The Federation of Small Businesses (FSB) is sounding a warning shot ahead of a looming cost crunch in April that could push many small firms to breaking point. In less than two months, rising energy bills, business rates hikes, spiralling employment costs and changes to Statutory Sick Pay will all rise at a record pace, due to Government decisions. This could lead to closures, stalled growth and fewer entrepreneurs willing to start up a business - unless urgent action is taken. March’s Spring Forecast is the Government’s last chance to act before the new costs surge in April. FSB has written to the Chancellor, calling for her to protect the UK’s 5.7 million small businesses and self-employed people from these unparalleled cost hikes. Latest research from FSB has revealed more than a third (35%) of small businesses are planning to close or contract over the coming year, rising to 41 per cent in the wholesale and retail sector, and 45 per cent in accommodation and food services. Costs are already rising at a record pace, and more small firms are now seeing their revenues fall than rise. As a result, more businesses expect to shrink over the next year (35%) than grow (21%).   What’s rising in April and what can Government do to help? One of the biggest costs for small employers is the price of labour – driven by increases in the National Living Wage (NLW) and rising employer National Insurance contributions (NICs). Despite the increased Employment Allowance offsetting some of the cost, April will see further rises in the NLW, pushing up employers’ National Insurance bills. A small employer with nine staff on NLW has seen its annual employment costs rise by £25,850 between January 2025 and April 2026 - equivalent to the cost of an additional staff member. The same business’s employer national insurance bill over that period would have increased by £4,400, or 46%. The Government should uprate the Employment Allowance so it continues to cover the employer NICs costs of four employees on NLW. Many small businesses in England will see their business rates bills rise from April, due to the commercial property revaluation and changes to multipliers – as well as the loss of the 40% discount for retail, hospitality and leisure firms, replaced by a new multiplier.   FSB estimates these changes mean small businesses in these sectors will face an average 52% increase in bills, phased in over the next three years. We’re calling on the Government to extend the three-year support package for pubs to other small businesses in the retail, hospitality and leisure sector, and increase the Small Business Rate Relief threshold to £25,000. There is also a need for measures to protect small businesses from rising rates bills in Wales, Scotland and Northern Ireland, where similar revaluations and other changes are coming into effect. Since the energy price crisis, energy costs have continued to rise. Small firms will see their annual standing charges increase by over 40% in April. A business with an annual electricity consumption of around 40,000kWh (typical for a small restaurant, hair salon or gym), would see their annual standing charge rise from £3,680 to £5,283. We are calling on the Government to remove up to 75% of the Renewable Obligation costs from non-domestic energy bills, mirroring the support that has already been given for households. Statutory Sick Pay (SSP) costs will jump from April, with all employees becoming eligible and payments starting from day one of sickness. FSB analysis finds this will add around £110 a year for every worker on the minimum rate. Introducing a SSP rebate for small and medium employers would mitigate the cost impacts of changes. From April, dividend tax rates will rise by two percentage points, taking the basic rate to 10.75% and the higher rate to 35.75%. For company directors, this means lower take home pay, as many rely on a mix of salary up to the personal allowance limit and dividends to withdraw income efficiently. We urge Government to defer the increase of the basic rate until April 2027. Business owners will also face compulsory Making Tax Digital compliance and increases in fees from Companies House. FSB Policy Chair Tina McKenzie said: “April’s impending cost crunch will make running a small business in the UK more expensive - and that has real consequences." “It will push already struggling small firms past breaking point, deter would be entrepreneurs from setting up in business as the numbers no longer stack up, and put the brakes on the small business growth the economy depends on." “Small businesses are resilient - but they are not invincible. They simply cannot go on absorbing endless cost increases. The local greengrocer who has been serving the community for 60 years, the tech start up that wants to expand and the garage that employs dozens of staff including apprentices – they will all be feeling the pressure and have to make tough decisions off the back of it." “Many of these hardworking businesses have already been forced to increase prices, lay off staff, or cancel expansion plans." “Next month’s Spring Forecast is the last chance to take action before the new costs surge. The Chancellor must recognise the huge pressure that our 5.7 million small businesses and self-employed people are under and show she is willing to ease even a fraction of these cost pressures to help stem the tide of these rising costs.”

