Business

The estate of late tech entrepreneur Mike Lynch is facing the prospect of being effectively wiped out after the High Court ordered it to pay $1.24 billion in damages and interest to Hewlett Packard Enterprise (HPE).

The ruling marks the latest development in one of the UK’s most high-profile corporate fraud cases, stemming from HPE’s $11.7 billion acquisition of Autonomy in 2011.

The court had already awarded HPE approximately £700 million in damages last year. However, the addition of interest, calculated at around $236 million, has pushed the total liability to $1.24 billion.

Mr Justice Hildyard confirmed the additional sum and rejected an application by Lynch’s estate for permission to appeal, although a further appeal could still be sought through the Court of Appeal.

The case dates back more than a decade, with HPE first alleging fraud in 2012. The company argued that Autonomy’s financial position had been misrepresented ahead of the acquisition, a claim upheld by the High Court in 2022.

The judge found that Lynch and his former chief financial officer Sushovan Hussain had misled HPE, although he also concluded that the US firm would likely have proceeded with the deal regardless due to Autonomy’s perceived strategic value.

Hussain, who was convicted in the US and served a prison sentence, reached a separate £77 million settlement with HPE last year.

The scale of the damages raises serious questions about the viability of Lynch’s estate, which is estimated to be worth around £500 million, significantly less than the amount awarded.

However, the ultimate impact may depend on the structure of family assets. Many holdings, including property and investments, are reportedly in the name of his widow, Angela Bacares. These include Loudham Hall in Suffolk and shares in cybersecurity firm Darktrace, which were sold for more than $300 million in 2024.

Legal experts suggest that HPE may seek to pursue those assets if it can demonstrate they were effectively controlled by Lynch, potentially extending the scope of recovery.

The ruling comes in the wake of Lynch’s death in August 2024, when he drowned alongside his daughter and others after a yacht accident off the coast of Sicily. The incident occurred shortly after his acquittal in a US criminal trial related to the same case.

Despite the scale of the damages award, the judge was critical of aspects of HPE’s approach, describing the company’s claimed losses as “exaggerated” and the litigation process as unnecessarily prolonged.

HPE welcomed the decision, stating it brings the company “another step closer to resolution” of the dispute.

For the Lynch estate, however, the focus now shifts to whether an appeal can be mounted, and how much of the remaining assets can be protected.

The case stands as a landmark in UK corporate litigation, not only for the scale of the damages but also for its long-running nature and the complex intersection of civil and criminal proceedings across multiple jurisdictions.

Read more:
Mike Lynch estate faces wipeout after $1.24bn HPE damages ruling

In a recent Acas survey, employers and employees were asked which three changes in the Employment Rights Act 2025 would have the biggest impact in their workplace.

Surprisingly, the new rights on Statutory Sick Pay (SSP) topped the list for both groups, named by 43% of employers and 36% of employees. The reduction in the unfair dismissal qualifying period from two years to six months was the second most significant change (31% of employers and 30% of employees). Employers ranked the new paternity leave day-one rights as the third-largest reform, whereas employees said it was easier access to flexible working arrangements.

The SSP reforms take effect from 6 April 2026, aiming to improve financial security, particularly for part-time employees and those in low-paid jobs. While more employees will qualify for SSP, employers will face increased costs and compliance requirements, particularly for small and medium-sized enterprises.

Before looking at the reforms and what employers can do to prepare for them, let’s consider the current arrangements.

What is the current SSP framework?

An employee must be an “eligible employee” and earn at least the Lower Earnings Limit (LEL), which is currently £125 per week. Even if employees are eligible, SSP is payable only from the fourth consecutive day of sickness, as the first three days are unpaid waiting days.

It is estimated that around 1.3 million employees receive no SSP at all, and many lose pay for only short periods when unwell. Some face the choice of working while ill or losing income. This can spread illness in the workplace and reduce productivity.

What is changing from 6 April 2026?

Approximately 25% of employees only receive SSP (rather than contractual sick pay), and the SSP changes below will have a significant impact.

