Business

In many businesses, leadership is seen as something that happens in boardrooms or during quarterly reviews – a responsibility held by the few. But for small and medium-sized enterprises (SMEs) facing fast-changing markets, staffing pressures and rising customer expectations, that top-down model simply doesn’t hold up.

Instead, leadership must be shared. Whether it’s a customer-facing technician solving a problem on the spot, or an administrator improving a clunky process, leadership can – and should – happen everywhere. When it does, the results are powerful: greater engagement, better problem-solving, and a culture of accountability that drives growth from within.

This mindset shift isn’t just aspirational – it’s actionable. And more than ever, SMEs need to unlock the leadership potential across their teams.

Leadership Is a Mindset, Not a Job Title

The Chartered Management Institute (CMI) found that 82% of managers enter their roles without any formal management or leadership training – a striking figure that highlights how many are expected to lead without the tools to succeed. For SMEs in particular, this presents both a challenge and an opportunity: with flatter structures and greater flexibility, smaller businesses are well placed to develop leadership behaviours across teams – not just at the top.

At Chubb Fire & Security, a global organisation operating across diverse markets, this idea is deeply embedded in our culture. Our philosophy is simple: Everyone is a Leader. Whether it’s engineers in the field or office-based support teams, leadership is viewed as a mindset – one grounded in ownership, integrity and stepping up for others. While this approach reflects the values that guide us at Chubb, it’s a principle that can be adopted by businesses of all sizes and sectors. Because when leadership is lived at every level, it doesn’t just elevate individuals – it strengthens entire organisations.

This belief is anchored in Chubb’s enduring purpose: Building Great Leaders. It’s more than a slogan – it’s part of its DNA and the foundation for how the business develops its people and drives performance. Innovation may fuel Chubb’s success, but it’s people who make innovation possible. That’s why leadership is nurtured across every role, not reserved for the few. By equipping individuals to thrive – and ensuring everyone has access to a great leader – Chubb creates a ripple effect that empowers teams, builds trust and strengthens resilience from the inside out.

Three Ways SMEs Can Nurture Leadership at Every Level

Give People Permission to Lead

Leadership begins when people feel trusted. That might mean encouraging newer employees to make decisions, share improvement ideas or take the lead on small projects. These are not “extra” tasks – they are the foundations of leadership in action.

At Chubb, employees are called Leaders – not as a title, but to reinforce the belief that everyone contributes to business performance and people-first impact. It’s an approach any SME can adopt by reinforcing initiative, not hierarchy.

Practical tip: Start asking, “Who else could lead this?” It’s a subtle but powerful shift in meetings and planning.

Make Career Paths Transparent and Inspiring

Internal progression is one of the strongest motivators for leadership behaviour – but it only works if people can see a path forward. Chubb’s Career Path Model and mentoring programmes provide clarity and support to help employees grow in any direction: upwards, sideways or into new teams.

SMEs may not have formal HR departments, but they can still build simple frameworks that show how skills and responsibilities evolve. Whether it’s job shadowing, buddy schemes or informal career conversations, the message is clear: you don’t need to leave to grow.

Practical tip: Hold quarterly development chats with all staff – not just managers – focused on aspirations, not appraisals.

Coach, Don’t Command

Traditional command-and-control styles block leadership from flourishing. Instead, coach-like managers who listen, guide and challenge, create the conditions where others can lead.

Coaching-style leadership brings results. CIPD‑supported research shows that leadership development programmes blending coaching techniques with structured manager support led to better employee engagement and adaptability – benefits that SMEs, with their leaner structures, are ideally placed to achieve.

Chubb’s “Leader Labs” and continuous learning programmes show that this shift isn’t about training courses – it’s about day-to-day behaviours. Managers don’t need to have all the answers; they just need to help others find theirs.