With the T20 World Cup now well underway in India and Sri Lanka, property consultancy Vail Williams is marking its role in advising the University of Brighton on the opening of the UK’s largest indoor cricket academy. The Square One Cricket Academy at the University of Brighton enables aspiring cricketers to develop their talents while earning a degree through academic studies by offering top-tier professional coaching and cutting-edge facilities. The academy is a ground breaking partnership between the university and Square One Education Ltd and is based at the university’s new Brighton Sport and Health Complex in Falmer. At approximately 2,200 square metres, Square One Cricket Academy is larger than both Lord’s Indoor Cricket Centre and the National Cricket Performance Centre at Loughborough University – and is second biggest in the world. It offers nine-lane indoor cricket nets with full 21-metre run ups, ball tracking technology, advanced bowling machines and two indoor cricket courts – as well as modern cricket science and performance data. Steve Berrett, Vail Williams’ partner based in the Gatwick region, said: “This is a fantastic, world-class training environment catering to elite student cricketers of all ages, genders, backgrounds and abilities. This is a great example of repurposing underused leisure space. What was previously indoor tennis courts, originally part of Virgin Active fitness, now delivers a superb addition to the University’s sports facilities." “We assisted long-term client university in the leasing of the former tennis courts and act in an ongoing consultancy and advisory role with regard to matters such as the disposal of Pavilion Parade in Brighton and marketing of Leaf Hospital in Eastbourne." “The academy is the perfect place to develop the next Joe Root, Harry Brook or Joss Buttler and will also help the university further deliver on its ambition to be a top provider for sports education for students from across the UK and around the world.” Square One Education, which provided capital funding to refurbish the space and project managed its installation, now runs the academy on a day-to-day basis, providing a team of highly qualified and experienced coaches. As part of the arrangement, The Square One Cricket Academy will also be open to local clubs and schools for coaching purposes. Steve Porcher, University of Brighton director of estates, said: “We are delighted to see the Square One Cricket Academy open on our Falmer campus. It represents a major enhancement to our sport and health facilities and shows what can be achieved through effective partnership working." “Vail Williams has played an important role in helping us bring this project forward, and their support has been invaluable throughout the process." “This purpose built space will enable our students to excel both academically and athletically, while also creating new opportunities for local clubs and schools. It is a superb addition to the campus and a key part of our ambition to provide first-class facilities for our community.” The University of Brighton’s Falmer campus is home to its School of Education, Sport and Health Sciences and recently underwent significant refurbishment and expansion. This has seen the creation of world-class facilities to support teaching, learning and research alongside new sport and leisure facilities for students, staff and the local community. Vail Williams’ full-service property advice includes commercial agency, investment and development advice, building consultancy, property valuation, planning, lease advisory, property asset management, business rates and occupier consultancy. Photo: Bowled Over: The University of Brighton’s new Brighton Sport and Health Complex in Falmer which houses the state-of-the-art Square One Cricket Academy, the UK’s largest indoor cricket academy

Local voices and leading Edinburgh ambassadors invite visitors to experience the city beyond the guidebook. Forever Edinburgh has launched Stay Like a Local, a new campaign designed to encourage visitors to experience the city through the eyes of the people who know it best. Centred on a partnership with social enterprise Invisible Cities, the campaign showcases Edinburgh’s hidden gems, neighbourhood culture and the wide variety of stays available across the city beyond the expected. At the heart of Stay Like a Local is a new Invisible Cities guided walking tour of the same name, created by local guides with lived experience of Edinburgh. Hear about the city from people who really know their history and the magic hidden behind the main streets and familiar tourist locations. The tour highlights off-the-beaten-path locations, lesser-known stories and everyday places loved by locals, offering visitors a deeper and more meaningful connection with the city. Guides share stories such as Whitefoord House on the Canongate, an 18th-century mansion that later became a print foundry before evolving into the city’s first residence for veterans, alongside hidden spaces like Dunbar’s Close Garden, a secluded pocket garden inspired by 17th-century design and Patrick Geddes’ vision for green spaces in the Old Town. The itinerary will be available as a dedicated Stay Like a Local tour, delivered by the Invisible Cities guides, sharing their key secrets of the city with tourists. Founded in Edinburgh, Invisible Cities is a social enterprise that trains people who have experienced homelessness to become walking tour guides in their own city. Through storytelling, guiding and meaningful employment, Invisible Cities creates opportunities for guides while offering visitors an honest and personal perspective on place. As a social enterprise, Invisible Cities prioritises offering ethical and sustainable tours. The partnership aligns with Forever Edinburgh’s commitment to supporting responsible tourism and community-led experiences. The campaign is further brought to life through recommendations from a collective of Edinburgh ambassadors spanning hospitality, culture, food and drink and visitor experiences. Each ambassador shares their personal take on the perfect Edinburgh break, demonstrating how the city can be enjoyed in many different ways, from literary escapes and culinary journeys to art-led adventures and maritime explorations. Ambassadors include founders and team members of Golden Hare Books, The Balmoral, Jupiter Artland, Mercat Tours, The Royal Yacht Britannia and Maid of the Forth. Michelin Guide chef Roberta Hall-McCarron, founder of The Little Chartroom, Ardfern and Eleanore has also shared her recommendations, alongside players from Edinburgh Rugby’s men's and women’s teams. Together, their recommendations illustrate the diversity of holidays available in Edinburgh, whether visitors are seeking a luxury city break, a culture-rich long weekend, a food-focused escape or an experience-led stay shaped by local knowledge. Zakia Moulaoui Guery, founder of Invisible Cities, said: “This partnership is about showing Edinburgh as it really is, through the places and stories that matter to the people who live here. Our guides bring a perspective you won’t find in a guidebook, shaped by lived experience and a deep connection to the city." “Being part of the Stay Like a Local campaign allows us to champion more responsible tourism, create meaningful work and invite visitors to explore Edinburgh in a way that benefits local communities.” Councillor Jane Meagher, leader of the City of Edinburgh Council said: “Edinburgh is a city of neighbourhoods, stories and communities, and Stay Like a Local encourages visitors to experience this in a way that is both authentic and responsible." “Working with Invisible Cities and their ambassadors helps visitors to discover parts of the city that they might otherwise miss – from independent bookshops and galleries to historic closes and local dining – ensuring that tourism benefits our residents and businesses, as well as our visitors.” Stay Like a Local is part of Stay Different a three-year behaviour change campaign led by Forever Edinburgh and funded by the UK Shared Prosperity Fund. Find out more about Stay Like a Local, sign up to the tour and read the ambassador’s recommendations here .

