The Financial Conduct Authority has launched a review to investigate whether its regulations are contributing to limited access to finance for start-ups and SMEs amid concerns that UK demand for external funding is lower than in comparable countries. The regulator is seeking feedback on how its rules may affect the cost, risk, and availability of different types of finance, including debt, equity, and alternative lending, and is open to revising or clarifying requirements if needed. The move follows a report by the British Business Bank, which found strong competition in low-risk lending but highlighted persistent gaps – particularly for smaller loans, early-stage businesses, and firms based on intellectual property. It also noted that borrowing costs remain high due to structural constraints. The FCA will co-ordinate with the Prudential Regulation Authority on issues such as capital requirements, and its work will complement broader reviews into barriers to SME financing and investment by the Treasury, the Bank of England, and the Department for Business and Trade.

High-growth British companies with international founders have experienced a 36% drop in cash injections from overseas since 2021, according to analysis of Companies House data by Rathbones. The number of deals has fallen to 1,086, raising £6.5bn, down from 2,035 deals and £10.3bn in 2021. There has also been a decline in active companies with international founders, with numbers dropping to 7,364 in 2024 from 7,431 in 2023. Analysts note that rising interest rates and tax changes are contributing to this challenging environment. Michelle White, head of private office at Rathbones, said: “This fall in investment activity is a real warning sign.”

Nearly 400 companies, including Costa, Bupa Care Services, Hays Travel and KPMG, failed to pay staff the minimum wage, affecting around 60,000 workers. The Department for Business and Trade reported £12.6m in penalties imposed across the 389 firms, which must also repay £7.3m in underpayments. Employment Rights Minister Kate Dearden said: “Nobody should finish a week’s work and find they’ve been paid less than they’ve earned.” Peter Kyle, the Business Secretary, commented: “A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.”

UK businesses are facing a significant rise in redundancy warnings, with over 315,000 jobs flagged for potential cuts in 2026, a 45% increase from 2021. Factors such as rising operational costs, wage inflation, and geopolitical tensions, particularly the Iran war, are contributing to this trend. The unemployment rate is expected to rise to 5.5% by year-end. Liquidation Centre analysis shows that redundancy payouts reached nearly £478m last year. Richard Hunt, a director at Liquidation Centre, said: “Redundancies are happening at a rapid pace in the UK as the economy continues to change.”

A poll of 1,000 SME owners by Samsung has revealed that 20% could close within three months after a data breach. The survey also found that 58% of businesses connect to free public Wi-Fi, with 45% providing no cybersecurity training.More than a fifth (21%) of firms polled described their approach to security as reactive rather than proactive. While 58% download apps or software to work devices without checking security permissions first, 23% have left a device unlocked and unattended in public and 31% never use a physical privacy screen to protect their data. Annika Bizon from Samsung said: “Small and medium businesses are the backbone of our economy, yet they are increasingly targeted by cybercriminals because they often lack enterprise-grade protection.”

Energy Secretary Ed Miliband has urged energy firms to ensure pricing is “fair, transparent and fully justifiable” amid rising costs due to the Middle East crisis. In a letter co-signed with Ofgem’s interim CEO Tim Jarvis, Mr Miliband called for maximum flexibility in contracts for small businesses. He added that the Government is committed to protecting small firms from unfair practices, including mis-selling and opaque pricing. The upcoming Energy Independence Bill will introduce regulations for energy brokers and price comparison websites to enhance transparency and fairness in the market.

Ithaca Energy reported a £63m loss for 2025, down from a £115m profit the previous year. The company attributed this decline to a £245m impact from the extension of the windfall tax to 2030. Ithaca warned that “continued fiscal and regulatory uncertainty” over Labour’s plans has led to a “hiatus of material long-term investment activity” in the North Sea. The windfall tax, now at 38%, has contributed to the industry’s stagnation, with no new wells drilled last year for the first time since 1964.

The Government has announced a doubling of tariffs on foreign steel to protect the domestic industry. Business Secretary Peter Kyle said that the new “steel safeguards” aim to ensure 50% of steel used in the UK is produced domestically, with a focus on Wales. The £2.5bn strategy seeks to increase domestic production by 30% and reduce import quotas by 60%. Mr Kyle commented: “This is a very strident set of protections for British production,” adding that officials are “closing the decades-long chapter of destructive deindustrialisation and committing instead to strengthening and sustaining Britain as a steelmaking nation.” The measures align with similar actions by the US, EU and Canada in response to a surge in cheap Chinese steel imports. Gareth Stace, the director-general of UK Steel, said he welcomed the strategy which acknowledged the “essential role steel plays in every part of the economy and sets out the direction needed to attract investment.”

Accountants are advising British expats in Dubai to avoid significant tax liabilities upon returning to the UK. Noting the impact of capital gains tax on sales made while non-resident, Nikita Cooper, tax director at Price Bailey, said: “Clients are facing unexpected capital gains tax liabilities of between £1m and £5m.” To mitigate risks, accountants suggest delaying returns until the new tax year starts on April 6. It is noted that the implications of the Iranian conflict on tax residency rules are complex, and each case will be evaluated individually by HMRC.