Build Culture, Not Just Capability

Embedding leadership at all levels takes more than training – it takes cultural reinforcement. One way Chubb sustains this is through consistent employee appreciation. Through Chubb Cheers eCards, BRAVO and Superstars Awards, the company acknowledges employees not just for results, but for how they embody leadership behaviours like collaboration, resilience and innovation.

Practical tip: Celebrate leadership moments, not just milestones – spotlight small examples of people stepping up.

When leadership becomes part of how people see themselves, it fuels long-term agility. Especially in SMEs, where every person makes a visible impact, this cultural alignment matters.

The Bottom Line

Leadership isn’t confined to titles – it’s embedded in how people show up, solve problems and support one another. For SMEs, cultivating leadership across every role is not a luxury; it’s a competitive advantage.

As businesses face increasing complexity, the most resilient are those where everyone feels empowered to lead. That starts with trust, continues with development and is sustained through culture. Leadership is everyone’s business – and it’s time to act like it.

Read more:
Why Leadership Belongs to Everyone in Your Business

Propel Finance has secured a landmark £1.5 billion funding facility to expand its lending operations and support small and medium-sized enterprises (SMEs) across the UK.

The UK-based asset finance provider confirmed the funding was backed by a group of leading financial institutions including Barclays, Bank of America, Citi, and the British Business Bank. The injection of capital will enable Propel to accelerate access to finance for businesses in critical sectors including manufacturing, construction, transport, technology and telecoms.

Legal advisers on the deal included Ashurst and Blake Morgan, while Interpath Advisory supported the transaction through a mezzanine facility advisory role.

Mark Catton, CEO of Propel Finance, hailed the funding as a “transformative” step in the firm’s mission to empower more SMEs with flexible asset finance.

“We are thrilled to have secured this transformative £1.5 billion in funding availability, helping us accelerate our growth and support for our partners and SME customers,” said Catton. “We are delighted to work with an outstanding panel of institutional lenders and are incredibly grateful for their exceptional support and confidence in the Propel team.”

The new facility marks one of the largest SME-focused funding deals this year and comes at a time when small businesses face increased pressure from high borrowing costs, supply chain challenges, and lingering economic uncertainty. Propel’s offer of asset-backed finance provides a route for smaller firms to invest in vital equipment and technology without stretching cash flow.

Founded to support underserved small business lending markets, Propel Finance offers a range of asset finance solutions, including equipment leasing, hire purchase and refinancing. The firm has been growing steadily, forging partnerships with equipment suppliers, manufacturers and technology providers to deliver point-of-sale finance solutions to end users.

The funding will enable Propel to significantly scale its reach, allowing more SMEs to access financing through digital platforms and vendor relationships.

Andrei Cotonet, director of structured finance at Bank of America, said: “We see significant opportunity in the UK asset finance sector and are proud to support Propel’s continued expansion and growth with this strategic funding line. We look forward to seeing the positive impact this partnership will have on businesses across the UK.”

The British Business Bank’s involvement is expected to support the government’s wider efforts to increase SME access to finance and fuel growth in the UK’s business ecosystem.

The new funding is also likely to cement Propel’s position as one of the leading non-bank lenders in the SME finance space, as appetite for alternative finance grows amid tighter credit conditions from traditional banks.

With SMEs accounting for over 99% of UK businesses and employing around 16 million people, access to funding is considered vital for driving investment, innovation, and regional growth. Propel’s expanded facility is expected to help thousands more companies invest in equipment and growth without large upfront costs.

Read more:
Propel Finance secures £1.5bn to boost UK SME lending

The Home Office has come under fire from MPs for failing to track whether foreign workers leave the UK once their skilled worker visas expire, raising fresh concerns over illegal working and oversight of immigration enforcement.

A new report by the Public Accounts Committee (PAC), published on Friday, accuses the department of showing “little curiosity” about how the skilled worker visa system is functioning, and not conducting any meaningful analysis of exit records since the visa route was launched in 2020.

