Business

A Labour minister has delivered a startlingly candid assessment of life for young people in Britain, declaring that for many, “life is s**t”.

Josh Simons, the parliamentary secretary for the Cabinet Office and co-founder of the Labour Growth Group, made the frank remark on X in response to new analysis highlighting the soaring costs of housing and raising a family.

Reacting to a report from The Times showing that bringing up a child now costs almost £250,000 over 18 years, Simons said well-educated adults aged between 20 and 40 found it “IMPOSSIBLE” to save for a home and afford to have children.

“Young people wanting a family while dealing with this cost pressure are having a s**t time,” he wrote, adding that the UK’s falling birth rate was a “BIG problem” that deserved more political attention. Simons said he “could vouch” for the financial strain personally as both an MP and a PhD holder — highlighting that even high-earning professionals were struggling.

According to MoneyFarm, parents now spend around £65,016 on teenagers alone between ages 15 and 18. Meanwhile, the UK fertility rate fell to a record low of 1.41 children per woman in 2024, with the steepest declines among women aged 25 to 29, the very group Simons referenced.

But the picture may worsen. Decisions taken by Simons’ government colleague, chancellor Rachel Reeves, mean young professionals will face a significantly heavier tax burden over the next five years.

Business Matters analysis found that a graduate earning 50% above the median wage who turned 30 in 2020 will pay half as much in tax and student loan repayments as someone earning at the same level who turns 30 in 2030.

The widening gap is driven largely by Reeves’ decision to freeze income tax thresholds until 2031, a move that will drag millions into higher tax bands through fiscal drag.

Separate data from The Economist found that so-called AVOCADOs – Aggrieved Victims Of Crushing Academic Debt Obligations – now face punitive marginal tax rates. A 30-year-old with a master’s degree earning £30,000 can face a 43% marginal rate once loan repayments are factored in, while someone over 66 earning the same salary pays just 20%.

At the same time, labour market conditions for young adults are deteriorating. Graduate hiring is weakening faster than the wider economy, according to new data from Indeed and other recruitment platforms.

Economists have pointed to Labour’s rise in the national living wage and a £25bn increase in employers’ national insurance contributions — described by critics as a “stealth employment tax” — as key factors contributing to hiring freezes and reduced entry-level opportunities.

With house prices still outpacing wage growth, childcare costs among the highest in the OECD, and taxes rising sharply for working-age earners, Simons’ blistering diagnosis may resonate more widely than Labour might wish.

Read more:
Labour minister admits ‘life is s**t’ for young adults as housing, childcare and taxes squeeze living standards

One of Britain’s biggest DIY investment platforms has warned that prolonged budget speculation inflicted real financial damage, after savers rushed to drain about £600 million from their pensions amid fears Rachel Reeves would slash tax-free lump sum rules.

Michael Summersgill, chief executive of AJ Bell, said months of rolling briefings and hints of a tax raid had prompted thousands of customers to make precautionary withdrawals in September and October, convinced the Treasury was preparing to cap the 25% tax-free pension commencement lump sum.

Under current rules, savers aged 55 and over can withdraw up to £268,275 tax-free. Reeves ultimately chose not to touch the allowance, but Summersgill said the period of uncertainty had again shaken confidence.

“We saw the same pattern last year when similar fears led to £300 million of early withdrawals,” he said. “Speculation alone can be damaging, and this year has been no exception.”

While the Treasury backed away from altering pension lump sum rules, it did press ahead with controversial changes to the Isa system, and Summersgill did not mince his words.

From April 2027, savers under 65 will only be allowed to put £12,000 per year into cash Isas, even though the overall £20,000 annual allowance remains unchanged. The government intends the remaining £8,000 to flow into stocks and shares Isas to boost investment in UK markets.

But in a move that shocked many in the industry, HMRC will also impose a new tax charge on interest earned on uninvested cash held within stocks and shares Isas by under-65s. Transfers from stocks and shares Isas into cash Isas will be banned to prevent workarounds.

Summersgill called the changes “the polar opposite of simplification” and said the interest charge was “just crazy, so unhelpful”.

“How the government has got this lost along the way, I do not know,” he added. “There is nothing positive about the interventions being proposed.”

AJ Bell reported a 22% rise in pre-tax profits to £137.8 million for the year to 30 September, with revenues up 18% to £317.8 million. Platform assets hit a record £103.3 billion, helped by £7.5 billion of net inflows and £9.3 billion of market gains.

