Author: Simon Knivett, VAT manager, HW Fisher

It is the smaller companies who are most likely to be adversely affected by a VAT rate increase, primarily those who fall below the currently VAT threshold and are not registered for VAT.

A rate increase means a higher cost to buy their stock or pay their rent as stockists and landlords would have to charge a higher rate of VAT on their own supplies and are unlikely to want to reduce their net margin to offset this rate increase for the benefit of their small business customers.

Any service sector which sells services subject to VAT could be affected. Whilst sellers of tangible goods can maintain their margins of a higher VAT rate as ultimately the VAT exclusive amount stays the same and any VAT incurred buying their stock should, in the most part, be recoverable.

Service providers whose expenses are made up of costs not subject to VAT, such as paying staff wages or expenses subject to a lower rate of VAT, will feel the increase far more.

Restaurants and caterers are high on the list of those who would suffer from an increase in VAT given that most food for human consumption is subject to 0% VAT whilst restaurant and catering services are taxed at 20%.

A higher rate of VAT, which restaurants and caterers would have to account for either through increasing their prices, making it more expensive for customers or by absorbing it into their already tight margins, in a time where it was forecast that 6,000 restaurants were expected to close between November 2024 and October 2025, would likely contribute to an even higher number of closures in the next 12 months.

Any sector which primarily deals in VAT-exempt services, such as insurance or healthcare, will take a hit from a rate increase as VAT incurred on costs of making VAT-exempt supplies is generally irrecoverable, meaning a higher cost for the healthcare provider which could lead to an increase in their prices, much the same as restaurateurs, charged to their customers.

Ultimately, across a range of sectors, in the short-term it is the final customer who is affected when the rate of VAT goes up.

 

Author: Patrick Killeen

The UK and Ireland business of fashion accessories chain Claire’s has been bought out of administration by WH Smith and Crafter’s Companion owner Modella Capital, saving around 1,000 jobs.

Interpath, who led the sales process, confirmed the sale of ‘substantially most of the company’s business and assets’ to London-based specialist retail boutique Modella, which will also see 156 Claire’s stores across the UK and Ireland transfer to the company.

Claire’s was placed into administration on 13th August 2025 after its parent company, Claire’s Holdings LLC, commenced Chapter 11 proceedings in the US.

Its chief executive Chris Cramer described the decision as a “difficult” one to take and said its 278 shops in the UK and 28 in Ireland would remain open “while we explore the best possible path forward”.

The firm recorded a pre-tax loss of £4m on falling sales of £137m for the year to 3rd February 2024.

145 stores are not included as part of the transaction but will remain open and will continue to trade while the joint administrators continue to assess options for them.

Cloud-based video editing and publishing software provider Blackbird plc has reported interim revenues of £577,000 for the first six months of 2025, down 17% year-on-year from £692,000.

Despite the revenue decline, operating costs fell 20% to £1.61 million, helping reduce its EBITDA loss to £1.15m from £1.41m a year earlier.

Net loss after tax remained broadly flat at £1.56m.

Cash reserves stood at £2.27m, down from £3.77m a year ago, with a July fundraising of £2.1m set to fund the product-market fit phase of its elevate.io product.

Vault Ventures PLC reported interim results for the six months to 30th June 2025, marking a period of significant repositioning into AI, blockchain and FinTech.

The company raised over £1.25 million during the period and a further £1.45m post-period, funding development of its first AI product, vSignal.ai, and building a digital asset treasury with holdings in Ethereum and Solana now worth £2.83m.

Strategic progress included a partnership with CreatdStudio to incubate 12 ventures, plus the acquisitions of System7 Ventures and Kingbridge Capital to expand in-house AI and blockchain capabilities.

While reporting a £237,000 interim loss, the firm strengthened its balance sheet, with net assets rising to £1.15m.

Alphawave Semi reported interim revenues of £76.7 million for H1 2025, up from £66.7m in the same period last year, despite global economic uncertainty and delays tied to its pending $2.4bn acquisition by Qualcomm.

The London-listed company, headquartered in Toronto, posted an adjusted EBITDA loss of £32m, up from £8.8m, impacted by longer project timelines, increased costs and one-off charges including impairments and acquisition-related expenses.

Bookings fell to £118.6m from £167.7m in H1 2024, though the company specialising in high-performance connectivity solutions for the semiconductor industry expects stronger revenue growth in the second half as customer ASIC tapeouts and IP conversions progress.

Aurrigo International has reported £3.5m in revenue for the first half of its financial year – a year-on-year loss of £400,000 – despite 41% growth in its autonomous division. 

Gross profit rose from £1.4m to £1.5m, with margins improving thanks to increased weighting toward higher-margin autonomous projects. 