Removal of the Lower Earnings Limit, and employees will no longer need to meet the LEL to qualify for SSP.
A new earnings‑linked calculation and SSP will be paid at 80% of normal weekly earnings (NWE) unless the SSP flat rate is lower.
SSP will be payable from day one of sickness absence, as the Employment Rights Act 2025 abolishes the three unpaid waiting days.
SSP will increase from £118.75 to £123.25 a week on 6 April 2026.

It is important to mention atypical workers, such as zero-hours and agency workers, as well as seasonal and irregular-hours staff. Establishing NWE is not always straightforward because of their fluctuating pay and variable working patterns. Employers can determine NWE, for example, by averaging pay over the previous 8-12 weeks or by following the relevant contractual arrangements to ensure SSP reflects actual earning patterns.

What do the SSP changes mean for employers?

The scope of SSP entitlements is significantly widened. As well as administrative adjustments to update policies and payroll processes, the reforms carry a cost implication for organisations of all sizes.

The Government estimates that removing waiting days and abolishing the LEL, combined with introducing the 80% earnings‑linked calculation, will increase employer SSP costs by around £450 million a year. Although a significant sum, it equates to roughly £15 more per employee according to the Government’s impact assessment. Crucially, earlier access to SSP may boost productivity by allowing employees to stay home when unwell without feeling compelled to attend work.

Employer concerns about increased sickness absence could be mitigated through strengthened sickness management. This includes conducting return‑to‑work interviews promptly, even after short periods of illness, which can help to identify underlying issues early and reduce avoidable absences. It can also include structured return-to-work planning, phased returns, and temporary adjustments.

How can employers prepare for the changes?

Update payroll systems for earnings‑linked SSP and day‑one entitlement.
Review and update sickness absence policies, contracts and employee handbooks and communicate these changes to employees.

Budget for increased SSP.
Identify roles or departments most affected by the wider eligibility rules.

Train managers and HR on the new regime.
Strengthen sickness absence management processes.
Establish the number of atypical workers and how their normal weekly earnings are calculated.

Conclusion

The April 2026 SSP reforms represent a major shift in the UK’s approach to sick pay, expanding access and enhancing financial protection for employees. While these changes introduce additional costs and compliance requirements for employers, early preparation will support a compliant and well‑managed transition.

By reviewing systems and policies now, organisations can ensure they are ready for the new SSP regime and are equipped to support staff and manage sickness absence effectively.

Read more:
Imminent changes to Statutory Sick Pay: What employers need to know

Small businesses across the UK are set to receive a major boost from public spending, with the government committing to channel more than £7.4 billion a year directly to SMEs by 2028 as part of a new procurement strategy.

The targets, announced under the government’s Plan for Small Business, mark the first time individual departments have been required to set specific goals for how much they spend with small and medium-sized enterprises, alongside annual reporting requirements to ensure accountability.

Ministers say the move is designed to rebalance procurement away from large multinational suppliers and towards smaller firms, helping to drive regional growth, create jobs and strengthen local economies.

Under the new framework, departments will publish yearly updates on their SME spending performance, with those falling short required to outline corrective action plans.

Spending targets vary across departments, with some of the highest commitments including 40% from the Department for Science, Innovation and Technology, 33% from the Department for Culture, Media and Sport, and 30% from the Cabinet Office. Nearly half of government departments have set targets above 20%.

The figures relate to direct spending, but officials note that billions more will flow to SMEs indirectly through supply chains, meaning the overall economic impact is likely to be significantly higher.

In addition to the £7.4 billion target, SME spending by the Ministry of Defence is set to rise by a further £2.5 billion, reaching £7.5 billion by May 2028.

The funding is expected to support businesses across key growth sectors including cyber, manufacturing, finance and science, areas seen as central to the UK’s long-term economic strategy.

Cabinet Office Minister Chris Ward said the policy reflects a broader commitment to supporting domestic businesses.

“These ambitious spending targets will help ensure more government contracts go to SMEs, keeping more money, jobs and opportunities in local communities,” he said.

Business groups have broadly welcomed the announcement, though some have urged the government to go further.

Federation of Small Businesses policy chair Tina McKenzie said the introduction of clear targets was essential to reversing a recent decline in SME procurement.

She described the policy as a “starting point” for more ambitious commitments, particularly as overall government spending is expected to rise in areas such as health, defence and education.

Small Business Minister Blair McDougall said the changes would open up new opportunities for thousands of firms.

