Business

Octopus Energy Group is preparing to spin out its technology arm Kraken in a landmark deal that values the business at $8.65 billion, following a $1 billion standalone investment round.

The funding, announced in London on 29 December, is led by D1 Capital Partners, with participation from major global investors including Fidelity International, Durable Capital Partners and the Ontario Teachers’ Pension Plan Board through its Teachers’ Venture Growth arm.

The move paves the way for Kraken’s formal demerger and independence from Octopus Energy Group, allowing the platform to operate as a neutral, global technology provider to utilities while Octopus sharpens its focus on energy retail, generation and clean technology.

As part of the transaction, new and existing investors are acquiring around $1bn of Kraken equity. In parallel, investors led by Octopus Capital are injecting a further $320m into Octopus Energy Group to support innovation and growth across its wider businesses. After the split, Octopus will retain a 13.7% stake in Kraken.

Originally incubated within Octopus, Kraken has grown into one of the world’s most advanced AI-powered operating systems for energy utilities. It is now contracted to serve more than 70 million customer accounts globally through licensing agreements with major energy providers and processes over 15 billion new data points every day.

In September, Kraken revealed that its contracted annual revenues had exceeded $500m, representing fourfold growth in just three years. The company’s technology is increasingly seen as critical infrastructure for utilities modernising billing, customer service and grid management in support of the energy transition.

Greg Jackson, founder of Octopus Energy Group, said the demerger marked a natural next step. “Kraken is in a class of its own in terms of technology, capability and scale,” he said. “As an independent company with world-class backers, it will be free to grow even faster and is set to be a true UK-founded success story.”

Jackson added that Octopus itself would benefit from the move, pointing to its more than 10,000 staff, 11 million customers, $10bn of generation assets under management and expansion into areas such as EV leasing and heat pump manufacturing.

Kraken’s chief executive, Amir Orad, said independence would allow the platform to accelerate global adoption. “Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities,” he said. “Our goal is to positively impact a billion lives within a decade.”

Dan Sundheim, founder and chief investment officer of D1 Capital Partners, said Kraken’s growth and customer retention underpinned the firm’s investment decision. “We believe Kraken is adding significant value to utilities, as reflected in its customer satisfaction, stickiness and growth,” he said.

Following the demerger, Kraken will operate with its own governance structure, leadership team and cap table, marking one of the most significant UK tech spin-outs in recent years and underlining the growing global demand for data-driven energy infrastructure.

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Octopus Energy to spin out Kraken in $8.65bn valuation deal

The 2026 New Year Honours List has highlighted a broad cross-section of UK business leaders, rewarding contributions from high-growth sectors, corporate stewardship, entrepreneurship and efforts to widen business opportunity and investment.

While the honours system casts a wide net across public service, arts, charity and science, several recipients stand out for their direct impact on the UK’s economy and business landscape.

Banking, finance and corporate leadership

Gary Andrew Hoffman — CBE

Appointed Commander of the Order of the British Empire for services to the economy and sport, Hoffman is Chair of Monzo Bank Holding Group and Monzo Bank Ltd. His stewardship comes amid a period of rapid evolution in digital banking and a renewed focus on customer trust and regulatory compliance in UK fintech.

Ian Graham King — CBE

Awarded a CBE in recognition of his role as Chief Executive Officer of BAE Systems and as Lead Non-Executive Director for the Department for Transport. King’s leadership at one of the UK’s largest defence and aerospace companies underscores the strategic importance of advanced manufacturing and technology-driven exports to the UK economy.

Entrepreneurship and small business champions

Jonathan Piers Daniel Linney — OBE

Honoured for his services to small business, entrepreneurs, investors, banking and diversity, Linney is the Executive Chair of Implement AI Ltd, a company at the intersection of technology adoption and SME scaling. His recognition reflects the growing profile of AI-enabled services in supporting UK startups and investment readiness.

Akin Onal — OBE

Founder and Chief Executive Officer of MORI, Onal has been awarded for services to entrepreneurship. His work is widely associated with championing the UK’s start-up ecosystem and fostering inclusive paths to business growth.

