Business

More than 120 firms from Britain’s £60 billion facilities management (FM) sector have signed an open letter to the government warning that the proposed Employment Rights Bill could have damaging consequences for both employers and workers.

The letter, co-authored by Dominic Ponniah, CEO of London-based Cleanology, and Malcolm Hills, CEO of Think FM, expresses “deep concern” over elements of the bill — in particular, provisions that would grant full employment rights from day one and expand union powers across the economy.

The signatories include some of the UK’s most prominent FM providers, such as Mitie, OCS Group, and Churchill Group, whose work underpins the daily operation of essential national infrastructure, from hospitals and offices to airports and factories.

Together, the FM sector employs more than 1.4 million people and contributes £60 billion annually to the UK economy.

In the letter addressed to Prime Minister Sir Keir Starmer, Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds, the group warns that changes in the Bill risk stifling opportunity and job creation.

“We are deeply concerned that some of the Bill’s provisions will have serious unintended consequences that could harm both good employers and the very employees that the bill seeks to protect,” the letter states.

Specifically, the introduction of unfair dismissal rights from day one of employment is being flagged as a potential disincentive for businesses to hire.

Dominic Ponniah said: “Introducing day-one unfair dismissal rights will increase the legal and financial risk of taking on new hires and discourage employers from offering opportunities to individuals who need a first step, a second chance, or time to prove themselves.”

“Probationary periods are a vital part of responsible recruitment, allowing both parties to assess suitability before long-term commitments are made.”

While many employers in the sector say they support the overall aim of protecting workers’ rights and raising employment standards, they believe the current form of the Bill may jeopardise the very goals it seeks to achieve.

The letter calls for more nuanced consultation with businesses — particularly those in labour-intensive industries like FM — to ensure that proposed reforms strengthen rather than undermine fair recruitment, workforce development, and job access.

Facilities management has long been recognised for its role in offering employment to a broad cross-section of society, often creating accessible entry points for people with limited work experience or those re-entering the labour market.

The industry’s leaders warn that by introducing immediate employment protections without room for early assessment, the Bill could reduce opportunities for those on the margins — including young people, ex-offenders, and career changers — whom many FM firms actively seek to support.

The Employment Rights Bill, expected to be a flagship piece of legislation for the new Labour government, includes several reforms aimed at increasing job security, improving collective bargaining rights, and boosting pay transparency.

However, today’s letter adds to a growing chorus of concern from employers that the sweeping changes may have unintended consequences for SMEs, temporary workforces, and high-turnover sectors like hospitality, care, logistics, and facilities management.

With more than 128 FM companies now openly calling for changes to the Bill, pressure is mounting on the government to engage more directly with industry leaders before finalising the legislation.

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Facilities management firms warn new employee rights bill could harm hiring and economic growth

A legal tech startup helping workers represent themselves in employment disputes has secured £2 million in fresh funding, as investors prepare for a likely surge in workplace grievances under the Labour government’s incoming reforms.

Valla, the Edinburgh-based platform founded in 2022, has been backed by venture capital firms Ada Ventures, Active Partners and Portfolio Ventures, alongside social justice think tank the Resolution Foundation. The startup’s services are designed to support employees earning the UK’s median wage (£37,000) or less who face challenges such as unfair dismissal, withheld pay or workplace discrimination.

Co-founder and CEO Danae Shell (pictured) said the funding would be used to expand Valla’s suite of low-cost legal tools in anticipation of a significant uptick in employee claims from autumn 2026, when Labour’s new employment rights are expected to come into force.

A key driver behind the expected rise in cases is Labour’s pledge to make unfair dismissal rights available from the first day of employment — a significant shift from the current two-year qualifying period.

“Right now, there’s a widespread belief that if you’ve worked for a company for less than two years, you can be sacked for any reason,” said Shell. “That’s not legally true, but the change to day-one rights will help correct that misconception — and crucially, give more people the confidence to act when they feel something isn’t right.”

