Business

Small British defence companies are set to gain easier access to Ministry of Defence contracts after the government launched a dedicated unit to simplify procurement and boost spending with smaller suppliers.

The Ministry of Defence has unveiled the Defence Office for Small Business Growth, a new service designed to cut through what ministers describe as labyrinthine procurement processes that have historically shut small and medium-sized enterprises (SMEs) out of the defence market.

Announcing the initiative, Luke Pollard, minister for defence readiness and industry, said the government wanted to redirect more defence spending towards British firms and trusted allies.

“In more difficult times, being able to bring more of our supply chain to Britain, or to friendly NATO partners, is absolutely vital to building our war-fighting readiness and deterrence,” Pollard said. “Any military is only as strong as the industry behind it.”

From February, thousands of small defence businesses will be able to access tailored guidance from commercial experts through the new office, alongside a “confidential channel” allowing firms to raise concerns about their treatment by government buyers or large prime contractors.

Pollard said previous procurement practices had too often favoured large overseas suppliers, with insufficient UK content. “There is more opportunity for small businesses to be part of that strength by selling more of their product in, and by making it easier for them to do so,” he said.

The initiative forms part of a wider push to reverse a long-term decline in SME participation in defence procurement. The MoD currently spends around £5 billion a year with roughly 12,000 SMEs operating in the UK defence sector. Ministers now want to increase that figure by 50 per cent, equivalent to an additional £2.5 billion a year,  by May 2028.

According to MoD estimates, direct and indirect spending with British SMEs has fallen from 25 per cent to 20 per cent of the £29 billion the department spent with UK companies in 2024. By comparison, the United States Department of Defense spends more than 40 per cent of its budget with SMEs, under mandated targets.

Pollard acknowledged that procurement culture within the MoD would need to change if the new targets were to be met. He said the department aimed to dramatically shorten contract timelines, with deals that currently take an average of five years to agree reduced to two years, two-year processes cut to one, and one-year negotiations shortened to a matter of months.

The announcement comes amid scrutiny of the MoD’s growing use of non-competitive procurement. The department said that 49 per cent of the value of new contracts awarded in the year to April 2025 were issued without competitive tender, the highest level since 2016. Major suppliers such as BAE Systems have been significant beneficiaries of this approach.

Ministers argue that increasing SME participation will strengthen supply-chain resilience and innovation, particularly as defence spending rises. The government has committed to increasing defence expenditure to 2.6 per cent of GDP by 2027, creating what Pollard described as an opportunity to “rebalance” who benefits from that investment.

The MoD said the Defence Office for Small Business Growth would play a central role in ensuring that future increases in defence spending translate into more opportunities for smaller British firms, rather than being captured primarily by large multinational contractors.

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Small defence firms to get easier access to MoD contracts under new growth unit

The Transport Committee has called on the Government to seize “once-in-a-generation” opportunities to secure the future skills pipeline for the UK’s transport manufacturing sector, amid mounting shortages and the rapid shift to cleaner technologies.

In a new report published today, MPs warn that manufacturers across aerospace, automotive, rail and maritime industries are struggling to access the skilled workforce they need at a time when the transition to net zero and advanced engineering is fundamentally reshaping job requirements.

The Committee says the UK’s long-standing strength in producing cars, buses, aircraft, trains and ships is at risk unless vocational training, apprenticeships and workforce development are better aligned with modern industry needs.

Evidence to the inquiry highlighted acute skills gaps across multiple subsectors, with witnesses stressing that the move towards electric vehicles, alternative fuels and digital systems has transformed the nature of manufacturing roles. MPs concluded that current training pathways are too slow to adapt and are failing to attract enough young people into what should be “lucrative and fulfilling” careers.

To address this, the report urges the Department for Transport to carry out a comprehensive assessment of how well the UK’s vocational training system is meeting the needs of transport manufacturers. The findings should then be shared across government to inform reforms to skills pathways.

The Committee also calls on Skills England to consult on the introduction of a “competency passport” that would formally recognise transferable skills, making it easier for workers to move between roles and subsectors within transport manufacturing.

While acknowledging the Government’s intention to rebalance funding towards younger workers, MPs expressed concern that the removal of funding for level 7 apprenticeships for people aged 22 and over could undermine the supply of experienced, highly skilled workers. The report supports calls, echoed by the Education Committee, for level 7 funding to be reinstated across the eight growth sectors identified in the Government’s Modern Industrial Strategy.