Marie Sarah Owen — OBE

Owen, Founder and Chief Executive of LS Productions, was recognised for services to the creative industries and economic development, a nod to the increasingly significant role that creative and media businesses play in economic vibrancy and regional growth.

Sector leadership and industry bodies

Mark Bamforth — OBE

Executive Chairman of Kincell Bio and General Partner at Kineticos AMR Accelerator Fund, Bamforth received honours for services to UK life sciences and UK-US business relations. His cross-border work in biotech funding and strategic partnerships reflects the UK’s globalising innovation economy.

Alessandra Bellini — OBE

The past President of the Advertising Association, Bellini was recognised for her contributions to the advertising and marketing sector — industries that underpin UK creative exports and digital media growth.

Safaraz Ali — OBE

As Chief Executive Officer of Pathway Group, Ali has been honoured for his leadership in diversity and inclusion in business. This award highlights how equitable talent and board representation are increasingly prioritised within modern UK corporate culture.

Joanne Liddle — OBE

Managing Director of Industrial Precision Components Ltd, Liddle was recognised for services to the aerospace sector in Northern Ireland, a reminder of the critical role manufacturing expertise plays in regional economies and national supply chains.

Entrepreneurial legacy and scale-up impact

Richard David Harpin — Knight Bachelor

Knighted for his services to business, Harpin (pictured) is the founder and former CEO of HomeServe, a £4.1bn home assistance business that now employs around 9,000 people. His career embodies the scale-up journey from start-up founder to industry disruptor, and his recent work with policy on apprenticeships emphasises business’s role in workforce development.

What this year’s list highlights is both diversity of contribution and the newer nature of business impact in Britain: from tech and fintech to manufacturing and creative industries, the honourees span sectors that collectively shape economic resilience and future opportunity.

This years honours signal areas of growth and influence, and underscore how recognition at the national level often mirrors broader themes in business policy and investment.

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UK business leaders and innovators honoured in 2026 New Year honours list

Buying a used iPhone loses its appeal if an iCloud Activation Lock screen appears. Users often find this after turning on the phone, leaving them unable to use it.

The Find My iPhone security feature Activation Lock. It prevents unauthorized use of a lost or stolen phone without the owner’s Apple ID and password.

This article explains why this lock emerges and how to bypass iCloud Activation lock securely. The greatest and most trusted techniques for protecting your data, privacy, and legal safety will be examined.

What Is iCloud Activation Lock and Why Does It Happen?

Apple protects your data with iCloud Activation Lock. Find My iPhone links the handset to the owner’s Apple ID. The lock persists on the phone after a reset to prevent unauthorized use. This prevents crooks from stealing or selling locked devices and safeguards owner data.

Second-hand customers often encounter this issue when sellers forget to deactivate the gadget from iCloud. An old owner, business, or repair shop that didn’t sign out may call. In this article, bypassing the lock means unlocking your own smartphone, not someone else’s.

Confirm the Device’s Status Before Buying (Pre-Purchase Checklist)

Before buying a used iPhone, inspect its condition. This easy action prevents issues.

1.    Check Activation Lock status via IMEI/serial number tools

Use the IMEI or serial number to check the device’s Activation Lock status. Many internet tools and Apple support checks can show if a device is linked to an Apple ID.

However, one should always perform a reset of the second-hand iPhone right in front of the seller before making a purchase. This is a sure way of confirming that the iPhone is not carrier locked and it is ready for use. In fact, a factory reset is a good test to see if the phone is Activation Lock free because after the reset the iPhone should not ask for the previous owner’s Apple ID or password during the setup process.

Go to “Settings > General > Reset > Erase All Content and Settings”.

2.    Ask Seller to Remove Device from Their Apple ID.

Always ask the seller to remove the phone from their Apple ID before paying. This can be done on iPhone or iCloud.com.

3.    Show proof of purchase

Provide a receipt, bill, or documented selling agreement to prove purchase. These safeguard you if you require Apple support.

Apple’s Official Ways to Remove Activation Lock (Safest Route)

It’s better to use Apple’s approved Activation Lock removal solutions for safety. These solutions protect you from scammers, keep your device safe, and guarantee legal unlocks.