Valla’s services include everything from drafting grievance letters to preparing tribunal applications, with pricing designed to be accessible. A letter costs £10, a full tribunal form review is £100, and support through to settlement typically comes in at around £200. Taking a case all the way to a tribunal ruling costs roughly £500 — a fraction of the legal fees charged by most solicitors.

Shell added that most cases do not end up in court: “The majority of our users settle directly with their employer — but they feel empowered knowing their rights and being prepared.”

Shell is also a member of the national user group for employment tribunals in England and Wales, where government agencies including Acas and tribunal staff themselves have expressed concern about rising case volumes. According to minutes from the group’s most recent meeting in January, civil servants expect the changes to “significantly impact” caseloads by next year.

Cases already face severe delays: new tribunal claims lodged today are not expected to be heard until 2027, with initial hearings taking six to eight months to schedule. Shell believes this reinforces the need for alternative forms of access to justice.

“Employees often struggle to get legal help that is affordable or timely,” she said. “Law firms are priced out of reach — if you’re owed £3,000 in unpaid wages, and legal fees are likely to exceed that, it’s simply not worth it for most people.”

Valla has already helped over 12,000 users access guidance or services since its launch. As well as legal support, the company has built online communities to allow claimants to connect with others going through similar processes, helping to ease the emotional toll of often drawn-out disputes.

With union membership and legal aid in decline, Shell sees an urgent need to rebalance the playing field between employers — who often have access to HR teams or legal advice via trade bodies — and employees, who may be isolated or under-informed.

Investors appear to agree. Valla’s model of scalable legal support, using both technology and community-based support systems, offers a potential template for how employment disputes might be handled more affordably in future.

With the Labour government poised to implement its promised New Deal for Working People, Shell says demand is only going to rise. “We’re building infrastructure for a world in which more people will feel able to ask: ‘Was that legal? Can I do something about it?’ And the answer, increasingly, will be yes.”

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Valla raises £2m as venture capital backs boom in employment rights claims

Chancellor Rachel Reeves has unveiled a £15.6 billion package to fund trams, trains and bus networks outside London, as Labour seeks to reset the political narrative ahead of a difficult spending review.

The move is designed to reassure restless MPs—many representing marginal seats—that the government’s capital investment plans will deliver tangible improvements in infrastructure, jobs and growth in the regions.

Speaking in Greater Manchester, Reeves pitched the investment as a “step change” in how government assesses and delivers public spending, promising that the Treasury would rewrite its rules to give greater weight to projects that boost productivity outside the South East. “A Britain that is better off cannot rely on a handful of places forging ahead,” she said. “Growth must be shared—and built—in every part of our country.”

The funding announcement is part of a broader £113 billion capital investment programme set to be rolled out over the parliament, covering transport, housing and energy. Ministers hope it will act as a political counterweight to cuts in departmental day-to-day spending, which the Institute for Fiscal Studies has warned could be “unavoidably tough” given pressures on the NHS, defence and policing.

While capital allocations have already been agreed for sectors such as flood defences and nuclear energy, tensions remain within cabinet over departmental budgets. Home secretary Yvette Cooper and energy secretary Ed Miliband have reportedly resisted settlements they argue are unworkable—particularly in light of high-profile manifesto commitments on policing and green energy.

Yet the government is pressing ahead with its capital agenda, with the transport element of the plan including funding to build a new mass transit system between Derby and Nottingham, upgrade and extend tram networks in Greater Manchester and the West Midlands, and start work on the long-promised West Yorkshire mass transit scheme by 2028. South Yorkshire will also receive funds to renew its trams, while a new railway line between Manchester and Liverpool is under consideration.

Reeves is seeking to frame this investment as something only a Labour government would have delivered. Treasury insiders say the capital funding was unlocked by decisions taken in the autumn budget, including a loosening of fiscal rules on capital expenditure. According to officials, Labour’s approach provides departments with £300 billion more over the parliament than the previous Conservative plans, including £190 billion in extra day-to-day funding.

