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Donald Trump’s proposals to impose hefty tariffs on goods entering the United States could deliver a £20 billion blow to the British economy, analysts have warned.

The President-elect’s plan to levy a 60% tariff on Chinese products sold to American businesses, alongside a 20% tariff on all other imports, “poses challenges” for the UK government, according to the Centre for Economics and Business Research (CEBR).

The CEBR estimates that such measures, if implemented without retaliation, could reduce the UK’s gross domestic product (GDP) by 0.9% by the end of a potential Trump administration. Based on 2023 figures, this equates to a £20 billion hit to the British economy.

Meanwhile, forecasts from the National Institute of Economic and Social Research (NIESR) suggest that even a 10% tariff could cut UK economic growth by 0.7 percentage points.

The CEBR noted that the clearest way to mitigate the impact would be to secure a free-trade agreement with the US, but acknowledged that issues over food standards make this unlikely. Instead, it urged ministers to bolster the UK’s position as a leader in green technology, particularly in light of Trump’s expected rollback of Joe Biden’s flagship Inflation Reduction Act (IRA).

Economist Sara Pineros said: “The Chancellor faces a pivotal period to act on her pro-growth agenda and position the UK as a competitive destination for investment.

“Ultimately, while US tariffs and rising protectionism pose challenges, other proposals under a new Trump administration also present opportunities for the UK to adapt and thrive.

“Without strengthening its approach, the UK risks taking all the pain associated with a Trump presidency without realising the potential gain.”

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Trump’s tariff plans could cost UK economy £20bn, analysts warn

Begbies Traynor, one of Britain’s leading corporate restructuring firms, anticipates a rise in the number of businesses facing financial distress in the coming months due to the recent budget changes.

The company expects that the Chancellor’s decision to increase employers’ National Insurance contributions will exacerbate cost pressures on businesses already grappling with economic headwinds.

While the increased National Insurance will cost Begbies Traynor approximately £1.25 million annually, the firm believes it may ultimately benefit from the heightened demand for its insolvency and restructuring services. Executive chairman Ric Traynor stated, “Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”

Employing around 1,000 staff across the UK, Begbies Traynor is best known for its insolvency expertise but also offers a range of professional services including accounting, chartered surveying, banking, and legal advice. The firm assists businesses with forensic accounting investigations, commercial property valuations, and corporate restructurings.

During the pandemic, government support schemes kept many struggling businesses afloat, resulting in a slower period for insolvency and administration cases. However, the past 18 months have seen a surge in Begbies Traynor’s workload due to rising interest rates and a cooling global economy. Notable administrations handled by the firm over the past year include Worcester Warriors rugby club and the stationery retailer Paperchase. It also managed the receivership of Britishvolt’s electric battery site in Northumberland.

To meet increasing demand, Begbies Traynor has expanded its team of insolvency specialists. In the first half of its current financial year, from May to October, the company’s revenue and pre-tax profit rose by 16% compared to the same period last year, reaching approximately £77 million and £11.5 million, respectively. Traynor remarked that the six months represented a “very good start,” with growth driven by “positive momentum across the group.”

The board expressed confidence in meeting market expectations for the full year, with analysts forecasting an adjusted pre-tax profit of around £23.7 million. This would mark the eleventh consecutive year of profit growth for the firm.

Industry analysts are also optimistic. Jamie Murray of Shore Capital commented, “Insolvency volumes are at elevated levels compared to the pre-Covid zero interest rate environment. We expect this to be sustained for longer, given the impact the budget will have on UK businesses. This should be beneficial for Begbies’ business recovery and advisory business.”

However, Murray adjusted his profit forecasts for 2026 and 2027 downward by 5%, citing the additional National Insurance contributions the firm will have to pay from next April. On Monday morning, Begbies Traynor’s shares edged down by 0.6% to 93p, valuing the company at £150 million.

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Begbies Traynor predicts surge in insolvencies following budget impact

Claims for multibillion-pound business tax incentives are more likely to be non-compliant when submitted with the assistance of specialist agents, according to an official review by HM Revenue & Customs (HMRC).

An inquiry into research and development (R&D) tax credits—schemes intended to encourage innovation but undermined by fraud and error—found that behaviour among some agents was “clearly not acceptable”.