Sign In with the Original Owner’s Apple ID

Asking the owner to unlock the device is fastest. Ask the seller to input their Apple ID and password on the iPhone setup screen. This disables the Activation Lock immediately. They can remove the web lock without you by following these simple steps:

Step 1. Go into iCloud.com, click “All Devices.”

Step 2. Find the “iPhone,” and click “Remove.”

Step 3. Wait for a few minutes. They’ll unlock your iPhone so you can customize it.

Contact Apple Support with Proof of Ownership

If the original owner is unavailable, contact Apple Support. Apple can remove the Activation Lock if you verify ownership.

May need to show:

A receipt
Bill of sale
Details of the seller
The serial or IMEI number

Apple verifies your documentation to ensure the device is not lost or stolen. Your device will be unlocked after ownership verification. This process is safe and formal, but it may take days.

Safe Solutions to Bypass iCloud Lock

If the official Apple procedures fail, there are safe alternatives. These tools can help if you can’t reach the seller, don’t have their Apple ID, or have a used device without paperwork.

Solution #1 — Recommended: Dr.Fone – Screen Unlock (iOS)

Dr.Fone – Screen Unlock (iOS) is a powerful tool for unlocking stuck iPhones and iPads. It can be used if you forget the Apple ID, bought a used phone with Activation Lock, or cannot reach the previous owner. It works with iOS/iPadOS 26 on all new iPhones, including the iPhone 17 series.

Why It’s Recommended:

It bypasses iCloud Activation Lock without Apple ID.
Works with various iPhone/iPad models
Needs no jailbreak
Easy steps anyone may follow
User-safe, trusted by millions
It also unlocks screen passcodes, removes MDM, disables Screen Time, and removes SIM locks. This entire unlock solution is fast and secure.

How It Works:

Step 1. Start by installing Dr.Fone. Launch the software and select “Screen Unlock.” Select “iOS” to unlock.

Step 2. Dr.Fone displays unlock tools. Select “iCloud Activation Lock Removal.” This instructs the software to circumvent Activation Lock.

Step 3. Connect your iPhone or iPad to the PC via USB. Dr.Fone scans devices and displays their models and OSes. Verify the information and select “Unlock Now.”

Step 4. Dr.Fone downloads and removes the Activation Lock in Step 4. Avoid disconnecting your phone. The gadget may restart several times. You will get a success message and your iPhone will unlock after the process.

Your device will restart and allow you to use your Apple ID after a few minutes. One of the quickest and safest ways to obtain access.

Solution #2: Use an Official MDM Bypass (Business/Managed Devices)

Some iPhones are owned by schools or businesses. The IT team controls these phones via MDM. The phone may have an Activation Lock for a business or school.

IT workers often have a bypass code to access devices. Instead of Apple ID, they enter the code on the Activation Lock screen.

The steps are simple:

The IT admin logs in to Apple’s MDM or Apple Business Manager portal.
They locate the device in the organization’s inventory.
An Activation Lock bypass code is generated.
During iPhone setup, the bypass code is entered instead of the Apple ID password to unlock the device.

Other Common (But Risky/Unrecommended) Methods

Before you try any random approach online, be aware that many “quick fixes” are dangerous. These methods may seem beneficial, but they typically fail or damage your device. Consider the most prevalent dangerous tactics and why you should avoid them.

1.    DNS or software hacks

DNS changes can unlock an iPhone, according to certain sources. However, Activation Lock remains. It displays a bogus menu and disables most apps. It can also damage your phone’s internet settings.

2.    Flashing or BYPASS services

Many web services provide cheap “unlock” techniques. These may be scams. Some programs contain malware that steals data or damages phones.

3.    Jailbreak bypass

A jailbreak temporarily removes the lock, but a reboot or update restores it. It also compromises phone security.

Tips Before Bypassing iCloud Activation Lock

Prepare before trying any approach. This prevents problems and protects your phone.

If possible, back up your device. Backups protect images, messages, and information.
Your phone needs enough power and a good internet connection. Stable connections are needed for many unlocking tools.
Check your iPhone model and iOS version to avoid using the wrong tool.
Always avoid sharing personal information with unknown websites or people. Examples: Apple IDs, passwords, and payment info. Being diligent safeguards your phone and privacy.