“These new targets will ensure smaller businesses have greater opportunity to win lucrative government contracts and grow their businesses,” he said.

For many SMEs, access to public procurement has historically been limited by complexity, cost and administrative barriers.

Industry leaders say the new approach could help address those challenges. Rob Levene, chair of Constellia, said the reforms could mark a turning point for smaller firms that have felt excluded from government contracts.

“More collaboration with SMEs will ensure better value, less waste and meaningful returns for communities,” he said.

Nicki Clark, chief executive of UMi, added that enabling SMEs to access publicly funded opportunities is widely recognised as a key driver of economic growth and innovation.

The government argues that increasing SME participation in procurement is one of the most effective ways to stimulate economic activity at a local level, ensuring that public spending translates directly into jobs, investment and business expansion.

The policy builds on earlier measures within the Small Business Plan, including legislation to tackle late payments and a £4 billion finance package aimed at improving access to funding.

As departments begin implementing their targets, the focus will shift to delivery, and whether the new system can meaningfully increase the share of government spending flowing to smaller businesses.

If successful, the initiative could reshape the UK’s procurement landscape, placing SMEs at the centre of public sector supply chains and reinforcing their role as a cornerstone of economic growth.

Read more:
Government sets £7.4bn target to boost SME contracts across UK

Large UK companies that repeatedly delay paying suppliers will face multimillion-pound fines under sweeping new legislation aimed at tackling late payment practices and protecting small businesses.

The reforms, announced by the Department for Business and Trade, will grant enhanced enforcement powers to the Small Business Commissioner, enabling it to investigate poor payment behaviour and penalise persistent offenders.

At the centre of the new rules is a mandatory 60-day payment window for all commercial contracts involving companies with annual revenues above £54 million.

Suppliers will also gain the right to charge statutory interest on overdue invoices at a rate of 8 percentage points above the Bank of England base rate, significantly increasing the cost of late payments for larger firms.

Companies found to be consistently breaching payment standards will be required to publicly disclose their practices in annual reports, including explanations and steps taken to improve.

Business Secretary Peter Kyle said the measures represent the most significant overhaul of payment laws in a generation.

“It is simply unacceptable that so many businesses are forced to shut due to late payments,” he said. “These are the strongest, most robust changes to payment laws in over a generation.”

The government also confirmed it will consult on reforms to retention payments in the construction sector, a long-standing issue where funds are withheld and sometimes lost if a contractor becomes insolvent.

Industry bodies have broadly welcomed the reforms, describing them as a long-overdue intervention in a problem that has plagued SMEs for decades.

Federation of Small Businesses policy chair Tina McKenzie said the measures would help prevent large companies from using smaller suppliers as a source of “free credit”.

However, she cautioned that a 60-day payment window still falls short of best practice, arguing that a 30-day standard should remain the long-term goal.

Late payments are widely seen as one of the biggest barriers to SME growth, affecting cash flow, investment and hiring decisions. Government research suggests that dozens of businesses close each year as a direct result of delayed payments.

Emma Jones, the Small Business Commissioner, said the new powers would help reduce the administrative burden on smaller firms.

“Less time chasing debt means more time focused on growth,” she said, adding that stronger enforcement will help shift behaviour across the market.

The legislation is expected to be introduced when parliamentary time allows, with ministers indicating they will assess the readiness of businesses before mandating contractual changes.

The reforms mark a clear shift towards a more interventionist approach to payment practices, as policymakers seek to rebalance relationships between large corporations and their smaller suppliers.

For big businesses, the message is increasingly clear: late payment is no longer just a commercial issue, it is becoming a regulatory and reputational risk.

Read more:
Late-paying firms face multimillion-pound fines under new crackdown

Climate tech firm Zevero has secured $7 million in new funding as global demand for robust carbon data and ESG reporting continues to accelerate.

The latest investment, which brings the company’s total funding to $14 million, includes backing from Spiral Capital, Gazelle Capital and Deep 30. It follows a period of rapid expansion, with Zevero reporting 400% year-on-year growth in annual recurring revenue and a doubling of its customer base.

The company has also strengthened its offering through the recent acquisition of sustainability advisory firm Inhabit, enabling it to move beyond emissions tracking into active decarbonisation support for clients.