The Chancellor’s allies acknowledge that next week’s spending review will be politically fraught. With inflation still weighing on household budgets and services under pressure, there is concern that headlines will focus on cuts rather than investment. Ministers have been advised to stress the contrast between what is being delivered and what might have been lost without the additional capital boost.

One senior cabinet minister admitted: “The big risk is that people get the review, turn to the back of the book and see the minus numbers—and the story becomes one of cuts. But the difference is the scale of investment that’s being delivered on top of that.”

Among those still negotiating with the Treasury are Cooper, who is said to have fought hardest over police budgets amid pressure to boost officer numbers and tackle knife crime, and Miliband, who has clashed with the Treasury over funding for the government’s proposed home insulation scheme. Housing secretary Angela Rayner has also been pushing for a larger settlement, with Labour’s previously announced £2 billion for affordable housing now unlikely to be significantly expanded.

Meanwhile, the government has come under pressure from police chiefs and public sector leaders concerned about what they say are unrealistic funding expectations. Last week, Metropolitan Police Commissioner Sir Mark Rowley and other senior law enforcement officials wrote to the Prime Minister warning of “stark choices” about which crimes to investigate if further budget cuts are imposed.

Nevertheless, Reeves and Treasury chief secretary Darren Jones believe Labour’s capital spending can serve as a political lifeline for the party and a proof point of its economic credibility. “We’re investing to rebuild,” said one official. “This is not about austerity—it’s about renewal.”

By focusing on visible improvements to public infrastructure in towns and cities often left behind, Labour is hoping to craft a new story for voters: one of long-term transformation rather than short-term retrenchment. Whether that narrative holds through the release of the full spending review next week remains to be seen.

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Rachel Reeves unveils £15bn regional transport investment to reshape economic narrative

The government has unveiled a wide-reaching package of housebuilding reforms designed to unlock small-scale development and reinvigorate the role of SME housebuilders — and the ripple effects could benefit small businesses across the board.

At the heart of the reforms is a £100 million loan fund targeted at SME construction firms, alongside changes to planning rules, land access and project approvals. It’s part of a broader £700 million expansion of the Home Building Fund and a flagship attempt to tackle the UK’s housing shortage by delivering 1.5 million new homes while stimulating regional growth and job creation.

According to Joe Phelan, business loans expert at money.co.uk, this is a significant moment for small developers and those working in and around the construction sector. “The government’s new reforms aim to reverse the decades-long decline in SME housebuilding,” he said. “But their impact could be even broader — helping to revive local economies and create new opportunities for small businesses of all kinds.”

For years, small developers have faced the same bureaucracy and red tape as large-scale builders. Whether building 10 homes or 100, the same processes and delays often apply. These hurdles have led to a dramatic fall in market share for SMEs — from building 40% of new homes in the 1980s to a fraction of that today.

Smaller developments — up to nine homes — will now benefit from simplified planning processes, quicker decisions by trained planning officers (rather than elected committees), and lighter biodiversity requirements. Medium-sized projects of up to 49 homes will also see regulation eased, including exemptions from the Building Safety Levy.

Homes England will release more land specifically for SME developers, and new finance options will become available via a proposed National Housing Delivery Fund. These include revolving credit facilities and partnerships with alternative lenders to improve access to funding. In parallel, a Small Sites Aggregator pilot will help identify and bundle up brownfield plots into viable community housing schemes. Trials will begin in Bristol, Sheffield, and Lewisham.

To help small firms get building, the government is investing £100 million into a new SME Accelerator Loans scheme — part of a broader £700 million extension to the Home Building Fund. The funding aims to support smaller builders who often struggle to access finance through high street banks.

Councils will also receive £10 million to recruit planning specialists and speed up environmental assessments. Meanwhile, £1.2 million will go into the PropTech Innovation Fund, which will support data and digital tools that make small site delivery faster and more efficient.

While the reforms target SME housebuilders directly, the benefits could be felt far beyond the construction sector. New housing development brings with it jobs, investment and demand for local goods and services. For small businesses — from tradespeople and suppliers to local cafés and service providers — this could mark a new wave of opportunity.