Conclusion

An iCloud-locked iPhone can be unpleasant, but there are safe solutions. Official Apple techniques are always best and most trusted. If those fail, Dr.Fone – Screen Unlock (iOS) is straightforward and secure. Stay cautious, avoid dangerous hacks, and take precautions. You may unlock and use the phone again with the appropriate way.

Read more:
Bought an iCloud-Locked iPhone? Here’s How to Bypass Activation Lock Safely

Clear and reliable communication sits at the heart of every successful small business. Customers expect calls to be answered promptly, enquiries to be handled professionally, and appointments to be managed without friction.

For many business owners, meeting these expectations while keeping overheads under control can feel like a constant challenge. Staffing costs, limited availability, and growing customer demands all place pressure on already stretched teams.

As businesses grow, communication systems often struggle to keep pace. Missed calls, delayed responses, and overloaded staff can damage customer confidence and slow progress. Finding a smarter way to manage everyday interactions has become a priority for organisations looking to protect both service quality and profitability.

The Hidden Costs of Traditional Business Communication

Employing a dedicated receptionist has long been viewed as a sign of professionalism; however, the true cost often extends far beyond the salary. Employers must account for ongoing expenses such as National Insurance, pensions, holiday cover, training time, and workspace requirements. These costs can quickly escalate, particularly for small businesses operating on tight margins.

Training also represents a recurring commitment. New staff require time to learn the systems, understand call handling procedures, and adapt to the business tone. During this period, productivity often drops, and existing team members may need to provide additional support.

Missed calls remain another costly issue. When staff are busy or unavailable, unanswered calls can result in lost opportunities and frustrated customers. To address this challenge, many businesses are now turning to an AI-powered call answering service solution that ensures calls are answered consistently while reducing reliance on permanent reception staff.

Modern Communication Challenges for UK Small Businesses

Customer expectations have changed. Many people now expect businesses to be reachable beyond traditional office hours, especially when making initial enquiries. For small teams, this can lead to long working days or inconsistent coverage.

Communication channels have also expanded. Phone calls remain important, but customers also expect quick responses across email, online forms, and other platforms. Managing these demands without additional resources can overwhelm staff and lead to delays.

Seasonal fluctuations further complicate matters. Some businesses experience sharp increases in call volumes during peak periods, followed by quieter months. Maintaining full-time reception cover throughout the year can be inefficient, while understaffing during busy times risks missed enquiries.

The True Cost of Missed Opportunities

Every missed call represents more than a single unanswered enquiry. It may signal to potential customers that the business is unavailable or unreliable. First impressions matter, and poor responsiveness can send people elsewhere before a conversation even begins.

An AI receptionist can help ensure that calls are handled promptly, providing reassurance that the business is attentive and organised. This consistency plays an important role in customer retention, particularly in competitive sectors where alternatives are readily available.

How AI Technology Transforms Business Communication

Modern AI systems have advanced well beyond basic call routing. An AI receptionist utilises natural language processing to comprehend caller intent, respond appropriately, and evolve. Rather than forcing callers through rigid menus, these systems create smoother and more intuitive interactions.

Speech recognition allows the system to identify common enquiries and route calls efficiently. Returning callers can be recognised, and information from previous interactions can be referenced to create a more personalised experience.

Integration with existing business software further enhances efficiency. When connected to booking systems or customer records, an AI receptionist can manage appointments, capture enquiry details, and reduce administrative workload without human intervention.

Beyond Basic Call Answering

The capabilities of an AI receptionist extend well beyond answering phones. Appointment scheduling is one of the most valuable features, allowing callers to book, amend, or cancel appointments directly. This reduces back-and-forth communication, freeing staff to focus on more complex tasks.

Multilingual support is another advantage for businesses serving diverse communities. AI systems can communicate in multiple languages, improving accessibility without requiring multilingual staff.

Measuring the Financial Impact of Communication Technology

Comparing traditional reception staffing with an AI receptionist highlights clear financial differences. Permanent staff bring fixed costs that remain regardless of call volume, while AI-based solutions typically operate on predictable subscription models that scale more easily.

Savings extend beyond wages. Reduced training requirements, lower staff turnover, and fewer disruptions caused by absences all contribute to long-term efficiency. Businesses also benefit from improved consistency, as the system performs reliably without fatigue or variation.

