Key Updates on Pensions, Inflation, Business Rates, Workplace Safety, AI Investment, and High Street Revival
Welcome to our round-up of the latest business news for our clients. At Naseems Accountants, we are committed to keeping you informed about key changes that may affect your business.
If you would like to discuss how these updates apply to your situation, please don’t hesitate to contact us, we are here to support you every step of the way.
Whether it’s tax, compliance, or financial planning, our team can provide tailored advice to help you make the right decisions.
Book a meeting today to arrange a complimentary consultation and stay ahead in your business.
State Pension Set for Rise, But More Retirees May Face Tax
From April, people receiving the state pension are expected to see an increase of more than £500 a year, thanks to the government’s triple lock guarantee. This policy ensures the pension rises each year by whichever is higher: 2.5%, inflation, or average wage growth.
According to the latest figures from the Office for National Statistics (ONS), average earnings growth of 4.7% is likely to be the measure applied this year.
For those on the new state pension (anyone reaching state pension age after April 2016), the full weekly entitlement is expected to increase to £241.05, or £12,534.60 per year. This represents a rise of £561.60 compared with the current level.
For those on the old basic state pension, the full weekly payment is expected to rise to £184.75, or £9,607 per year, resulting in an annual increase of £431.60.
Tax Implications
While this increase is welcome news for pensioners’ incomes, there is another consideration to consider. The personal income tax allowance, the amount you can earn tax-free each year, is frozen at £12,570 until 2028.
With the new state pension moving ever closer to this threshold, many pensioners who rely mainly on state pension income could find themselves paying tax for the first time by 2027.
Although many retirees already pay income tax due to additional sources of retirement income (such as private pensions or savings), the freeze in allowances combined with steady state pension rises will inevitably bring more people into the tax net over the coming years.
What This Means for You
Any rise in the state pension will provide some welcome relief against rising living costs. However, the frozen tax thresholds mean the actual boost to your disposable income may be less than expected.
At Naseems Accountants, we can help you review your retirement income, tax position, and future planning needs to ensure you make the most of your pension entitlements while staying compliant with HMRC.
Get in touch with us today for personalised advice on how these changes could affect your finances. A quick conversation now can help you prepare for the years ahead.
See: BBC News
No Change for Inflation and Interest Rates
The Office for National Statistics (ONS) reported last week that the annual inflation rate for August 2025 remained unchanged at 3.8%, the same as in July.
Airfare costs rose at a slower rate over the year; however, food prices continue to climb, reaching 5.1% in August. This ongoing rise is placing pressure on both households and hospitality businesses.
UK inflation is higher than in most European countries.
Interestingly, the ONS highlighted that UK inflation appears to be “significantly higher” than in France (0.8%) and Germany (2.1%).
One key factor in this disparity is the increase in employers’ National Insurance contributions, which has led many businesses to pass these additional costs on to their customers.
No change in interest rate
The Bank of England’s Monetary Policy Committee (MPC) also met last week to review the current bank rate. With inflation still above the target of 2%, the MPC voted to keep interest rates unchanged.
Takeaways
For businesses, these figures highlight that costs remain elevated. Rising food prices, combined with the impact of National Insurance contributions, continue to put pressure on margins.
The fact that inflation has not increased further provides some reassurance, and European trends suggest the potential for a gradual reduction. However, it may still be some time before stability is fully achieved.
To navigate these challenges, careful cashflow planning and regular financial reviews are essential to ensure your business remains resilient and on track for growth.
If you would like tailored advice on managing inflationary pressures or strategies to help your business grow, please get in touch with us. At Naseems Accountants, we are always happy to support you.
See: https://www.bbc.co.uk/news/articles/cderznjj4r7o
Government Signals Further Reform to Business Rates
Small businesses looking to expand their premises could soon find it easier, following new government commitments to make business rates fairer. An interim report from the Treasury confirms that the Chancellor will examine ways to address “cliff edges” in the system – sudden jumps in rates that can discourage investment.
Currently, if a small business opens a second property, it loses its entitlement to Small Business Rates Relief (SBRR) immediately. The government has now stated that it will review how SBRR can better support business growth.
The report also confirms that, from April 2026, permanently lower tax rates will be introduced for shops, pubs, restaurants, and other retail, hospitality, and leisure businesses with a rateable value of £500,000 or less.
