Business confidence in the UK has fallen to its lowest level in over a year, driven by growing pessimism among retailers and hospitality firms following the autumn budget, according to the Lloyds Bank business barometer. The index dropped by two points to 37% in January, marking the fifth consecutive monthly decline, though it remains above the long-term average of 29%. Lloyds highlighted that pessimism was highest in sectors heavily impacted by budget changes. Chancellor Rachel Reeves reduced the earnings threshold for employer national insurance contributions (NICs) from £9,100 to £5,000 and raised the main rate from 13.8% to 15%, amounting to a £25bn tax increase on businesses. Private-sector surveys indicate the budget has significantly worsened business sentiment and hiring plans but despite the decline, the Lloyds barometer remains the least pessimistic among such surveys.

Small and medium-sized enterprises (SMEs) in the UK are increasingly vulnerable to cyber attacks, as many believe they are too small to be targeted. According to the Association of Business Insurers (ABI) report, some 50% of UK businesses experience some form of cyber breach. It suggests that without adequate protection, SMEs face heightened risks from cyber threats, which are likely to escalate as technology becomes more complex. The report, conducted in partnership with Grant Thornton, recommends increased awareness and investment in cyber insurance to bolster security and stabilise the UK economy.

With the self-assessment tax return deadline approaching, over 3m individuals risk incurring a £100 penalty for late submissions, HMRC has warned. Myrtle Lloyd, HMRC’s customer services director, stated: “Customers’ reasons for not paying their tax bill or arranging a payment plan by the deadline will be considered individually.” New regulations require online platforms like eBay and Vinted to share sales data for sellers with over 30 transactions. Those who miss the deadline face escalating penalties, including daily fines of £10 after three months. Reasonable excuses for late submissions include illness and technical issues. HMRC also cautions against scams during this period, urging taxpayers to protect their login details.

The Government is launching a new panel aimed at improving employment opportunities for individuals with neurodiverse conditions such as autism, ADHD, Down’s syndrome, and Tourette’s. Sir Stephen Timms, the minister for social security and disability, highlighted that only one in three neurodiverse individuals are currently employed, citing barriers like “negative experiences of interviews” and “a reluctance to introduce adjustments” as significant challenges. The reforms, expected in March, aim to reshape disability benefits and enhance job prospects for thousands of eager neurodiverse job seekers.

The Bank of England (BoE) is expected to reduce its benchmark interest rate from 4.75% to 4.5% on February 6, as the UK economy shows signs of stagnation. Economists surveyed by Reuters unanimously predict this cut, with a nearly 90% chance of it occurring. Philip Shaw, chief economist at Investec, said weak economic growth meant companies would find it harder to push the cost of tax hikes on to consumers. “That should make it easier for the Bank of England to look through a near-term rise in inflation and deliver more rate cuts than currently priced in.”

Sokin, a UK-based payments firm, has successfully raised $15m in debt funding from BlackRock and an additional $31m investment from Morgan Stanley Expansion Capital. This financial boost comes as the company experiences a 51% increase in account openings and a 130% rise in its workforce. Sokin plans to expand its presence with new offices in London, New York, Toronto, and Dubai.

Barclays has revised its work-from-home policy, mandating that employees come into the office three days a week instead of two. Many Barclays employees – including those in its client-facing and investment banking divisions – already work four or five days a week in the office, but the official, company-wide policy had only mandated two days. This change affects approximately 85,000 staff members and aims to enhance collaboration among colleagues.

The UK’s top 25 independent breweries achieved a record turnover of £1.72bn last year, marking a 9% increase from £1.57bn in 2023, according to UHY Hacker Young. BrewDog led the way with sales of £281m, an 11% rise from £253m the previous year. A spokesperson from UHY Hacker Young stated: “The success of these breweries has been driven by a bounceback in consumer demand for independent and locally sourced goods after the Covid pandemic.” This resurgence highlights the growing preference for local products among consumers.