But shares fell 7.6% after the firm said it would step up spending by more than £15 million in the coming year to accelerate growth, funding new technology, marketing and additional engineering hires.

Summersgill said the increased investment was vital: “There’s a huge growth opportunity. I’m not doing my job if we don’t invest aggressively to capture it.”

The company expects pre-tax margins to ease to around 39–40% in 2026, down from 43.4% this year, reflecting the ramp-up in spending.

Read more:
AJ Bell hits out at ‘crazy’ Isa overhaul as tax fears trigger £600m pension exodus

British businesses shed staff at the sharpest rate in more than three years in the run-up to Rachel Reeves’s second budget, as months of swirling tax speculation paralysed hiring decisions and pushed employers into contraction mode.

New figures from the Bank of England show private-sector employment fell by 1.8% in November – the steepest monthly drop since July 2021. Finance directors told the Bank they also expect to reduce their workforces by an average of 0.7% over the next year, marking the biggest planned decline since October 2020.

The data shines a stark light on the chilling effect that Westminster’s pre-budget uncertainty has had on the UK labour market. Businesses faced almost six months of rolling briefings hinting at major tax rises, culminating in Reeves’s £26bn tax package unveiled last week.

Rob Wood, chief UK economist at Pantheon Macroeconomics, described the figures as evidence of “collapsing job growth driven by chaotic pre-budget tax hike speculation”.

HMRC data points to the same trend. Payrolled employment fell by 180,000 in the year to October – the first annual decline outside the pandemic in a decade.

Hints of impending tax rises began circulating as early as July. By early November, Reeves had publicly signalled she was ready to break Labour’s manifesto pledge and raise income tax – before abruptly dropping the idea amid internal revolt and market jitters.

The resulting confusion froze investment and hiring plans. Several business surveys have shown sharp recruitment pullbacks since her first budget in October 2024, when she introduced a £25bn payroll tax as part of £40bn in wider hikes.

In contrast, last week’s budget focused mainly on raising taxes on consumers, including extending the freeze on income-tax thresholds – a move that will ultimately push one in four workers into the 40% bracket.

The Bank of England’s survey also revealed that wage pressures remain stubborn. Businesses raised pay by 4.6% in the year to November, up from 4.2% in October. Pay rises are expected to cool to 3.6% next year as the economy slows.

Firms plan to increase prices by 3.5% on average next year – slightly below October’s 3.7% projection but still well above the Bank’s inflation target.

Yet despite signs of persistent inflationary pressure, Wood said the labour market deterioration “nailed a December rate cut”. Investors expect the Bank to cut interest rates to 3.75% on 18 December, following a year-long easing from 5.25%.

The Office for Budget Responsibility used last week’s budget to predict that inflation would fall faster next year, helped by Reeves removing taxes from household energy bills. The CPI rate dipped to 3.6% in October from 3.8% in September.

For now, however, the jobs market is flashing red – and the economic fallout from a turbulent pre-budget period looks set to be felt well into 2026.

Read more:
Jobs growth collapses ahead of budget as businesses cut staff at fastest rate since the pandemic

The UK’s electric vehicle market hit the brakes in November, delivering its weakest growth in almost two years as the Chancellor’s looming pay-per-mile tax sowed uncertainty among buyers, and left Tesla nursing the sharpest fall in registrations.

New figures from the Society of Motor Manufacturers and Traders (SMMT) show that just under 40,000 battery-electric vehicles (BEVs) were registered last month — only a 3.6% rise on November 2024, and a dramatic slowdown for a sector expected to accelerate rapidly towards the government’s net-zero goals.

It marks the softest year-on-year expansion since late 2023, when global supply chains were still snarled, and leaves BEVs on a 26.4% market share, short of the government’s 28% target for this stage in the transition.

The slowdown comes after weeks of pre-Budget speculation in which Treasury sources aired, and then confirmed, plans for a new EV excise duty (eVED). From April 2028, BEV drivers will pay 3p per mile and plug-in hybrid drivers 1.5p per mile, replacing the fuel duty revenue lost as motorists ditch petrol and diesel.

For a typical BEV driver covering 8,500 miles a year, the charge equates to £255 in road tax, a significant shift from the current near-zero cost regime.

