Business News Roundup: Key Updates and Insights for Your Business

Welcome to our roundup of the latest business news for our clients. Here, we share key updates and insights to help keep you informed about developments that could impact your business.

If you’d like to discuss how these updates affect your business, please don’t hesitate to contact us. We provide advice, guidance, and support to help your business thrive!

Spring Forecast Scheduled for 26 March 2025

Chancellor Rachel Reeves has announced that the Spring Forecast will take place on 26 March 2025.

The Office for Budget Responsibility (OBR) must produce two forecasts annually under the Budget Responsibility and National Audit Act 2011. The Chancellor will present the Spring Forecast alongside a speech in Parliament.

While the speech will likely provide necessary updates, it is expected to avoid significant tax changes, as the Chancellor remains committed to the stability brought by having only one major fiscal event per year.

We will monitor developments closely and update you on any announcements affecting your business or personal finances.

If you have questions about how the Autumn Budget or upcoming changes could impact your tax position for the 2025/26 tax year, please feel free to contact us. We are always happy to assist!

For further details, see Government News on the Spring Forecast

Latest Statistics Show Economy Shrinking While Wages Grow

The Office for National Statistics (ONS) has released its latest figures for October, providing a mixed snapshot of the UK economy.

GDP Shrinks for the Second Month

• GDP fell by 0.1% in October, following a similar decline in September.
• Over the three months to October, GDP grew by 0.1% compared to the previous quarter (July 2024).
• The data reflects a recent dip in economic activity, which may stem from businesses waiting for clarity following the Autumn Budget. Concerns about National Insurance increases revealed in the Budget could prolong this trend.

Pay Growth Outpaces Inflation

• Wages grew by an annual rate of 5.2% between August and October, marking the first increase over a year.
• This exceeds inflation, which stood at 2.6% in November, potentially giving households more spending power.

Labour Market Update

• Job vacancies are falling, but the unemployment rate remains at 4.3%.

Impact on the Bank of England Base Rate

• The Bank of England reviewed the base rate last Thursday.
• With inflation at 2.6%, the Bank decided to hold the base rate at 4.75%.

Mixed Signals for the Economy

The economy is sending mixed signals:

• Falling GDP suggests a slowdown in activity.
• Wage growth could support consumer spending but risks driving further inflation.
• A steady labour market offers stability, but declining job vacancies could signal challenges.

Businesses may need to prepare for tightening conditions, balancing cautious optimism with proactive strategies to navigate potential economic headwinds.

Please get in touch with us if you’d like to discuss how these developments might impact your business or personal finances. We’re here to support you!

Small Businesses Struggling with New GPSR Requirements

The EU’s General Product Safety Regulation (GPSR) came into effect on 13 December 2024, causing significant challenges for small businesses exporting goods to the EU and Northern Ireland (NI). Many have stopped trading with these regions due to the complexity of the new rules.

What has changed?

The GPSR replaces the General Product Safety Directive (GPSD) and introduces stricter safety measures in response to the rise in digital commerce and drop-shipping. It applies to all consumer goods exported to the EU and NI but does not affect the British market.

This regulation applies to goods placed on the market from 13 December 2024, excluding items like food, feed, medicinal products, antiques, and goods clearly marked for repair or reconditioning.

Key Requirements

Under the new GPSR, businesses must:

1. Ensure compliance with general safety requirements before placing products on the market.
2. Conducted internal risk assessments and maintained technical documentation.
3. Make products traceable through batch or serial numbers.
4. Appoint a named ‘EU Responsible Person’ as a point of contact for product safety.

Additionally, products must comply with the ‘responsible economic operator’ requirement outlined in Article 16, which mandates a designated operator in the EU or NI to manage compliance tasks.

Impact on Northern Ireland Businesses

Under the UK Internal Market Act 2020, goods sold in NI have unfettered access to the British market. However, they must comply with GPSR rules to trade within the EU.