More than 1.18 million people have entered the UK on skilled worker visas since December 2020, when the route was introduced to replace the previous Tier 2 visa following Brexit. The scheme was expanded in 2022 to address critical shortages in sectors like health and social care, driving a sharp increase in net migration.

However, the PAC says the Home Office has failed to gather basic data on whether those visa holders have left the country after their permissions expired. The department is still relying on airline passenger manifests, which it has not analysed since 2020.

“There is no excuse for not knowing whether people who come to the UK on skilled worker visas are leaving when they should,” the report says. “The public expects an immigration system that is fair, effective, and properly enforced – and this one is not.”

Home Secretary Yvette Cooper acknowledged the system had not been strong enough. Speaking to BBC Breakfast, she said “change doesn’t happen at the flick of a switch,” but confirmed that biometric checks at workplaces – including fingerprint verification – would be introduced to help enforce visa rules.

The report also highlights widespread concerns over exploitation within the skilled worker route. It cited “debt bondage, excessive working hours and poor conditions” in some sectors, particularly care. MPs accused the department of being “slow and ineffective” in responding to these abuses.

In May, the government announced it would end overseas recruitment for care worker roles as part of efforts to reduce net migration, which reached nearly one million in 2023.

Home Office Permanent Secretary Dame Antonia Romeo admitted that overstaying “is a problem” the department is working to fix.

Migration experts say deeper reforms are needed. Dr Madeleine Sumption, director of the Migration Observatory at Oxford University, told BBC Radio 4 that the current system lacks transparency and is failing to help workers navigate job changes when their circumstances shift.

“It doesn’t seem to be hugely effective,” she said. “This is going to remain a challenge for the Home Office for some time.”

A Home Office spokesperson said: “This report affirms again that the previous government’s decision five years ago to relax visa controls helped drive record migration levels. We’ve now rolled up our sleeves to fix the broken immigration system.”

Measures already introduced include suspending a record number of sponsor licences, raising skill thresholds, and ending care sector recruitment from abroad. Further reforms are expected in an Immigration Whitepaper later this year.

Read more:
MPs slam Home Office for failing to track foreign workers after visa expiry

UK Finance has published its official submission ahead of the Chancellor’s Mansion House speech on 15 July, outlining a package of regulatory reforms aimed at boosting competitiveness, unlocking capital markets, and driving innovation across the UK’s financial services sector.

The submission supports the Treasury’s upcoming Financial Services Growth and Competitiveness Strategy and builds on UK Finance’s existing Plan for Growth, with a focus on unlocking the sector’s wealth-creating potential and supporting the wider economy.

David Postings, Chief Executive of UK Finance, said: “Last year, the Chancellor rightly said the UK had become too cautious. This year’s speech and new financial services strategy provide the opportunity to act on that and take a careful but decisive move away from risk aversion, towards a more balanced and internationally competitive approach to regulation. This will enable the financial services sector to better help UK businesses, consumers and the government’s growth mission – something we all strongly support.”

Among the core proposals are reforms to UK capital markets. UK Finance is calling on the government to complete the ambitious reform agenda of the past five years and deliver key changes currently in motion – including reforms to public offers and admissions to trading. These, the organisation argues, are essential for reviving UK capital markets and encouraging investment and wealth creation.

The submission also addresses concerns about the Financial Ombudsman Service (FOS), urging the government to clearly define the boundaries between the FOS and the Financial Conduct Authority (FCA). UK Finance recommends putting a time limit on complaints and ensuring the FOS does not act as a “quasi-regulator” – a step it says would provide greater legal certainty, enable innovation, and reduce regulatory risk for firms.

In addition, the submission raises concerns that overly cautious interpretations of global capital requirements may be holding back investment in growth-driving activities. UK Finance is calling for more proportionate capital rules that still uphold safety and soundness, but allow for greater flexibility in supporting economic development.