A south coast legal firm is working its way through a surge of instructions as business owners and directors race to beat an imminent tax deadline. Company law experts at Ellis Jones Solicitors say they are navigating a heightened case load ahead of the next phase of Capital Gains Tax (CGT) rules going live. From 6 April 2026, as announced by the government in its autumn 2024 Budget, there will be a further tightening of Business Asset Disposal Relief (BADR), previously Entrepreneurs’ Relief. For many years, BADR meant that the sale, disposal or transfer of ‘qualifying business assets’ such as company shares attracted a lower CGT rate of 10% on the first £1 million of gains. A year ago, the rate went up to 14% and from this April it will rise again by another four per cent to 18%. “The clock is ticking ever louder,” said Neil Cook, Partner & Head of Business Services at Ellis Jones. “On £1 million of gains, you instantly lost £40,000 on a transaction that completed after 6 April 2025. The CGT due went up from £100,000, being ten per cent, to £140,000, equating to 14%. In just a few weeks’ time there will be another cliff edge. Instead of £140,000, you will have to pay £180,000, reflecting the 18% rate. That’s a whopping £80,000 extra in tax compared with what you would have paid before April 2025.” Neil said the phased reduction of BADR continues to be a headache for many business owners and directors looking to exit through a sale. “In the run-up to last April, we were inundated with enquiries and instructions from business people right across the board desperate to see deals completed before the 14% rate came in. Now, with the 18% rate just a few weeks away, the rush has started again." “People who may have pinned their retirement plans on the expectation of paying a certain level of CGT are going to be thousands of pounds worse off if they don’t act immediately.” Neil said his team were busy working with clients to ensure everything is in place legally if they wish to complete a deal before 5 April to avoid the higher rate. He added that business owners should always consult a tax expert or accountant for the best tax advice concerning CGT and all tax matters. Members of Ellis Jones’ Business Services department work from the independent law firm’s offices in Dorset and London. As well as Neil, specialist solicitors advising and acting on business deals and CGT-related instructions are Clementine Saulnier, Wayne Spolander and Victoria Simpkin. For more information on Ellis Jones’ Business Services, visit here .

An ambitious project aimed at optimising low-energy processing of cultivated kelp to create a liquid biostimulant and animal feed supplement is closer to commercialisation after exceeding its initial targets in controlled field trials.   The project, called ‘Optimising low energy extraction of kelp for soil and livestock nutrition’ (or Low Energy Kelp), is funded by Innovate UK, the UK’s innovation agency, and builds on previous feasibility studies to optimise the liquid extraction and ensiling of kelp, aiming to develop a novel two-stage extraction process which produces consistent agricultural products.   Algapelago Marine Limited (lead partner), a farming-led seaweed biotech business operating an offshore seaweed farm, collaborated with Rothamsted Research and the UK Agri-Tech Centre to demonstrate the efficacy of these products under abiotic stress conditions.   Interest is growing in the use of seaweed-derived biostimulants in agriculture due to their potential to enhance crop growth, promote stress tolerance and increase nutrient use efficiency, and because they are derived from a sustainable source with positive environment impacts.   Current agri-seaweed products are dominated by seaweed sourced from wild harvest and the demand for seaweed-derived soil and animal supplements is expected to grow exponentially as policy drives a reduction in chemical inputs.   Experiments were conducted at Rothamsted’s controlled environment facilities where the partners could establish optimal application methods and rates for Algapelago’s prototype biostimulant. Firstly, Rothamsted investigated the impact of four different rates of foliar applications on wheat and field bean yields under both well-watered and drought-stressed conditions, and secondly, whether foliar application or soil application had the greatest impact on yields of wheat.   Further experiments assessed the timings of applications relative to growth stage, and applications under different drought stress scenarios (only one was tested here), were recommended to further understand and optimise the use of Algapelago’s biostimulant products.   Experiments using different rates of fertiliser application were recommended, as the biostimulant potentially could perform better under more nutrient-limited conditions than those that were used in the study.   Evidence found that seaweed-derived biostimulants can—and do—under certain conditions, provide crop yield benefits.   Dr Marieme Drame is the Scientific Technician at Rothamsted Research, North Wyke, and she speaks positively about the results they’ve found so far. She said: “Kelp-derived biostimulants offer a systems-based solution that works with plant and soil biology to enhance crop performance. At the optimal application rate in our wheat trials, we observed improved growth and yield, along with positive indirect effects on soil microbial activity, demonstrating clear value for productive and resilient farming systems.”   Dr Hari Ram Upadhayay, Scientist in Agroecosystem Biogeochemistry at Rothamsted Research, North Wyke, thinks the way forward is through teamwork. He said: “Collaboration is a key to driving innovation. Here, kelp-derived biostimulants innovation holds major promise for supporting sustainable intensification as agriculture adapts to a changing climate.” Also from Rothamsted Research is Professor Adie Collins, Science Director, and he believes that collaboration can be crucial to the success of the industry.   