The report also examines the apprenticeship levy system. Although manufacturers broadly support the principle of the levy, MPs say restrictions on how funds can be spent are limiting employers’ ability to invest effectively in skills. The Committee recommends greater flexibility under the forthcoming Growth and Skills Levy and suggests the Government consider linking access to levy funding to employers’ progress against their own diversity targets.

Addressing gender imbalance, the report highlights the under-representation of women in transport manufacturing and calls for stronger accountability. It recommends that employers receiving levy funding report annually on uptake by people with caring responsibilities or those returning from career breaks, and that the Government review progress towards its target of women making up 35 per cent of the advanced manufacturing workforce by 2035.

Ruth Cadbury, chair of the Transport Committee, said the sector was at a pivotal moment.

“The UK’s track record in transport manufacturing is something to be proud of, but the sector faces an array of challenges,” she said. “We need to harness the talent we already have while making sure the next generation sees this as a sector full of opportunity.”

She added that outdated training routes risk pushing young people away just as demand for skills in electric vehicles and alternative fuels accelerates. “If we don’t act now, other nations will motor ahead while we stand still,” she warned.

The report concludes that without urgent reform to training, funding and workforce mobility, the UK risks missing out on growth opportunities in transport manufacturing, particularly in net zero technologies, at a time when global competition is intensifying.

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Transport Committee urges action to secure skills pipeline for UK transport manufacturing

Peers have warned that the government’s proposed inheritance tax reforms covering pensions could place an unrealistic and potentially unmanageable burden on personal representatives, creating widespread delays, cashflow pressures and legal risk for those administering estates.

In a report published today, the House of Lords Economic Affairs Finance Bill Sub-Committee examined the tax administration and practical implications of measures in the government’s Draft Finance Bill 2025–26. The inquiry focused on changes to the inheritance tax (IHT) treatment of unused pension funds and death benefits, alongside reforms to agricultural and business property reliefs.

One of the committee’s strongest criticisms relates to the decision to bring unused pension funds within the scope of IHT while retaining the existing six-month deadline for payment. Peers concluded that it is “not realistic” to expect personal representatives to meet that deadline, given how long pension scheme administrators typically take to provide valuations and release information.

The report warns that many personal representatives are likely to incur late payment interest through no fault of their own, because pension assets are often inaccessible within the statutory timeframe.

“It cannot be right to impose a timescale for payment of tax if that timescale is, for many, impossible to meet,” the committee said.

Peers also raised concerns that personal representatives could become liable for IHT on pension assets they neither control nor can access, creating significant cashflow strain. The report cautions that this could deter both lay individuals and professionals from acting as personal representatives, increasing costs and delays for bereaved families.

To address these risks, the committee has called on the government to introduce a statutory “safe harbour” protecting personal representatives from late payment interest where they can demonstrate that reasonable steps were taken to meet the deadline but delays were outside their control. It also recommends extending the six-month IHT payment deadline to 12 months for pension assets during a transitional period, allowing pension administrators time to update their processes.

The report also examines the proposed reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR), warning that these changes are likely to increase administrative complexity and exacerbate liquidity problems for estates.

Witnesses told the committee that many farms and family businesses are asset-rich but cash-poor, meaning that even where instalment options exist, the interaction between valuations, probate sequencing and tight payment deadlines could force asset sales to meet tax liabilities. Peers warned this could undermine future business investment and succession planning.

The committee also heard concerns that the reforms risk creating a generational divide. While younger farmers and business owners may have time to adapt, older or more vulnerable owners have limited options, particularly due to anti-forestalling provisions that restrict the use of lifetime gifting.

As a result, the committee recommends extending the IHT payment deadline to 12 months for estates with qualifying APR and BPR assets, and urges the government to monitor the cumulative impact of the reforms over a seven-year period, especially on farmers and family-owned businesses.

Further concerns were raised about how the death of a key individual can affect business valuations for IHT purposes. The committee said the government should review how valuation rules reflect the loss of a key person and consider whether the current framework remains appropriate.

Peers were also critical of the government’s consultation process, saying the repeated late-stage changes to the proposals were the result of narrow and insufficient engagement with stakeholders, causing unnecessary anxiety and cost.

Lord Liddle, chair of the Finance Bill Sub-Committee, said: “Our inquiry focused on how the government plans to implement these inheritance tax changes. While we welcomed some of the adjustments made at Budget 2025, significant work remains to ensure these measures function in practice for personal representatives, businesses and farms.”