In its review of incentives for business innovation, HMRC estimated that fraud and error in these taxpayer-funded schemes amounted to £4.1 billion between 2020 and April this year. The tax reliefs, designed to support companies working on science and technology projects, cost the UK about £8 billion annually.

A 2022 investigation by The Times revealed how advisers were encouraging companies to make dubious claims, many of which went unchecked by HMRC. Examples included claims for creating a vegan menu in a pub.

In response, HMRC has increased scrutiny on claims and implemented several reforms to the scheme’s rules. A document published alongside last month’s budget stated that data from a “mandatory random inquiry programme” found that almost one in three claims in its sample were “fully disallowed” because “no qualifying R&D took place”.

Overall, HMRC estimated that in 2021-22, over one in four claims under the scheme for small and medium-sized enterprises were due to fraud and error. By the most recent financial year, this figure had improved to about one in seven.

While agents are expected to help companies file accurate claims, HMRC’s inquiries revealed that “non-compliance was slightly higher in those claims that were submitted with the support of a specialist R&D agent”.

HMRC acknowledges the “vital role” agents play but noted that some “provide poor or incorrect advice to customers about what they are entitled to claim. This can lead to spurious R&D tax relief claims being submitted by customers themselves or by agents on their behalf, thereby increasing non-compliance”.

The review identified several sectors where “R&D is unlikely” but which were being “approached by unscrupulous agents”. These include care homes, childcare providers, personal trainers, wholesalers, retailers, pubs, and restaurants. Error was said to be a bigger problem than fraud.

To address this, HMRC has been running education campaigns, writing to thousands of companies to explain the qualifying criteria for R&D tax credits.

Companies in sectors traditionally associated with R&D investment have reported difficulties obtaining incentives since HMRC’s crackdown. Research by RSM UK, the accountancy and audit firm, found that more than a third of technology businesses had submitted an R&D claim that was initially approved but later challenged by HMRC, resulting in companies needing to make repayments.

David Blacher, partner at RSM UK, commented: “The increased focus on weeding out erroneous claims has been detrimental to those genuinely in need of funding.”

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HMRC targets specialist agents in crackdown on R&D tax credit fraud

London-based tech firm Goodstack has secured £22 million in venture capital funding, positioning it to facilitate £2.4 billion in employee donations to good causes this year.

The company, whose platform is utilised by major corporations such as HSBC, LinkedIn, and design software firm Canva, has been quietly investing the capital raised from San Francisco-based General Catalyst and other investors to achieve its ambitious goal.

Founded in 2015 by university friends Henry Ludlam, 33, and Stefan Greer, 34, Goodstack was originally known as Percent. It initially enabled retailers to reward student purchases by directing a small percentage back to their chosen campus teams or clubs. However, during the Covid-19 pandemic, the duo identified an opportunity to revolutionise corporate philanthropy by simplifying the process for employees to donate to vetted charities, schools, and non-profits worldwide.

“We have 13 million in our database,” Ludlam said, emphasising that all organisations have been thoroughly verified. Goodstack generates revenue by providing companies with access to its platform, typically leaving employee donations free of charges except for transaction fees levied by card issuers. “As a general rule, we try to get the corporates to cover the cost,” he added.

Unlike well-known charitable platforms such as JustGiving, GoFundMe, and Crowdfunder—which take a percentage fee and encourage donors to leave optional tips—Goodstack’s model focuses on corporate partnerships to minimise costs for individual donors.

The platform has facilitated a surge in donations to charities including the Red Cross, Cancer Research UK, and Oxfam, as well as to disaster relief efforts in response to events like tropical cyclone Carina in the Philippines and recent floods in Spain. From processing $50,000 in donations in 2020, Goodstack handled $1 billion last year and is on track to manage $3 billion this year.

“There was a massive gap in the market for doing something like us,” Ludlam noted. “All the current players were very locally focused. No one had built the one layer of software that makes it as easy to give in America as it is in Vietnam, South Africa, or Fiji.”

Ludlam and Greer met during their first year at Manchester University, sharing a flat in Oak House, Fallowfield. The company now employs 60 people and the founders retain a “significant minority” shareholding, having raised a total of $33 million in venture capital. Nationwide Building Society was an early investor but has since divested its stake.