Zevero’s platform uses artificial intelligence to automate the collection and calculation of emissions data across Scope 1, 2 and 3 — the three key categories used to measure an organisation’s carbon footprint.

By building a continuous, reusable dataset, the platform allows companies to integrate sustainability metrics into core business functions such as product design, procurement and investment planning, rather than treating them as standalone reporting exercises.

Chief executive Shigeo Taniuchi said the shift reflects a broader transformation in how organisations approach sustainability.

“Businesses are increasingly being asked to manage sustainability the way they manage finance,” he said. “Yet many are still treating it as an annual project rather than a continuous system. Our goal is to make climate data actionable, reliable and embedded in decision-making.”

The funding comes amid tightening global regulatory requirements around climate disclosure. Frameworks such as the UK Sustainability Reporting Standards and Japan’s SSBJ standards are pushing companies to apply the same level of rigour to environmental reporting as they do to financial accounts.

This shift is increasing demand for platforms capable of delivering auditable, real-time data, particularly as supply chain transparency and carbon border adjustment mechanisms (CBAM) begin to affect international trade.

George Wade, co-founder and chief commercial officer, said carbon data is rapidly becoming a strategic input rather than a compliance obligation.

“Organisations don’t just need software to collect the data, they need guidance to turn it into something the business can act on,” he said.

The new funding will be used to accelerate product development and support Zevero’s international expansion, particularly across Asia-Pacific and continental Europe, where regulatory and commercial pressures are intensifying.

The company is already working with major organisations including Asahi Group and the Tokyo Metropolitan Government, as well as a growing number of clients in manufacturing, FMCG and consumer sectors.

Investors say the company’s combination of technology and embedded expertise gives it a strong position in a market that is becoming increasingly crowded but also more critical to business operations.

Spiral Capital’s Tomokazu Okuno said the platform addresses one of the most pressing challenges facing organisations today, gaining visibility into emissions and acting on that insight.

The investment highlights a broader trend in climate technology, where funding is increasingly flowing towards solutions that deliver measurable operational value rather than purely compliance-focused tools.

As businesses navigate the transition to a low-carbon economy, the ability to track, verify and act on emissions data is becoming a core capability.

For Zevero, the next phase will be scaling its platform globally while maintaining the balance between automation and expert insight, a combination it believes is essential to turning climate data into meaningful action.

With regulatory demands rising and investor scrutiny intensifying, platforms that can bridge the gap between reporting and real-world impact are likely to play a central role in the next stage of the sustainability transition.

Read more:
Zevero raises $7m as demand for carbon data platforms accelerates globally

The United States has moved to ban new foreign-made consumer internet routers, citing mounting national security concerns over cyber vulnerabilities and potential espionage risks.

The decision, announced by the Federal Communications Commission (FCC), adds consumer-grade routers manufactured outside the US to its list of restricted equipment, placing them alongside foreign-made drones, which were banned last year.

The move does not affect routers already in use but applies to all new device models entering the market. Any router built overseas will now require explicit approval before it can be imported, marketed or sold in the US.

Regulators say the decision reflects growing evidence that internet routers, which sit at the heart of home and business networks — have become a key entry point for cyberattacks.

“Malicious actors have exploited security gaps in foreign-made routers to attack American households, disrupt networks, enable espionage, and facilitate intellectual property theft,” the FCC said.

The agency pointed to a series of cyber incidents between 2024 and 2025, known as Volt, Flax and Salt Typhoon, in which compromised networking equipment was allegedly used to target US infrastructure. Investigations by US authorities have linked the attacks to actors associated with the Chinese government.

Under the new framework, manufacturers producing routers outside the US must apply for conditional approval. This process will require companies to disclose foreign ownership or influence and outline plans to shift production to the United States.

Exemptions may be granted in limited cases if equipment is cleared by national security bodies such as the Department of Defense or Department of Homeland Security, although no specific devices have yet been approved.

The ban applies regardless of where a product is designed, meaning even US-based brands that manufacture abroad will be affected.

The decision has significant implications for the global electronics supply chain. The vast majority of consumer routers are currently produced outside the US, particularly in China and Taiwan.