He added that the committee was particularly concerned about the impact on personal representatives dealing with estates during periods of grief.

“Bringing pensions into inheritance tax risks creating significant delays and additional costs, and many of those affected may be entirely unaware of how these changes will impact them,” he said. “A recurring theme throughout our inquiry was the lack of proper consultation. We want to ensure this does not happen again.”

The report now places pressure on ministers to rethink the practical implementation of the reforms before the legislation is finalised, amid growing concern that well-intentioned tax changes could create serious unintended consequences for families, businesses and the professionals tasked with administering estates.

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Lords warn pensions inheritance tax changes risk overwhelming personal representatives

Harlow Payments was founded in 2024 by a leadership team that had already spent decades inside the payments industry.

Before Harlow, its founders and executives helped build and scale EVO Payments, a global processor that was later acquired by Global Payments for $4 billion. That experience shaped how they think about payments, growth, and responsibility.

Rather than chasing hype, Harlow was created to fix what its leadership had seen break over time. Layers of bureaucracy. Rushed onboarding. Merchants treated like numbers instead of partners.

“The goal wasn’t to start another processor,” the team says. “It was to build the one we wished existed when we were on the other side of the table.”

Based in Melville, New York, Harlow focuses on small and mid-sized businesses across the United States. Its work centres on payment operations, underwriting discipline, and scalable technology, including embedded payments and AI-driven tools. But the company’s real differentiator is not technology. It is experience.

Everyone at Harlow has lived through growth, acquisitions, pressure, and failure. That shared history creates what the team calls “quiet confidence”.

“We’ve seen this movie before,” they say. “That keeps us grounded.”

Harlow measures success differently from most processors. Outcomes matter, but so do execution, trust, learning, and long-term stability.

“A win that creates future problems isn’t a win,” the team says.

At its core, Harlow Payments exists to treat businesses like humans, not account numbers. No noise. No spin. Just disciplined operators doing the work the right way.

Interview: Inside Harlow Payments

A Conversation on Experience, Discipline, and Building Trust

Q: Let’s start at the beginning. Why start Harlow Payments in 2024?

Harlow Payments: After years in payments, we felt something was off. We’d seen the industry from every angle — startup, scale-up, acquisition, corporate. Over time, merchants stopped being the focus. The goal with Harlow was simple: fix what’s broken.

Q: What specifically felt broken?

Harlow Payments: Speed without structure. Growth without alignment. Decisions driven by volume instead of quality. Most problems in payments aren’t technical. They’re operational.

Q: You all came from EVO Payments. How did that experience shape Harlow?

Harlow Payments: EVO taught us how complex payments really are. Scaling exposed where shortcuts hurt later. The $4 billion acquisition showed us what durability looks like. We carried all of that forward — the good and the painful.

Q: Starting over must have been difficult.

Harlow Payments: It was humbling. In payments, trust is everything. We had to earn it again. We didn’t do that by being louder or flashier. We did it by being disciplined and human.

Q: Was there an early moment that tested that discipline?

Harlow Payments: Yes. Early on, we moved too fast on a merchant that looked great on paper. Strong volume. Tight timeline. We relaxed some guardrails.

Q: What happened?

Harlow Payments: Friction. Support load increased. Risk signals showed up late. Nothing catastrophic, but enough to make it clear we’d drifted.

Q: What did you take from that experience?

Harlow Payments: The failure wasn’t the merchant. It was us deviating from our own standards. Speed without structure creates drag.

Q: What changed after that?

Harlow Payments: We tightened underwriting. Asked deeper questions upfront. Slowed launches when needed. And we empowered teams to say no.

Q: Saying no is hard in payments.

Harlow Payments: It is. But saying yes to the wrong fit costs more later. If it doesn’t feel right early, it won’t feel better later.

Q: How do you define success today?

Harlow Payments: Outcomes matter first. Then execution. Then trust. Then learning. A project isn’t successful if it creates future messes.

Q: How do you keep momentum during tough periods?
Harlow Payments: Facts over feelings. Break problems into small steps. Share pressure. No lone heroes.

Q: What motivates the team now?

Harlow Payments: We’re building the company we wish we’d had earlier in our careers. Clean operations. Real transparency. Zero tolerance for nonsense.

Q: What does leadership look like at Harlow?