He said: “This project provides a good example of how industry and science teams can co-work together to ensure robust evidence is assembled on potential new interventions in support of sustainable and resilient agriculture in a changing and challenging world.”   Dr Saravanan Rengaraj, Innovation Associate for Soil Health at the UK Agri-Tech Centre, said: “Algapelago has successfully applied nature based farmed seaweed chemistry through a scalable biostimulant platform designed to enhance crop yield stability and nutrient use efficiency." “We at the UK Agri-Tech Centre feel proud to have supported with technical validation and project management.”   Kerr Jeferies, Market Research & Partnerships Manager at Algapelago, said: “The insights from our direct engagement with growers have been invaluable." “Hearing directly from leading farm managers and agronomists has sharpened our focus and made us even more confident in the product’s potential and market fit." “We’re excited to continue engaging with these partners as we go from prototype to full commercialisation of the UK cultivated kelp biostimulant.”   Speaking about the project and the progress it has made in exceeding its targets, Luke Ansell, Head of Operations & Research at Algapelago, said: “The Low Energy Kelp project set out an ambitious goal to unlock the supply of cultivated kelp as a quality agricultural supplement."   “Over the last two years, we've made great progress towards that goal, moving from concept phase to a low-energy processing method stress-tested at a 1-tonne scale."   “The prototype biostimulant product has far exceeded expectations in wheat trials, demonstrating that biostimulants sourced from cultivated seaweed can outperform market incumbents." “Though the Low Energy Kelp project has ended, we will continue to build the evidence base for product efficacy and move towards commercial production through the sister Innovate UK SKE-NMT project."   “I want to thank all project partners, including Atlantic Mariculture, Rothamsted Research and the UK Agri-Tech Centre, for their contributions."   “It's been a pleasure working with the consortium team and we look forward to providing more updates on our work soon.”   To hear the team explore the topic in more depth, visit here.   For more information about the project, visit here .

USA international Mae Sagapolu has committed her future to Loughborough Lightning by signing a new contract extension. The tighthead prop arrived from East Midlands rivals Leicester Tigers last summer and has made a huge impact in an African Violet shirt, appearing in all nine Premiership Women’s Rugby fixtures so far this season, scoring two tries. Her powerful ball carrying, strong scrummaging and destructive defence have been key features in Lightning’s campaign so far, having returned from featuring in all three of USA’s 2025 Rugby World Cup fixtures. Mae commented: “It’s been such a big push for me since I joined Lightning. I really enjoy the girls so much. Nathan [Smith] is a really good coach for me. He pushes me when I need to be pushed. Everyone’s attention to detail is so crazy and I think that’s such a big work-on for me." “I think I just fit in really well with the girls and they’ve made it like a big home for me, so coming back was an easy choice for me. Everyone treats me like family, and I love that the girls are constantly pushing every week." “I feel like I have become a better player and I have more tools in my toolbox as well. I’m surrounded by very knowledgeable people. I’m bouncing ideas off other people, they’re sharing ideas. They take the time to develop me, so I feel like I have improved my game." “There’s a lot still to work on this well, I feel like I’m in a good place working on solid foundations, I'm really looking forward to what’s ahead at Lightning.” Sagapolu’s next outing in a Lightning shirt is Sunday’s return to cinch Stadium at Franklin’s Gardens on Sunday 22 February (kick-off: 1pm) against Bristol Bears. That Round 12 fixture is the first of three Lightning have at home in the space of four weeks, with Harlequins (13 March) and Gloucester-Hartpury (22 March) also heading to cinch Stadium. “We are not going to shy away from the challenge,” added Sagapolu. “We know we’re coming up against some really good sides. We’re buzzing to get into it, I'm excited to be involved. “I love playing at cinch Stadium. I find the little girls in their cowboy hats adorable! As a player seeing the amount of support we have, it motivates me. There’s something about seeing little girls wanting to be Lightning players. “I just feel extremely blessed and grateful to have the supporters we have. “They come, no matter what, rain or shine, everyone's there. It another boost for us. Even if we're on the back foot, they push us forward.” Sagapolu is the latest player to commit their future to Lightning, following on from previous announcements that Daisy Hibbert-Jones and Keevy Fitzpatrick have agreed new deals – and many more new contracts will be revealed in the weeks ahead. Lightning Head Coach Nathan Smith commented: “I am delighted that Mae has signed a new multi-year deal. Firstly, she is just a fantastic player to coach, and she is really good for the environment. We knew before she came to Lightning Mae was a quality player but she has made big improvements in her game already and I am excited to see how far she can take her game working with us during the duration of her contract." “It’s really important we retain players of Mae’s qualities and it is a big statement for us to make to keep her with us for a long period.” Photo : Credit Dennis Dixon.