Popular brands such as TP-Link, a major global supplier, have already faced scrutiny amid concerns over cybersecurity vulnerabilities. Even US companies like Netgear, which manufacture overseas, may need to adapt their supply chains to comply with the new rules.

One notable exception is the WiFi router produced by SpaceX’s Starlink service, which the company says is manufactured in Texas.

The move is the latest step in a broader effort by the US to reduce reliance on foreign-made technology deemed critical to national infrastructure. It reflects a growing emphasis on supply chain security and domestic production, particularly in sectors linked to communications, defence and data.

Analysts say the policy could accelerate a wider decoupling in global technology markets, as governments increasingly prioritise security over cost efficiency.

For consumers and businesses, the immediate impact may be limited, but over time the shift could reshape pricing, availability and innovation in networking equipment.

As cybersecurity threats continue to evolve, the US government’s message is clear: devices at the core of digital infrastructure are now considered strategic assets, and their origin matters.

Read more:
US bans new foreign-made routers over national security fears

Companies House has disciplined more than 100 employees over the past three years for breaches of internal policies, according to new data revealed through a Freedom of Information request.

Analysis by the Parliament Street think tank found that a total of 132 staff members faced disciplinary action, with cases linked to issues such as attendance, performance, grievance handling and probation processes.

The findings come at a sensitive time for the organisation, following a recent technical glitch on the corporate register that allowed users to access sensitive company information by navigating backwards through the system, raising fresh concerns about data security and operational oversight.

Alongside the disciplinary figures, the data shows that 12,684 compliance and ethics training courses were completed by Companies House employees and contractors over the same period, reflecting a significant push to strengthen internal governance.

The mandatory training programme covers a wide range of areas, including counter fraud, bribery and corruption, data protection, security classification, health and safety, and civil service standards.

A spokesperson for Companies House said the organisation has “robust procedures in place to address misconduct or poor performance”, noting that it employs around 2,400 staff.

The disciplinary data highlights the operational challenges facing public sector bodies tasked with managing large-scale data systems and regulatory responsibilities, particularly as digital transformation accelerates.

The recent system vulnerability has added urgency to calls for stronger safeguards, with critics arguing that even minor weaknesses in core infrastructure can expose businesses and individuals to fraud and reputational risk.

Industry experts say emerging technologies could play a key role in reducing such risks. Ritesh Singhania, chief executive of AI firm Zango AI, said organisations must move away from manual processes in complex regulatory environments.

“In an AI-driven world, compliance malpractice will soon become inexcusable,” he said, warning that reliance on manual systems increases the likelihood of errors, breaches and costly penalties.

Similarly, Raj Abrol, chief executive of Galytix, argued that automation could significantly improve adherence to regulatory standards by reducing human error and improving oversight.

For Companies House, which sits at the centre of the UK’s corporate transparency framework, the challenge is balancing operational scale with rigorous compliance.

As the organisation continues to modernise its systems and processes, the combination of staff training, disciplinary oversight and technological investment will be critical in maintaining trust in one of the country’s most important public registers.

The latest figures suggest progress is being made on training and enforcement, but also underline the importance of continued vigilance as both regulatory expectations and technological complexity continue to rise.

Read more:
Companies House disciplines over 100 staff amid compliance concerns

Oxford spinout Stateful Robotics has raised $4.8 million in pre-seed funding as it looks to solve one of the most persistent challenges in robotics: enabling machines to operate reliably over extended periods in unpredictable real-world environments.

The round was led by Amadeus Capital Partners and Oxford Science Enterprises, with additional backing from serial entrepreneur Stan Boland, founder of autonomous vehicle company Five.

The funding will be used to accelerate deployment of Stateful’s platform, which introduces a new layer of “long-horizon intelligence” — allowing robots to remember past events, adapt to changing conditions and plan tasks over hours or days rather than moments.

While recent advances in large language models and foundation AI systems have significantly improved robots’ ability to perceive and interpret their surroundings, most systems still struggle when environments change.

Unexpected obstacles, shifting lighting conditions or operational disruptions can quickly derail robotic systems that lack the ability to learn from past experiences.

Stateful Robotics aims to address this limitation by building what it describes as a persistent, evolving model of each deployment environment. By continuously integrating data on tasks, performance and historical outcomes, the platform allows robots to anticipate challenges and adapt in real time.