Digital finance and open banking are also key pillars of the proposals. UK Finance is asking the government to clarify its long-term direction for the sector, establish a commercially viable model for open banking, and position the UK as a global leader in tokenisation and digital payments infrastructure. Stronger industry collaboration and a more sustainable investment framework are needed to make open banking successful at scale, the submission says.

The proposals come at a time when UK financial services are under pressure to remain competitive globally amid rising international competition and post-Brexit regulatory realignment. The Mansion House speech is expected to set the tone for the government’s financial sector ambitions in the years ahead.

UK Finance’s submission reflects growing industry consensus that regulatory caution and fragmented policy are stifling innovation and investment. The organisation is calling for measured, pro-growth reforms that maintain stability but ensure the UK remains an attractive destination for global capital and fintech leadership.

Read more:
UK Finance urges bold reforms in Mansion House 2025 submission to unlock UK growth potential

Smaller businesses have been granted a reprieve from new Companies House filing rules that would have forced them to disclose more detailed financial information, as the government halts the rollout over fears it could impose excessive regulatory burdens.

The incoming rules, introduced under the previous Conservative government via the Economic Crime and Corporate Transparency Act, were due to take effect from April 2027. They would have removed longstanding exemptions that allowed firms with turnover under £10.2 million, fewer than 50 employees, and balance sheets below £5.1 million to file “abridged” or simplified annual accounts.

However, new business secretary Jonathan Reynolds has paused the implementation amid mounting concern from small firms and business groups that the measures would require costly new accounting software and create unnecessary red tape.

A government source confirmed the move, saying: “We have paused them — Jonny [Reynolds] is worried it’s too burdensome.”

The decision aligns with the Labour government’s newly announced industrial strategy, which pledges to cut the administrative costs of regulation for business by 25% and encourage economic growth by streamlining compliance for SMEs.

Had the reforms gone ahead, hundreds of thousands of small firms would have been compelled to submit detailed profit and loss accounts in a standardised digital format. This would have made key financial metrics — including turnover and operating costs — publicly visible for the first time.

Supporters of the reform argued that removing the exemption was essential for combating fraud and improving data quality on the Companies House register, which has faced repeated criticism for lax oversight. In April, it emerged that only £1,250 in fines had been collected by Companies House despite its expanded enforcement powers.

Business groups, however, warned that the changes would disproportionately impact smaller companies, who would be forced to pay for new digital reporting tools and potentially face increased scrutiny from competitors. Critics also raised concerns that making more data public could expose vulnerable start-ups to unfair pressure or misinterpretation.

Companies House had previously defended the reforms as a “critical step” towards greater transparency and accountability. But the Department for Business and Trade has now confirmed the plans are under review.

A spokesperson for the department said: “This government is committed to avoiding undue burdens on businesses as part of our plan for change.”

The pause comes as the government faces growing pressure from business leaders to deliver on pledges to support growth and reduce regulatory friction, particularly in the post-Brexit economic environment.

Small business advocates welcomed the move. “The decision to retain abridged accounts is a relief for SMEs,” said one representative. “The cost and complexity of full filings would have been counterproductive at a time when many businesses are already navigating high inflation and economic uncertainty.”

For now, businesses qualifying as “small” under existing thresholds will continue to be able to file simplified accounts — a decision that underscores the government’s shifting approach to economic reform and its commitment to supporting enterprise growth through targeted deregulation.

Read more:
Smaller firms escape Companies House rule change as government pauses ‘burdensome’ filing reform

Transport for London (TfL) is facing legal action from the Independent Workers’ Union of Great Britain (IWGB), which represents thousands of private hire drivers including those working for Uber, over what it claims are systemic failures in the licence renewal process that have left drivers unable to work for months.

The union has accused TfL of damaging the livelihoods of private hire drivers by failing to issue or renew licences in a timely manner, in breach of its legal obligations. The IWGB has issued a pre-action legal letter and is pursuing litigation in response to what it calls an “unprecedented crisis” facing the capital’s minicab workforce.