Scotland’s leading business support festival is returning to Tayside this month to inspire local entrepreneurs and business owners. Transform Business Festival, which is created and delivered by Business Gateway and Elevator in partnership with Tayside’s three local authorities, will take place at Dundee Science Centre on Wednesday 18 February. The free event, which will be opened by Leader of Dundee City Council, Councillor Mark Flynn, aims to inspire, connect and transform entrepreneurs, start-ups and businesses of all sizes across the region. This year’s festival will feature Dave Coplin, former Chief Envisioning Officer of Microsoft UK, as a keynote speaker. With more than 25 years in the technology industry, Coplin is at the forefront of conversations on AI, big data, digitalisation and emerging technologies. He will explore how business and individuals can combine “human plus machines” to achieve the best results. Attendees will also get the chance to hear stories from local business owners, including Brechin-based entrepreneur Katrina Hutchinson-O’Neill, who founded recruitment company, Join Talent. Katrina is also CEO of Hatchwork Events, which runs Summer’s End Angus, which is set to be the second largest mainstream independent music festival in Scotland this year. Attendees can also enjoy networking activities and one-to-one business advisory sessions, as well as the chance to meet key Tayside support partners. Councillor Mark Flynn, Leader of Dundee City Council, said: “I’m very much looking forward to opening this year’s Transform Business Festival. Dundee’s economy thrives on innovation, and small businesses are at its heart. This event is a great chance for business owners, both new and established, to connect, share ideas and inspire each other. By supporting entrepreneurship, we’re investing in the future of our city and community." Elevator’s CEO, Rachel Ross, commented: “Tayside has some brilliant businesses and entrepreneurs, and Transform is about bringing them together. We focus on practical support - helping businesses scale, build stronger networks and access the expertise they need. Events like this create the connections that drive real growth, and we’re excited to welcome everyone back." Mandy McKenzie, Business Gateway Tayside Manager, said: “We’re very pleased to be bringing the Transform Business Festival back to Dundee. It’s a fantastic opportunity for local business owners, or those thinking about starting a business, to gain fresh ideas, meet like-minded people, and discover the support available to help them grow and succeed.”

Evtec Automotive Ltd based in Coventry has struck gold at a major national Manufacturing Awards ceremony picking up two awards, including being named Manufacturer of the Year. The awards, organised by Make UK, were held in London to recognise the achievements of companies from across the UK in six different categories. Evtec is a leading Tier 1 Automotive supplier and was presented with the national Make UK Health, Safety & Wellbeing Award having won the same award for the Midlands Region back in November. It was also crowned winner of winners picking up the Manufacturer of the Year against other companies who had also won national awards in six other categories The business intrinsically depends on the health & wellbeing of its employees to manufacture, assemble and deliver high quality assembles to global OEMs. The reward was given in recognition of the transformational nature of the company’s approach to health, safety and wellbeing including changing its practices to enable the recruitment of those with disabilities and other different backgrounds. Through investment in systems, culture, and people, Evtec Automotive has created a workplace that is safer, healthier, more inclusive and an environment from the Managing Director downwards where every employee takes ownership of health, safety & wellbeing. Jane Billson, Head of ESG at Evtec, said: “We are very proud to receive these awards which clearly demonstrates the dedication of every member of our team, whose passion and care continue to make Evtec a safer, healthier and more inclusive place to work.” Stephen Phipson, Chief Executive of Make UK, said: “These awards are a testament to the dynamic companies and individuals working within engineering and manufacturing. The sector remains at the heart of creating wealth in the UK and, as we grow our economy, there will be a bright future for companies and individuals that make the most of their talent.” In addition, the following companies received national awards: Bowers & Jones - Business Growth & Strategy Dyer Engineering Ltd - Developing Future Talent Airbond - Environment & Sustainability Lisi Aerospace Ltd - Innovation Acres Engineering - Manufacturing Impact Lionel Hitchen - SME of the Year Above Photo: Jane Billson, Head of ESG and Jez Hunt, Plant Manager at Evtec being presented with the award by Make UK CEO, Stephen Phipson.

The John Lewis Partnership has announced a £108m investment in pay, continuing its commitment to invest in Partner wages, alongside its wide range of other benefits. The latest announcement comes on top of nearly £300m added to the pay budget over the three previous years. Of this latest £108m investment, nearly 90% is voluntary and driven by the business’ desire to invest in its Partners, representing spend above and beyond the requirements of the National Minimum Wage. From 1 April, those working on the shop floor across John Lewis and Waitrose will receive a 6.9% increase - with minimum hourly rates rising to £13.25 (UK-wide) and £14.80 (within the M25). For a typical full-time Partner, this translates to an additional £1,600 per year. Rates of pay increase to £14.31 per hour for those Partners who gain enhanced skills and take on specialist roles, rising to £15.98 within the M25. Helen Webb, Chief People Officer for the John Lewis Partnership, said: “Our Partners are the heartbeat of our business. This £108m investment is about putting more money into their pockets month-in, month-out. This pay growth demonstrates a sustained commitment to Partner pay, consistent with previous years. This ensures that the rewards for our Partners’ hard work are built into their monthly pay as we continue to invest in the future of the Partnership." In addition to baseline pay, Partners get access to a unique range of benefits - including generous discounts at John Lewis and Waitrose. The Partnership also offers up to a 12% pension contribution, discounted rates to its network of hotels across the UK, up to £275 towards subsidising personal development and leisure activities such as theatre and live events, subsidised meals, and a wide ranging health and wellbeing offer including options for self-referral to physiotherapy and counselling.