Productivity improvements are often seen quickly. Staff spend less time handling routine enquiries and more time on work that directly supports growth. This shift can lead to stronger outcomes without increasing headcount.

Implementation Strategies for Small Businesses

Successful implementation begins with understanding current communication needs. Reviewing call volumes, enquiry types, and peak times helps determine which features will deliver the greatest benefit. This assessment ensures the chosen system aligns with real operational demands.

Selecting a provider that offers flexibility and sector-specific configuration is equally important. Customisation allows the AI receptionist to reflect the tone, processes, and priorities of the business rather than forcing generic interactions.

Gradual rollout often produces the best results. Many businesses begin by using AI support outside office hours before expanding coverage once confidence grows. This approach allows for time to refine without disrupting service.

Common Implementation Pitfalls

Poor customisation can undermine the customer experience. Generic scripts may fail to capture essential details or route calls appropriately. Careful setup ensures enquiries are handled accurately from the start.

Integration issues can also limit effectiveness. If systems do not communicate smoothly, staff may need to duplicate work, reducing efficiency. Ensuring compatibility with existing tools is critical.

Clear communication with both staff and customers supports a smooth transition. Team members should understand how and when the AI receptionist operates, while customers benefit from reassurance that help remains available when needed.

Moving Forward with Smarter Communication Solutions

Adopting intelligent communication tools allows small businesses to strengthen customer engagement while keeping overheads under control. Reliable call handling, improved availability, and better use of staff time all contribute to a more resilient operation.

Small businesses no longer need to choose between professional communication and manageable costs. Smarter solutions now make it possible to deliver consistent, reliable service without the burden of traditional reception staffing.

Exploring AI-driven communication options could be the step that transforms how your business connects with customers, supports your team, and builds confidence at every point of contact.

Read more:
Improving Small Business Communication While Cutting Overhead Costs

Thousands of taxpayers chose to spend part of their Christmas break tackling their tax affairs, with more than 4,600 people filing their Self Assessment returns on Christmas Day alone, new figures show.

Data released by HM Revenue and Customs reveals that 37,435 people submitted their returns between Christmas Eve and Boxing Day, suggesting that for a growing number of taxpayers, festive filing is becoming a seasonal habit.

Christmas Eve proved the busiest of the three days, with 22,350 returns filed. The peak hour was between 11am and noon, when 3,159 customers hit submit. On Christmas Day itself, 4,606 people completed their returns, with the busiest hour falling between 1pm and 2pm. Boxing Day saw a further 10,479 returns filed, peaking mid-afternoon.

While many opted to deal with tax rather than turkey, HMRC found attitudes were mixed when it spoke to shoppers at Manchester’s Christmas markets, where most said they would rather focus on festive food than finances.

With just one month to go until the 31 January filing deadline, HMRC is urging those who have yet to complete their return to get started as soon as possible.

Myrtle Lloyd, HMRC’s chief customer officer, said millions of people had already filed and could start the new year with “one less thing to worry about”.

“For anyone yet to file, don’t leave it until the last minute,” she said. “Filing now means you know exactly what you owe and have time to arrange payment.”

Taxpayers who submit their return by 30 December may be able to pay any tax owed through their PAYE tax code, while filing early also gives more time to explore payment plans if needed.

HMRC highlighted the use of its app and online support tools, including step-by-step guidance, webinars and YouTube videos, to help customers complete their returns and pay what they owe. The department also pointed to a new digital PAYE service for the High Income Child Benefit Charge, allowing some claimants to leave Self Assessment altogether and settle the charge through their tax code instead.

HMRC also reminded customers that Winter Fuel Payments received in autumn 2025 do not need to be included on returns for the 2024-25 tax year, as these will be recovered in the following year’s return.

With the deadline fast approaching, the message from HMRC is clear: filing early can reduce stress, provide clarity on liabilities and make the start of 2026 a little easier.

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Festive filers sleigh their Self Assessment returns as thousands log on over Christmas

The manufacturing trade body Made in Britain has raised concerns over the alleged unauthorised use of a logo closely resembling its own by Reform UK.

