England Business News Round-Up: Key Updates Employers and Business Owners Need to Know
Business News England
Welcome to our latest round-up of business news for our clients. If you would like to discuss how any of these updates may impact you or your business, please do not hesitate to contact us. Naseems Accountants is here to support you every step of the way.
UK Unemployment Rises to 5% as Job Market Shows Signs of Strain.
The UK unemployment rate has climbed to 5% in the three months to September, the highest level seen since early 2021, according to new data from the Office for National Statistics (ONS).
This rise, slightly above expectations, signals a precise cooling in the job market and comes just weeks before the government’s upcoming Budget announcement.
A Labour Market Under Pressure
Despite the increase in unemployment, job vacancies have remained essentially unchanged at around 723,000 between August and October. However, early payroll data shows a more concerning trend:
✔ 180,000 fewer people on company payrolls over the past year, a drop larger than economists anticipated.
According to Liz McKeown, ONS Director of Economic Statistics, the new figures “point to a weakening labour market”, though she notes that some caution is needed. At the same time, ongoing improvements to data-collection methods are underway. Still, the trend direction is clear: employers appear to be slowing down hiring decisions.
Wage Growth Begins to Ease
Average pay growth across the UK economy fell slightly to 4.6% in Q3, down from 4.7% previously.
The gap between sectors continues to widen:
- Public sector pay: +6.6%
- Private sector pay: +4.2%
Economists suggest the public sector’s elevated growth is linked to last year’s settlements, which may now be reaching their peak. Meanwhile, private sector wages are expected to cool further as more individuals re-enter the job market, easing pressure on employers.
What This Means for UK Businesses
For many business owners, the latest statistics reflect what they are already experiencing:
- Hiring plans are being paused
Uncertainty ahead of the Budget, particularly around taxes and employer costs, has led many companies to delay major recruitment decisions.
- Small businesses feel the squeeze most
The Federation of Small Businesses (FSB) highlights the continuing burden of regulation, litigation risk and taxation as key barriers to hiring in 2025.
- Talent availability may improve
As more workers return to the labour force, employers may find it easier (and less costly) to recruit compared to the tight labour market of recent years.
What’s Ahead?
The Bank of England forecasts that unemployment will hover around 5% for the next few years, suggesting the UK may be entering a period of slower employment growth and cautious hiring.
Much now depends on the government’s Budget, and whether it delivers support for job creation, investment, and employer confidence, or introduces additional cost pressures at a time when the market is already showing signs of strain.
See: https://www.bbc.co.uk/news/articles/cdxrp7znkdlo
Have You Received a Letter from HMRC About Making Tax Digital?
HM Revenue and Customs (HMRC) has begun writing to selected taxpayers to outline the steps they need to take to prepare for the upcoming Making Tax Digital (MTD) requirements, which come into force next April.
If you’ve recently received one of these letters, or think you should have. here’s what you need to know.
What is Making Tax Digital?
Making Tax Digital for Income Tax is a new system for sole traders and landlords to submit their business and tax information to HMRC.
Under MTD, taxpayers must:
- Use compatible software to keep and maintain digital accounting records
- Submit quarterly updates to HMRC through that software
From 6 April 2026, MTD for Income Tax will become mandatory for almost all sole traders and landlords who had a gross income over £50,000 during the 2024/25 tax year.
Why Have You Received a Letter?
If you have already filed your 2024/25 tax return and your combined gross income from self-employment and/or property rental exceeds £50,000, HMRC is likely to have contacted you.
However, even if you have not received a letter, you must still follow the new MTD rules from next April if your income meets the threshold.
In other words, the responsibility to comply remains with the taxpayer, regardless of whether HMRC writes to you.
What to Do Next
A small group of taxpayers may qualify for an exemption. You should check this first. For example, if it is not reasonable or possible for you to use software to keep digital records or submit updates, you can apply for an exemption. HMRC will then confirm whether your application has been accepted.
If you are not exempt, you will need to take the following steps:
1. Choose compatible software
Select software that is fully compliant with Making Tax Digital requirements.
If you already use accounting software, contact your provider to ensure it is MTD-ready.
2. Sign up for Making Tax Digital
You will then need to sign up for MTD for Income Tax via GOV.UK before the rules come into effect.
NCSC Launches Free Cyber Action Toolkit to Help Businesses Boost Security
As previously reported, the National Cyber Security Centre (NCSC) has launched a new, free Cyber Action Toolkit to help small businesses strengthen their cyber security in a simple, practical and cost-effective way.
The toolkit is specifically designed for businesses without in-house IT teams or large cybersecurity budgets, offering clear, actionable steps that can be implemented immediately.