Changes to how business rates are calculated are also under review.
Business groups have long been advocating for reform to the way business rates are calculated. They welcomed the report’s confirmation that the government will also consider transitioning from the current “slab” model (where the entire property is taxed at the highest rate) to a “slice” model (where tax rates gradually increase with property value).
What happens next
This is an interim report, and a further update will be provided at the Autumn Budget on 26 November 2025.
If you are considering expanding your business into new premises, remember that business rates are only one part of the picture. Careful financial planning, tax strategy, and cash flow management are all crucial for long-term success.
For tailored advice on business expansion and how upcoming changes to business rates may affect you, please get in touch with Naseems Accountants. Our team would be delighted to support you with expert guidance.
What Does It Take to Be a Great Employer?
Companies House has recently been recognised with the highest-level accreditation from Investors in People for its approach to staff wellbeing.
Their Platinum Award reflects a strong commitment to supporting employees’ social, physical, and psychological wellbeing. The recognition followed a detailed assessment process, which included staff surveys, interviews, and close observation of the workplace culture.
What lessons can other businesses learn from this achievement? Even if your organisation doesn’t have the scale or resources of Companies House, there are practical and often low-cost, steps that can help improve staff wellbeing.
1. Listen to Staff Feedback
Employees who feel heard are more likely to feel valued and motivated. For smaller businesses, this might be as simple as scheduling regular one-to-one check-ins.
Other options include running short, anonymous surveys using free online tools or introducing a staff suggestion scheme. The key is not just to gather feedback, but to demonstrate that you’re listening and taking action wherever possible.
2. Support Physical Wellbeing
Encouraging healthy habits doesn’t have to mean investing in expensive gym memberships or large-scale programmes. Affordable, practical measures include promoting regular screen breaks, offering fresh fruit in staff areas, or simply ensuring that workloads allow for reasonable breaks during the day.
3. Look After Mental Wellbeing
Supporting mental health in the workplace is vital, particularly in smaller teams. Fostering an open culture where employees feel comfortable discussing challenges can make a significant difference.
Managers can also be trained to spot early signs of stress or burnout. Signposting free resources – such as Mind, ACAS, or NHS wellbeing services, is another way to provide valuable support without significant cost.
4. Build a Positive Culture
Workplace culture plays a central role in overall wellbeing. Recognition, respect, and flexibility can go a long way in keeping staff engaged.
- Celebrate achievements, no matter how small, and show genuine appreciation for contributions.
- Be transparent about change, ensuring employees understand why decisions are made and feel part of the process.
- Offer flexibility where possible, such as adaptable working hours, to help staff balance work and personal commitments.
Looking After Staff Can Improve the Business
Focusing on staff wellbeing isn’t just a “nice to have”, it’s a sound business strategy. Even if your organisation operates on a much smaller scale than Companies House, the principle remains the same: investing in your team’s wellbeing brings long-term benefits.
By reducing staff turnover, lowering absence rates, boosting productivity, and fostering loyalty, businesses can strengthen their foundations for sustainable growth and success.
Inspections Reveal Major Gaps in Workplace Hearing Protection
A recent Health and Safety Executive (HSE) inspection campaign has uncovered serious failings in how workplaces manage hearing protection, raising significant concerns for employees exposed to noisy environments.
The inspections revealed that one in four workplaces had noise levels requiring mandatory hearing protection by law. However, many employers were found to be falling short in both employee training and equipment management.
Key findings
The HSE inspections highlighted worrying gaps in compliance:
- Over 75% of workers in high-noise workplaces lacked basic knowledge on how to store, check, or report issues with hearing protection equipment.
- Sixty-three per cent of workers had not been advised that hearing protection must be worn continuously during exposure to harmful noise levels.
- 80% of employees had not received training on correct usage, for example, ensuring earmuffs fit properly around hair, hats, or other PPE.
- 95% of employers failed to check whether workers could still hear essential warning signals, such as fire alarms or reversing vehicle alerts, while wearing protection.
These findings suggest that many businesses may be placing their employees at unnecessary risk and could also be exposing themselves to potential liability.
Do you use the CUFF system?
To help businesses improve, the HSE is promoting the CUFF checking system, a straightforward four-step check for hearing protection:
- Condition: Is the equipment in good working order?
- Use: Is it being worn whenever required?
- Is the earpiece being worn correctly?