In a statement, Made in Britain said it had become aware that Reform UK was using a logo it believes to be “substantially similar” to its registered mark across marketing materials and merchandise. The organisation stressed that no authorisation, licence or consent had been granted for such use.

Made in Britain said it maintains a strictly neutral political stance and does not endorse, support or affiliate with any political party or movement. It added that the use of its logo, or any similar insignia, by political organisations is expressly prohibited under its rules.

The body, which represents and promotes British manufacturers at home and overseas, said its branding exists solely to support its members and advance British commerce. As a result, it does not permit its brand identity to be associated with political campaigns or messaging.

The statement underlines the growing sensitivity around branding, intellectual property and perceived political alignment as political parties increasingly use merchandise and visual identity as part of their campaigning efforts.

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‘Made in Britain’ body challenges Reform UK over alleged unauthorised logo use

A new government scheme aimed at tackling long-term workplace sickness has been dismissed by business leaders and advisers as woefully inadequate, with critics warning it amounts to “emptying the ocean with a teaspoon”.

The initiative, announced this morning by the Department for Work and Pensions, will fund occupational health training for 5,000 line managers working in small and medium-sized enterprises across England. The free training, delivered by the Institution of Occupational Safety and Health, will run between January and March next year and is designed to help managers spot early signs of health-related issues and intervene before employees fall out of work altogether.

Ministers say the scheme will help address what they describe as an inherited crisis, with more than 2.8 million people currently signed off as long-term sick — one of the highest rates in the G7. Government-commissioned analysis has found that around 800,000 more working-age adults are now out of work due to sickness than in 2019.

The financial cost to small businesses is significant. Replacing an employee lost to ill health costs more than £11,000 on average, while each day of sickness absence is estimated to cost firms about £120 in lost profit. The training will focus on equipping line managers to recognise warning signs such as persistent fatigue, changes in behaviour and rising absence levels, and to have more supportive conversations about workplace adjustments.

The Minister for Employment, Dame Diana Johnson, said the scheme would give small businesses tools they often lack. “Too often, small businesses lose skilled staff to health issues without the tools to support them, and that doesn’t help anyone,” she said. “This free training gives line managers the confidence to have the right conversations and make adjustments that could help keep people in work.”

However, experts across data, HR, finance and advisory sectors questioned both the ambition and impact of the programme.

Rohit Parmar-Mistry, founder of Burton-on-Trent-based Pattrn Data, said the numbers simply did not add up. He argued that training 5,000 managers would make little difference to a problem affecting millions. “This feels like outsourcing the problem to already overworked SME managers,” he said, warning that spotting health issues earlier does nothing to fix chronic illness, long NHS waiting lists or wider systemic failures. “A manager can recognise fatigue, but they can’t fix public healthcare or broken work environments.”

Kate Underwood, founder of Kate Underwood HR and Training, said the initiative addressed only part of the problem. While she welcomed efforts to improve managers’ confidence in having difficult conversations, she warned that the real pressure on small firms came from the cost of sickness absence, the complexity of reasonable adjustments and delays in accessing occupational health advice. “Training helps, but it doesn’t remove the financial and legal strain that sinks small teams,” she said.

From a wellbeing perspective, Sarah Gatford, founder of Sarah Gatford Ltd, said the success of the scheme would depend on whether it went beyond compliance. She argued that genuine progress required managers to build trust and psychological safety, not simply follow checklists. “If this helps managers ask ‘How can I help?’ instead of ‘When will you be back?’, it’s a start, but 5,000 managers across the entire SME sector is still a drop in the ocean,” she said.

Others were more blunt. Riz Malik, director of R3 Wealth, described the initiative as disconnected from the real priorities of small businesses. “This probably isn’t on the top 100 list of things SMEs want from government going into 2026,” he said, calling it another example of policymaking divorced from commercial reality.

Scott Gallacher, director at Rowley Turton, said the funding level exposed the gap between political messaging and operational reality. He noted that almost 80% of SMEs provide no occupational health training at all, across an economy with roughly 5.7 million small businesses. “When you break the numbers down, this equates to pennies per person off work,” he said. “That suggests this is more about optics than impact.”

While ministers insist the scheme is a first step towards keeping more people in work, critics argue that without deeper investment in healthcare, workplace flexibility and sustainable job design, the initiative risks becoming another well-intentioned policy that fails to shift the underlying problem.

