the different personalities imbued in each company. Netflix prioritises originality in their productions, while Disney takes a family-first approach. Twitch is known for its mental health awareness, for example, by providing resources in collaboration with organisations like Take This to the gaming company.

But remember, consumers can distinguish between brands trying to be authentic against those truly invested in their own story. Don’t think you need to invent something grandiose and over-the-top; stick to your own startup journey.

Entertainment companies don’t just succeed because of the quality of their films, series, or games. Ultimately, they understand business principles: genuine value for users, building a sustainable competitive advantage, and putting the customer experience at the forefront.

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What Startups Can Learn From Today’s Leading Online Entertainment Platforms

The UK government has dropped a flagship plan to introduce a green taxonomy — a framework designed to standardise carbon emissions calculations and prevent companies from exaggerating their environmental credentials.

The decision comes after a public consultation into the proposed policy, which would have required companies and investment funds to be more transparent and rigorous when making environmental claims. The move was widely seen by campaigners and sustainable investment groups as a critical step in fighting “greenwashing” — the practice of overstating environmental performance to appeal to eco-conscious investors and consumers.

In a statement, the Treasury said: “After careful consideration of the responses, the government has concluded that a UK taxonomy would not be the most effective tool to deliver the green transition and should not be part of our sustainable finance framework.”

It added that other regulatory measures are now a higher priority for accelerating private sector investment into the transition to net zero and that the taxonomy would have offered limited additional benefit over existing frameworks.

The decision has prompted criticism from the sustainable investment community. The UK Sustainable Investment and Finance Association (UKSIF), which represents 300 members managing £19 trillion in assets, described the move as “disappointing”.

According to the Treasury, while 45% of the 150 consultation responses supported the proposal, 55% were mixed or negative. Critics pointed to practical challenges with implementation and questioned whether the taxonomy would add significant value when compared to existing EU and global frameworks.

Nevertheless, campaigners say the abandonment of the plan leaves a gap in the UK’s green finance strategy. Unlike in the EU, where a taxonomy is already in use to determine which economic activities can be labelled as environmentally sustainable, the UK now lacks a unified classification system. As a result, companies and fund managers remain largely free to market investments as “green” or “sustainable” without a consistent set of criteria to verify those claims.

“There was limited evidence of a compelling use case for a specific UK taxonomy that would achieve outcomes which could not be otherwise achieved using existing taxonomies or market frameworks,” the Treasury concluded.

Separate rules from the Financial Conduct Authority (FCA) introduced earlier this year — including tighter rules around the naming and labelling of ESG funds — are already in place to tackle misleading green investment claims. The Competition and Markets Authority (CMA) and Advertising Standards Authority (ASA) have also taken action to challenge misleading sustainability claims by firms.

Some large companies operating in the UK continue to voluntarily use the EU’s taxonomy to guide their reporting and ESG disclosures. However, the lack of a UK-specific framework could now create fragmentation and confusion among investors and consumers.

The move comes at a time when global scrutiny of green finance is intensifying. Critics argue that without a clear and credible taxonomy, the UK risks falling behind in ensuring that sustainable investments deliver real-world environmental impact.

Environmental groups and finance experts are now calling for renewed efforts to ensure that other tools in the sustainable finance framework are sufficiently robust to deter greenwashing and promote transparency.

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Government ditches plan to stop businesses ‘greenwashing’ by scrapping green taxonomy

The property boom driven by the remote working revolution appears to be over, with new figures showing house prices rising sharply in London and its commuter belt while once-popular pandemic escape zones are now seeing values fall.

Data analysed by estate agency Purplebricks using the latest House Price Index from the Office for National Statistics reveals that many of the rural and suburban areas that soared in value during the height of lockdown have now lost significant ground.

Areas such as Bath, north-east Somerset, the Cotswolds and South Hams in Devon—popular with city workers seeking gardens, fresh air, and home office space during the height of the work-from-home movement—have seen average property values drop by more than £20,000 over the last year.

These areas were previously among the biggest winners in the post-2020 property surge, with prices climbing by up to 15% between 2019 and 2020 as tens of thousands of Londoners left the capital. But demand has since waned, and the market is adjusting.

In contrast, London’s outer boroughs and commuter hotspots are now driving price growth, reflecting a reversal of pandemic-era trends. Three Rivers in Hertfordshire, bordering the London Borough of Watford, recorded a 13% annual price increase—equivalent to around £79,000.