Operationally, the Coventry-based manufacturing firm launched its largest autonomous aviation vehicle, Auto Cargo, in partnership with UPS, and secured a three-year deal with Swissport, alongside approvals for Auto-DollyTug and Auto-Sim across a network of 60+ airports.

The founder of cybersecurity giant Mimecast has invested £3 million in Glasgow-based global recruitment technology platform Willo.

Peter Bauer’s latest backing makes up the largest single investment round in Willo’s history and comes as the company accelerates development of tools designed to help employers automatically verify candidate credentials, amid a surge in AI-generated job applications.

The funding will support the firm’s expansion in North America, where the company already generates over 50% of its revenues, and fast-track the launch of Willo Verified Profiles, a new credential verification feature designed to help employers cut through AI-generated noise in the hiring process.

AI-driven data platform GoodFit has raised a £9.7 million Series A led by Notion Capital, with participation from Salica Investments, Inovia Capital, Robin Capital, Common Magic and Andrena Ventures.

Founded in 2020 by Aleksander Bury and Paddle co-founder Harrison Rose, the London-based firm looks to equip commercial leaders with the data required to execute world-class go-to-market strategies in the age of automation and AI.

The Series A marks the company’s first outside funding, which will be used to expand its access to a far broader range of companies and accelerate the development of its capabilities.

Author: Patrick Killeen

Evri Group has unveiled a £36 million investment plan to strengthen its parcel network in preparation for the upcoming Black Friday surge.

The move comes as the company finalises its merger with DHL eCommerce UK, which is expected to close soon after regulators cleared the deal at the start of the month.

The German multinational company DHL Group will take a minority stake in private equity-backed Evri, with the merged business set to deliver 1 billion parcels and 1bn business letters annually.

To handle the seasonal rush, the Leeds-based firm anticipates employing over 30,000 couriers this Christmas, alongside 70 additional operational roles to help manage demand.

Author: Patrick Killeen

The controversial founder and former ‘chief wizard’ of Builder.ai is reportedly preparing to launch a new AI venture, according to inside sources.

Sachin Dev Duggal left his position as CEO at the once-unicorn in March and, just two months later, the firm went into bankruptcy amid a raft of evidence that found its Natasha ‘neural network’ was actually 700 Indian coders.

Since leaving the former unicorn, Duggal has spoken with investors about a fresh business idea, people familiar with the talks said.

One source noted that the venture will be named SecondBrain.

Author: Patrick Killeen

Oxford University spinout OXCCU has raised £20.75 million in an oversubscribed Series B funding round to accelerate the commercialisation of its one-step process to turn waste carbon into sustainable aviation fuel (SAF).

New investors include Orlen VC, Safran Corporate Ventures, International Airlines Group (IAG), Hostplus and TCVC, alongside continued support from Clean Energy Ventures, IP Group, Aramco Ventures, Eni Next, Braavos Capital and the University of Oxford.

The fresh capital will also enable the firm to expand operations and scale up its technology following the launch of its OX1 demonstration plant at London Oxford Airport in 2024.

A second facility, OX2, is under construction and is due to be operational in 2026.

Author: Patrick Killeen

The government has agreed to support Jaguar Land Rover (JLR) with a £1.5 billion loan after the company was recently hit by a widely-reported cyber attack.

The guarantee, announced by recently-appointed Business Secretary Peter Kyle, is expected to give certainty to the manufacturing giant’s supply chain.

It comes after the company had to shut down its UK operations due to the incident, which occurred at the end of last month, with production reportedly not set to restart until at least October 1st.

The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by export credit agency UK Export Finance, will be paid back over five years and will bolster JLR’s cash reserves.

The personal data of some Harrods customers may have been taken in an IT systems breach.

The luxury department store, based in Knightsbridge, said names and contact details of its online customers were taken after a third-party provider’s system was compromised.

“We have informed affected customers that the impacted personal data is limited to basic personal identifiers including name and contact details but does not include account passwords or payment details,” it stated.

“The third party has confirmed this is an isolated incident which has been contained, and we are working closely with them to ensure that all appropriate actions are being taken. We have notified all relevant authorities.”

Pharmaceuticals giant GSK plc, listed in London and New York, has appointed Luke Miels as CEO designate. He will assume full responsibilities as CEO and join the board on 1^st January 2026.

Miels joined GSK in 2017 and is currently chief commercial officer, with worldwide responsibility for medicines and vaccines. He has previously worked at senior levels in the US, Europe and Asia at AstraZeneca, Roche and Sanofi-Aventis.

He will succeed Dame Emma Walmsley, who is said to have transformed the business during her nine years at the helm.

 

Pets at Home’s current CFO Mike Iddon meanwhile is to retire from the role following nine years of leadership.

He will remain in his role until spring 2026 ‘to ensure an orderly transition’.

