Key Business Updates and Regulatory Insights for UK Companies – June 2025

Welcome to our round-up of the latest business news for our clients. Please contact us if you would like to discuss how these updates may impact your business. We’re here to help you stay informed and financially prepared.

Spending Review 2025: Takeaway Points for Your Business

Last week, the Chancellor unveiled her Spending Review, outlining how government departments intend to allocate funding over the coming years. While the spotlight remains on primary public services such as the NHS and education, there are some essential insights here that business owners should consider both in terms of upcoming opportunities and economic outlook.

Zero-Based Review

One of the core themes of the Spending Review was scrutiny. The Chancellor referred to the process as a “zero-based” review meaning departments began budgeting from scratch rather than building upon existing frameworks. The government’s stated goal is to allocate funding only where it delivers clear value for money.

This concept might resonate with you as a business owner. Adopting a zero-based approach to your budgeting could help identify costs that no longer serve the business and highlight areas where reallocating funds could improve growth or efficiency.

Thinking of reviewing your business costs from the ground up? Book a free consultation today, we can help you plan with confidence.

Everyone is Under Pressure with Costs

The government is leaning on expected productivity improvements to fund public sector pay rises, particularly in healthcare and education.

This underscores a broader message: cost pressures are everywhere, and efficiency is a key expectation, especially in public sector procurement. If your business supplies goods or services to government organisations, be prepared for closer scrutiny of your pricing and performance metrics.

Need help assessing your pricing strategy or tender documents? Please speak to us today.

Increases in Capital Investment

The review also confirmed increased capital investment in transport infrastructure and social housing. While the roll-out will be gradual, this could present medium- to long-term business opportunities in construction, engineering, and related fields.

Moreover, investments in artificial intelligence, technology, and scientific research including a new supercomputer in Edinburgh signal a growing demand for specialist services. However, it may take time before the wider economic benefits are realised.

Speeding Up Infrastructure Projects

The Treasury has announced plans to modernise how infrastructure projects are evaluated, aiming for a more agile, updated approach. This could influence which types of projects receive funding and how quickly which is worth noting if your business is involved in public contracts or works within the built environment sector.

If your firm works in construction or consultancy, we can help you prepare for upcoming opportunities in public sector bids.

Final Thoughts

Although the media focus may be on top-level figures and broad political themes, the core message of this Spending Review is highly relevant for businesses of all sizes:

• Ongoing pressure on budgets
• Greater scrutiny and expectations around value
• A renewed emphasis on doing more with what’s already being spent

If you’d like professional support in reviewing your budget, financial planning, or assessing the impact of these developments on your operations, don’t hesitate to book a free consultation with the expert team at Naseems Accountants.

See: https://www.bbc.co.uk/news/articles/clyr170qm19o

Hiring Slows as Costs Rise

New data from the Office for National Statistics (ONS) shows that UK businesses are continuing to ease back on recruitment, with job vacancies falling by 63,000 between March and May.

While this does not indicate a full-blown employment crisis, the labour market is cooling. The unemployment rate has risen to 4.6%, up from 4.5%, marking its highest level in nearly four years.

What’s Driving the Change?

A significant factor behind this trend is rising employment costs. Since April, employers have had to contend with higher National Insurance contributions, as well as an increase in the National Minimum Wage. These adjustments are influencing how businesses manage their staffing requirements.

The ONS reports that some employers choose not to replace staff when they leave, while others are delaying recruitment plans entirely.

Although average wage growth slowed slightly to 5.2% between February and April, it still outpaced inflation, which stood at 3.5% in April. This suggests that while wage pressure may be easing, businesses must carefully manage salary expectations.

What This Means for Your Business

If you find recruitment increasingly challenging or costly, you’re not alone. Many businesses are facing similar constraints.

This could be a prudent time to:

Review staff roles

Ensure employees are focused on core tasks that contribute directly to your business goals. Some responsibilities can be redistributed or streamlined, saving both time and resources.

Invest in in-house training

Upskilling your existing team could be more cost-effective than hiring externally. With the right development plan, current staff can take on additional duties.