Other top performers include Kingston upon Thames and Bromley, where prices have jumped by 8–9% year-on-year, adding nearly £50,000 in value on average. Tunbridge Wells, Waltham Forest, Southwark, and Elmbridge also ranked among the top 10 areas for price growth, all within roughly an hour’s commute to central London.

Although central parts of the capital such as the City of London, Westminster, and Islington saw house prices fall earlier in the year, recent data shows a rebound. In June, values in Camden surged by 9%, the City by 8%, and Kensington and Chelsea by 3% in just one month—adding tens of thousands of pounds in a matter of weeks.

Overall, house prices in England have increased by 3.4% in the past year, while prices in Wales and Scotland rose by 5.1% and 6.4%, respectively. The average house price now stands at £290,000 in England, £210,000 in Wales, and £192,000 in Scotland.

According to Purplebricks, falling interest rates and declining mortgage costs are contributing to renewed optimism in the housing market. The Bank of England base rate now stands at 4.25%, down a full percentage point over the past year, with economists widely expecting a further cut when the Bank’s Monetary Policy Committee meets on 7 August.

Tom Evans, Sales Director at Purplebricks, described the current outlook as “great news” for homeowners and first-time buyers alike.

“The falling interest rates over the last 12 months have helped drive down mortgage rates and drive up property prices—and the forecast base rate cut in August should continue that trend.

We are confident house prices will continue to rise into next year, meaning your home at the start of 2026 will be worth more than it is today.”

Robert Nichols, Managing Director of Purplebricks Mortgages, said the Government’s new ‘Helping Hand’ scheme is also boosting market confidence.

“This is the best time to be a first-time buyer in recent years,” he said, referring to the scheme aimed at improving mortgage access for those struggling to get on the property ladder.

The Centre for Cities think tank reported last year that London was already showing early signs of recovery from the pandemic exodus. That recovery now appears to be in full swing.

The latest population estimates from the Office for National Statistics suggest London had 8.945 million residents as of mid-2023, driven in large part by international migration.

With offices refilling, consumer spending rebounding, and housing demand returning to the capital and its fringes, the era of remote-working-fuelled property growth in rural Britain may be drawing to a close.

The “race for space” is giving way to a new chapter—one where proximity to the capital’s resurgent economy, even in the hybrid work era, is once again king.

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The remote work property boom ends as London and commuter towns see house prices soar

UK businesses are facing a mounting financial burden as long-term sickness absence now costs an average of £20,735 per employee, according to new research from employee benefits provider MetLife UK.

The figure reflects both direct and indirect costs, including lost productivity, temporary staff cover, training expenses, administrative time, and the strain placed on remaining team members.

Even short-term sickness absences are proving costly, with the average impact per employee reported at £13,800. The study, which surveyed 1,000 UK business owners, HR directors, and senior decision-makers, also revealed that employees took an average of 6.38 days off due to illness in the past 12 months.

While many employers attempt to calculate the cost of absence, there is no single approach. Forty-three percent of businesses said they measure the financial impact as a loss in productivity, while 41% focused on average daily absence costs, such as wages. A further 39% cited reduced business efficiency, and 35% noted a direct hit to overall profitability. A fifth of employers pointed to lost commercial opportunities due to staff sickness, and 16% admitted they do not currently calculate the cost of sickness absence at all.

Charlotte O’Brien, Head of Employee Benefits at MetLife UK, warned that these figures highlight the importance of early intervention to manage the financial and operational impact of sickness absence. “Acting quickly allows employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel genuinely supported and cared for,” she said.

O’Brien emphasised the importance of proactive, preventative services, such as access to virtual GPs, employee assistance programmes (EAPs), and counselling services, which can help tackle health concerns before they become serious. “Left unmanaged, these issues can lead to prolonged absence, higher costs, and greater disruption for the business,” she added.

According to MetLife, early intervention is highly effective, with 96% of employees reporting a positive outcome when support is provided at an early stage of absence. The company’s Group Income Protection (GIP) policy is designed not just to offer financial protection, but also to deliver additional wellbeing services. These include access to gamified health and wellness tools, rehabilitation and return-to-work support, and sustained engagement with preventative care.

O’Brien said that integrating wellbeing into employee benefits makes commercial as well as ethical sense. “A GIP policy that puts wellbeing first helps keep work working. Early support not only helps individuals recover faster but also reduces the wider business impact and builds a culture where people feel genuinely cared for,” she said.

As businesses continue to navigate a challenging economic landscape, MetLife’s research underscores the need for employers to treat employee wellbeing as a strategic priority. The cost of doing nothing is now too high to ignore—and the benefits of timely support are both human and financial.