The SMMT warned the move risks “endangering the UK’s net-zero transition”, adding that demand could collapse at the very moment it needs to surge. The Office for Budget Responsibility estimates the change could mean 440,000 fewer EV sales over the next five years.

Mike Hawes, chief executive of the SMMT, said the warning lights were flashing: “This should be a wake-up call. We cannot take sustained EV growth for granted. We should be encouraging drivers to switch, not punishing them for doing so.”

Fresh data from New AutoMotive suggests Tesla was the sector’s biggest casualty, with UK registrations down almost 20% month-on-month to 3,800 vehicles,  slipping to just 2.5% market share.

Chinese rival BYD, which has leaned heavily into hybrids and plug-in hybrids, more than tripled its UK registrations over the same period.

The divergence reflects a broader shift in buyer sentiment: plug-in hybrids were the fastest-growing powertrain in November, up 14.8%, while petrol and diesel continued their structural decline.

Alongside the new EV mileage tax, Rachel Reeves extended grants for new EV purchases until 2030, with some new Renault and Mini models now qualifying for the maximum £3,750 discount.

But with cost perceptions still the biggest barrier to uptake, analysts warn the government has work to do.

Jamie Hamilton, automotive partner at Deloitte, said: “The new mileage charge will increase the running costs of EVs and may slow uptake. The industry must now redouble efforts to communicate the long-term value and investment behind the transition.”

With global carmakers betting billions on electrification and the UK’s own ZEV mandate gathering force, ministers will be hoping November’s slowdown is a blip — not the beginning of a much steeper decline.

Read more:
Tesla takes the biggest hit as UK EV growth stalls amid new road-tax fears

Ocado has claimed a rare financial win after US grocery giant Kroger agreed to pay the British retail-tech group $350 million (£276m) in compensation, even as it scrapped another of the automated warehouses built around Ocado’s much-touted robotic fulfilment technology.

Shares in the FTSE 250 company jumped as much as 16% in early trading on Friday before settling nearly 7% higher, offering brief respite for a business that has seen its market valuation collapse from £22 billion during the pandemic boom to barely £1.6 billion today.

The payout follows Kroger’s decision to cancel the opening of a fourth Ocado-powered customer fulfilment centre in Charlotte, North Carolina, one of two facilities previously scheduled for 2026. It comes only weeks after Kroger said it would shut three other automated warehouses because they had “not met financial expectations”.

Kroger will proceed with five remaining sites, plus a sixth still due to open in Phoenix next year, but the retrenchment has deepened concerns about Ocado’s ability to scale its technology in the world’s largest grocery market.

What began in 2018 as a 20-warehouse vision to transform US grocery logistics has so far delivered just eight, and even those have struggled to overcome the formidable economics of long-distance food delivery across vast American territories.

Despite the mounting doubts, chief executive Tim Steiner maintained a bullish tone, saying Ocado remained “excited about the opportunity” in the US and was “investing significant resources” into supporting Kroger’s logistics operations.

Ocado said both companies remain committed partners and would focus on driving profitable volume through the remaining fulfilment centres.

‘If you were a future partner, you’d rethink’

John Hudson of Premier Miton Investors,  a firm with a short position in Ocado,  was blunt. “It doesn’t look great that Ocado’s biggest partner has started closing warehouses. If you were a potential partner going forward, you might rethink.”

Clive Black of Shore Capital went further, warning that Ocado’s credibility in securing future licensing deals had been “absolutely blitzed”.

“Any retailer looking at Ocado’s proposition is going to read the Kroger report, which basically said the partnership was economically unviable,” he said. “You’d need a pretty strange form of due diligence to ignore that and not call Kroger, or Waitrose, Morrisons or Sobeys, and ask why they pulled back.”

Each of those retailers has scaled back or restructured ties with Ocado in recent years.

The company, long derided as a “jam tomorrow” stock,  has produced a full-year pre-tax profit only once in its 25-year history. It is also facing a significant refinancing deadline in 2027, with £350 million of convertible bonds and a £300 million revolving credit facility both falling due.

Its joint venture with Marks & Spencer, launched in 2020 after Ocado ditched Waitrose, has also been strained amid missed performance targets and a dispute over “true-up” payments.

Still, Steiner urged investors to take a long-term view: “Shareholders should only have invested if they believe that in the long term we’re going to be a profitable business,” he said.

For now, the business has secured a much-needed cash injection — but with Kroger trimming its commitment and other global partners cooling on Ocado’s model, the question remains: where does future growth come from?