Importantly, SME builders play a key role in workforce development. They account for around 80% of construction apprentices, and with the government pledging up to 120,000 new apprenticeships, many other sectors could benefit from a growing skilled labour force.

“More homes mean more people living and working locally, with more spending power in the community,” says Phelan. “Whether you’re a builder, a baker, or a bookkeeper, this could be a moment to plan for long-term growth.”

For small housebuilders, the new rules promise quicker approvals, better access to land, and dedicated finance to help break ground. For other SMEs, the housebuilding drive may bring new customers, new job applicants and a broader sense of stability as housing shortages ease.

The government’s message is clear: it wants to “get Britain building” — and it’s looking to SMEs to lead the charge. Whether you’re in construction or simply based in an area set for housing growth, now could be the time to lay the foundations for your next stage of expansion.

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What the government’s new housebuilding reforms mean for small business owners

UK steelmakers have narrowly avoided being hit with a damaging 50% import tariff by the United States – for now – after President Trump signed an Executive Order confirming that the UK will remain under the existing 25% tariff while a new bilateral steel agreement is finalised.

The temporary reprieve comes despite earlier warnings that British steel exports would face the sharp hike from Tuesday, following the White House’s move to double tariffs on imports from countries not covered by trade exemptions. The UK, which currently falls under the original 25% tariff imposed in March, has been granted a stay of execution – but only until 9 July, by which time the Economic Prosperity Deal (EPD) between the UK and US must be concluded.

In a statement, UK Steel said the decision provides a “time-bound vote of confidence” in British steelmakers – but warned the lack of clarity surrounding final tariff rates and deal timing risks destabilising transatlantic trade, with nervous US buyers potentially looking elsewhere for supply.

Gareth Stace, Director-General of UK Steel, welcomed the breathing room: “The President’s decision not to impose a 50% tariff on UK steelmakers, but to keep the rate at 25% while the UK-US deal is completed, is a welcome pause. The Business Secretary, Jonathan Reynolds, recognises that steel trade stability and security between our two nations is of utmost importance and has acted swiftly.”

He added that the maintained 25% rate would spare British producers from immediate disruption on shipments already in transit, but stressed that hesitation from US customers now looms large. “Uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.”

The US is the UK’s second-largest export market for steel, valued at around £400 million annually and accounting for 9% of total UK steel exports by value. Trade relations were expected to improve after the May announcement of the UK-US Economic Prosperity Deal, which promised to scrap existing tariffs and replace them with a quota-based system allowing tariff-free trade within set limits. But that deal is yet to be finalised and enshrined in law, leaving exporters in limbo.

The situation underscores the delicate balancing act facing the UK Government, which must both preserve its trading relationship with Washington and protect a struggling domestic steel industry facing stiff global competition, low demand, and mounting import pressure.

Stace called for renewed urgency on both fronts: “The US and UK must urgently turn the May deal into reality to remove the tariffs completely. At an already crushing time for our steel industry, with global oversupply and weak demand, we must continue to work together to support sales levels in our second most important export market.”

He also renewed calls for stronger domestic trade defence measures, pointing to a surge in steel imports from outside the EU. “There is plain evidence of trade diversion switching gears into the UK after the EU stepped up its trade defences, and now we must do the same. Imports are flooding into the UK market, depressing steel prices and taking away market share. We must not lose sight of our domestic market while battling to stabilise exports to the US.”

The UK Government has not yet confirmed a timeline for the final signing of the steel trade agreement, but with just weeks until the 9 July deadline, the pressure is mounting to provide the sector with long-term certainty. Without it, industry leaders warn that job losses and production cuts could follow – and that the fragile recovery of UK manufacturing could be at risk.

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UK steelmakers avoid immediate 50% US tariff, but face growing uncertainty as deal hangs in the balance

Coventry-based defence manufacturer NP Aerospace has secured a multi-million-pound funding package from NatWest, designed to support the company’s international growth and boost its exporting capacity.