General Catalyst, which first invested in 2021, has a track record of backing high-growth tech firms, including Airbnb, Irish payments giant Stripe, and social messaging service Snap at early stages of their development.

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Goodstack raises £22m as corporate giving platform targets £2.4bn in employee donations

Female board members at FTSE 100 companies are paid 69% less than their male counterparts, underscoring the persistent gender pay gap at the highest levels of British business.

According to research by Fox & Partners, the employment and partnership law specialists, women in board roles took home an average of £335,953 last year, compared with £1,073,445 for men. While this marks a slight improvement from a 70% gap in 2022, it remains significantly wider than the 13.1% gender pay gap across the broader UK labour market, as reported by the Office for National Statistics in April 2024.

Catriona Watt, partner at Fox & Partners, said: “It’s encouraging to see the gender pay gap has slightly shrunk over the past year for directors of the UK’s largest businesses, but obviously the figures show that there is still a considerable way to go.”

A key factor contributing to the disparity is the concentration of women in non-executive director positions. The research found that 91% of female directors hold non-executive roles, which typically come with less responsibility and lower remuneration compared to full-time executive positions. In contrast, men are more frequently appointed to higher-paying executive roles and senior non-executive positions such as chair.

Among executive directors, the pay gap stands at 29.8%, with female executives earning an average of £2,332,334 compared to £3,150,424 for their male counterparts. Women also earn less in non-executive roles, with female non-executive directors paid an average of £127,593, while men receive £191,381—a gap of 40%.

Women remain underrepresented in the most senior positions within the UK’s largest listed companies. Currently, only nine FTSE 100 companies are led by female chief executives, including Margherita Della Valle at Vodafone and Dame Emma Walmsley at GSK. Allison Kirkby recently became the most recent female chief executive after taking the helm at BT.

“We noted several years ago that listed companies were achieving boardroom gender diversity almost exclusively by appointing women to non-exec roles rather than executive roles,” Watt observed. “That flattered their figures but meant that women were still largely excluded from the arguably most important and most highly paid corporate jobs.”

However, there are signs of progress. The number of female executive directors increased to 43 in 2023, up from 39 the previous year. Watt emphasised that the UK’s leading companies should continue to invest in promoting female opportunities, mentoring, and cultural change to make “a significant impact on the gender pay gap”

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Female FTSE 100 board members earn 69% less than male counterparts

Evri, the UK’s third-largest parcel delivery company, has more than doubled its annual pre-tax profits, achieving £119 million for the 53 weeks ending February.

The surge follows a “record year” for deliveries, with parcel volumes up 14.9 per cent to over 730 million, buoyed by a £32 million investment in customer service and rising demand for online second-hand goods.

The company, formerly known as Hermes, saw revenues climb 15.2 per cent to £1.7 billion, while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by a third to £292 million. These figures highlight a remarkable turnaround after a difficult 2022, during which Evri faced backlash for delayed Christmas deliveries, citing staff shortages, Royal Mail strikes, and adverse weather as contributing factors.

Chief executive Martijn de Lange credited the company’s success to strategic investments and strengthened retailer partnerships. “The company’s best ever year was underpinned by significant investment in our operations and customer service, as well as deepening our relationships with retailers and forging new partnerships,” he said.

Evri, now owned by Apollo Global Management following a £2.7 billion acquisition in July, continues to expand. Revenues for the first half of the new financial year reached £865 million, a 10.6 per cent year-on-year rise.

The UK remains Europe’s busiest parcel delivery market, with forecasts predicting a 10 per cent year-on-year increase in parcels delivered over the festive period. Research from FedEx and Effigy Consulting anticipates 1.29 billion parcels will be delivered in the UK during the final three months of the year, outpacing Germany’s 1.08 billion and France’s 524 million.

Evri is preparing for this seasonal surge, with its strong performance positioning the company well to meet growing demand. Despite group-level pre-tax losses narrowing to £10.5 million from £43.2 million last year—attributed to financing costs and one-off charges—Evri’s operational growth cements its role as a key player in the UK’s parcel delivery market.