Read more:
Workplace sickness scheme branded ‘teaspoon solution’ as experts warn government plan lacks scale

Hairdressers and barbers are joining pub landlords in banning Labour MPs from their premises, as anger intensifies across the high street over business rates, rising employment costs and what some owners describe as a “betrayal” by the government.

Signs reading “No Labour MPs” have begun appearing in salon windows and barbershops, echoing a protest that has already seen more than 1,000 pubs bar parliamentarians from Keir Starmer’s party. The move follows widespread frustration with the Budget delivered by Rachel Reeves, which business groups say has piled fresh costs onto already struggling firms.

Salon owners say they feel particularly aggrieved after ministers pledged to support the high street by “levelling the playing field” between bricks-and-mortar businesses and online giants. While Reeves announced a reduction in the business rates multiplier for smaller firms, the discount amounts to just 5p — far short of the 20p cut many businesses had called for — and is being wiped out by rising rateable values.

Collette Osborne, who runs two Hairven salons in Nottinghamshire, said she had displayed a “No Labour MPs” sign after being hit with a business rates increase of more than £10,000 a year. Her local Labour MPs are Juliet Campbell and Michael Payne.

“Small businesses like mine are desperate and hanging on by a thread,” Osborne said. “Rachel Reeves promised she would act to protect high street salons, but the government now seems to have its fingers in its ears. There is no spare capacity to absorb business rate rises on top of higher wages, utilities, finance costs and Covid debt repayments.”

In London, salon owner Emma Vickery said nearly four decades of paying taxes and employing staff were being undermined by mounting costs. “It is becoming financially unsustainable,” she said. “Without urgent support or recognition of the pressures on small employers, businesses like mine will simply disappear.”

The backlash mirrors growing discontent in the hospitality sector, where pub landlords have warned that higher employer national insurance contributions and above-inflation increases in the minimum wage are accelerating closures. Some MPs, including Reeves herself, have reportedly been barred from local pubs as a result.

Toby Dicker, from the Salon Employers’ Association, said many in the sector felt particularly let down by a Labour government that had pledged to “make work pay”.

“These are decent, hard-working people — the backbone of the high street — who expected support, not a heavier tax burden,” he said. “There’s a strong sense of betrayal.”

The Conservatives have seized on the discontent. Andrew Griffith, the party’s business spokesman, said: “This government won’t listen to small businesses, so it’s no wonder salons have joined pubs in banning their Labour MP. Perhaps if ministers feel even a fraction of the misery being inflicted on high streets, things might change.”

A Labour source defended the government’s approach, saying: “The government is backing high street businesses across the country, including hairdressers and salons. That’s why the Chancellor announced a £4.3bn support package at the Budget.”

Despite that reassurance, the spread of protest signs from pubs to salons underlines the depth of anger among small business owners — and the political challenge facing Labour as it seeks to reassure the very high streets it claims to champion.

Read more:
Hairdressers join pub landlords in banning Labour MPs over business rates backlash

The founder of LinkedIn, Reid Hoffman, is among a group of Silicon Valley investors helping to bankroll Labour’s digital push against Reform UK on TikTok, raising fresh questions about the growing role of social media influencers in British politics.

Labour has appointed FourOneOne, a digital marketing agency set up by figures behind the party’s 2024 general election campaign, to provide MPs with social media training and access to influencers. The firm has been tasked with helping Labour politicians sharpen their presence on platforms such as TikTok, which the party increasingly sees as critical to reaching younger voters.

Corporate filings show that FourOneOne has a minority shareholder, Estratos Digital, a Vienna-based digital agency founded by two former Hungarian Socialist politicians. Estratos itself is backed by Higher Ground Labs, a US venture capital fund with close links to the Democratic Party in the United States.

Higher Ground Labs has received funding from a number of prominent tech investors, including Hoffman, Ron Conway, an early backer of Google and PayPal, and Chris Sacca, who has invested in companies such as Twitter, Uber and Instagram. The fund has poured tens of millions of dollars into technology firms designed to support progressive political campaigns.