Harlow Payments: Calm confidence. Integrity under pressure. Attention to detail. Experience without ego.

Q: Final thought?

Harlow Payments: We’re not trying to win attention. We’re trying to build something that lasts.

Read more:
Harlow Payments and the Discipline Behind Durable Growth

Zeus Sleep Ltd has been awarded £1.48 million in funding from the National Institute for Health and Care Research (NIHR) to lead one of the UK’s largest multi-centre clinical trials into Obstructive Sleep Apnoea (OSA).

The trial will be led by Guy’s and St Thomas’ NHS Foundation Trust in partnership with King’s College London, and will evaluate a next-generation, non-invasive medical device designed to address sleep apnoea by stimulating the airway at the source.

The funding follows new consumer research from Zeus Sleep, which found that 56% of adults say snoring has either a significant or slight negative impact on their lives. More than a third (36%) report being forced to sleep in a separate room or on the sofa, while 11% say ongoing snoring could cause their relationship to deteriorate.

Zeus Sleep’s first consumer anti-snoring device is already available in the UK, helping individuals and their partners reduce night-time disruption. Building on this success, the company is now preparing to launch a regulated medical device for OSA in early 2026, informed by the NIHR-funded trial and supported by evidence from three earlier clinical studies.

OSA affects an estimated eight million people in the UK and more than one billion globally. The condition is characterised by repeated airway collapse during sleep, leading to fragmented rest, excessive daytime fatigue, increased cardiovascular risk and a higher likelihood of accidents.

While Continuous Positive Airway Pressure (CPAP) therapy remains the NHS gold standard, more than half of patients abandon treatment within a year due to discomfort or inconvenience, often leaving lifestyle advice as the only alternative.

The ZeusOSA device is worn discreetly under the chin at night and delivers gentle electrical stimulation to the hypoglossal nerve, helping maintain airway patency during sleep. Unlike surgically implanted nerve stimulators, the device is non-invasive, designed for home use and significantly more affordable,  positioning it as a potentially scalable solution for NHS adoption.

Earlier trials, including an NHS study in Dorset, have shown encouraging outcomes. In these studies, 84% of participants reported improved sleep quality, 78% experienced better daytime functioning and 68% reported reduced daytime sleepiness. Crucially, adherence reached 85%, far exceeding typical CPAP compliance rates.

Professor Joerg Steier, chief investigator of the new trial, said: “Obstructive sleep apnoea is highly prevalent, yet CPAP non-adherence leaves too many patients without effective care. The Zeus device has demonstrated promising results with good tolerance in home use. This NIHR-funded trial will provide the robust evidence needed to support NHS decision-making.”

Beyond physical health, the research highlights broader wellbeing concerns. More than a quarter of respondents (26%) fear constant snoring leaves them permanently tired, while 13% say it causes or worsens anxiety. One in ten said they would pay whatever it takes to stop snoring permanently.

Nigel Clarke, chief executive of Zeus Sleep, said the funding marks a major milestone. “Our consumer device is already improving lives, and with NIHR support and our clinical partners, we can now build the evidence needed to bring a medical version into the NHS,” he said. “Our goal is simple: to help people sleep better, feel better and live better.”

If successful, the trial could pave the way for a new era in sleep medicine, offering millions of patients a practical alternative to CPAP and reducing the long-term burden of untreated sleep apnoea on the NHS.

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Anti-snoring innovators secure £1.48m NIHR funding to tackle sleep apnoea at its source

Retail sales growth is expected to slow across the US, UK and major European economies in 2026 as consumers continue to feel financial pressure and discretionary spending remains subdued, according to new forecasts from Bain & Company.

In its 2026 Global Retail Sales Outlook, Bain said macroeconomic uncertainty, cost-of-living pressures and cautious shopper behaviour would weigh on growth in the year ahead, even as inflation eases in most markets.

“Consumers continue to face financial pressure, driving our forecast for slower retail sales growth in the US and Europe in 2026,” said Aaron Cheris, global head of Bain’s retail practice. He added that retailers would need to sharpen their value propositions and deploy artificial intelligence in ways that genuinely enhance customer value, rather than simply cutting costs.

Bain forecasts US retail sales growth of 3.5 per cent year on year in 2026, taking the market to $5.3 trillion. That represents a slowdown from estimated growth of 4.0 per cent in 2025, with underlying volume gains expected to remain modest as inflation hovers between 2.6 per cent and 3.0 per cent.