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Long-term sickness absences costing UK businesses £20,735 per employee, MetLife UK finds

Jaguar Land Rover (JLR) is to cut up to 500 management roles in the UK as the automotive giant grapples with falling sales and the financial fallout from US import tariffs.

The carmaker, which employs more than 30,000 people in the UK, confirmed the cuts will be implemented through a voluntary redundancy scheme and represent no more than 1.5% of its British workforce. The company described the move as “normal business practice”, but experts say it reflects deeper challenges in the wake of international trade tensions.

Last week, JLR revealed a decline in sales for the three months to June, attributing the dip partly to a pause in exports to the US due to new tariffs imposed by President Donald Trump, as well as the planned phase-out of some older Jaguar models.

The US government’s decision to impose a 10% import tariff on British-made cars earlier this year prompted JLR to temporarily halt shipments to the US. Although a UK-US trade deal has since reduced tariffs from 27.5% to 10%, this still marks a sharp rise from the pre-tariff rate of just 2.5%.

Speaking on BBC Radio 5 Live’s Wake Up to Money, Professor David Bailey of the Birmingham Business School said tariffs “play a big role” in JLR’s recent difficulties. “It wasn’t that long ago that JLR was reporting bumper profits — £2.5bn for the year ending in March — the best results in a decade,” he noted. “But tariffs have definitely had an impact.”

He added that while some UK-assembled models such as the Range Rover are subject to the new 10% tariff, others — including the Defender, manufactured in Slovakia — still face a punitive 27.5% rate when exported to the US.

Despite the challenges, JLR has been expanding its electric vehicle operations and bringing in new workers for its future EV lines. However, the short-term impact of trade disruptions appears to have prompted the company to restructure at the management level.

The company’s decision to scale back comes just weeks after Labour MP Preet Kaur Gill, representing Edgbaston in Birmingham, praised the UK’s trade deal with the US for helping to protect automotive sector jobs. Speaking to Business Matters before the JLR announcement, she said the tariff reduction had “helped preserve 12,000 jobs” and expressed confidence in maintaining strong trade ties going forward.

“In my region, Jaguar Land Rover is a really important employer. The fact that we’ve managed to bring tariffs down… this is an ongoing relationship, and our commitment is to make sure we continue that,” she said.

JLR operates major production and engineering sites in Solihull, Wolverhampton and Halewood on Merseyside, and continues to build several Range Rover models in the UK.

While the company describes the job cuts as part of routine restructuring, analysts say the timing underscores how even major players in the UK automotive sector remain vulnerable to global trade tensions and policy shifts in key export markets.

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Jaguar Land Rover to cut 500 UK management jobs as US tariffs bite

More than 11,500 companies have been removed from the Companies House register in the past year as part of a nationwide crackdown on economic crime, according to new figures from regulators and law enforcement agencies.

The operation, involving the National Crime Agency (NCA), City of London Police and Companies House, saw targeted enforcement against high-risk company formation agents and addresses associated with illicit activity. Over a two-day period, officers visited 11 locations across the UK linked to 30 high-risk trust and company service providers (TCSPs), focusing on entities suspected of enabling fraudulent business practices.

In one notable case, a single company formation agent had registered between 4,000 and 5,000 companies using a single London address, despite many of the firms being based elsewhere in the UK or overseas. Authorities say the scale of the activity raised red flags for criminal misuse.

As a result of the operation, three high-risk TCSPs are being shut down, while 27 others face enforcement action. Several individuals involved in mass company formations have also been barred from registering new companies. The NCA confirmed that criminal referrals had been made to the Insolvency Service and that a significant amount of criminal property had been identified for potential recovery through civil enforcement.

Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said the operation marks an important step in the agency’s expanding enforcement role.

“We will continue to support our law enforcement and regulatory partners in identifying, targeting and stopping abuse of the company register,” he said.

Deputy Commissioner Nik Adams of the City of London Police emphasised the broader significance of the effort.

“Criminals who use UK-registered companies to disguise illegal activity and move illicit funds are not just breaking the law — they are undermining the integrity of our financial system and damaging public trust,” he said.
“This operation is a strong example of what can be achieved when law enforcement and regulatory bodies work together.”

The crackdown follows legislative reforms introduced in 2023 that gave Companies House greater powers to vet and reject filings. The new laws include mandatory identity verification for individuals registering companies or submitting documents, and the ability to reject incorrect or fraudulent information.

However, not all reforms have been universally welcomed. Recently, some measures aimed at increasing financial transparency—such as requiring small and micro companies to file profit and loss accounts—were rolled back following opposition from small business owners and trade groups, who argued the changes would increase compliance burdens.