FourOneOne’s work for Labour has included arranging influencer access to press briefings and high-profile events such as the party conference, in return for social media coverage. The agency also provides one-to-one coaching for more than a dozen Labour MPs and runs wider training sessions across the parliamentary party.

However, the firm has attracted scrutiny following reports that it has offered cash payments to influencers in exchange for posting “progressive” content online. Investigative outlet Declassified UK reported that FourOneOne offered journalist Amun Bains £50 a week to publish at least five videos, with the potential for additional bonuses, including content attacking Reform and promoting Labour-aligned messages.

FourOneOne said the payments were part of its “Amplifiers” project and were not connected to the Labour Party. A Labour spokesperson declined to comment, citing the confidentiality of arrangements with external contractors.

The agency is run by Nik Rutherford, a former music teacher and Labour councillor, and counts Assaf Kaplan, a former Israeli intelligence officer who has worked as a Labour staffer, as one of its directors. Its growing influence comes as Keir Starmer ramps up Labour’s digital presence, including launching his own TikTok account and publishing content on Substack.

Downing Street has also begun hosting briefings and events specifically for online content creators. This week, No 10 confirmed it would scrap its daily afternoon lobby briefings for political journalists, replacing them with regular press conferences open to influencers and digital creators.

Beyond the UK, Estratos has been involved in online political advertising campaigns across Europe, including backing Rafał Trzaskowski’s unsuccessful bid for the Polish presidency earlier this year. Higher Ground Labs, founded in 2017 by a former Obama campaign director, has invested more than $50m in over 65 political and civic technology startups aligned with Democratic causes.

Estratos Digital, FourOneOne and Higher Ground Labs were contacted for comment.

Read more:
Llinkedin founder bankrolls Labour’s TikTok push against reform

The City of London is preparing to channel significantly more capital into defence as rising geopolitical tensions, and the growing threat posed by Vladimir Putin’s Russia, force a rethink of long-held investment priorities.

Almost two-thirds of senior financial services leaders expect spending on Britain’s military capabilities to increase over the next year, according to new research from KPMG. More than a quarter of respondents believe defence investment will rise “much more” in the next 12 months.

The findings mark a sharp pivot for the City after years in which environmental, social and governance (ESG) investing dominated boardroom thinking and defence was often treated as an ethical red line. That position is now rapidly eroding as security concerns move to the centre of economic and financial stability planning.

Karim Haji, global and UK head of financial services at KPMG, said growing geopolitical risks had made it increasingly unrealistic for investors to avoid the defence sector.

“These findings point to a growing recognition that national security, geopolitical alignment and market integrity are now inseparable from the stability of the finance sector,” he said.

The shift comes amid increasingly stark warnings from western leaders. Earlier this month, NATO secretary-general Mark Rutte warned that Russia could be in a position to attack a Nato member state within five years, citing Moscow’s escalating covert and cyber activity across Europe.

“Russia is already escalating its covert campaign against our societies,” Rutte said. “We must be prepared for the scale of war our grandparents or great-grandparents endured.”

Putin has denied plans to wage war against Europe, but said Russia was prepared to act “right now” if it felt threatened.

Against this backdrop, City leaders ranked defence investment as their top strategic priority for the year ahead, ahead of preserving central bank independence in the fight against inflation and improving regulatory cooperation between the UK and the US.

Almost four in 10 respondents said increased spending on national security was essential to safeguarding financial stability in 2026, reflecting concerns that prolonged conflict or escalation could have systemic economic consequences.

The survey also highlighted unease about vulnerabilities elsewhere in the financial system. More than a quarter of executives flagged private credit, often described as “shadow banking”, as a growing risk, with trillions of pounds of lending now held outside traditional, highly regulated banks. A further 22 per cent called for tougher scrutiny of non-bank financial institutions.

Haji said the rapid expansion of private credit markets, combined with their limited transparency, could amplify shocks during periods of extreme stress.

“These markets now sit at the heart of corporate funding, yet they are less tested in a crisis than traditional banks,” he said.

Taken together, the findings underline a fundamental change in how the City views defence, security and risk. What was once seen as incompatible with responsible investment is increasingly being reframed as essential to economic resilience — and investors are positioning accordingly.

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City set to pour billions into defence as Russia threat reshapes investment priorities