Explore available support schemes

There may be grants, wage subsidies, or training funds in your local area to help offset costs and encourage staff development.

We’re Here to Support You

If you’re re-evaluating your staffing strategy and payroll planning or want to understand how these economic shifts might affect your business, we’d be pleased to help.

Contact Naseems Accountants today for tailored advice and practical support.

See: https://www.bbc.co.uk/news/articles/cp92edelzero

Tax-Free Childcare: Are You Benefiting?

HM Revenue and Customs (HMRC) have published the latest statistics regarding the uptake of Tax-Free Childcare.

For the 2024–25 tax year, nearly 826,000 families benefited from the scheme, saving up to £2,000 per Child. In March 2025 alone, 579,560 families across the UK used the support marking a 16% increase compared to March 2024.

What is Tax-Free Childcare?

The Tax-Free Childcare scheme enables parents to deposit money into a dedicated childcare account, which the government tops up by 25% up to £2,000 per Child per year, or £4,000 if the Child is disabled.

To illustrate, for every £8 a parent contributes, the government adds £2.

These funds can be used at any time to cover eligible childcare costs.

This can significantly ease financial pressures for working families but many eligible households are still not using it.

Who is Eligible?

To qualify, families must meet the following criteria:

Child’s age:

The Child must be aged 11 or under (eligibility ends on 1 September following their 11th birthday).

For children with disabilities, eligibility extends until 1 September after their 16th birthday.

Parental employment:

Both parents (or the parent and their partner) must be working and earning the National Living or Minimum Wage for an average of 16 hours a week and no more than £100,000 per year each.

Other benefits:

Families cannot receive Universal Credit or childcare vouchers to qualify.

If you’re unsure whether you meet the eligibility criteria or how to apply, our team can guide you through the process.

The Scheme May Benefit Employers, Too

As an employer, promoting awareness of this scheme among your staff could have several advantages:

• It can support staff wellbeing by helping parents manage the high cost of childcare.
• It may improve staff retention, particularly for trained and experienced employees returning to work after parental leave.
• Encouraging the use of the scheme can also help maintain continuity and productivity within your business.

It’s worth sharing this information with your team if you have a workforce with young families.

Take Action Today

Tax-free childcare could offer real value if you’re a parent or an employer looking to support working parents on your team.

Need help determining eligibility or setting up an account? Book a free consultation today, we’re here to help you make the most of what you’re entitled to.

For more information and to register, visit:

https://www.gov.uk/tax-free-childcare

Amazon Agrees to Act on Fake Reviews

Have you ever purchased a product on Amazon based on glowing 5-star reviews, only to find the item was sub-standard or the reviews referred to an entirely different product?

This kind of misleading experience may soon become a thing of the past, thanks to new undertakings Amazon has given to the Competition and Markets Authority (CMA).

Targeting Fake Reviews and Catalogue Abuse

Under the newly introduced Digital Markets, Competition and Consumers Act (DMCCA), fake reviews are now explicitly banned. However, concerns don’t stop there the CMA also addresses a practice known as ‘catalogue abuse’.

Catalogue abuse occurs when a seller associates positive reviews from one product with a different one. For example, a listing for headphones may appear to have five-star reviews, which relate to a mobile phone charger misleading buyers and distorting competition.

How Important Are Product Reviews?

Product reviews significantly influence purchasing decisions, with estimates suggesting that around 90% of consumers are affected.

The CMA began its formal investigation into Amazon in 2021 over suspected breaches of consumer protection law. Since then, the introduction of the DMCCA has not only outlawed fake reviews but also strengthened the CMA’s powers to enforce compliance.

Amazon’s Undertakings

Amazon has now agreed to implement robust procedures to detect and remove fake reviews and instances of catalogue abuse. These measures will include:

• Improved monitoring systems to swiftly flag suspicious activity
• Sanctions against businesses and individuals who engage in counterfeit reviewing tactics, including permanent bans
• Simplified tools for consumers to report misleading reviews or product listings

This is a positive step in helping protect online shoppers and ensuring businesses compete fairly.