There are more than 108,000 private hire drivers licensed by TfL, with many reliant on continuous licensing to legally operate in the city. While TfL has apologised for the delays and introduced short-term fixes such as temporary licences and additional staffing, the IWGB says these measures fall short.

According to the union, drivers are reporting wait times of several months, even when applications were submitted well ahead of expiry dates. One driver, Raifu Akanmu, applied for a licence renewal in January but is still unable to work after his licence expired at the end of May. “I’ve run out of money to pay my bills,” he said. “All we want to do is work.”

Some drivers say the delays have pushed them into severe financial distress, with instances of repossessed vehicles and even homelessness. In a tragic case, Robert Dale, a 65-year-old driver, died of a heart attack while waiting for his licence renewal last November. His family believes the stress of being unable to work contributed to his death.

Alex Marshall, president of the IWGB, said: “Drivers, many of whom work for Uber, have had their lives decimated. We’re launching this legal challenge because we need systemic change to prevent further harm.”

The union argues that TfL has a duty to ensure continuity of licensing and that the current backlog amounts to an unlawful failure of that duty. The legal case is being brought by human rights law firm Deighton Pierce Glynn. Solicitor Ahmed Aydeed said: “TfL is operating an unlawful system by failing to ensure continuity of licensing. Any authority that strips people of their livelihoods is not fit for purpose.”

TfL said it recognises the difficulties drivers have faced and is taking steps to address the backlog. A spokesperson said: “We are very sorry to drivers who have experienced issues with our processing times. We’ve taken urgent steps to mitigate the impact, including recruiting and training more staff and issuing temporary licences where appropriate.”

Despite these efforts, the IWGB says thousands remain unable to earn a living, and that accountability is long overdue. The legal challenge aims to secure structural reforms to prevent future delays and to ensure drivers’ ability to work is protected.

The case marks a critical moment for London’s private hire industry and could set a precedent for how licensing authorities support gig economy workers under pressure.

Read more:
TfL hit with legal action over licence delays impacting Uber and minicab drivers

Chancellor Rachel Reeves has signalled that further tax rises may be on the way as economists warn she could be forced to fill a gaping £40 billion hole in the public finances at this autumn’s Budget.

The warning came after the Chancellor admitted there would be a “cost” to recent government U-turns on welfare reform — adding that the impact would be “reflected in the Budget”. Reeves, however, insisted she would not breach her fiscal rules, which limit borrowing — pointing instead to tax as the most likely lever left to pull.

It marks a potential reversal from her previous promise not to raise taxes again following last year’s record-breaking Budget, which imposed a £25bn National Insurance hike on employers and was blamed for stalling economic growth.

The Institute for Fiscal Studies (IFS) said Reeves may be forced to announce tax rises of up to £40bn to cover a combination of downgraded economic forecasts and spending commitments, warning that the government now faces a “perfect storm”.

“If growth forecasts are downgraded again and welfare spending continues to rise, you could comfortably be looking at a £20 to £40 billion Budget,” said Ben Zaranko, senior economist at the IFS. “That’s not what the government wants, but it’s certainly within the realm of possibility.”

The Office for Budget Responsibility (OBR) halved its growth forecast for this year back in March. A further downgrade of just 0.2 percentage points would alone open up an £18bn gap in the public finances.

The strain has been worsened by a series of U-turns on welfare. Last week’s decision to scrap cuts to Personal Independence Payments (PIP) could cost up to £6bn, while the climbdown on the winter fuel allowance is expected to add £1.5bn to the public bill. Labour backbenchers are also pressing for the abolition of the two-child benefit cap — a move that would add further pressure.

Reeves and Prime Minister Sir Keir Starmer have so far refused to detail how these commitments will be funded, but the Chancellor’s latest comments suggest higher taxes could be back on the table.

The Conservatives seized on the uncertainty, accusing Labour of economic mismanagement. Former Chancellor Sir Mel Stride said: “Labour’s welfare shambles has left the country facing a ticking tax timebomb. Businesses and hardworking families should brace themselves for further painful tax hikes.”