The finance deal includes a UK Export Finance-backed Trade Finance Facility, as well as capital investment support from Lombard, and is expected to create new jobs as the company scales operations. NatWest and Lombard have worked closely with NP Aerospace since 2021, providing a suite of financial solutions to support its growth ambitions.

The firm, which has operated from Coventry for almost a century, employs 380 staff globally, including 300 in the UK, and recently expanded through the acquisition of key assets from Jankel Armouring Limited. This strategic move has enabled NP Aerospace to diversify its offering to include tactical and civilian armoured vehicles, armour technologies, seating systems and through-life vehicle support services.

Robert Begbie, CEO of NatWest Commercial & Institutional, is due to visit NP Aerospace on Wednesday 4 June to see first-hand the business’s expansion plans and the impact of the funding on the local West Midlands economy.

Will Davis, Chief Financial Officer at NP Aerospace, said: “As we continue to grow the business to meet the needs of our clients, it has been crucial to have a finance partner like NatWest who understands our unique needs. The team has been proactive, responsive and highly knowledgeable about the defence sector. Their support has been timely and efficient as we continue to pursue international opportunities.”

Will Jones, Relationship Director at NatWest, added: “NP Aerospace is building a sustainable and strategically important business that supports both the UK defence industry and local employment. As the UK’s biggest bank for business, we are proud to support them and wish the team every success in their long-term growth plans.”

A cornerstone of the UK’s defence manufacturing landscape, NP Aerospace provides armour manufacturing, vehicle integration and maintenance services to the UK Ministry of Defence and international defence partners. The company supports a fleet of more than 18,000 military vehicles deployed globally and is recognised as a key employer in the West Midlands defence sector.

The new funding will further enable the business to explore export markets and consolidate its position as a trusted global leader in advanced armour systems and mission-critical vehicle support.

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NP Aerospace secures multi-million-pound funding from NatWest to power global expansion

The beloved acoustic and folk music chain aims to raise £190,000 to secure its future and invest in growth, with support from none other than Sir Paul McCartney.

Hobgoblin Music, the UK’s best-known family-run music store chain, has launched its first-ever crowdfunding campaign in a bid to keep its high street presence alive and thriving.

The campaign, now open for early access via Crowdcube, seeks to raise £190,000 in exchange for a 9.5% equity stakein the business. Funds raised will be used to stock fast-selling, high-margin products, which the company says will lead to a sustainable uplift in profit margins and help preserve in-person music retail across the UK.

Now in its 50th year of trading, Hobgoblin Music has built a loyal customer base with its focus on acoustic and folk instruments, hands-on service, and an enduring commitment to local music communities. In a sector that has seen a steep decline in brick-and-mortar music stores, Hobgoblin continues to operate nine shops in cities including London, Leeds, Bristol, Brighton, Birmingham, and Edinburgh, supported by a central warehouse and a national mail-order business.

The company is co-run by Nicola Rain, Executive Director and daughter of founders Pete and Mannie McClelland. She said: “I’ve been immersed in this business for as long as I can remember and I’m so proud of what my parents have built. The experience of visiting a music shop and benefitting from the expertise of other musicians can’t be replaced by online shopping. We’re determined to keep music shops alive, and firmly believe the country would be poorer without them.”

Hobgoblin Music has received a ringing endorsement from none other than Sir Paul McCartney, who praised the team at its London store: “I have many favourite music shops that I like to go into but possibly my most favourite is Hobgoblin Music London. The staff there are so helpful and friendly, and we always have a laugh. There are lots of guitars so, for people like me who like guitars, it is like walking through heaven.”

Founded in 1976, the business began as a market stall after Pete and Mannie McClelland spotted a gap in the market for hard-to-find and unusual instruments. From a barn-based shop to a nationwide chain, Hobgoblin has grown into a central hub for musicians across the UK, employing over 50 staff — all of whom are active musicians — and supporting grassroots music through sponsorships, live events and folk festivals.