Read more:
Ocado secures $350m Kroger payout as another US robo-warehouse is scrapped

Barclays Eagle Labs and Sustainable Ventures launch National Climate Tech Accelerator to supercharge UK’s green innovation economy

The UK’s climate tech sector is set for a major boost as Barclays Eagle Labs and Sustainable Ventures officially launch the National Climate Tech Accelerator (NCTA) — a nationwide programme designed to fast-track the growth of the UK’s most promising climate and sustainability startups.

Applications opened in early November, and more than 80 high-potential climate tech founders from across the UK have already applied, underscoring the demand for funding, technical support and market access at a crucial moment for the sector.

The NCTA brings together one of the UK’s largest entrepreneurial ecosystems, Barclays Eagle Labs, with Sustainable Ventures’ proven track record as Europe’s leading climate-tech growth platform. The result is one of the most ambitious support programmes ever aimed at scaling British climate innovators.

Barclays customers will unlock an enhanced set of tools designed to accelerate market readiness, fundraising capability and scale-up planning.

Sustainable Ventures, founded in 2011, has backed 1,000+ startups, supported the creation of 7,000 green jobs, and enabled over £1.2bn in funding. Its portfolio companies enjoy an impressive 80% success rate, far above the industry average.

Barclays, meanwhile, has committed up to £500m in climate-tech investment by 2027 through its Climate Ventures division alongside its existing Climate Tech Escalator, designed to support founders from “idea to IPO”.

Andrew Wordsworth, CEO and founder of Sustainable Ventures, said the partnership will dramatically accelerate the UK’s transition economy: “This programme will provide hundreds of climate-tech companies with advice and support, giving them an unfair business advantage that will help them scale faster from idea to exit. These businesses will play a vital role in helping the UK meet its net zero targets.”

Abdul Qureshi, Head of Business Banking at Barclays, said the accelerator is essential to building a thriving domestic climate-tech sector: “Scaling climate tech requires integrated support that brings capital and expertise together. By partnering with Sustainable Ventures, we’re creating a platform that helps ambitious UK climate start-ups overcome the barriers to growth and become the market-leading businesses the transition demands.”

Founders from across the climate-tech spectrum — from lightweight electric vehicle manufacturing to green workforce training — are already joining the programme.

Mat Illic, CEO of Greenworkx, said the accelerator will support its mission to train 10 million people for green jobs over the next decade: “The digital support, network and tech credits will all help us on our growth journey to meet this crucial mission.”

Mark Tapscott, Co-founder of Longbow, developing ultra-lightweight electric sports cars, added: “Through NCTA we look forward to collaborating with other forward-thinking innovators and accelerating our programme.”

Showpower, Prima Materia, and Vida Vodka also highlighted the value of NCTA’s specialised climate-tech community and structured growth pathways.

The accelerator arrives at a pivotal time. The UK climate-tech sector faces fierce competition from the US and EU — both funneling billions into clean-tech industrial policy — while domestic investors continue to call for greater scale-up support.

By combining growth capital, expert guidance and national infrastructure, NCTA aims to establish the UK as a global launchpad for climate technologies ranging from clean energy to circular manufacturing.

Read more:
Barclays Eagle Labs and Sustainable Ventures launch £500m-backed climate tech accelerator to scale UK innovators

HMRC’s newly strengthened tax informant reward scheme — unveiled in last month’s Budget and launched with immediate effect — is facing an early backlash from business owners who warn it could trigger a wave of malicious claims and cost the Revenue far more than it recovers.

The scheme gives HMRC the power to pay informants 15–30% of additional tax recovered above a minimum threshold of £1.5 million, excluding penalties and interest. Officials say the measure is aimed squarely at uncovering credible intelligence relating to offshore structures, aggressive avoidance schemes, large corporates and ultra-high-net-worth individuals.

But business leaders fear the size of the potential bounty will encourage disgruntled former employees, sacked advisers, competitors and even ex-spouses to file spurious or vindictive reports, triggering long, expensive investigations that fail to yield any meaningful tax recovery.

HMRC stresses rewards are discretionary, not guaranteed, and could take years to materialise due to the complexity of major tax cases. Yet critics argue it is precisely this lengthy lag — and the obligation to assess every claim — that will create significant operational strain and unnecessary cost.

Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said the premise of the scheme is understandable — but the unintended consequences could be severe.

“In theory, the Strengthened Reward Scheme is a no-brainer. But in practice, I fear a lot of time and cost will be wasted on spurious investigations as disgruntled ex-employees, embittered ex-spouses and sacked advisers dob in their targets via exaggerated, malicious or outright vindictive tip-offs. HMRC will have to sift through all of it, and taxpayers will foot the bill.”

Sam Alsop-Hall, Chief Strategy Officer and Co-Founder of Birmingham-based Clive Henry Group, said the policy risks importing the worst elements of whistleblowing culture — without adequate safeguards.

“HMRC’s plan risks turning taxpayers into bounty hunters, and that cannot happen without strong protections. People can quite literally make things up, drag others through lengthy processes and even into court with little or no evidence.

The emotional and reputational damage is enormous — and once financial incentives are involved, the risks grow even further.”

Alsop-Hall called for HMRC to set out how baseless allegations will be filtered and what recourse or support will exist for individuals and businesses wrongly targeted under the scheme.

Although the scheme is intended to target large and complex cases, business leaders warn that speculative claims may not respect those boundaries — and every allegation, however flimsy, requires HMRC time, attention and often engagement with the accused.

The fear among SMEs is that the scheme may create an environment where unverified claims can trigger intrusive checks, reputational harm and costly professional fees, even when no wrongdoing exists.

HMRC has been approached for further clarification on safeguards and oversight mechanisms.

Read more:
Business owners warn HMRC’s new ‘bounty’ tax reward scheme risks unleashing malicious claims

Megan Habina is the Founder and CEO of Valkyrie Fitness & Nutrition, a company dedicated to helping women in first responder, military, and healthcare roles build strength, balance, and confidence through practical fitness and nutrition coaching.

Based in New Jersey, Megan’s journey began in Vineland, where she grew up working in her family’s restaurant and learning the value of discipline and determination.

Before starting her business, Megan served as a Class I and Class II Officer for the Vineland Police Department and a member of the New Jersey Army National Guard and Honour Guard. These experiences shaped her understanding of the challenges faced by women in high-pressure, male-dominated environments. They also taught her the importance of resilience and teamwork—principles she carries into her coaching today.

With over a decade of experience and certifications as a NASM Certified Personal Trainer (CPT) and Certified Nutrition Coach (CNC), Megan has built a reputation for designing programmes that fit real lives. Her approach focuses on simplicity, sustainability, and mental toughness.

When she’s not coaching, Megan enjoys travelling full-time with her wife, a travel nurse, as well as riding motorcycles, snowboarding, and hiking. Through Valkyrie, she continues to inspire women to redefine strength and success on their own terms.

Q&A with Megan Habina

How did your journey into fitness and leadership begin?

I grew up in Vineland, New Jersey, where I worked in my grandmother’s restaurant from a young age. It taught me hard work and responsibility. After high school, I went into law enforcement and served as a Class I and Class II Officer for the Vineland Police Department. Later, I joined the Army National Guard. Both experiences showed me the value of discipline and teamwork. I became known in my unit for maxing out my physical fitness scores, and that’s where I realised how much I enjoyed helping others reach their full potential.

What inspired you to start Valkyrie Fitness & Nutrition?

Valkyrie was born out of necessity. I saw how many women in first responder, military, and healthcare careers were struggling to stay healthy while working long hours. I wanted to create a system that made fitness manageable for people who don’t have time for the gym. My mission is to make health achievable for those who give their all every day.

You’ve mentioned that failure played an important role in your success. What do you mean by that?
People often think success is about luck or talent. But in my experience, it’s about failing and getting back up again. I’ve failed plenty of times, both in my career and in business. But each failure taught me something valuable. I tell my clients that failing isn’t the end—it’s part of the process.

What challenges did you face as a woman in male-dominated fields like law enforcement and the military?

There were moments when I had to push twice as hard just to be taken seriously. But that made me stronger. I learned to focus on results and let my performance speak for itself. Working in those environments also gave me empathy for other women who feel overlooked. It motivated me to create a space where women can grow stronger, both physically and mentally.

How do you help your clients find balance while working long or irregular hours?

I focus on flexibility. You don’t need a perfect routine; you just need consistency. I teach clients how to use short, effective workouts and practical meal strategies that fit into real life. I tell them, “Start with what you can do.” Even 20 minutes of focused effort makes a difference.