Despite these adjustments, the core tools introduced to fight economic crime remain in place, and the latest operation signals a more assertive stance from Companies House and its partners.

With fraud and economic crime costing the UK economy billions each year, officials say this type of collaborative enforcement is key to tackling the misuse of corporate structures and restoring trust in the company registration system.

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Thousands of firms struck off Companies House register in crackdown on economic crime

Visa, in partnership with the British Retail Consortium (BRC), has announced the winners of its 2025 Let’s Celebrate Towns awards, recognising six standout UK towns for their innovation, resilience, and commitment to economic and community growth.

Each winning town will receive a £20,000 grant to support a new or ongoing community project aimed at fostering local development, creating jobs, and supporting small businesses.

Now in its third year, the Let’s Celebrate Towns programme showcases the vital role that UK towns play in nurturing community-led initiatives and driving economic resilience. The 2025 edition focused on six key areas essential to local prosperity: High Street Transformation, Small Business Support, Future Skills, Connectivity, Circularity, and Powering Change.

This year’s winners are:
• Ramsgate – Small Business Support
• Gosport – Future Skills
• Morecambe – Connectivity
• Swanley – Powering Change
• Malton & Norton – Circularity
• Wallsend – High Street Transformation

Each of these communities has demonstrated outstanding leadership and creativity in tackling local challenges and creating opportunities for inclusive growth.

Mandy Lamb, Managing Director of Visa UK & Ireland, said the awards programme continues to reflect Visa’s belief in the power of strong local economies.

“We believe that when our towns thrive, the UK as a whole flourishes. Many people live and work in these vibrant communities, making it essential to invest in their growth and development. We are proud to highlight the resilience and innovation that define these towns.”

Helen Dickinson, Chief Executive of the British Retail Consortium, echoed the importance of the programme in supporting high streets and the wider economy.

“Our collaboration with Visa highlights the dynamic role of retail in fostering thriving high streets and vibrant local economies. The achievements of these winning towns serve as inspiring examples of best practice.”

Since launching in 2022, Let’s Celebrate Towns has supported 22 towns across the UK, offering both recognition and funding to drive grassroots development and amplify the impact of local initiatives.

The £20,000 award for each town will go toward projects that align with their respective category win—from boosting high street footfall and upgrading digital infrastructure to investing in green initiatives or future workforce skills.

With rising interest in sustainable growth and community-first economic development, the awards provide a blueprint for how UK towns can adapt and thrive in the face of changing high street dynamics and shifting consumer behaviours.

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Six UK communities recognised in Visa’s 2025 ‘Let’s Celebrate Towns’ awards

Frasers Group, the retail empire founded by Mike Ashley, has warned it expects little to no profit growth in the year ahead, citing mounting concerns over potential tax rises and economic uncertainty following the Chancellor’s upcoming budget.

The FTSE 250-listed group—which owns Sports Direct, Flannels and its flagship Frasers department stores—said it expects adjusted pre-tax profits for the new financial year to come in between £550 million and £600 million. That compares with a modest 2.8% rise in profits to £560.2 million for the year ending 27 April.

Despite headwinds, the company chose to maintain its guidance, pointing to caution over what it called the “drumbeats of doom” surrounding October’s budget statement.

Chris Wootton, Frasers Group’s chief financial officer, said: “We do have to keep an eye on that and so we felt it was sensible to maintain our adjusted profit before tax guidance.”

Group revenues fell by 7.4% to £4.9 billion, driven largely by a 14.8% decline in sales within its premium division—an area that includes its Flannels chain and luxury retail offerings.

The warning from Frasers comes as retail businesses continue to navigate a difficult landscape of muted consumer demand, higher operational costs and the risk of further tax tightening by the government. Investors responded with caution, sending shares in Frasers down 4% to 617p.

The retailer has been on an aggressive expansion push in recent years, acquiring stakes in brands such as Hugo Boss and Boohoo, and investing in premium retail formats. But the downturn in its high-end division highlights the ongoing pressure on discretionary spending as UK households face higher living costs and economic uncertainty.

With Chancellor Rachel Reeves expected to unveil her full budget in October, businesses like Frasers are bracing for potential tax increases and policy shifts aimed at balancing the UK’s strained public finances.

Wootton’s comments reflect a wider anxiety in the retail sector, where even profitable businesses are taking a cautious stance amid shifting political and economic signals.

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Mike Ashley’s Frasers Group warns of ‘dark clouds’ ahead amid flat profit forecast