Challenges and Opportunities

The GPSR poses significant hurdles for small businesses, particularly for those unable to appoint a responsible economic operator. As a result, many have halted exports to the EU and NI.

However, these regulations also present an opportunity for businesses willing to adapt to the compliance requirements. Exploring partnerships within the supply chain or seeking legal advice could ease the process.

Need Support?

If you need guidance on financial planning or budgeting for the new compliance costs, we’re here to help. Book a free consultation to discuss how these changes may impact your business and explore tailored solutions.

For detailed government guidance, visit EU General Product Safety Regulation

Royal Mail Secures New Ownership Deal Amid Promises of Stability and Modernisation

The UK government has agreed with Czech billionaire Daniel Křetínský’s EP Group to secure the future of Royal Mail. Announced on 16 December 2024, the deal includes legally binding commitments to protect Royal Mail’s services, jobs, and headquarters while laying the groundwork for its modernisation.

Key Highlights of the Deal

Protection of Jobs and Services

• Headquarters in the UK: Royal Mail will remain based in the UK, preserving jobs and ensuring it continues to pay taxes domestically.
• Golden Share Protection: The government will retain a “Golden Share,” preventing key commitments (e.g., universal service obligations) from being overturned without approval.
• Universal Service Obligation Maintained: First-class letters will continue to be delivered six days a week, with the “one-price-goes-anywhere” model remaining intact.

Modernisation Efforts

• EP Group has committed to modernising Royal Mail, aiming to make it a successful and sustainable postal operator.
• Environmental Goals: The company aims to achieve net zero emissions by 2040, with plans to electrify Royal Mail’s fleet and reduce overall emissions.

What This Means for Businesses

Stability for Small Businesses

Small businesses, particularly those in rural areas, rely heavily on Royal Mail’s affordable and reliable services. The government and EP Group have pledged to maintain these services, ensuring continuity for businesses that depend on postal deliveries.

Future Modernisation

The promise of improved infrastructure and environmental commitments could lead to better services and cost-efficiency in the long run. However, modernisation will face challenges, including balancing costs and ensuring service quality.

Will the Deal Deliver Success?

While the agreement offers reassurance through its continuity and investment promises, the success of the deal will depend on EP Group’s ability to:

• Navigate market changes and maintain competitiveness.
• Implement its ambitious modernisation plans effectively.
• Deliver tangible improvements in service quality and efficiency.

Businesses reliant on Royal Mail can take comfort in the government’s oversight and the new owner’s commitments. However, the long-term outcome will need careful monitoring to ensure the promised stability and growth materialise.

For more details, see: Royal Mail deal announcement

Consultation on Protection from Unfair Trading Provisions

The Competition and Markets Authority (CMA) has launched a consultation on the draft guidance for unfair trading provisions under the Digital Markets, Competition and Consumers (DMCC) Act 2024. This follows the provisions outlined in Chapter 1 of Part 4 of the Act, which updates and replaces the Consumer Protection from Unfair Trading Regulations 2008.

Key Details

DMCC Act 2024

• Parliament passed the DMCC Act on 24 May 2024, but it will only come into effect when the government sets a date through a statutory instrument.
• The unfair commercial practices provisions will only apply to acts or omissions occurring on or after the date these provisions are enforced.

Draft Guidance

The CMA has now released draft guidance on the provisions to clarify how these rules will be applied in practice. The draft guidance includes:

• Prohibited Practices: Examples of commercial practices that will be banned, such as:
  • Drip Pricing: Advertise a price and add mandatory charges later.
  • Fake Consumer Reviews: A ban on publishing misleading or fake reviews.
• Consultation Period: The consultation on this guidance will close on 22 January 2025.

Next Steps

• Consultation Feedback: The CMA will review the feedback it receives during the consultation period and use this to revise and finalise the guidance.
• Final Guidance: After considering the consultation, the CMA will publish its final version of the guidance, which will replace the current version.

How to Participate

To view the draft guidance and provide feedback, you can participate in the consultation by visiting the official government page: Unfair Commercial Practices Guidance Consultation.