Despite strong online growth, Hobgoblin remains committed to its physical stores, which provide the tactile, immersive experience essential for trying out new instruments, from Irish bouzoukis to sitars, hammered dulcimers to mandolins.

Nicola Rain added: “Trying out new instruments in a shop is such a key part of the musical journey. You can’t replicate that connection — or the expertise of a passionate staff member — through a screen. That’s why we’re asking the public to help us keep Hobgoblin on the high street.”

To take part in the fundraise, supporters must register on Crowdcube. Entries close on 16th June 2025.

For more information, visit hobgoblinmusic.co.uk or the Hobgoblin Music Crowdcube campaign page.

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Hobgoblin Music launches first crowdfunding campaign to keep music shops alive on the high street

Millions of UK cryptocurrency holders will soon be required to disclose their personal details to digital asset platforms, as HM Revenue & Customs (HMRC) rolls out a sweeping new crackdown on tax avoidance in the sector.

From 1 January 2026, crypto exchanges and marketplaces will be obliged to collect and report information on users and transactions to HMRC as part of a coordinated global effort to improve tax transparency and combat non-compliance in the digital economy.

The rules will apply to both individuals and businesses engaged in buying and selling cryptoassets, and mark the latest expansion of HMRC’s digital surveillance powers following the introduction of the so-called “side hustle tax” on online sellers using platforms such as Airbnb, Vinted and Etsy.

Recent data from the Financial Conduct Authority suggests that around 12 per cent of UK adults – more than six million people – now hold some form of cryptocurrency.

Under the new regime, individuals will need to supply their name, date of birth, home address, country of residence, and – if based in the UK – their National Insurance number or Unique Taxpayer Reference (UTR). Overseas investors will need to provide their tax identification number and the issuing country.

Businesses trading in crypto must submit their legal name, registered address, and relevant company registration or tax identification details depending on their location.

Platforms will also be required to report the value, type, and nature of each transaction, along with the number of crypto units involved. Exchanges that fail to comply face fines of up to £300 per user for submitting inaccurate or incomplete reports.

Seb Maley, CEO of tax insurance specialist Qdos, said the move signals a new phase in HMRC’s pursuit of tax revenue from digital sectors.

“HMRC is casting its net far and wide as it looks to crack down on suspected tax avoidance and non-compliance among cryptocurrency holders,” Maley said. “By collecting the personal information of those buying and selling crypto – along with the values being exchanged – HMRC will know how much tax should be paid on these assets.”

He added that the data-sharing requirement will significantly bolster HMRC’s ability to cross-reference taxpayer records with third-party information. “In simple terms, if the income a taxpayer declares on their self-assessment doesn’t match what these platforms report, HMRC has the data it needs to open a tax investigation.”

The new measures reflect HMRC’s participation in a broader global initiative led by the OECD, known as the Crypto-Asset Reporting Framework (CARF), which aims to close tax loopholes in fast-growing digital markets by ensuring consistent reporting standards across borders.

“These rules are another sign of how HMRC is working with tax authorities globally to align on how to police compliance – particularly in fast-growing, digital industries, such as crypto and the gig economy,” Maley said.

The clampdown comes amid a wider shift in regulatory attitudes toward cryptocurrencies, with both the UK and EU progressing legislation to bring digital assets under stricter financial oversight. In the UK, the government has pledged to make the country a “global crypto hub,” while also ensuring proper tax and consumer protections are in place.

Industry observers say the rules could impose an additional administrative burden on platforms but will ultimately bring more legitimacy to the crypto sector by aligning it with traditional financial compliance expectations.

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HMRC launches crypto crackdown with new data-sharing rules for platforms and traders

Chancellor Rachel Reeves has been warned by the Organisation for Economic Cooperation and Development (OECD) that her wafer-thin fiscal buffers could prove inadequate if the UK economy is hit by a fresh downturn, following a downgrade to the country’s growth forecast.

In its latest economic outlook, the Paris-based body revised its UK GDP growth projections downward for both this year and next. It now expects the economy to grow by just 1.3 per cent in 2025, down from an earlier forecast of 1.4 per cent, and to slow further to 1 per cent in 2026, compared to its previous estimate of 1.2 per cent.