Paul Johnson, director of the IFS, said Reeves would face intense political pressure whichever path she chose. “She’s stuck between a rock and a hard place. Raise taxes and you upset markets or voters — or break your fiscal rules,” he said.

The backlash has already begun in Parliament, with several Labour MPs calling for wealth taxes or increased levies on high earners. But analysts warn this may undermine business confidence and growth just as the economy teeters on the edge.

Read more:
Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

While Wimbledon’s champions may lift the iconic silverware next weekend, they’ll also be handing a sizeable portion of their record-breaking prize money to HM Revenue & Customs (HMRC).

Analysis by accountancy firm Blick Rothenberg suggests HMRC will collect an estimated £17 million from the £53.5 million prize fund at this year’s tournament — a lucrative windfall driven by UK tax rules applying to international athletes.

The singles champions in both the men’s and women’s events will each receive £3 million – an 11% rise on 2024’s top prize – but are expected to lose up to £1.3 million to tax, with earnings above £125,140 subject to the UK’s top 45% additional rate.

Even players knocked out in the first round will earn £66,000 – enough to push them into the higher 40% tax bracket, which applies above £50,271.

Under UK law, overseas athletes are required to pay tax not only on their prize money, but also on any UK-specific sponsorship earnings and a proportion of global image rights income deemed attributable to time spent in the country.

“These tax rules make Wimbledon a major cash generator for HMRC,” said Robert Salter, tax specialist at Blick Rothenberg. “The prize fund has more than doubled in the last decade, making it a consistent and growing source of revenue.”

HMRC requires tournament organisers to withhold 20% of the core prize money at source. However, players may still be liable for higher rates depending on their total UK earnings, and must submit a UK tax return to calculate their final liability.

While British players are entitled to the standard £12,570 personal allowance – slightly reducing their tax bill – many international athletes are not, leading to a larger effective tax hit. The analysis also assumes prize money is the player’s only UK income, although endorsement earnings or public appearances could also be taxed.

Some costs, such as travel and accommodation, may be claimed as tax-deductible business expenses, as players are considered self-employed for tax purposes.

“Even players with limited sponsorship income typically end up as higher-rate taxpayers,” Salter added. “For those advancing deep into the tournament, UK tax is a significant factor.”

Wimbledon’s 2025 prize pot is the largest in its history, up 7% from last year’s £50m. Singles semi-finalists receive £775,000, while the men’s and women’s doubles champions will share £680,000.

While tax bills might take the edge off the celebrations for the winners, they are unlikely to deter the world’s top players from competing at SW19. Wimbledon remains one of the sport’s most prestigious events — and for HMRC, a fixture that delivers reliable returns.

Read more:
Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

Razzamataz Theatre Schools has launched a new initiative to mark its 25th anniversary, offering two aspiring entrepreneurs the chance to run their own performing arts franchise — backed by a prize worth up to £25,000.

The ‘Future Founders’ competition will provide two winners with a Razzamataz Theatre School franchise, either in the UK or the UAE, worth up to £15,000, alongside a £10,000 start-up grant to launch their business.

Designed to remove the financial barriers many face when starting a business, the competition is open to individuals aged 18 and over with a passion for the performing arts and a desire to make a difference in their communities. No prior business experience is required.

“We’re looking for people with purpose, passion, and potential,” said Denise Gosney, founder and managing director of Razzamataz. “This is about more than business ownership — it’s about creating a legacy that empowers young people and brings lasting value to local communities.”

Denise, who famously secured investment from Duncan Bannatyne on BBC’s Dragons’ Den, launched Razzamataz in 2000. Since then, the brand has grown into one of the UK’s most recognisable names in children’s performing arts education, with franchisees across the country and internationally.