Helping Small Businesses Take Action
The NCSC acknowledges that many small businesses find cybersecurity overwhelming—whether because it feels too technical, too expensive, or simply not urgent. The vast amount of information available can also make it difficult to know where to begin.
The new Cyber Action Toolkit aims to remove those barriers by focusing on step-by-step actions that businesses can take straight away. Rather than presenting pages of technical guidance, the toolkit provides practical tasks that offer immediate protection, even for users with no prior cybersecurity experience.
According to the NCSC, the toolkit has been tested by more than 2,500 trial users and has received highly positive feedback.
One early user, copywriter Siobhan Strode, commented:
“Having a guide was really helpful. I felt really motivated to tick actions off, they were quick to do.”
Why It Matters for Your Business
While cyber security is often viewed as something that only larger organisations need to worry about, the NCSC stresses that no business is too small to be targeted.
Small businesses are just as likely as large companies to experience cybercrime, making it essential to take proactive steps to protect your data, systems, and customers.
The Cyber Action Toolkit provides a practical starting point, helping businesses quickly strengthen their defences without significant cost or specialist knowledge.
To explore the Cyber Action Toolkit, visit:
https://cybertoolkit.service.ncsc.gov.uk
IPO Announces 25% Fee Increase from April 2026
The Intellectual Property Office (IPO) has confirmed plans to increase its fees by an average of 25% from 1 April 2026, subject to parliamentary approval. The changes will apply to applications and renewals for patents, trademarks, and designs.
This will be the first significant fee rise in many years, with some charges remaining unchanged for more than two decades. According to the IPO, the increase is needed to address inflationary pressures and ensure that services remain efficient and sustainable.
What Will the Increases Look Like?
Most fees will rise by approximately a quarter. Examples provided by the IPO include:
- A patent search fee is increasing from £150 to £200.
- A trademark application fee is increasing from £170 to £205.
The IPO has confirmed that complete guidance will be released in early 2026, particularly for applicants whose payments fall close to the transition date.
Additionally, updates have been made to the IPO’s ‘how to pay’ information online, including revised terms and conditions for deposit account holders.
If the changes are approved, the new fee structure will take effect from 1 April 2026. Until then, current fees will continue to apply.
Need advice on managing intellectual property costs or planning for these changes?
Naseems Accountants can help you understand the financial impact and plan effectively for your business. Book your free consultation today.
See: https://www.gov.uk/government/news/intellectual-property-office-fees-to-increase-from-april-2026
New Rules Allow Professional Drivers with Diabetes to Use Glucose Monitoring Technology
From 7 November 2025, professional bus, coach, and lorry drivers with diabetes are permitted to use modern glucose monitoring tools, including Continuous Glucose Monitoring Systems (CGMS). These devices use sensors to track glucose levels in real time, providing a more convenient and accurate way to monitor glucose levels.
Previously, Group 2 drivers — those holding licences for buses and lorries, were required to rely solely on finger-prick tests to check blood sugar levels before and during driving. The updated rules bring Group 2 drivers in line with Group 1 drivers (car and motorcycle), who have been allowed to use CGMS since 2018.
What Has Changed?
From 7 November, bus, coach, and lorry drivers:
- Can now use CGMS for real-time glucose monitoring.
- Must still pull over safely if they need to confirm a glucose reading.
Tim Moss, Chief Executive of the DVLA, stated that the change aims to make life easier for drivers managing diabetes while ensuring road safety remains a priority. He noted that embracing modern health technology will help thousands of professional drivers manage their condition more effectively and with increased confidence.
What This Means for Employers and Drivers
This update provides greater flexibility for professional drivers living with diabetes and improves safety by enabling continuous monitoring. Employers with staff in driving roles may wish to review internal policies, ensure drivers are aware of the changes, and consider whether additional support or guidance is needed.
If you employ professional drivers or operate in the transport sector, we can help you understand how regulatory changes may affect your compliance responsibilities.
Book your free consultation with us for tailored business advice.
See: https://www.gov.uk/government/news/dvla-modernises-diabetes-rules-for-bus-and-lorry-drivers
ICO Consults on New Guidance for Investigations and Enforcement
The Information Commissioner’s Office (ICO) has opened a consultation on new guidance explaining how it investigates potential data protection breaches and takes enforcement action.
Increasing Transparency
The proposed guidance outlines the steps the ICO follows when it suspects an organisation may have failed to comply with the UK General Data Protection Regulation (UK GDPR) or the Data Protection Act 2018. The aim is to increase transparency and help organisations better understand the ICO’s regulatory processes.
Key Points in the Draft Guidance
The draft guidance sets out:
- How the ICO decides whether to open an investigation or resolve concerns through alternative methods.
- What organisations can expect during an investigation.
- How the ICO will use its information-gathering powers, including new powers under the Data (Use and Access) Act 2025, to require individuals to answer questions and for organisations to produce reports.