The OECD cited rising global trade uncertainty, persistently high interest rates, and declining household and business confidence as key factors behind the weaker outlook. It warned that sluggish economic performance could jeopardise the government’s ability to meet its self-imposed fiscal rules.

“Currently very thin fiscal buffers could be insufficient to provide adequate support without breaching the fiscal rules in the event of renewed adverse shocks,” the OECD said.

The warning comes just days after the International Monetary Fund (IMF) issued a similar alert, and ahead of the government’s three-year spending review next week. Reeves is facing mounting pressure to maintain control of ministerial budgets while honouring recent policy pledges, including a reversal on plans to limit winter fuel payments for pensioners.

Reeves’s key fiscal rule is to ensure that day-to-day government spending is fully funded by tax revenues by the end of the current parliament. However, according to her own spring budget, the chancellor has left herself just £8.9 billion of headroom — among the narrowest margins on record.

The OECD urged the chancellor to deliver a “balanced” autumn budget that includes both targeted spending cuts and tax reforms. It suggested closing tax loopholes, re-evaluating council tax bands based on current property values, and eliminating distortions in the tax system to strengthen the public finances.

The report predicts that the UK’s budget deficit will fall from 6 per cent of GDP in 2024 to 4.5 per cent in 2025, helped by stronger-than-expected tax receipts. However, the country’s national debt burden is projected to continue rising, hitting 104 per cent of GDP by 2026 due to elevated borrowing costs and sustained interest rates.

It noted that further supply-side reforms — including progress on the overhaul of the National Planning Policy Framework — could help raise potential output and ease long-term fiscal pressures.

In a modest silver lining for borrowers, the OECD expects the Bank of England to begin easing monetary policy, pencilling in three interest rate cuts over the next 12 months.

On the global stage, the OECD sharply cut its forecast for world growth following President Trump’s reintroduction of steep import tariffs. It now expects global GDP to expand by just 2.9 per cent this year, down from 3.3 per cent in March.

The United States suffered one of the biggest downgrades, with growth forecast to slow to 1.6 per cent in 2025 after a strong 2.8 per cent expansion in 2024. US inflation is also expected to climb to an average of 3.2 per cent from 2.5 per cent last year.

Alvaro Pereira, the OECD’s chief economist, said: “Weakened economic prospects will be felt around the world, with almost no exception. Lower growth and less trade will hit incomes and slow job growth.”

The OECD’s caution adds further pressure on Reeves as she prepares for the first major spending review of her chancellorship, and underscores the difficult balancing act ahead as she attempts to maintain fiscal discipline while navigating a more fragile global economy.

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Reeves faces fiscal rule warning as OECD slashes UK growth forecast

Gary Neville is known to most as a football legend – a stalwart of Manchester United and England, a leader on the pitch, and now a respected pundit. But away from football, Neville has built a reputation as one of the UK’s most thoughtful and ambitious entrepreneurs.

From co-founding the University Academy 92 (UA92) in Manchester to launching successful hospitality and property ventures, Neville’s business credentials are increasingly commanding.

I caught up with Gary at one of his hotels in Manchester – a city he’s invested heavily in – to talk about the challenges facing small businesses, the crucial role of technology, and the mindset needed to grow something meaningful beyond the pitch.

“Let’s be honest,” Gary begins, “it’s hard work setting up a business. Anybody who does it, I admire – the courage, the risk, the grind. It takes smart decisions, relentless effort, and a bit of luck. Sometimes a lot of luck.”

It’s a typically grounded assessment. And one rooted in experience – Neville has juggled multiple ventures since retiring from football in 2011. He’s well-placed to observe the pressures facing entrepreneurs, and right now, he says, they’re mounting.

“COVID’s aftershocks are still being felt – especially in hospitality. Add in rising National Insurance, increased employment costs, and you’ve got real headwinds. Your biggest responsibility as a business owner is your people. But when the pressure’s on, you start cutting in places you shouldn’t. That’s the danger.”