Responding to the latest data from the Office for National Statistics on the UK Labour Market showing that unemployment has risen to its highest rate in nearly five years and that wage growth is continuing to slow, especially in the private sector, Hampshire Chamber’s Chief Executive and Executive Chair Ross McNally said: “It is a disgrace, but perhaps not a surprise, that unemployment among young people aged between 16 and 24 is now the highest it has been in more than ten years." “We are at risk of seeing a lost generation, and the government must do all it can to enable employers to hire young people, whether straight into work or through apprenticeships. There should be more incentives through the business tax system to encourage employers here in Hampshire and across the country to consider taking on more young people." “Investment isn’t just about plant and machinery - it’s about people and their future. The government needs to do much more to help small firms offset the rising costs of doing business. Businesses were hit hard by the increase in employer National Insurance contributions, and many are now facing further rises in the National Living Wage alongside higher business rates." “Labour costs are the biggest cost pressure for businesses, cited by 72% of respondents in latest chamber of commerce research. Against this background it is unsurprising they are holding off hiring. Especially as the imminent introduction of new Employment Rights legislation adds additional complexity to the picture." “While the forthcoming Spring Statement (3rd March) will provide a fuller update on the economic outlook, businesses are clear they want to see concrete action right now to reduce costs and help them survive and invest in creating jobs.”

For many family businesses, shares in a trading company form a core part of long-term family wealth. Importantly, they’ve historically provided a tax-efficient way to pass on wealth via inheritance. Simply keeping hold of shares until you pass away has been an effective form of inheritance tax planning for many years. This is because, shares in qualifying trading companies have usually benefitted from full relief from inheritance tax. But under new legislation, that’s set to change   From the start of the new tax year in early April 2026, new inheritance tax rules will significantly limit the reliefs available on shares in trading companies. For some families, the impact could be substantial. The key point is that there is still a window of opportunity to act, but this window is closing quickly. In this short article, we’ll examine the changes, what they mean for you, and what you can do to structure your affairs efficiently. What the rules were and what’s changing from April 2026 The current position Under the existing rules, shares in an unquoted trading company typically qualify for 100 percent Business Property Relief (BPR) once they’ve been held for two years. In practice, that means:   no inheritance tax is payable on the value of qualifying shares on death the relief is uncapped, regardless of the size of the shareholding the same relief can apply to certain lifetime transfers. For many business owners, this has made shares in a trading company one of the most inheritance tax-efficient assets to hold and a particularly good option when passing on significant asset value in excess of the usual inheritance tax thresholds. The new rules from April 2026 From 6 April 2026, Business Property Relief will be capped. Originally it was proposed that the first £1 million of qualifying business property (e.g. shares in a trading company) would continue to receive 100 percent relief and that allowance could not be transferred on death to a spouse. However, the government announced just before Christmas that this amount would be increased from £1m to £2.5m and the £2.5m allowance could be transferred between spouses when one passes away (which effectively means a couple can, if structured correctly, have a £5m allowance). This means shares in a trading company are still a good option for values below that £2.5m threshold (or potentially £5m where that value is shared between spouses). However, any value above £2.5 million will only receive 50 percent relief. The remaining 50 percent will be subject to inheritance tax at 40 percent, creating an effective tax charge of 20 percent on the excess over £2.5m. This is a fundamental shift in how trading company shares are treated for inheritance tax purposes and will likely affect estate planning for many with shares in excess of £2.5m. A representative example To illustrate the impact, consider shares in a trading company valued at £4 million. Under the current rules £4 million qualifies for 100 percent BPR meaning no tax is paid on those shares at all. From April 2026, that same amount will see £1.5 million (i.e. the excess over the £2.5m allowance) taxed at a 50% rate. With inheritance tax at 40%, the 50% discount equates to a 20% tax on that £1.5 million, resulting in a total tax bill of £300,000. That is a six-figure tax bill on an asset that would previously have passed tax-free. Whilst HMRC are allowing this liability to be paid interest-free and in equal annual instalments over a period up to 10 years, paying an inheritance tax liability like this will often mean either having to use other liquid assets from the estate, which would ordinarily have ended up in the hands of beneficiaries effectively reducing their inheritance. Alternatively, the company itself may have to have to fund this over time. However, extracting cash out of a company to meet any such liability will incur its own tax liability, meaning the amount the company needs to find would need to be grossed up – effectively double taxation (a consequence the government appear to have glossed over). This may also be an overhead the company simply can’t afford, or which will wipe out its profits. The question that jumps to mind is how can you structure your affairs to be as tax-efficient as possible? The best approach to take is to act before the changes come into effect in April at the start of the 2026/2027 tax year. Structuring your shareholdings before the April deadline For shareholders with more than £2.5 million in qualifying trading company shares, the most effective planning opportunities are those taken before April 2026. Inter-spouse gifting of