The UK has seen the disappearance of half a million small businesses since the start of the pandemic and its exit from the European Union, according to new data from the Department for Business and Trade.

The total number of private sector businesses fell by 56,000 to 5.5 million in the year leading up to 2024, marking a total decline of 500,000 businesses from the peak of six million at the start of 2020.

The sharp decline has largely been driven by an exodus of self-employed individuals and one-person companies, particularly consultants, whose numbers have collapsed by 11% over the past five years. This contraction has been attributed to several factors, including delays in government support for the self-employed during the first Covid lockdown, the rise of remote and flexible working, and a clampdown by HM Revenue & Customs on consultants through the IR35 tax rules.

Despite the challenging conditions, the number of businesses with employees has actually grown between 2020 and 2024, with large businesses, particularly those employing more than 250 people, recording the fastest rate of growth.

Tina McKenzie, policy chair at the Federation of Small Businesses, expressed concern over the “disappointing” figures, calling for a renewed focus on fostering economic growth and promoting an entrepreneurial culture. “There are now well over half a million missing small business owners,” McKenzie said. “That’s half a million wealth creation units missing, which means local jobs and local enterprise are also missing.”

The British Chambers of Commerce echoed these concerns, noting the ongoing difficulties faced by businesses. Jonny Haseldine, policy manager, stressed that the upcoming Budget presents an opportunity for the government to tackle key issues such as business rates reform, capital allowances, and the skills crisis.

The decline of the small business sector is particularly notable in the context of the rapid rise of self-employment and one-person consultancies between 2010 and 2020. During this period, self-employment accounted for 80% of the growth in the total business population, which increased from 4.5 million to six million.

Additionally, the data shows a trend towards incorporation, with more small business owners choosing to operate as companies rather than sole traders or partnerships. While the number of sole traders increased by 323,000 over the past decade, the number of companies surged by 793,000. In contrast, the number of partnerships fell by 100,000 during the same period.

A government spokesperson acknowledged the difficult circumstances faced by businesses over the past few years but reiterated the government’s commitment to improving the overall business environment, particularly for small businesses.

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American Express has announced a £100,000 pledge to support small businesses across the UK through its Champion Small initiative, a key part of the company’s Shop Small campaign this autumn.

Ten independent businesses will each receive a £10,000 grant, which can be used for various growth-related activities such as purchasing new equipment, enhancing signage, or boosting marketing and advertising efforts.

As a longstanding advocate of the high street, American Express is encouraging its Cardmembers to nominate their favourite small businesses for the Champion Small initiative. From 7 October to 7 December 2024, Amex Cardmembers can nominate businesses on the Champion Small website. Those who submit nominations will be entered into a prize draw for the chance to win a £1,000 statement credit.

Shortlisted businesses will be evaluated by an expert panel of judges on criteria such as customer reviews, product innovation, community impact, and the potential positive effects of the grant on their business. The panel includes Michelle Ovens CBE, Director of Small Business Saturday UK; actor and small business co-owner Golda Rosheuvel; Andrew Goodacre, CEO of the British Independent Retailers Association; Tony Sophoclides, Strategic Affairs Director at UK Hospitality; and Dan Edelman, General Manager of Merchant Services at American Express.

Dan Edelman expressed enthusiasm for the initiative: “Over a decade since its launch, our Shop Small campaign continues to encourage people out onto the high street, and we are thrilled to extend our backing of small business this year by offering 10 Champion Small grants. Small, independent shops are hugely valuable to local communities across the UK and our hope is that this funding helps these businesses continue to thrive.”

Golda Rosheuvel, also serving as an Amex Shop Small Ambassador, said: “Small businesses bring so much diversity to the high street and are an important part of my life, not least as the proud co-owner of Imma The Bakery. It’s my privilege to be part of the judging panel for Champion Small. I can’t wait to learn about the nominees and their stories – it will be great to hear how they are making a difference to their customers and local communities.”

The initiative is also supported by Small Business Saturday UK, which has been championed by American Express for over a decade. Michelle Ovens, Director of Small Business Saturday UK, highlighted the importance of the initiative, saying: “Small Business Saturday has always been about celebrating the phenomenal contribution small businesses make to our lives. It is wonderful to see this new initiative launch by American Express that will not only encourage greater recognition of the UK’s amazing small firms but also provide much-needed financial support to help them to scale and unleash new innovations.”

With the nomination period closing on 7 December 2024, which coincides with Small Business Saturday in the UK, American Express continues its dedication to fostering the growth of independent businesses across the nation. To participate in the Champion Small initiative, Amex Cardmembers can visit the website or search ‘Amex Champion Small’.

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The cost to UK taxpayers for subsidising Southeastern, one of Britain’s largest rail operators, has soared to £415 million in the year to March, according to the latest corporate filings.

This figure is more than three times the subsidy the company received before the Covid-19 pandemic, despite fare rises and increased passenger numbers.