The consultancy said mounting consumer strain, rising unemployment and slowing labour supply growth were eroding confidence. Its Consumer Health Index shows sentiment among higher-income households, which account for more than half of US retail spending, declined in January 2026.

Shoppers are increasingly trading down to lower-priced and private-label products, creating a “flight to value” that could limit nominal sales growth. However, Bain said factors such as lower fuel prices, reduced taxes and potential interest rate cuts could help stabilise demand.

In the UK, retail sales are forecast to grow by 2 per cent in 2026. With inflation expected to stabilise at around 2.5 per cent, Bain expects volume growth to be flat in food retail and slightly negative in non-food categories.

Ongoing cost-of-living pressures, elevated mortgage rates and a gradually softening labour market are continuing to suppress consumer confidence. Discretionary spending is likely to remain weak, with shoppers prioritising essentials, trading down and seeking discounts.

While recent interest rate cuts could offer some relief, Bain said they are unlikely to materially improve household disposable income before 2027.

France is expected to see near-flat retail sales growth of 1.5 per cent in 2026, slightly down from an estimated 1.7 per cent in 2025. Volume growth is likely to be broadly flat, with inflation forecast to normalise between 1.3 per cent and 1.7 per cent.

Rising unemployment and elevated mortgage rates are weighing on household finances, but Bain noted that high levels of savings and a declining household debt-to-income ratio are helping cushion the impact and support modest sales growth.

Bain forecasts retail sales growth of 2.5 per cent in Germany in 2026, down from 3.6 per cent in 2025. Inflation is expected to remain around 2.2 per cent, allowing for moderate underlying volume growth.

However, consumer confidence remains fragile, with households prioritising saving over spending amid cost pressures and rising unemployment. Bain also warned that ongoing discounting, particularly in grocery, could further cap nominal growth.

Offsetting these headwinds, wage growth is currently outpacing inflation and increased government spending on infrastructure and defence could provide some support to demand.

Across all four markets, Bain said 2026 would be another testing year for retailers, with growth increasingly dependent on value perception rather than volume expansion.

Cheris said: “This year’s winners will be those that clearly articulate why they are the best choice for shoppers, whether through price, experience or relevance, while using AI to expand the value-creation capability of the entire business.”

The outlook suggests that while the worst of the inflation shock may be over, a full recovery in consumer-led retail growth remains some distance away.

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Retail sales growth to slow across US and Europe in 2026, Bain forecasts

India and the European Union have announced a landmark trade agreement, ending nearly 20 years of stop-start negotiations as both sides seek to deepen economic ties amid rising global trade tensions.

“This is the mother of all deals,” said Ursula von der Leyen at a briefing in Delhi, while Narendra Modi described the pact as “historic”.

The agreement will enable free trade in goods between the EU’s 27 member states and the world’s most populous country, together representing almost 25 per cent of global GDP and a combined market of around two billion people. It is expected to significantly reduce tariffs, improve market access and strengthen supply-chain integration on both sides.

Von der Leyen and António Costa were in Delhi for a bilateral summit with Modi, where the deal was finalised ahead of formal approval later this year by the European Parliament and the European Council.

Under the agreement, tariffs will be eliminated or phased down on most EU exports of chemicals, machinery and electrical equipment, as well as aircraft and spacecraft. Crucially for European carmakers, duties on motor vehicles, currently as high as 110 per cent, will be cut to 10 per cent under a quota of 250,000 vehicles. That quota is six times larger than the 37,000-unit allowance granted to the UK under its trade deal with India signed last July, according to Bloomberg.

For India, the deal will give “preferential access” to the EU for almost all exports, with textiles, leather goods, marine products, handicrafts, gems and jewellery among the biggest beneficiaries. Tariffs will also be reduced or removed on commodities such as tea, coffee, spices and processed foods, although Delhi said it had protected sensitive sectors including dairy, cereals, poultry, soy meal and certain fruits and vegetables.

Both sides said the agreement would boost investment flows, deepen manufacturing and services links and improve access for small businesses. A parallel mobility framework will ease short-term travel restrictions for professionals moving between India and the EU.

“This is India’s biggest free trade agreement,” Modi said. “It will make access to European markets easier for our farmers and small businesses, boost manufacturing and services, and strengthen innovative partnerships.”

The deal comes against a tense geopolitical backdrop. India is still grappling with 50 per cent tariffs imposed by Donald Trump last year, while talks on a US–India trade deal continue to drag on. The EU has also faced pressure from Washington, including recent threats over Greenland, before the US president backed down.