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Evri doubles profits after record year for parcel deliveries

Asking prices for homes in the UK dropped sharply in November, with the average price of newly listed properties falling 1.4 per cent to £366,592, according to Rightmove.

The decline, which exceeds the long-term November average of 0.8 per cent, comes as “pre-budget jitters turned into post-budget disappointment” following stamp duty hikes and a lack of support for first-time buyers.

The downturn was most pronounced in the “top-of-the-ladder” segment, with prices for larger homes such as five-bedroom and detached four-bedroom properties falling by 3.3 per cent.

Tim Bannister, Rightmove’s head of property data, attributed the larger-than-usual seasonal slowdown to a mix of political and economic uncertainty. “There’s been a lot for home-movers to process over the past few weeks, and the market seems to still be digesting it,” he said.

Despite the current slump, the Bank of England’s recent interest rate cuts are beginning to stimulate demand. Rightmove has observed an early uptick in buyer activity, which it predicts will lead to stronger market performance in 2025. The property platform forecasts asking prices to rise by 4 per cent next year, the highest expected growth since the post-lockdown boom of 2021.

So far in 2024, asking prices are up 1.2 per cent year-on-year, aligning with Rightmove’s forecast for a modest 1 per cent annual gain as the market naturally slows into December.

Interest rate reductions have also brought more buyers back into the market. Compared to this time last year, there has been a 23 per cent increase in active house hunters and a 26 per cent rise in agreed sales. Meanwhile, the number of sellers is up 6 per cent year-on-year, hitting the highest level in a decade.

While the surge in supply poses challenges for price growth, Bannister remains optimistic that lower mortgage rates will boost affordability and buyer confidence. However, he warned sellers to remain realistic. “The speed at which mortgage rates come down next year will play a key role in determining activity during the traditionally busy spring and summer periods,” he said. “Sellers will need to price competitively to secure buyers in a market with an abundance of choice.”

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House prices dip amid post-budget disappointment as market eyes brighter 2025

The government has outlined contingency measures to ensure supermarket shelves remain stocked amid potential farmer protests over inheritance tax reforms. However, ministers reassured the public that food supplies will not be disrupted, even as tensions rise within the agricultural community.

Farming leaders have warned of deep unrest, labelling the policy change a “betrayal” of rural communities. They stopped short of endorsing strike action but acknowledged mounting frustration over the government’s decision to impose inheritance tax on farms valued over £1 million.

Addressing concerns, farming minister Daniel Zeichner urged calm. “The vast majority of farmers will not be affected,” he told the BBC. “Treasury figures indicate fewer than 500 farms a year are likely to fall within the scope of the tax. I encourage everyone to seek advice, as each case is unique.”

The reforms, which ministers argue will primarily impact the wealthiest estates, have triggered backlash from farmers who fear the policy could threaten family-run farms. Up to 20,000 farmers are expected to descend on Westminster to voice their discontent.

While defending the government’s stance, transport secretary Louise Haigh praised farmers for their contributions to the economy and food security. She described the changes as “fair and proportionate” and noted that the tax rate for affected farms is significantly lower than standard inheritance tax thresholds.

Haigh reassured consumers that the government prioritises food security, revealing that contingency plans are in place to mitigate potential disruptions. “We will work closely with farmers and the supply chain to safeguard food availability,” she stated.

Farmers, meanwhile, have staged protests, including a recent demonstration outside the Welsh Labour conference attended by Sir Keir Starmer. Some have even proposed withholding produce from retailers to highlight the country’s reliance on domestic agriculture.

Tom Bradshaw, head of the National Farmers’ Union, stressed that his organisation does not condone such measures. “Emptying supermarket shelves is not an NFU tactic,” he said. “However, I understand the depth of feeling among farmers. They feel betrayed by a government that once promised no inheritance tax on farmland.”

Bradshaw called the policy a threat to food security, citing government figures that indicate a significant number of farms producing the UK’s food exceed the £1 million threshold. “This move undermines the very industry tasked with securing our nation’s food supply for the future,” he added.

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Farmers protest inheritance tax changes as ministers unveil food supply plans

Growing a business is an exhilarating journey filled with opportunities and challenges alike. Yet, as a company expands, its legal landscape becomes increasingly complex.