Southeastern, which serves Kent, East Sussex, and London, saw a 10% rise in passenger journeys and a 4.7% increase in train services over the past year. Yet, spiralling costs have pushed the operator’s need for state aid even higher, up from £402 million the previous year.

The operator was fully nationalised in October 2021 after its previous owners, Govia (a joint venture between Go-Ahead and France’s Keolis), failed to declare more than £25 million in taxpayer funding dating back to 2014. Even when in private hands, Southeastern received significant subsidies, including £132 million in the year to June 2019, meaning government support for the rail operator has quadrupled since before the pandemic.

Passenger numbers remain below pre-pandemic levels. In the year to March, Southeastern recorded 128 million passenger journeys, a notable drop from 179 million journeys in the year to March 2019. Despite these lower numbers, Southeastern and other train operators continue to rely heavily on government support to balance their books.

Rail fares in England and Wales rose by 5.9% in 2023, following a 4.9% rise the previous year. Despite these fare hikes, Southeastern attributes the need for more taxpayer funding to rising operational costs, including increased charges for access to the High Speed 1 (HS1) line, which Southeastern shares with Eurostar. Southeastern also cited significant increases in electricity costs, track access charges, and train leases as contributing factors.

Paul Barlow, finance director at Southeastern, stated that the company remains “fiercely committed” to reducing the taxpayer burden, but acknowledged that rising costs, driven by inflation exceeding 10%, have been unavoidable. Southeastern is one of the few operators facing significant additional costs from running high-speed services on HS1, and the company is actively engaging with industry partners to reduce the financial strain on the government.

Southeastern has also introduced measures to increase capacity, such as scrapping first-class fares, freeing up an additional 4 million standard-class seats each year. However, the continuing reliance on public funds highlights the broader challenges facing the UK rail industry as it grapples with rising costs and post-pandemic recovery efforts.

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UK house prices continued their upward trajectory in September, rising for the third consecutive month and bringing average property values within a whisker of record highs.

According to data from Halifax, one of the UK’s largest mortgage lenders, house prices increased by 0.3% in September, matching the rise seen in August. Over the past 12 months, prices have climbed by 4.7%, marking the strongest rate of annual inflation since November 2022.

The average UK home is now valued at £293,399, just £100 shy of the record set in June 2022, shortly before the market was disrupted by Liz Truss and Kwasi Kwarteng’s mini-budget, which led to rising borrowing costs and a sudden slowdown in the housing sector.

Amanda Bryden, head of mortgages at Halifax, cautioned against viewing recent gains as a full recovery: “While the typical property value has risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have increased by just 0.4%.”

House prices surged following the end of the first lockdown as buyers sought larger homes and outdoor space in what became known as the “race for space.” However, the mini-budget at the end of September 2022 brought the market to a standstill, with soaring interest rates and increased mortgage costs stifling demand. Now, with interest rates gradually falling and the cost-of-living crisis easing, buyers are beginning to return to the market.

“Market conditions have steadily improved over the summer and into early autumn,” Bryden added. “Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.”

Despite the positive signs, there remains a clear north-south divide in house price growth. In the northwest of England, prices have risen by 5.1% over the past year, while in Yorkshire they are up 4.3%. In contrast, eastern England, which includes commuter counties like Hertfordshire and Essex, has seen prices rise by just 2.3%. London, the UK’s most expensive region for housing, has seen prices rise by 2.6% year-on-year to an average of £539,238, still below the peak of £552,592 set in summer 2022.

Northern Ireland remains the region with the fastest house price growth, with prices rising by 9.7% over the past year. In Scotland, year-on-year price inflation stands at 2.1%.

Although affordability is improving with retreating mortgage rates, Bryden noted that it “remains a challenge for many.” As a result, she predicts that any further increases in house prices over the next 18 months will be “modest.”

However, some experts are more optimistic. Ashley Webb, a UK economist at Capital Economics, believes that the Bank of England will reduce interest rates quicker than expected next year, potentially leading to higher-than-anticipated house price growth. “Our view that the Bank of England will cut interest rates by more than most expect may mean house prices grow by an above-consensus 5% in 2025,” Webb said.

While the market shows signs of recovery, the coming months will be crucial in determining whether the recent upward trend can be sustained in the face of ongoing economic challenges.

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Cryptocurrencies are gaining popularity in many areas, such as internet gambling, as the digital landscape continues to change.

This trend is being adopted by UK internet casinos who now allow players to make transactions in a different way. Below are a few advantages of using cryptocurrencies within UK online casinos.

Enhanced Security

The main reason why people prefer cryptocurrencies is because of their security features. When you transact using Bitcoin or Ethereum, the information is encrypted and kept in a public ledger which means that it is not easily prone to fraud or cyber hacking. With this in mind, players should feel at ease knowing that their financial data is much safer than when using conventional banking systems.