You talk a lot about goal setting. Why is that so important to you?

Writing things down is everything. If you don’t write down your goals, you’re more likely never to achieve them. I also like to ask myself, “What would the version of me who already achieved this goal do?” Then I act that way. It’s a mindset shift that helps you make decisions from a place of confidence, not doubt.

What role has mentorship played in your career?

Mentorship has been huge for me. I’ve spent over $150,000 on personal development and learning from coaches who’ve achieved what I want. They’ve helped me avoid mistakes and stay focused when things got tough. I tell people that you don’t have to do it alone—success is always a team effort.

You travel full-time with your wife. How do you balance business and personal life on the road?

It’s all about planning and perspective. My wife works as a travel nurse, so we’re constantly moving. I see it as an opportunity to stay adaptable and meet new people. It reminds me to slow down sometimes and appreciate what I’ve built, rather than just chasing the next goal.

What advice would you give to women who want to start their own business or take control of their health?

Start small and stay consistent. You don’t have to change everything at once. Write down your goals, take one step at a time, and never underestimate what you’re capable of. Success doesn’t happen overnight—it’s built one decision at a time.

Where do you see Valkyrie Fitness & Nutrition heading in the future?

I want Valkyrie to continue empowering women to find their strength—physically, mentally, and emotionally. My focus is on education and helping women in demanding jobs realise that fitness can fit into their lives. The ultimate goal is to create a ripple effect where women inspire others to do the same.

Read more:
Megan Habina on Discipline, Strength, and Leading with Purpose

Britain’s small business leaders are embracing a new ethos of marginal gains, with fresh research revealing how the so-called “1% mindset” is quietly shaping a new wave of SME growth.

According to Adobe, which has launched its Adobe Express ‘One Better’ movement alongside entrepreneur Steven Bartlett, more than 90 per cent of SME owners familiar with the term believe that making small, continuous improvements delivers measurable benefits to productivity and profits.

Often associated with elite sport and high-performance teams, the 1% mindset is gaining traction in the day-to-day realities of UK business. Adobe’s findings show that nearly a quarter of SME owners now “always” use the approach, while a further third apply it regularly. Younger leaders are particularly enthusiastic: 29 per cent of Gen Z owners say they rely on the incremental method as part of their management style.

Confidence is high, too. Some 92 per cent of respondents feel optimistic about their prospects for the year ahead, with four in five classing the last 12 months as successful, a sentiment many attribute to consistent, micro-level improvements rather than sweeping reinvention.

Technology and AI driving marginal gains

Small steps may be at the heart of the mindset, but technology is proving to be the accelerator. Adobe’s survey found that 61 per cent of SME leaders who practise the method believe tech plays a “big role” in enabling continuous progress. Nearly half already use AI assistants, a trend that aligns closely with the most valued features reported by respondents: AI-powered design suggestions and templates (49 per cent), enhanced customer engagement tools (49 per cent) and content-writing support (43 per cent).

These capabilities sit at the core of Adobe Express, which is positioning itself as the entry point for SMEs wanting to embed the 1% mindset into everyday operations. The platform offers quick, intuitive design tools for social posts, flyers and short-form content, thousands of customisable templates, and AI-enabled suggestions that help non-designers create polished materials in minutes. Crucially, it works seamlessly across web and mobile – an important factor for time-pressed entrepreneurs.

Marketing and customer service were identified as the two business areas where marginal gains deliver the greatest impact, cited by 31 per cent and 27 per cent of respondents respectively. Adobe Express, with its fast content-creation features and on-the-go usability, is pitched squarely at improving these customer-facing touchpoints.

Creators champion the ‘One Better’ movement

Adobe’s campaign is backed by leading creatives including Jessica Walsh, Ollie Olanipekun and Jonathan Mildenhall, each offering simple, practical prompts designed to embody the spirit of small daily improvements.

Walsh encourages founders to “find the moment of humour in your creative work”, while Olanipekun advises leaders to “take your brain for a walk”. Mildenhall advocates resisting the temptation to settle for the first idea, suggesting that slowing down, even momentarily, can lead to better outcomes.

Bartlett, an advocate of the movement, said: “The 1% mindset is about celebrating small, everyday improvements that, over time, unlock extraordinary results. It’s inspiring to see so many UK businesses adopting this approach and using tools like Adobe Express to make those incremental gains easier and more impactful.”