Regulatory obligations, contractual agreements, and employment laws all demand meticulous attention to detail, leaving little room for error. Unfortunately, even a minor legal oversight can lead to significant complications.

For companies aspiring to scale, understanding when and why to seek legal advice can be the difference between thriving and facing avoidable setbacks. Partnering with a reliable legal expert—like a New York Long Term Disability Lawyer—can be an invaluable step in safeguarding growth and operational stability.

Understanding When Legal Guidance Becomes Essential for Growing Businesses

For many small businesses, the initial stages of operation are often managed with a “DIY” mindset, handling legal matters with essential online resources or templates. However, as businesses grow, the stakes also rise, making a proactive approach to legal management critical. Some business owners may hesitate to involve legal professionals until they encounter an explicit issue, yet waiting for problems to arise can lead to costly and disruptive consequences.

A business owner who consults with a legal expert early gains access to valuable insights on compliance, risk management, and strategic planning. These aspects protect the business and can contribute to its growth by paving a secure path forward. Legal counsel can be pivotal in helping to interpret evolving regulations and align the company with legal standards that may affect operations, especially in sectors prone to frequent regulatory updates, like finance, healthcare, and e-commerce. By consulting a legal expert before final decisions, businesses can save time, money, and potential headaches.

Key Areas Where Legal Experts Can Support Business Growth

Employment law is one of the most crucial areas where legal expertise is invaluable. Hiring, managing, and terminating employees is governed by an intricate set of rules that vary based on location, industry, and company size. Growing businesses must ensure that their hiring practices, employment contracts, and workplace policies comply with local and federal labor laws. Employment law covers issues like wage regulations, benefits, employee rights, and anti-discrimination policies—all essential to avoid disputes and ensure a positive work environment. When layoffs, discipline, or termination arise, missteps in handling these matters can open the door to legal disputes, which can be both time-consuming and financially draining for the business.

Legal professionals can also play an instrumental role in drafting and reviewing contracts. For growing businesses, contracts form the backbone of relationships with clients, suppliers, contractors, and employees. A well-crafted contract is a protection mechanism and sets clear expectations between parties. However, contracts are also complex, often containing nuanced legal language that can be difficult for non-experts to interpret accurately. A seasoned legal expert ensures these agreements align with the business’s best interests, covering potential liabilities, compliance issues, and terms that might be overlooked. Consulting a legal expert before signing contracts, mainly when dealing with high-value transactions, partnerships, or new markets, ensures that business dealings remain secure and mutually beneficial.

Advantages of Consulting Legal Experts Early On

By consulting legal experts early, business owners mitigate risks and enhance their company’s growth potential. Legal professionals can assist in drafting policies and procedures that establish consistency and clarity across the organization. Such internal guidelines, aligned with legal standards, reduce ambiguity and create a workplace environment where employees and management are on the same page. A well-drafted employee handbook, for instance, sets forth expectations and can be a valuable resource in minimizing misunderstandings or conflicts that might arise in the future.

In addition, establishing intellectual property (IP) protections is crucial for any growing business. Intellectual property law shields a company’s innovations and brand identity from unauthorized use, from trademarks to patents. Failure to secure IP rights can result in lost revenue and weakened brand positioning. Consulting with a legal expert early on ensures that businesses are adequately protected and can enforce their rights if infringement occurs. A legal expert can assist in trademarking a company’s logo, slogan, or product names, thereby safeguarding the brand’s identity and value.

In some cases, legal experts can also help businesses with dispute resolution by providing options such as mediation or arbitration before resorting to costly litigation. While conflict is often unavoidable, handling it effectively can prevent lasting damage to business relationships and finances. Legal experts can advise on the most appropriate course of action, aiming to resolve disputes with minimal disruption to the company’s operations. This strategic approach to conflict resolution demonstrates that legal experts are not solely there to “fix” issues but to actively support the business’s stability and reputation proactively and constructively.

Conclusion: Legal Support as a Pillar of Business Growth

As businesses scale, legal complexities naturally increase. Legal challenges can be daunting, whether it’s navigating employment regulations, managing contracts, or ensuring compliance with industry standards. Involving a legal expert as part of a growing business’s strategy can streamline operations, protect the organization from potential risks, and foster an environment where the industry is positioned for sustainable growth. With expert legal support, companies are better equipped to face challenges, secure their assets, and focus on their core mission—continuing their journey to success.