- How investigation outcomes are determined, including when warnings, reprimands, enforcement notices, or penalty notices may be issued.
- When the ICO may consider a settlement with a reduced fine, and how this process would operate.
Updates to Align With Recent Legislation
Once finalised, the new guidance will sit alongside the ICO’s Data Protection Fines Guidance, which will replace the existing Regulatory Action Policy.
The Data (Use and Access) Act 2025 also extends the ICO’s investigatory and enforcement powers under the Privacy and Electronic Communications Regulations 2003 (PECR), bringing them closer to those exercised under broader data protection law. While some differences remain, the ICO intends to apply a consistent approach across both regimes.
What This Means for You
If you act as a data controller or data processor, understanding this updated guidance could help you prepare for potential investigations and demonstrate strong governance over your data protection responsibilities.
Being aware of how the ICO approaches enforcement can also help you assess compliance risks and take proactive steps to strengthen your organisation’s data protection framework.
The consultation is open until Friday, 23 January 2026.
Review and Respond
To review the draft guidance and respond to the consultation, see:
HSE Launches Consultation on Strengthening Asbestos Regulations
The Health and Safety Executive (HSE) has launched a public consultation on proposed updates to the Control of Asbestos Regulations, aimed at improving how asbestos risks are assessed, managed, and controlled in workplaces across Great Britain.
What the Consultation Covers
The consultation seeks views on three key proposals designed to enhance safety and reduce exposure risks:
- Improving independence in the four-stage clearance process following asbestos removal, ensuring impartial assessments and strengthening public confidence in the process.
- Raising standards for asbestos surveys, giving dutyholders clearer, more consistent information to support effective asbestos management.
- Clarifying the definition of Notifiable Non-Licensed Work (NNLW) so that organisations and workers understand exactly which activities fall under the requirements.
These proposals will be of particular interest to dutyholders, asbestos analysts, removal contractors, surveyors, and anyone involved in facilities management, construction, or refurbishment.
Rick Brunt, Director of Engagement and Policy at the HSE, explained:
“Asbestos continues to be a significant risk to workers in Great Britain. While we have made significant progress in managing asbestos risks, these proposals represent an important step towards further strengthening protections for workers and the public.”
Minister for Social Security and Disability, Sir Stephen Timms, highlighted that asbestos exposure remains responsible for over 5,000 work-related deaths each year in the UK, making it the leading cause of occupational fatalities. The consultation aims to refine current regulations to provide even stronger safeguards.
What Businesses Should Know
If you own, manage, or maintain buildings constructed before 2000, this consultation serves as an essential reminder that asbestos management remains a key compliance responsibility.
Businesses involved in:
- commissioning asbestos surveys
- conducting asbestos surveys
- construction, renovation, or demolition work
- facilities management
It is valuable to review the proposals and consider how the changes could impact their processes.
Have Your Say
The consultation is open until 9 January 2026.
To read the proposals in full and respond, visit:
https://consultations.hse.gov.uk/hse/proposals-control-of-asbestos-regs-2012
Need Support With Compliance?
If you require help understanding how these proposed changes may affect your business or need support managing your compliance responsibilities, Naseems Accountants is here to help. Book your free consultation today
Employers Reminded of Duty to Prevent Sexual Harassment During Festive Season
As the festive season approaches, employers are being reminded of their legal responsibility to take reasonable steps to prevent sexual harassment in the workplace, including at Christmas parties and other work-related social events.
Under the Worker Protection Act 2023, employers must take proactive measures to protect staff from harassment, whether it occurs in the usual workplace or during employer-organised functions held off-site or outside regular working hours.
Heightened Risks During Festive Events
While end-of-year celebrations are generally joyous occasions that help strengthen team morale, the mix of social settings, alcohol consumption, and informal environments can increase the likelihood of inappropriate behaviour.
Employers are therefore encouraged to plan and implement practical measures to ensure all staff feel safe, respected, and supported. This does not mean festive events should be cancelled, instead, risks should be identified and managed responsibly.
What Should Employers Do?
The Equality and Human Rights Commission (EHRC) has published guidance highlighting key considerations for employers when organising Christmas parties and similar events. Their top three recommendations are:
- Plan to prevent problems: Consider how alcohol will be managed, arrangements for travel or accommodation, and any existing power dynamics that could increase risk.
- Set expectations earl: Remind employees of relevant company policies, including conduct, dignity at work, and anti-harassment procedures.
- Consider third-party risks: Be mindful of potential harassment involving individuals outside the organisation, such as customers, venue staff, or members of the public.
More information on the EHRC guidance can be found on their website.
For detailed technical guidance on sexual harassment and harassment at work, see:
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