One of the biggest risks to business, Neville warns, is inertia.

“So many people are sitting on their hands right now – waiting to see what happens with the economy. But that’s not good. You have to keep moving forward. And in today’s world, that means embracing tech.”

He’s frank about the state of digital adoption among SMEs. “We’re still lacking skills programmes, proper upskilling. People get stuck in their ways – they fear the cost or complexity of changing systems. But in the long run, clinging to outdated processes is far more costly.”

At UA92, the university he co-founded, “digital competence” is one of 11 founding principles. “In 2025, you can’t survive in most jobs without understanding tech – from data to automation. That applies in every sector: education, real estate, media, sport.”

While Neville isn’t dogmatic about technology, he’s clear-eyed about its utility – particularly when it comes to reducing admin.

“One of my most-asked questions to mentors is: how do you manage your lists? Your action plans? The endless tasks? Everyone’s juggling a lot – emails, meetings, travel, documents. You can lose sight of what really matters.”

Neville describes a moment with a highly successful business contact: “He pulled out this old scrapbook – literally hundreds of tiny notes, ticked off line by line. His assistant had a matching sheet. It was brilliant. But for me, moving to digital tools – ones that can sync, be shared, and archived – has been a game-changer.”

Yet he doesn’t pretend to have it all figured out. “We’re all still perfecting it. I wouldn’t say I’m a tech evangelist. But I know enough to see its value. If you want resilience in a business, if you want to scale, you can’t do it with paper trails and memory.”

The government’s Making Tax Digital initiative is pushing more SMEs to adopt e-invoicing and online bookkeeping. Neville sees that shift as long overdue.

“You still see contracts coming through with hundreds of pages to initial. We’ve gone beyond that now. Invoicing, contracts, signatures – these things have to be digital. We can’t afford delays, lost paperwork, or inefficient systems anymore.”

But again, he empathises with the barriers. “People don’t like change. And unravelling systems you’ve used for decades is intimidating. But you’ve got to bite the bullet. If you don’t, you’ll fall behind.”

Neville’s business life hasn’t been without setbacks. The failed St Michael’s development in Manchester, for example, faced years of delays. But he’s candid about failure being a part of the process.

“If you’re setting up lots of businesses, some won’t work out. It’s a fact. The key is learning fast – not repeating mistakes. Startups are hard. They take time, energy, personal investment. Often people risk their home, their savings, their security. That deserves massive respect.”

Given his glittering football career, I ask Neville how he defines success in business.

“For me, it’s simple. If the people consuming your product are happy – and the team delivering it are happy – you’ve got a great chance of success.”

He’s quick to say profit matters. But passion, purpose, and people rank higher. “It has to be something I care about. Something that means something to the community it’s in. And I need the team to feel invested too.”

That mindset shapes his approach to everything – from student wellbeing at UA92 to guest experience in his hotels. “If both sides – your customer and your staff – feel supported, you’re on the right path.”

“I’ll always remember when the Vice Chancellor at Lancaster University told me: ‘You do realise there’s no exit?’ That stuck with me. Some of my businesses – I know I’ll be part of them for the long haul. They carry my name, my values. So success isn’t a one-off. It’s about sustaining things – year on year.”

Asked what separates the elite – in sport or business – Neville doesn’t hesitate.

“Talent, yes. But work ethic, even more. The highest performers I’ve seen are obsessive. They’re relentless. They think about their job all day. Everything they do – how they eat, sleep, train – it’s all geared towards performance.”

It’s a high bar. But one he lives by.

I end by asking the best advice he’s ever received.

He smiles. “It came from my dad: Don’t look back and wish you could have done more. That’s it. Take the risks. Make the effort. Do the hard things now, so you’ve got no regrets later.”

For Gary Neville, business success isn’t about headlines or exits. It’s about building things that last – and doing so with purpose, resilience, and care. From the football pitch to the boardroom, those values have never wavered.

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Gary Neville: from the pitch to the boardroom