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Navigating Legal Complexities for Growing Businesses: When to Consult a Legal Expert

In today’s competitive marketplace, small and medium-sized enterprises (SMEs) must find innovative ways to connect with their customers. One such strategy gaining momentum is gamification—integrating game-like elements into non-gaming environments to drive engagement.

Inspired by the success of industries like online gaming, where platforms like High Roller have mastered the art of captivating user experiences, SMEs can use similar techniques to build stronger relationships with their customers.

Here’s how gamification can transform customer engagement for SMEs and practical steps to implement these strategies.

What is Gamification?

At its core, gamification involves applying game mechanics—such as points, rewards, leaderboards, and challenges—to non-game settings. These elements tap into fundamental human motivations like competition, achievement, and the desire for recognition, making interactions more enjoyable and rewarding.

For instance, online casinos have effectively used loyalty programs, tiered rewards, and interactive gameplay to retain users. SMEs can take inspiration from this model, creating engaging experiences that encourage customers to interact with their brand more frequently and enthusiastically.

Benefits of Gamification for SMEs

Gamification offers several benefits for SMEs aiming to strengthen customer loyalty and engagement:

1. Boost Customer Retention

Gamification keeps customers coming back for more by making their experiences fun and interactive. For example, a coffee shop could implement a digital loyalty app where customers earn points for every purchase, unlocking rewards after reaching specific milestones.

2. Enhance User Engagement

Just as players return to gaming platforms for the thrill of leveling up or achieving new milestones, gamified elements can encourage customers to explore more of what your business offers. For instance, an e-commerce store could introduce a progress bar showing how close customers are to earning free shipping.

3. Encourage Brand Advocacy

Gamification can turn satisfied customers into brand advocates. Creating shareable, competitive elements like leaderboards or social challenges allows customers to engage with your brand while spreading the word among their social circles.

Gamification Strategies for SMEs

Here are practical gamification strategies that SMEs can implement, regardless of their industry:

1. Introduce a Loyalty Program

Create a points-based system where customers earn rewards for specific actions, such as making a purchase, leaving a review, or referring friends. Ensure that the rewards are enticing enough to motivate participation.

2. Use Badges and Levels

Introduce achievement badges or tiered levels based on customer activity. For example, a fitness studio could offer badges for completing a certain number of classes, with higher tiers unlocking exclusive discounts.

3. Host Challenges or Competitions

Encourage customers to participate in challenges that align with your brand. For example, a bakery might create a contest where customers submit photos of their creative cake designs, with winners earning gift cards or discounts.

4. Gamify the Onboarding Process

For businesses with apps or online services, gamifying the onboarding experience can help familiarize customers with your platform. Providing tutorials or small rewards for completing initial tasks can encourage early engagement.

Case Studies in Gamification

Many industries have successfully implemented gamification to enhance customer experiences. For example:

Retail: Brands like Starbucks have embraced gamified loyalty programs, allowing users to earn “stars” through purchases and unlock free items after collecting enough.
Fitness: Apps like Nike Run Club integrate leaderboards and social challenges to keep users motivated and engaged.

SMEs can adapt these principles to fit their unique business models, tailoring the gamification elements to their target audience.

The Role of Technology

Leveraging technology is essential for implementing gamification effectively. Digital platforms, mobile apps, and CRM tools make it easier to track customer interactions and reward behaviors in real time. SMEs can explore partnerships with software providers or use gamification platforms like Badgeville to streamline their efforts.

For more insights into gamification and its psychological impact, resources such as Harvard Business Review provide research-backed perspectives on consumer behavior and engagement strategies.

Conclusion

Gamification offers SMEs a powerful way to connect with their customers by creating experiences that are engaging, interactive, and rewarding. Whether it’s through loyalty programs, challenges, or competitive elements, these strategies can significantly enhance customer engagement while fostering brand loyalty. Drawing inspiration from industries like online gaming, SMEs can adopt creative gamification techniques to stand out in today’s crowded market.

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How SMEs Can Leverage Gamification Techniques to Enhance Customer Engagement