shares Given the changes announced in late 2025, which now allow the £2.5m allowance to be transferred between spouses, one simple thing that can be done is to move shares between spouses, so both spouses hold shares in the company. Gifts like this between spouses are usually treated as “no gain, no loss” and, as a result, are generally tax neutral. By way of example, if one spouse own shares worth £4m and passes away, then under the new rules, inheritance tax would be payable at the effective rate of 20% on the £1.5m excess over the £2.5m allowance. This is a tax charge of £300,000. If the spouse holding the shares were to transfer half of those shares to their spouse now, then when they pass away, they would only be holding shares worth £2m, so no inheritance tax would be payable. The surviving spouse would then inherit those shares as well as the deceased’s £2.5m allowance. This means when the second spouse passes away, they would be holding shares worth £4m (i.e. the £2m worth of shares gifted to them and the £2m worth of shares inherited) with an allowance of £5m at that point (i.e. their original £2.5m allowance plus the £2.5m allowance inherited from their late spouse). This means that no inheritance tax would be payable when they pass away as the £4m falls within the £5m allowance. This simple act alone would save £300,000 in inheritance tax. Lifetime gifting of shares Another option to take before the deadline is a lifetime gift of shares. Shares in a trading company can be transferred during lifetime rather than on death. If the person making the gift survives for seven years, the value of the shares falls completely outside their estate for inheritance tax purposes. Crucially, under the current regime: Business Property Relief can apply immediately to lifetime gifts that means no inheritance tax charge at the point of transfer full 100 percent relief applies where the shares qualify and the transfer structure is appropriate. For business owners with shareholdings above £2.5 million, gifting shares before April 2026 can lock in the current, more generous treatment. This approach is particularly relevant for: family businesses with adult children involved in the company owners already thinking about succession shareholders comfortable with reducing personal ownership over time. It does, however, require careful planning around control, valuation and future growth so it’s important that you engage with financial and legal professionals to take advice and to execute your plans. Why timing matters If this option is a good fit for you, you should take action as soon as you can before the deadline. Once April 2026 has passed, the same gift will not qualify for full relief if the value exceeds the new £2,5m cap. For many families, these simple changes on their own will be enough to justify reviewing their structure now rather than later. If you’ve already gifted or are planning to make a gift, the rules around the 7 years and the reliefs available will depend on when the gift was made (pre 30th October 2024 or after 30th October 2024 but before 5th April 2026) and when the person making the gift eventually passes away. As such, it’s important to get advice to understand exactly where you stand (or could stand in the future) if you have or are planning to go down this route Other options to consider as part of wider planning While transfers between spouses and lifetime gifting are often the starting point, it is not the only option available. Other approaches may be appropriate depending on your business, family and long-term objectives. Share reorganisations You may choose to reorganise your share capital to separate the current value of the business from its future growth. In practice, this often involves restructuring the company’s shares so you as the founder retain shares reflecting the current value of the business. You then issue a separate class of shares that carry rights to future growth, which are then transferred to the next generation. These are commonly known as “growth shares”. The benefit of this approach is that: the value built up to date remains with you, the founder any future increase in the company’s value sits with the new shareholders (usually the next generation) that future growth is removed from the founder’s estate while Business Property Relief is still fully available. This type of planning is particularly relevant if you’re a growing businesses where a significant proportion of the value is expected to be created in the years ahead. It requires careful valuation and robust documentation, but it can be an effective way to reduce long-term inheritance tax exposure without stepping away from the business. Use of trusts Trusts continue to play an important role in succession planning for shares in trading companies, especially where you want to balance tax efficiency with control and protection. Whilst many of our clients express concerns over using trusts, mainly borne out of news headlines about people in the news (usually for the wrong reasons) using trusts to “hide” assets, when structured correctly, you can transfer shares that qualify for Business Property Relief into certain trusts without triggering an immediate inheritance tax charge. You then appoint trustees to ensure the shares are managed in line with your wishes. Such trusts can provide long-term protection for your family members, including younger or vulnerable beneficiaries. In these instances, the trust is then the shareholder, so issues and inheritance tax liabilities as a result of the death of a key person become less of an issue. As things currently stand, you can transfer an unlimited amount of qualifying assets (i.e. shares) into a trust without triggering a tax charge providing everything is structured correctly. However, from the start of the 2026/2027 tax year, there will be a lifetime limit of £2.5m worth of qualifying assets that can be placed into trust with any excess triggering an immediate tax charge. For those whose shareholdings are above the £2.5m allowance (or £5m for a couple where the shares are split between the couple), trusts can also help manage how and when value is passed on, rather than making outright gifts at a single point in time. While trusts bring additional reporting and administrative responsibilities like registration with HMRC, a 10 yearly tax charge on the value