A universal approach for the next growth chapter

Adobe’s research suggests the movement cuts across age groups, regions and sectors. More than 96 per cent of SME leaders aware of the concept believe it can positively influence business goals; 86 per cent say it can even boost staff morale.

Challenges remain. Financial pressures persist for many small firms, and around a third of respondents admit they do not always know where best to focus their improvements. Time constraints are another barrier. But the combination of rising optimism, accessible digital tools and a culture of marginal gains is helping business owners make progress in practical, manageable steps.

Simon Morris, Adobe’s Vice President of International Marketing, said: “Small, incremental improvements are reshaping how businesses grow, adapt and thrive. Technology is the enabler, providing the tools and data businesses need to unlock new efficiencies.”

For SMEs ready to incorporate the 1% mindset into their growth strategy, Adobe Express has created a suite of free templates, resources and tutorials supporting the ‘One Better’ movement. Business owners can explore them here: https://adobesparkpost.app.link/Z7Tcd9oZcYb

Read more:
Adobe backs ‘1% mindset’ as SMEs turn to marginal gains for growth

Britain is on the cusp of an entrepreneurship surge that could reshape the workforce and inject billions into the economy, according to new research revealing that one in ten adults plans to start a business within the next year, the equivalent of more than 5 million people.

The findings, published in the Entrepreneurship Revolution report from Block and Public First, paint a picture of a UK increasingly powered by independent enterprise, side-hustles and digital-first microbusinesses. The report warns, however, that outdated financial systems and a lack of modern tools risk throttling the country’s entrepreneurial potential.

The report suggests the country’s startup culture is being fuelled overwhelmingly by younger adults. Two-thirds (67%) of 18–34-year-olds say they are considering, or actively interested in, starting a business, compared with the national average of 40%. Nearly two in five (38%) young adults have already launched a small business or side-hustle.

Side-hustles are fast becoming a pillar of the UK economy with 15% of Brits already running one and 13% doing additional work, such as tutoring or childcare, to supplement their income.

Ethnic minorities are playing an outsized role in the shift, with 25% currently running a side-hustle and 23% planning to start a business within 12 months.

But a gender divide remains. While nearly a third of young women (29%) have already started a business or side-hustle, this rises to 42% among young men.

Only one in five side-hustlers say they have no interest in turning their idea into a full-time job – a signal that a new generation of job-creating startups could be waiting in the wings.

But access to funding remains the biggest barrier with 37% say better access to finance would help them grow, followed by improved tools and technology (30%) and support with marketing (30%).

The report also highlights a £4bn economic failure in the lending market: more than 50,000 viable SMEs are rejected for loans every year, despite low default rates. Meeting this demand, the report argues, could unlock £7.4bn in additional economic output.

John O’Beirne, CEO of Squareup International, said the findings expose a system still biased in favour of large incumbents: “The ambition to start and grow businesses is there, but many entrepreneurs still find the financial system stacked against them. Fairer, more flexible funding frees founders to scale, manage cash flow and invest in growth.”

The research shows early success for non-traditional finance models such as sales-linked funding. More than half of Square sellers surveyed said accessing finance through Square was easier than with banks.

Meanwhile, modern payment solutions are proving transformative.
Buy Now, Pay Later tools helped generate £6.6bn in additional sales in 2024, according to the report.

Rich Bayer, CEO at Clearpay, says even a marginal uplift in productivity could make a seismic difference: “If just 1% more SMEs grew revenue faster than headcount, it would add £24.6bn to the UK economy each year. That is a huge untapped opportunity.”

‘I started as a hobby baker — now it’s my full-time business’

Among those powering the boom is founder Gaya Vara of Gaya Bakery, who turned a lockdown passion into a thriving boutique patisserie.

“Baking began as a creative outlet while I worked in finance — but demand grew quickly,” she said.
“Our online store has been instrumental in that growth. But running a shop has its own magic. Customers walking in, smelling freshly baked pastries — that human connection can’t be replicated online.”

As the appetite for entrepreneurship strengthens, the research makes one thing clear: the UK stands at a crossroads. Get finance and digital tools right, and Britain could unleash a new era of growth powered by small, creative, resilient businesses. Get it wrong, and a generation of talent risks slipping through the cracks.

Read more:
Young Brits drive UK’s entrepreneurship boom as two-thirds plan to work for themselves