However, Amazon is not the only platform under scrutiny. The CMA is now conducting an initial review of other online review platforms to assess compliance with consumer protection legislation. They have also issued guidance to help businesses understand their responsibilities regarding collecting and publishing customer reviews.

Final Thoughts

If you sell products online or operate in e-commerce, it’s essential to ensure your use of customer reviews is transparent, accurate and legally compliant.

Running an Amazon business? Not sure if your financial practices are up to standard? Let the accountants for Amazon sellers at Naseems Accountants review your processes and guide you on industry best practices. Book your free Amazon accounting consultation today!

For more details on the CMA’s announcement, see: https://www.gov.uk/government/news/amazon-gives-undertakings-to-cma-to-curb-fake-reviews

New Digital Hub for Technology Procurement

The UK government has announced the development of a new digital marketplace that aims to transform how the public sector procures technology.

Currently in its early stages, the platform is intended to help public sector organisations leverage collective buying power. It will also utilise artificial intelligence to match organisations with suitable suppliers based on their specific requirements.

What’s the Need for a Digital Marketplace?

A recent State of Digital Government report revealed that while many public sector bodies rely on similar digital tools, they still tend to source and negotiate contracts individually.

This decentralised approach often leads to inefficiencies and missed opportunities for collaboration. The new hub will allow users to rate and review technology solutions, providing shared insights that help others make informed decisions.

What Could This Mean for Tech Suppliers?

More Opportunities for Smaller Businesses

The platform is designed to open the market to a broader range of UK tech firms. One of its key goals is to increase the use of small businesses in public sector procurement by 40% within three years. This could present exciting new opportunities if you’re a small or growing tech firm.

Greater Focus on Customer Experience

With the introduction of ratings and reviews, customer satisfaction will take centre stage. Delivering a high-quality experience and responsive service will become increasingly important in maintaining a competitive edge.

Cost Pressures May Intensify

One of the key drivers behind the initiative is to give public sector organisations more negotiating power. As a result, tech suppliers may need to be more price-competitive to win or retain contracts.

What Else Is Being Developed?

The new digital procurement platform is part of the government’s revised Procurement Regulations. A “digital playbook” is being prepared, offering best practice guidance for purchasing decisions and procurement strategy within the public sector.

Final Thoughts

This initiative is worth monitoring if your business supplies digital tools or services, or is planning to enter the public sector market. The new hub could reshape procurement dynamics, favouring agile, competitive, and client-focused suppliers.

At Naseems Accountants, we help technology businesses understand and navigate public sector opportunities, contracts, and compliance. If you need support with financial forecasting, pricing strategies, or bid preparation, we’re here to assist you.

For full details of the announcement, visit: https://www.gov.uk/government/news/one-stop-shop-for-tech-could-save-taxpayers-12-billion-and-overhaul-how-government-buys-digital-tools

How to Protect Sensitive Personal Information

The National Cyber Security Centre (NCSC) has issued updated guidance to help businesses recognise and reduce the risks of storing sensitive personal information.

This guidance can assist you in understanding what qualifies as sensitive personal information and how to identify it within your business. It also outlines key principles that, when implemented, can help minimise the risks of holding such data.

What is Sensitive Personal Information?

The NCSC notes that no single legal definition of Sensitive Personal Information (SPI) exists. Instead, businesses should assess the potential harm if such information were compromised.

Would a data breach result in prejudice, harassment, or harm to an individual? That’s the key question.

Examples of potentially sensitive information may include someone’s:

• Occupation
• Personal Characteristics
• Legal or social status

Data not legally classified as a “special category” under GDPR could still require enhanced protection.

Assessing the Risks

The NCSC recommends evaluating the severity of potential consequences from data misuse to determine what levels of protection are appropriate. Their guidance includes several helpful risk assessment questions to support this process.

We recommend that businesses periodically review the data they collect and store, ensuring that their protection measures are proportionate to the sensitivity of the data.