Von der Leyen framed the agreement as a strategic response to those pressures. “This is the tale of two giants, the world’s second and fourth largest economies, choosing partnership in a true win-win fashion,” she said, calling it a “strong message that co-operation is the best answer to global challenges”.

Costa added that the deal sent an “important political message” at a time when protectionism is rising and “some countries have decided to increase tariffs”.

Beyond trade, India and the EU are also advancing talks on security, defence and climate co-operation. India’s defence minister Rajnath Singh said discussions with Kaja Kallas had covered defence supply chains, maritime security and cyber threats. A draft security and defence partnership is now in development, according to Reuters.

The EU is already India’s largest trading partner in goods, with bilateral merchandise trade reaching $136bn (£99.4bn) in 2024–25 — nearly double the level of a decade ago. Negotiations for a free trade agreement first began in 2007 but stalled in 2013 over market access and regulatory issues, before formally restarting in July 2022.

The breakthrough comes as both Delhi and Brussels look to secure alternative markets for exporters. India has signed major trade agreements in recent years with the UK, Australia, Oman and New Zealand, while a pact with the European Free Trade Association came into force last year. The EU, meanwhile, concluded a long-awaited trade deal with Mercosur earlier this month after 25 years of negotiations.

Formal signing of the India–EU agreement is expected later this year, once the legislative approval process on the European side is complete.

Read more:
India and EU strike landmark trade deal after two decades of talks

Poundland has joined forces with the retail industry charity Retail Trust to expand mental health and wellbeing support for its 12,000 employees across the UK.

Under the new partnership, Poundland staff will gain access to the Retail Trust’s confidential wellbeing helpline alongside a wider package of support, including counselling services, financial assistance and specialist help for young people in their care.

The initiative also includes dedicated resources to help employees cope with abuse at work, after research by the Retail Trust found that almost half of retail workers experienced verbal or physical attacks from customers on a weekly basis last year.

As part of the programme, Poundland managers will receive CPD-accredited training to help them better support their teams. The Retail Trust will also provide access to its generative AI-powered “happiness dashboard”, a tool designed to help retailers identify wellbeing trends and respond more effectively to emerging issues across their workforce.

Barry Williams, managing director of Poundland, said the partnership reflected the company’s commitment to supporting colleagues in what can be a demanding working environment.

“Our colleagues do an amazing job, but we know working in retail, especially on the shop floor, can at times be challenging,” he said. “We’re committed to doing all we can to support them, and we’re pleased to be working with the Retail Trust to bring additional resources that will help protect their mental health and wellbeing.”

The Retail Trust already works with more than 200 retailers across the UK to improve mental health outcomes in the sector, including Mountain Warehouse, which announced a partnership with the charity last year.

Chris Brook-Carter, chief executive of the Retail Trust, said the collaboration with Poundland would extend vital support to thousands more retail workers.

“We’re looking forward to helping thousands of colleagues across the country live happier and healthier lives,” he said. “This partnership includes new training and insights for managers, as well as practical resources to help staff deal with the rising levels of shop worker abuse.”

Founded in 1832, the Retail Trust has a long history of supporting people working in retail throughout their careers. The charity focuses on providing practical help, emotional support and long-term wellbeing services, with the aim of creating a healthier and more sustainable future for the retail industry.

The partnership comes at a time when retailers are under increasing pressure from rising costs, staff shortages and challenging customer behaviour, placing mental health and wellbeing firmly on the agenda for major employers across the sector.

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Poundland partners with Retail Trust to strengthen mental health support for staff

Nearly 50 Labour MPs have written to the chancellor calling for an immediate halt to a planned rise in business rates for music venues, warning that the revaluation could push many spaces to the brink of closure.

In a letter seen by the BBC, the MPs urged Rachel Reeves to pause the revaluation due to take effect from April, arguing that it could drive increases in music venues’ business rates bills of between 45 per cent and 275 per cent.

The letter warns that the sector is facing an “existential threat” as rising costs collide with the withdrawal of pandemic-era support. It comes as the chancellor works on a support package for pubs, under pressure from the hospitality industry and Labour backbenchers, which is expected to be announced imminently.

In her November Budget, Reeves reduced business rates discounts introduced during the pandemic from 75 per cent to 40 per cent, and confirmed that all discounts will end entirely from April. The move has already sparked a backlash across hospitality, with around 1,000 pubs reportedly banning Labour politicians from their premises in protest.