The new initiative will give two driven individuals the opportunity to join the Razzamataz network, backed by 25 years of experience, comprehensive training, and expert mentorship. Participants will also pitch their ideas to a judging panel including Denise herself, singer-songwriter Ben Ofoedu, Cheryl White (CEO of Apollo Care), and Hayley Limpkin, a franchise coach and strategist.

“This is a rare opportunity for people with big dreams but limited means,” said Cheryl White. “It’s a chance to take that all-important first step into entrepreneurship with the backing of a trusted, supportive brand.”

Razzamataz’s franchise model has long supported individuals from a wide range of backgrounds — including performers, teachers, parents, and career changers — offering full training in areas such as marketing, operations, curriculum design and recruitment. Many of the brand’s most successful franchisees began with no business experience at all.

Applications for Future Founders are now open and can be submitted via the Razzamataz website. Successful applicants will receive not only financial support, but a full toolkit to launch and grow a thriving theatre school in their chosen territory.

“Our mission has always been to unlock potential,” added Denise. “Future Founders will give the winners a life-changing opportunity to inspire the next generation and build a business that fits around their lifestyle and values.”

Applications are open now:

UK entrants

UAE entrants

Franchise territories are limited and competition is expected to be fierce. Entries close later this year.

Read more:
Razzamataz offers £25k franchise opportunity to two aspiring entrepreneurs through ‘Future Founders’ initiative

The government has pledged to monitor the outcome of a major legal case against Vodafone closely, following a powerful adjournment debate in Parliament that saw MPs from across the political spectrum rally behind franchisees alleging mistreatment by the telecoms giant.

Led by Conservative MP Sir John Hayes, the debate on Wednesday 2 July raised serious concerns over Vodafone’s conduct towards its former and current franchisees, who are now suing the company for more than £120 million in damages. The allegations include unethical clawbacks of Covid business rates relief, unjustified financial penalties, abrupt changes to commission structures, and a failure to address whistleblower concerns.

Sir John Hayes likened Vodafone’s franchise model to the structure behind the Post Office Horizon scandal, warning against ignoring the voices of franchisees in favour of powerful corporate interests. “Franchising can be used to exaggerate the power of the business at the heart of the franchise and to weaken the position of franchisees. That is common and is particular in the case of Vodafone,” he said.

Labour MP Luke Akehurst echoed the concerns, stating: “There are major corporates that treat their franchisees very badly… they sign them up on one set of terms… then change the goalposts… and when people dissent, they find their franchises withdrawn and lose their investment.”

The Minister for Enterprise, Gareth Thomas MP, acknowledged the gravity of the situation, confirming that the government is “tracking the case closely” and was “moved” by the testimonies from franchisees. “No one in the Chamber will have failed to have been moved by those stories,” he said. “This case has raised concerns across the House about the quality and effectiveness of the legislation that governs franchisees.”

The legal dispute stems from Vodafone’s alleged breach of contract and duty of good faith, including sudden commission cuts and aggressive financial clawbacks. Twelve franchisees involved in the legal action have had their agreements terminated by Vodafone in recent months, and mediation efforts earlier this year failed to resolve the matter. The case is now proceeding to the High Court.

Criticism was also levelled at the broader UK franchise system. MPs noted the absence of effective regulatory oversight, with the British Franchise Association described as a “toothless” voluntary body. Vodafone’s decision to withdraw from the self-regulatory framework further underscored the lack of accountability in the sector.

A spokesperson for the 62 current and former Vodafone franchisees welcomed the support from Parliament, saying: “The Minister’s acknowledgment that he was moved by our stories and is personally following the case was a powerful moment. We are looking forward to working further with the Minister to ensure no other franchise is treated as we were by a UK corporation.”

With mounting parliamentary pressure and a High Court case underway, Vodafone now faces growing scrutiny over its franchise practices and the prospect of wider regulatory reform to protect small businesses in similar agreements.

Read more:
Vodafone franchisee scandal prompts parliamentary support and calls for regulatory reform