Professor Nick Hawes, co-founder and chief scientist, said traditional systems treat each decision in isolation.

“Stateless systems cannot remember previous incidents or how work actually flows through a site,” he said. “Our platform builds a shared model of tasks and environments that enables robots to adapt to disruption and complete missions safely without constant supervision.”

The company was co-founded by chief executive Kirsty Lloyd-Jukes, previously CEO of Latent Logic, an Oxford spinout acquired by Waymo, alongside leading academic researchers including Professor Nick Hawes, Professor David Parker and Dr Bruno Lacerda.

Their work builds on more than a decade of research at the University of Oxford in areas such as autonomy, decision-making under uncertainty and probabilistic verification.

Lloyd-Jukes said the key challenge facing robotics is not immediate decision-making, but longer-term planning.

“Most robots are good at ‘what now’, but fail at ‘what next’, especially when ‘next’ spans hours or days,” she said. “By maintaining a live model of each deployment, we ensure robots perform reliably and consistently across complex environments.”

Investors believe the technology could help unlock large-scale commercial adoption of robotics across sectors such as logistics, infrastructure, energy and healthcare.

Dr Manjari Chandran-Ramesh of Amadeus Capital said the evolution of robotics, from static industrial arms to mobile systems operating in human environments, requires a new form of intelligence capable of reasoning over time and context.

Similarly, Oxford Science Enterprises highlighted what it sees as a critical bottleneck in the industry: the inability of current systems to handle long-term planning and operational complexity.

Stateful Robotics is already working with pilot customers in sectors including logistics and infrastructure, where reliability and safety are critical to scaling automation.

The new funding will support expansion of its engineering team, further development of its performance engine and broader commercial rollout with industrial partners.

The spinout also reflects the continued strength of the UK’s deep-tech ecosystem, with Oxford University Innovation playing a key role in supporting the company’s formation and early development.

As robotics hardware becomes increasingly mature, attention is shifting to the software and intelligence layers required to make systems truly autonomous.

Stateful Robotics is betting that solving the “memory and planning” problem will be the key to turning promising prototypes into dependable, large-scale solutions, and, in doing so, unlocking the next phase of the automation revolution.

Read more:
Oxford spinout Stateful robotics raises $4.8m to tackle real-world AI for robots

Postal workers across the UK have accused Royal Mail of encouraging practices designed to make delivery performance appear stronger than it is, as the company faces mounting scrutiny over persistent delays.

Employees speaking anonymously said managers routinely instructed them to “take the mail for a ride”, a phrase used to describe removing undelivered letters from view during inspections so delivery rounds appear complete.

The allegations come ahead of a parliamentary session where Royal Mail executives are due to be questioned by MPs over the deterioration in service levels, which has affected millions of customers.

Workers from multiple delivery offices told the BBC that when they raised concerns about workload, particularly the growing volume of parcels compared with letters, they were often told to prioritise parcels and temporarily remove letters from sight.

In some cases, undelivered mail was reportedly placed into trolleys and moved elsewhere in the depot during inspections, before being returned for delivery the following day.

One worker described the practice as “embarrassing and deceitful”, adding that it allowed managers to claim rounds had been completed even when letters had not been delivered.

Others said the approach was used to avoid scrutiny from senior management and external inspectors, effectively masking operational shortfalls.

Royal Mail has a legal obligation to deliver first-class mail six days a week, but recent performance has fallen significantly short of regulatory targets.

In the 2024–25 financial year, the company delivered just 77% of first-class mail on time, against a target of 93%. Second-class performance also missed its benchmark, reaching 92.5% compared with a 98.5% target.

The regulator Ofcom has already fined Royal Mail £37 million in recent years and warned that further penalties are likely if service levels do not improve.

Royal Mail has strongly rejected the allegations, stating that the claims “do not reflect how our delivery operations work”.

A spokesperson said the company would investigate any specific cases raised and insisted that the vast majority of mail, around 92%, is delivered on time. It added that where local issues arise, efforts are made to restore normal service quickly.

However, the Communication Workers’ Union (CWU) said the problems stem from deeper structural issues, including low pay, staffing shortages and what it described as a “toxic managerial culture”.