The MPs’ intervention highlights concern that any forthcoming support package could be too narrowly focused on pubs, leaving other parts of the hospitality and cultural economy, including live music venues and hotels, exposed to sharp cost increases.

The letter was coordinated by Anneliese Midgley, a Liverpool MP and member of the Culture, Media and Sport Committee, and is signed by several Labour MPs who also sit on the committee.

“Many of us have been contacted by constituents in recent months who use and run these critical music spaces, explaining that they will be severely impacted by the 2026 business rates revaluation,” the letter states.

It calls on the Treasury to cancel the April increase until a new and less damaging method of valuing music venues can be developed. The MPs also urge ministers to extend support to recording studios, warning that up to half of them could be at risk under the new valuations.

Industry groups have long argued that business rates disproportionately penalise venues that rely on physical space and live audiences, and that sharp rises could accelerate the loss of grassroots music venues across the UK.

The Treasury has been approached for comment.

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Labour MPs urge chancellor to halt business rates rise for music venues

The High Court has granted an urgent hearing to a judicial review challenging the Government’s proposed changes to inheritance tax reliefs for farms and family businesses, in a move that significantly raises the legal stakes around reforms currently passing through Parliament.

The claim, brought by Collyer Bristow LLP on behalf of professional services firm Alvarez & Marsal and claimants including Thomas Martin, George Martin and campaign group Farmers and Businesses for Fair Tax Relief, targets changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

Following what the court described as “regrettable administrative delays” in handling the case, the claimants sought judicial intervention to accelerate proceedings. On 19 January 2026, Mrs Justice Lang ordered that the case proceed to a rare “rolled-up” hearing, covering both permission to bring the judicial review and the substantive merits of the claim.

The two-day hearing will take place in February or March 2026, with the court recognising that the issues raised are time-critical and of significant public importance.

At the heart of the challenge is the claimants’ argument that the Government acted unlawfully by conducting only a limited technical consultation on a narrow aspect of the proposed APR and BPR reforms. They argue this fell short of established public law standards, particularly given the scale of the potential impact on farming families, business owners and the wider agricultural and commercial economy.

The claimants say the lack of a full and meaningful consultation breached the Government’s own consultation principles and denied affected taxpayers the opportunity to influence policy before it was finalised.

Given the constitutional sensitivity of the issues, the Speaker of the House of Commons has been granted permission to intervene as an interested party. His counsel will assist the court on matters relating to parliamentary privilege, the separation of powers, and the appropriate use of parliamentary materials in judicial proceedings.

James Austen, partner at Collyer Bristow with conduct of the claim, said the court’s decision to expedite the case was highly unusual and reflected its importance.

“This ruling means a High Court judge will determine whether the Government acted unlawfully by introducing these changes without consulting taxpayers in line with its own policy,” he said. “Rolled-up hearings are exceptionally rare, and for one to be listed so promptly underlines the seriousness of the issues at stake.”

Marvin Rust, head of tax EMEA at Alvarez & Marsal, said the reforms created damaging uncertainty for family-owned enterprises.

“Restricting long-standing inheritance tax reliefs is a major policy shift,” he said. “Introducing changes of this magnitude without proper consultation runs contrary to well-established principles. We welcome the court’s decision to determine whether the process was lawful.”

Tom Martin, the lead claimant, said the case was about safeguarding due process rather than blocking parliamentary decision-making.

“By choosing not to carry out a proper consultation, the Government denied farmers and business owners the chance to influence policy that could fundamentally affect their livelihoods,” he said. “This case matters to everyone affected by the proposed tax changes.”

Because the APR and BPR reforms are already being debated as part of the draft Finance Bill currently in Committee stage in the House of Commons, the court cannot order the Government to conduct a fresh consultation. The claimants are therefore seeking a declaration that the consultation carried out was unlawful.

If the court agrees, such a declaration would not invalidate the legislation itself, but would formally recognise that the Government’s process fell short of legal standards. While ministers would retain discretion over how to proceed, the ruling could increase political and legal pressure to revisit how the reforms are implemented.

The High Court has issued detailed case management directions to ensure the case proceeds without further delay, setting the stage for one of the most significant legal challenges to recent inheritance tax reforms.

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High Court fast-tracks judicial review into inheritance tax relief reforms