- Fit for purpose: Is the protection suitable for the workplace and the task?
Specialist inspectors will also deliver webinars and attend industry events to provide businesses with practical guidance on strengthening their hearing protection programmes and applying the CUFF system effectively.
What this means for employers
The findings clearly indicate that more robust training, monitoring, and compliance checks are necessary. Employers have a legal duty to protect staff from excessive noise, but beyond compliance, adequate hearing protection also helps safeguard productivity, morale, and long-term employee wellbeing.
If you’re concerned about the financial, compliance, or operational risks associated with workplace safety regulations, speak to Naseems Accountants. We work closely with businesses to ensure financial planning, risk management, and compliance strategies are aligned to protect both your people and your bottom line.
Source: HSE Press Release
US Tech Giants Invest in the UK’s AI Sector
Last week, a so-called Tech Prosperity Deal was signed between the UK government and several US tech giants as part of Donald Trump’s state visit to the UK.
Google’s parent company, Alphabet, has confirmed a £5 billion investment in UK artificial intelligence (AI) over the next two years. In addition, Microsoft confirmed that it is investing £22 billion, with Nvidia also investing up to £11 billion in the UK.
The investments will be directed towards AI infrastructure and advanced scientific research. During the week, the Chancellor opened a new £735m data centre in Hertfordshire as part of Google’s investment, and Microsoft has confirmed its involvement in the creation of a powerful new supercomputer in Essex.
Opportunities
Alphabet’s president Ruth Porat described the UK as offering “profound opportunities” in science and technology, adding that the investment reflects a “special US-UK technology relationship.”
Chancellor Rachel Reeves called the announcement “a powerful vote of confidence in the UK economy.”
The fields of healthcare, public services and business productivity are particularly seen as areas where AI can bring potential benefits.
Challenges
There is widespread concern about the impact of AI on jobs. Talking about this, Ms Porat said: “It would be naïve to assume there isn’t a downside.” However, she continued to stress that AI will create opportunities, even new industries.
Microsoft CEO Satya Nadella acknowledged that changes in technology are affecting the company, with thousands of staff being laid off this year, despite record sales and profits. He said it was “the hard process of renewal.” He felt, though, that ultimately AI will bring about new products, new systems and new infrastructure.
The high energy requirements of data centres have also raised environmental concerns. However, tech companies argue that the potential benefits make it worthwhile. Google has signed a deal that will enable its UK investments to run on 95% carbon-free energy, and the heat generated by the data centres will be captured and redeployed to heat schools and homes.
Will it affect me?
For local businesses in the UK, the headline figures of these investments might feel a world away. However, the changes they signal could have impacts across the board.
There could be opportunities. For instance, the development of new AI tools could open up more innovative ways of working, from managing stock to dealing with customers. There will also be challenges, including pressure on specific jobs and the cost and effort required to keep up with new technology.
The key takeaway is to stay alert, keep an eye on how AI tools are becoming available and think about whether they could help your business grow.
See: https://www.bbc.co.uk/news/articles/c7016ljre03o
Rugby Council to Use New Powers on Empty Shops
Rugby Borough Council is set to be one of the first in the country to use new powers enabling local authorities to auction leases on long-term vacant retail units. The move follows figures showing that nearly one in four units in Rugby town centre are empty, compared with the national average of one in seven.
How the scheme works
Under the new rules, any privately owned shop left empty for more than a year within two years could be subject to a lease auction. Landlords will be given an eight-week window to secure a tenant themselves or to appeal the decision. If no agreement is reached, the Council can then invite bids from businesses to take over the premises.
To support the scheme, Rugby Borough Council has created a vacancy register and secured access to government funding of up to £75,000 per property to help bring unused units back into commercial use.
A “legislative hammer” for high streets
Council leaders have described the powers as a “legislative hammer” designed to tackle derelict high street properties. While only a small number of shops may be affected initially, the broader aim is to send a strong signal of intent and help restore confidence in the town centre.
Opportunities for businesses
For local businesses, this could present new opportunities. Lease auctions offer a chance for start-ups or expanding firms to secure retail space that is unaffordable or unavailable. At the same time, revitalising the high street by reducing the number of empty units could boost footfall and improve the overall shopping environment for all traders.
Although Rugby is leading the way with this initiative, other councils may adopt a similar approach if it proves successful.
See: BBC News Article
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