This is an important opportunity for businesses to voice their views on the new unfair trading provisions and ensure they are aligned with the future regulations.

New Controls to Protect Britain’s Sheep and Goats from PPR

Additional import controls have been introduced to protect the UK’s sheep and goat populations from Peste des Petits Ruminants (PPR), a contagious disease that affects these animals. These new measures come in response to an outbreak of PPR in Bulgaria in November 2024.

Key Updates

• Effective from 18 December 2024:
  • Commercially produced and packaged sheep, goat milk, and milk products from Bulgaria are now prohibited from entering the UK.
  • This is part of broader import controls introduced earlier in August to prevent the disease from spreading from mainland Europe.
  • Unpackaged sheep and goat meat, meat products, and milk (whether packaged or not) are also not permitted from the EU, European Free Trade Association States, Greenland, and the Faroe Islands.
  • Additionally, Greece and Romania are already on the list of countries whose sheep and goat milk and products are restricted.

About PPR

• PPR is not a risk to human health but is highly contagious among goats and sheep. It can lead to significant animal losses if not controlled properly.

What Should Farmers and the Public Do?

• Dispose of food waste securely: Ensure that leftover food or food waste is disposed of in bins that sheep, goats, or wildlife cannot access.
• High biosecurity practices: Farmers are reminded to follow strict biosecurity measures to prevent the spread of PPR, which includes not feeding catering waste or kitchen scraps to sheep or goats.

Further Information

For full details on the updated controls and measures, see the government announcement:

New Controls on Sheep and Goat Products

These measures are vital in protecting the UK’s livestock and ensuring that PPR does not spread further across the nation.

Changes to International Trademark Rules

Significant updates have been made to the international trademark rules, particularly concerning the replacement of domestic trademarks with international registrations.

Key Update: Partial Replacement Now Allowed

• What’s New?
  • Domestic trademarks can now be partially replaced by international registrations, even if only some of the goods and services listed in the domestic registration are included in the international registration.
  • Previously, the partial replacement was not allowed unless the international registration covered all the goods and services listed in the domestic registration.
• Why the Change?
  • This update is part of Rule 21 of the Madrid Protocol Regulations, and the UK has advanced the change ahead of the official deadline.
  • These amendments are effective from 21 November 2024, with the official obligations coming into force on 1 February 2025.

What Does This Mean for Trademark Holders?

• Flexibility for Trademark Owners
  • Trademark holders will now have more flexibility when managing their registrations.
  • They can replace their UK trademark registration with an international one that covers fewer goods and services while still retaining protection for the goods and services not covered by the international registration through their existing UK registration.

Further Information

For additional details on how this affects international trademarks, see the official UK government announcement:

UK Amends International Trademark Rules

UK Joins the CPTPP to Boost Economy

Last week, the UK officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This major trade deal includes countries such as Australia, Canada, Japan, Mexico, Singapore, and others. This move is expected to help grow the UK economy, with estimates suggesting a potential £2 billion boost in the long term.

Key Highlights of the CPTPP Agreement:

• Expanded Trade Opportunities:
• Joining the CPTPP reduces tariffs and barriers for UK businesses when trading with other members of the bloc, which includes a combined GDP of £12 trillion.
• Geographic and Economic Reach:
• The trade bloc includes countries in the Asia-Pacific region, which could lead to increased trade opportunities for UK businesses, especially in regions like Scotland, Wales, Northern Ireland, and across England.
• Sectors Likely to Benefit:
  • Financial Services
  • Manufacturing
  • Food and Drink These sectors, along with others, are expected to benefit significantly from the lowered trade barriers and increased market access.

Implications for UK SMEs:

New guidance has been published to help SMEs understand how to leverage the opportunities arising from this new trade relationship. This guidance is available to help smaller businesses navigate changes in trading conditions within the CPTPP.

For more information, you can review the government’s official guidance here:

UK Joins Major Trade Group – £2 Billion Boost to Growth