Incoming Pollard has been with PZ Cussons Plc since 2021 and prior to that served as finance director at Birds Eye and subsequently deputy CFO at Nomad Foods, listed on the New York Stock Exchange. She has also held finance leadership roles at Unilever Plc, Tesco Plc, Pepsico Inc and Diageo Plc.   

PZ Cussons plc has announced that Sarah Pollard, its chief financial officer, will leave the business and step down from the board.

Pollard will take up the CFO role at Pets at Home Group Plc.

PZ Cussons, the consumer goods giant behind brands including Imperial Leather, said it will announce details of her replacement and her departure date in due course.

Janine Hirt, CEO of Innovate Finance and RegTech UK, says the Government’s Digital Identity announcement “raises concerns about innovation that need to be addressed swiftly”.

“Reusable digital identity and verification is a critical component of the tech stack that forms the building blocks for FinTech innovation in the UK – helping to reduce fraud and enable financial inclusion,” she said. “The decision to mandate Government ID however risks the discussion being focused on civil liberty and sovereignty – rather than the utility and innovation this technology can bring to people across the UK. It is also vital that the roll-out of Digital ID supports a competitive market, underpinned by a trust framework, not via a monopoly or costly State solution.

“Equally, mandating a Government-issued ID could crowd out companies who have been developing innovative solutions which are accredited against the Government’s own legal framework.

“Design and delivery must enable multiple service providers, unlocking innovation and supporting the growth of our nascent UK digital verification innovators.

“It could provide a useful identity attribute which can then be used by verification providers to provide a range of services. If, however, it becomes the de facto identity scheme or is delivered in a way that hands market power to a few large corporates, it will kill the UK’s innovation opportunity and undermine trust. Swift clarification is needed from the Government on design and delivery principles to prevent his announcement from freezing investment in our vibrant scale up tech firms in this sector.”

Author: Jonathan Symcox

We reported this morning that Sara Murray OBE was part of a group of shareholders seeking to oust the chairman of Big Technologies plc, the firm she founded and with whom she is embroiled in a £320m High Court battle.

Murray has now provided a statement to BusinessCloud which claims the board held back this morning’s announcement by a week.

“I think the shareholders are absolutely right to believe that the sooner Alexander Brennan steps down and James Matheson takes over, the better it will be for everyone,” she said, adding: “Given the damage he has done to the business, this is not a moment too soon. I have every confidence that James Matheson will be an excellent independent new chairman and will quickly start to turn the company around.”

Investor Andrew Richer, a former Assistant Chief Constable of Bedfordshire Police, said: “I, and a number of other small shareholders, have been asking a series of pertinent questions of the current board as to why they have taken certain actions which we regard as contrary to shareholders’ interests. Answers have either been unsatisfactory or not forthcoming. As a result, we came to the conclusion that a board change was necessary, and on enquiry, it became clear that the majority of shareholders concurred with that view.

“Accordingly, we approached the board of BIG with a request that the views of shareholders be acted upon and provided evidence that the majority of shareholders wished this action to be taken. For reasons which are unfathomable to me, the board appear to be resisting the reasonable request of a majority of the owners of the company.

“It appears that the board have forgotten for whom they work.”

Author: Jonathan Symcox

Facebook and Instagram are to offer UK users the option of subscribing to avoid seeing adverts in a move welcomed by data watchdog the Information Commissioner’s Office.

Parent company Meta said that over the coming weeks, it will give people in the UK the choice of subscribing for £2.99/month on the web or £3.99/month on iOS and Android for the first account.

“The experience for those who choose to use our services for free will not change. They will continue to see ads on our platforms and will still be able to control their ads experience,” it added.

The move is a response to recent UK regulatory guidance and following extensive engagement with the ICO.

A spokesperson for the ICO said: “This moves Meta away from targeting users with ads as part of the standard terms and conditions for using its Facebook and Instagram services, which we’ve been clear is not in line with UK law. 

“People must be given meaningful transparency and choice about how their information is used. At the same time, the ICO recognises that online platforms, like every business, need to operate commercially. 

“During the course of our engagement with Meta, it significantly lowered the starting price point at which users would be offered a subscription. As a result, users in the UK will be able to subscribe at a price point close to half that of EU users. 

“In updating its services in this way, Meta has taken steps to address its non-compliance.”

4,000 new jobs are set to be created in London as Japanese property development company Mitsubishi Estate broke ground at its site on Southbank in a major boost for the UK’s creative industries sector.

The £800 million investment will provide 600,000 square feet of new commercial and cultural spaces, including 40,000 square feet of affordable workspace that is tailored to Lambeth’s emerging creative sector with new high-end offices, cultural venues, studios, gallery and presentation spaces.

The former ITV Studio site will also feature a cultural hub that will provide discounted rents for qualifying tenants, encouraging local businesses to start and grow.