Anonymity and Privacy

The use of cryptocurrency in gambling provides some form of privacy not found in other payment systems. With cryptocurrencies, players can deposit and withdraw funds without exposing their identity which in turn lowers the chances for one to suffer from identity theft. Such anonymity is especially important for people who want to keep their gambling as a private matter.

Lower Fees

A crypto casino UK charges lower fees for cryptocurrency transactions compared to credit cards or e-wallets. Since cryptocurrencies operate on a peer-to-peer network, transaction fees can be significantly reduced. This means players can keep more of their winnings rather than losing a portion to processing fees.

Faster Transactions

Conventional banking methods may require several days to process withdrawals, but with cryptocurrencies, transactions are almost always instant or at most take a couple of minutes. As a result of this high speed, players can quickly and effortlessly get hold of their prize money, thereby improving their overall gaming experience.

Access to Exclusive Bonuses

Players who decide to use digital currency in gambling can benefit from additional bonuses that are not available to others. For example, such players may receive increased deposit bonuses, free spins, or cashback offers. By taking advantage of these attractive offers, players who take the risk of gambling with cryptocurrencies make their gaming experience even better.

Global Accessibility

Players all over the world can access cryptocurrencies without any restrictions of location. It is especially advantageous for UK players who may wish to place bets on foreign websites that do not support fiat currencies since digital currencies are not confined to any geographical boundaries. With cryptocurrencies, transactions can cross borders without difficulties.

Transparency and Fairness

Most cryptocurrencies are based on blockchain technology, which provides transparency and can increase trust in internet gambling. Gamblers can verify that their transactions were processed correctly and sometimes also check if the casino is fair. Such transparency serves as a confidence booster for the casino as well as its games’ integrity.

Growing Acceptance

The use of cryptocurrencies is gaining popularity and more UK online casinos now allow them as a form of payment. By accepting these digital currencies, it shows that there is a change happening within the gambling sector; one which is now more open to and supportive of new and emerging technologies.

Final Thoughts

There are many advantages that come with integrating cryptocurrencies into UK online casinos. These include better security, more financial privacy and quicker transactions. With the changing face of internet gambling, gamers who take up these forms of digital currency will have an enhanced as well as more lucrative gambling experience.

Santander UK has urged the government to prioritise leadership, digital, and sustainability skills in its new National Plan for Skills to tackle the UK’s productivity crisis and prepare the workforce for the future.

In a newly published report, Tomorrow’s Skills, Santander highlights three major societal shifts—changing attitudes to work, the rise of AI, and the transition to Net Zero—that will impact the British workforce. The report calls for increased investment in training and upskilling to address these challenges.

The report reveals that UK workers are spending 20% less time on training than they did a decade ago, despite more than half acknowledging that they need to upskill to stay relevant in their roles. Barriers such as time constraints, costs, and lack of flexibility are preventing workers from accessing training, contributing to the country’s stagnant productivity levels. Moreover, 69% of workers expect to remain in the same field for their entire careers, and 72% believe their jobs will still exist in 10 years—indicating a lack of awareness of the potential impact of emerging technologies and societal changes.

Mike Regnier, CEO of Santander UK, stressed the importance of education and skills development, stating: “The UK cannot afford to fall behind in this critical area if we want our economy to grow and remain competitive.” He called on the government to focus its skills strategy on addressing three key areas:

Changing attitudes to work:

The rise of hybrid working has introduced new challenges for managers and leaders, with generational differences in attitudes towards remote work. While 65% of 25–34-year-olds view hybrid working positively for the UK economy, only 27% of 55–64-year-olds share this view.

The rise of AI:

As AI continues to transform industries, 63% of workers recognise the need for training around new technologies, while 47% of younger workers worry that AI could replace their jobs. Upskilling in AI and digital technologies is seen as essential for increasing productivity and future-proofing careers.

The transition to Net Zero:

As the UK moves towards its 2050 emissions targets, 58% of workers believe they will need new skills to adapt to their roles in a greener economy. The report highlights the importance of equipping workers with sustainability skills to support the Net Zero transition.

In response to these challenges, Santander has launched a new adult education programme in partnership with xUnlocked, Fearless Adventures, and House 337. The programme, available on Santander Open Academy, offers free, video-led training on green, digital, and leadership skills for people over 18. The aim is to help individuals and businesses prepare for the future by developing the skills needed to thrive in a rapidly changing economy.

Steph McGovern, presenter of The Rest is Money podcast and a business journalist, added her support for lifelong learning, saying: “As the needs of the economy change, so too should our attitude to learning. We should think of education as lifelong. We all need to adapt, but workers can’t do that on their own.”

Santander’s new initiative, combined with its call for government action, underscores the urgency of addressing the UK’s skills crisis. As the economy evolves, Santander’s focus on developing essential skills in leadership, digital technologies, and sustainability will be key to driving future productivity and ensuring the UK remains competitive on the global stage.

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