The union warned that recruitment and retention challenges have left many delivery offices understaffed, placing unsustainable pressure on workers and contributing to declining service standards.

The ongoing delays are having tangible consequences for the public, with reports of missed hospital appointments, delayed legal documents and disrupted personal communications.

Workers say morale has deteriorated sharply, with many reporting stress, sickness absence and a sense that workloads are “impossible” to complete.

In areas where Royal Mail has piloted a new delivery model, including reduced frequency for second-class mail, staff told the BBC conditions had not improved, with some suggesting the system had worsened operational pressures.

Royal Mail, however, maintains that the pilot has increased delivery reliability, claiming the proportion of addresses receiving mail each day has risen from around 92% to 97%.

The dispute highlights the wider challenges facing the UK’s postal system, as traditional letter volumes decline and parcel deliveries, driven by e-commerce, become the dominant part of the business.

Royal Mail has argued that delivery rules must evolve to reflect this shift, including reducing the frequency of second-class deliveries to improve efficiency and financial sustainability.

For now, the allegations of hidden mail add a new layer of controversy to an already embattled service, with MPs expected to press for answers on both operational practices and the long-term future of the UK’s universal postal obligation.

Read more:
Royal Mail staff allege pressure to hide undelivered post to meet targets

UK pubs are facing a deepening profitability crisis, with new analysis suggesting that for every £1 spent on a pint, operators may now be left with as little as 3p in profit.

The findings, based on cost modelling using data from the British Beer and Pub Association (BBPA), highlight how rising operating costs are eroding margins across the sector, even as consumers continue to see higher prices at the bar.

According to the research, profit margins for wet-led pubs have more than halved in recent years, falling from 7p per pound two years ago to 5p last year and now just 3p in 2026.

Despite steady increases in the price of a pint, now averaging around £5.17, pubs are struggling to keep pace with escalating expenses.

Wholesale food and drink costs account for approximately 41% of revenue, while wages make up a further 31%, reflecting the impact of higher minimum wages and staffing pressures.

Additional costs, including utilities (4%), business rates (3%) and beer duty — which has risen by 3.66% this year — continue to chip away at margins. Beer duty alone is estimated to add around £35 per week to operating costs, while wage increases are adding more than £200 weekly.

After these expenses, pubs are left with around 6p in gross profit per pound of revenue. Once rent, typically around 50% of gross profit, is deducted, the net figure falls to just 3p.

For a typical pint, that equates to roughly 16p profit.

The figures underline the increasingly precarious position of the UK pub sector, which has seen a steady decline in venue numbers in recent years.

Landlords are caught in a difficult balancing act: absorb rising costs and risk financial strain, or pass them on to customers and risk reduced footfall.

Jake Pemberton, landlord of The Gladstone in Nottingham, said price increases often fail to reflect the full scale of cost pressures.

“Increases in beer prices don’t cover everything else pubs have to deal with, business rates, energy bills, wages, taxes, it all adds up,” he said.

He warned that higher prices are already discouraging customers, with more people choosing to stay at home, contributing to a gradual erosion of traditional pub culture.

Pemberton added that many pubs are nearing a “ceiling” on what customers are willing to pay, limiting their ability to maintain margins.

“This year, some of my beers needed a 15p increase just to maintain the same gross profit, but I could only raise prices by 10p,” he said. “That means I’m effectively losing money on those products.”

The situation is also accelerating structural changes within the sector, with more pubs shifting away from drink-led models towards food and family-oriented offerings in an effort to diversify income streams.

Industry experts warn that without additional support, the financial pressure could lead to further closures and long-term damage to the sector.

Joe Phelan, business current accounts expert at money.co.uk, said the perception that rising prices translate into higher profits is misleading.

“Our data shows margins are shrinking, with only a few pennies left from every pound spent once costs are covered,” he said. “Without support, we risk losing not just businesses, but a cornerstone of British culture.”

With costs continuing to rise and consumer spending under pressure, the outlook for the UK pub sector remains challenging — and the prospect of significantly higher pint prices, particularly in major cities, is becoming increasingly plausible.

Read more:
UK pubs making just 3p profit per £1 as rising costs squeeze margins