of the assets in the trust (albeit at a rate significantly lower than inheritance tax rates), annual accounts to be prepared and filed with HMRC etc, trusts are still a useful option for you if you want to plan ahead of the April 2026 changes while retaining oversight of how the business is owned and controlled. Spreading ownership across family members As the new £2.5 million Business Property Relief allowance applies per individual, you may want to review how company shares are held within the family group. This may involve: transferring shares to your spouse or civil partner as above bringing your adult children into ownership earlier as part of a wider succession plan. The aim here is to ensure that more than one individual can potentially benefit from the £2.5 million allowance, rather than having all shares held by a single owner. Any changes must reflect genuine commercial and family arrangements and be supported by proper governance. However, when aligned with the long-term direction of the business, this approach can form part of a sensible and tax-efficient ownership structure. Life insurance as mitigation It may be that transferring shares is not a desirable option for you and your business. Perhaps you want to retain full ownership and control, or perhaps the business isn’t ready for succession. In this case, life insurance can be used as a mitigation strategy. This works by taking out a policy to cover the expected inheritance tax liability on the value above the new £2.5 million cap. This policy is typically written in trust so the proceeds will fall outside of the estate on death. Your family can then use the payout to meet the tax liability without requiring shares to be sold or the business to fund the bill. This approach doesn’t reduce the inheritance tax itself and the premiums for these types of policy can be expensive, but it can provide certainty and protect your business from disruption at a critical time. The bottom line If you have shares in a trading company in excess of £2.5 million and are concerned about succession planning, the time to act is now. If you fail to do so before the deadline, you could looking at hundreds of thousands, or even millions, of pounds in additional inheritance tax that someone somewhere will have to pay. Many of the most effective options are only available, or most effective, if done before April 2026. Waiting too long will narrow your choices considerably. Undertaking any of the routes referred to above will require formal tax and legal advice from your accountant and solicitor, or maybe even a formal tax clearance application to HMRC, to make sure everything is done correctly and other tax liabilities (such as capital gains or income tax) are not accidentally triggered.

Chartered accountant Eddi Taylor joined the board of Canterbury Business Improvement District (BID). Eddi is a Regional Managing Partner for UK top 10 accountancy firm Azets in the South East and leads the firm’s Canterbury team from its Watling Street offices. Canterbury BID is a business-led, business-funded partnership, which undertakes to make improvements in the city centre area to drive economic growth. The BID’s vision is for Canterbury to realise its full potential as an award winning, vibrant and desirable destination, setting the example that other cities want to follow. Eddi said: “I was both pleased and humbled to become part of the Canterbury BID board. This important organisation works tirelessly on behalf of the city’s businesses to make Canterbury a better place in which to live and work." “I am determined to play a full part in the BID’s vital work which helps our city to thrive by supporting the city’s business community in generating positive change. I take real pride in Canterbury, and through my current role with Azets in the city I have a particular passion for local business and supporting them to achieve their goals." “My two main roles in Azets, the UK’s specialist business advisor to SMEs, add value to the BID board – I advise owner-managed businesses on their finances and general strategy as well as heading a team of dedicated and hard-working colleagues to drive our own business forward.” Eddi, who started his career as a trainee in the Ashford office of Wilkins Kennedy, was last year named in the prestigious Accountancy Age 35 Under 35 rankings for a second time. He is well known across the Kent and South East market for his broad sector experience and his particular insight into the property and construction, manufacturing and hospitality arenas. Azets Canterbury is located inside the Old City walls, and a short walk from the cathedral. The team provides a range of services tailored to businesses of all scales, encompassing sole traders to limited companies. Canterbury Business Improvement District (BID) is an independent, business-led, not-for-profit initiative voted for by the businesses of Canterbury in July 2014, July 2019 and again in July 2024 for another five-year term. Gemma Purt, Partner in the city office of Girlings Solicitors and Head of its Family Law Department, was last month appointed as the new Chair of the Canterbury BID board. She took over from Paul Turner, Chief Operating Officer of the Marlowe Theatre, who acted as Interim Chair for 16 months. Nationally, there are more than 350 BIDs in the UK, including three in Kent (Canterbury was the first), investing over £154 million every year, giving business an independent voice and investing in business-led initiatives. The BID is operated by a team led by a voluntary Board of Directors, representing the businesses who operate in the city, and including designated positions for the city’s large institutions and observers from residents’ groups and Kent Police. Each of them volunteers more than 40 hours of their time each year. Azets is continuing its community involvement with Jessica Barry, Director in Accounts and Business Advisory in the Canterbury office, becoming a trustee of Canterbury Festival, Kent’s leading arts festival. Jessica, who specialises in supporting owner-managed businesses, particularly within the property and construction sector, is one of four new appointments to the revamped Trustee Board. She uses her 10 years of regional experience to provide expertise, advice and support to the festival, which this year is being staged from 16 to 31 October. Visit here .