⚠️ Record Number of UK Businesses On Brink of Collapse

📰 Industry News

• The new boss of Starbucks has promised to simplify its "overly complex menu" as the coffee chain attempts to win back customers and boost falling sales. (BBC)

• Mulberry has rejected an increased takeover bid of £111 million from Sports Direct owner Frasers Group. (The Retail Bulletin)

• Chancellor Rachel Reeves says she has reached spending settlements with all government departments ahead of her much-anticipated Budget on 30 October. (BBC)

• The government will ban the sale and supply of single-use vapes by next summer. Legislation to introduce the ban from 1 June next year, allowing businesses "to sell any remaining stock they hold…" (Sky News)
  

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⚠️ Record Number of UK Businesses On Brink of Collapse as Budget Looms

It’s a scary time for British businesses, and it’s not because of Halloween. New research reveals that a record number of UK companies are on the verge of collapse, with many bracing themselves for what’s coming in the Budget later this month. Here’s what’s happening:

• Numbers don’t lie: Almost 633,000 businesses were reported to be in serious financial distress in the last quarter - a 32% jump from the same time last year. Ouch.

• Choking on uncertainty: With whispers of a tax hike on employers’ National Insurance contributions, bosses are holding their breath, waiting to see if Chancellor Rachel Reeves will drop the hammer. And let's not forget Labour's workers' rights bill, which could make hiring even more of a headache.

• Key industries in trouble: Support services, construction, and property sectors are the worst hit. It’s clear that the pressure is mounting, and many businesses are already feeling the pinch.

My take? With the budget uncertainty hanging over their heads, businesses are being left to play a dangerous waiting game. If Reeves does go through with the proposed changes, we could see even more companies tip over the edge. It’s crunch time, and the stakes are high. 

📅 Heads up: Next week, we’re bringing you a Budget Special! We’ll break down exactly how much worse (or better) off you’ll be, what sectors will be affected, and answer some of your burning questions. Don’t miss it!

🍺 Is This The End of ‘Craft Beer’?

Small UK breweries are ditching the term "craft beer" and embracing "indie beer" instead. Why? Global beer giants have blurred the lines, fooling many drinkers into thinking their brews are still artisanal. The indie movement wants to bring transparency back to your pint and protect the legacy of independent brewing.

Let’s break it down:

• A YouGov survey revealed that 40% of people believe Neck Oil (owned by Heineken) is independent.

• Global brands like Camden (AB InBev), Beavertown (Heineken), and Fuller’s (Asahi) are often still marketed as "craft".

• Siba (Society of Independent Brewers) has launched the "indie beer" campaign to help drinkers identify truly independent brews.

• New labels and pump clips, aim to help consumers check if their pint is really ‘indie’.

My Take.
As corporate giants muscle in on the craft beer scene, it’s putting real pressure on independent brewers fighting to keep their identity. The "indie beer" campaign has potential, but it’ll need consumers to rally behind it to make sure genuine independent breweries get the recognition - and support - they deserve.

💳 Buy Now Pay Later Regulations Incoming

The Buy Now Pay Later (BNPL) craze has revolutionised how people shop, but the UK government is stepping in to tighten the rules. On October 17, 2024, the government opened a public consultation to discuss new regulations aimed at protecting consumers from spiralling debt. The consultation runs until November 29, 2024, and the results will shape the future of BNPL services in the UK.

Why Now?
BNPL services have boomed in popularity, offering shoppers the ability to split payments, often with no interest. Great for impulse buys, but not so great for financial health. A 2023 study found that a quarter of UK users faced late fees, leading to concerns about affordability and responsible lending.

What’s Coming?
The Financial Conduct Authority (FCA) is preparing to roll out new rules in 2025, requiring affordability checks, clearer disclosures, and more protection under the Consumer Duty. BNPL providers will also need FCA authorisation to operate. Retailers offering BNPL will need to up their game to stay compliant, focusing on transparency and creditworthiness.

Impact on Retail
For businesses, these changes mean extra hoops to jump through, particularly around customer credit checks. But don’t worry - BNPL isn’t going anywhere. The goal is to balance innovation with consumer protection, so retailers can still benefit from these popular payment options while safeguarding their customers.

My Take?
The clock’s ticking for BNPL providers and retailers to get their act together. With Christmas fast approaching, it’s doubtful we’ll see any major changes before the new year. But come 2025, expect tighter oversight and fewer surprise fees for shoppers. If done right, it’s a win-win for everyone.

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