Nine Principles

To help businesses better protect SPI, the NCSC outlines nine core principles:

1. Know what data you have and assess its associated risks
2. Limit access to SPI appropriately
3. Track access to data containing SPI
4. Prevent misuse of data access
5. Avoid excessive aggregation of sensitive data
6. Check for SPI exposure when merging datasets
7. Review SPI exposure when sharing data externally
8. Ensure SPI records are not handled differently, which could expose their sensitive nature
9. Keep access controls for SPI distinct from general data access procedures

Each principle is supported by practical examples to guide implementation.

Final Thoughts

Cyberattacks and data breaches are rising, and businesses that handle sensitive personal information are particularly at risk. The consequences of a breach can be severe not just in terms of fines and penalties from the Information Commissioner’s Office, but also through loss of trust, operational disruption, recovery costs, and potential legal claims from affected individuals.

If your business handles sensitive personal data, we strongly recommend reviewing the NCSC’s new guidance and strengthening your data protection protocols.

For more information, visit:

https://www.ncsc.gov.uk/collection/security-principles-protecting-most-sensitive-personal-information-in-datasets

Fisheries and Seafood Scheme: £6 Million of Funding Released

The latest round of funding through the Fisheries and Seafood Scheme (FaSS) is now open to eligible seafood and marine-related businesses and organisations.

A total of £6 million has been made available for the 2025/26 financial year, supporting a wide range of projects that aim to improve the sustainability, resilience, and growth of the UK’s seafood industry.

What Kind of Projects Can Be Funded?

This funding may be available for projects that align with one or more of the following goals:

• Enhancing the sustainability and resilience of the seafood sector
• Reducing emissions and waste across operations
• Cleaning up rivers, lakes, and marine environments
• Promoting growth and innovation within seafood and marine-related businesses

Eligible projects could receive funding of up to £250,000.

Who Can Apply?

Seafood businesses, marine organisations, and those involved in related environmental initiatives are encouraged to explore this funding opportunity. If your company is considering a new project that could meet these aims, this could be a valuable source of support.

Whether you’re a fisheries operator or part of the marine supply chain, we can help assess your eligibility and prepare your application for this scheme.

Find Out More

To learn more about the eligibility requirements, the application process, and how to submit a proposal, visit the official GOV.UK guidance: Fisheries and Seafood Scheme – GOV.UK

If you’re considering applying and need help with the financial aspects of your proposal from project budgeting to funding compliance don’t hesitate to contact the team at Naseems Accountants. We’re here to support you every step of the way.

ICO Unveils Strategy for Protecting Information in the Age of AI

The Information Commissioner’s Office (ICO) has launched a new strategy that uses artificial intelligence (AI) and biometric technologies. The initiative ensures that organisations lawfully develop and implement new technologies while maintaining public trust.

Recent research has highlighted growing public concern over the potential misuse of AI. For example, 54% of respondents expressed worry that facial recognition technology used by police forces could infringe on their privacy rights.

Building Trust in AI

Speaking at the strategy’s launch, Information Commissioner John Edwards stated:

“Public trust is not threatened by new technologies themselves, but by reckless applications of these technologies outside of the necessary guardrails.”

This underscores the ICO’s commitment to supporting responsible innovation while protecting individuals’ privacy.

What the Strategy Includes

The ICO’s AI and biometrics strategy outlines several key actions to ensure organisations remain compliant:

• Audits of organisations using AI and biometric technologies
• Guidance and resources to help businesses navigate data protection requirements
• Development of a statutory code of practice to help organisations innovate responsibly while safeguarding personal information

Why It Matters to Your Business

If your business is using or planning to adopt AI or biometric solutions for example, for customer service automation, identity verification, or data analysis this strategy directly affects how you manage data protection and privacy compliance.

Ensuring your AI practices are ethical, legal, and transparent is not just about compliance but building trust with your customers and stakeholders.

Next Steps

The whole ICO strategy provides detailed insights into how organisations can remain on the right side of the law when working with emerging technologies. Review the full ICO AI and Biometrics Strategy