Month: February 2026

The Government has unveiled new guidance to help employers prepare for major changes to employment law, as ministers seek to fix what they describe as a “broken labour market” while supporting business growth.
The guidance follows the passing of the Employment Rights Act 2025, which will introduce a series of reforms from April aimed at establishing a fairer baseline of workplace protections. Ministers argue the changes reflect practices already adopted by many employers and will deliver long-term productivity and staff retention benefits.
As part of the rollout, the Government has launched a new online hub, providing free, practical support for the UK’s estimated 1.4 million employers. The site includes clear timelines, summaries of upcoming changes, actions businesses need to take, and links to further guidance.
From April, statutory sick pay will become payable from the first day of sickness absence, while new “day one” rights will be introduced for parental leave and paternity leave. Further reforms will be phased in gradually over a two-year period, a move the Government says is designed to give employers time to adapt and implement changes correctly.
Employment Rights Minister Kate Dearden said the reforms were central to the Government’s economic strategy.
“Creating a modern, fair and dynamic labour market is central to this Government’s plan for growth,” she said. “We want to make it easier for employers to find the people they need, while ensuring that work pays and feels secure.
“Through clear guidance, we are giving businesses the practical support they need to understand these changes and get things right first time. By improving fairness and security at work, we boost productivity, strengthen retention and support businesses to succeed.”
The Government said it has already held nearly 350 engagements with businesses as part of its Plan to Make Work Pay, with further consultation planned as implementation continues. Officials said this engagement is shaping both the reforms themselves and the guidance being provided to employers.
Additional support will also be available through Acas and sector bodies.
Acas chief executive Niall Mackenzie said: “We are proud to support the Government’s awareness campaign to help businesses understand and prepare for these employment law changes, which will affect all workplaces.
“Acas has advice, webinars and training available to help employers and workers prepare, and we will continue to update our guidance as the new laws are implemented. Being ready for change can help prevent disputes and support healthy working relationships.”
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Government issues new guidance to help businesses prepare for employment law changes

Around one million people missed the deadline to file their self-assessment tax return, leaving them facing automatic penalties, according to HM Revenue and Customs.
HMRC said 27,456 taxpayers filed in the final hour before the midnight cut-off at the end of Saturday, after the tax authority kept helplines open and extended webchat services over the weekend in a bid to help late filers.
The busiest period for online submissions was between 5pm and 6pm on Saturday. In total, 475,722 people filed on the final day, bringing the overall number of submissions for the 2024–25 tax year to around 11.5 million.
Anyone who failed to file on time now faces an automatic £100 penalty, even if there is no tax to pay or the tax owed has already been settled.
Myrtle Lloyd, HMRC’s chief customer officer, said: “Thank you to the millions of people and agents who filed their self-assessment tax return and paid any tax owed by 31 January. Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.”
While most employees pay tax automatically through PAYE, self-assessment remains mandatory for people with additional income. This includes those earning more than £1,000 from self-employment, or from renting out property or land during the tax year.
Some individuals were no longer required to submit a return this year, including those whose only previous reason for filing was earning more than £150,000, or parents who now pay the high income child benefit charge through PAYE instead of self-assessment.
A similar number of taxpayers missed the deadline last year. HMRC’s penalty regime escalates the longer a return remains outstanding. In addition to the initial £100 fine, late filers can face daily penalties of £10 after three months, capped at £900, followed by further penalties after six and 12 months.
Separate penalties also apply for paying tax late, with 5% surcharges applied after 30 days, six months and 12 months, alongside interest on unpaid balances.
HMRC said it will consider reasonable excuses for missing the deadline and may cancel penalties where appropriate. However, tax experts warn against delaying action.
Charlene Young, senior pensions and savings expert at AJ Bell, said: “Even if you intend to appeal a penalty, it’s often sensible to pay it upfront to avoid interest being added if the appeal fails. If you owe tax and can’t pay in full, a payment plan may be available — but ignoring the problem will only make it worse.”
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One million miss HMRC tax return deadline as penalties begin

Greater adoption of agentic artificial intelligence could help rejuvenate Britain’s sluggish economy, according to business and technology leaders speaking at an AI summit held at the House of Lords.
The event, chaired by Steven George-Hilley, founder of Centropy PR, brought together senior figures from the technology, legal, financial services and cybersecurity sectors to examine how AI is reshaping economic growth, jobs and boardroom decision-making.
A central theme of the summit was the role of agentic AI systems, autonomous tools capable of acting on goals with minimal human intervention, in helping small and medium-sized enterprises access advanced capabilities that were previously out of reach. Speakers argued that AI-driven sales, customer management and decision-support systems could level the playing field for SMEs and unlock productivity gains across the economy.
Participants also warned of a looming “skills cliff edge” as AI adoption accelerates, particularly among smaller businesses that lack the resources to retrain staff at pace. Without targeted support, the UK risks widening the gap between large enterprises and the SME sector that underpins much of the economy, the summit heard.
Rupert Osborne, UK chief executive of Capital.com, said AI could play a crucial role in improving financial decision-making by making complex market data easier to understand.
“Used responsibly, AI can organise data, explain market movements and make uncertainty more visible, so decisions are informed by context and risk, not just price,” he said. “Many people default to traditional savings products because investing feels opaque or intimidating. AI can help form the building blocks of a more practical approach to financial literacy in the UK.”
Cybersecurity was also high on the agenda, with speakers stressing that AI-led transformation must be matched by robust safeguards.
Graeme Stewart, head of public sector at Check Point Software, said AI had the potential to transform public services such as healthcare and local government, but warned that security could not be an afterthought.
“We’ve already seen how ruthless hackers can be when it comes to targeting vulnerable organisations,” he said. “Cyber resilience must be built into AI strategies from the outset to ensure public trust and protect sensitive data as adoption accelerates.”
From a financial services perspective, Jan Tlaskal, chief data engineer at Galytix, argued that domain-specific, high-trust AI systems were becoming a strategic necessity.
“With geopolitical fragmentation, rising regulatory complexity and mounting compliance demands, agentic AI is not something to shy away from,” he said. “It is a strategic risk-management advantage that can improve data accuracy, enable faster investment decisions and support sustainable growth.”
The summit concluded that while AI will inevitably reshape jobs and workflows, agentic AI offers a significant opportunity to boost productivity and competitiveness, provided skills, security and responsible deployment are treated as core priorities rather than secondary concerns.
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House of Lords AI summit urges agentic AI to ‘rejuvenate’ UK economy

The government has announced a £150 million cash injection for struggling high streets across the UK, but small business owners and industry leaders have warned the funding risks being little more than a “trivial sticking plaster on a gaping economic wound”.
The funding, unveiled as part of a forthcoming High Streets Strategy, will be targeted at town centres hit hardest by years of shop closures, rising costs and declining footfall. Ministers said the money would help revive high streets blighted by boarded-up units and the loss of essential local retailers such as butchers, grocers and bakers.
Further details on how the £150 million will be allocated and which areas will benefit are expected to be announced in the coming months.
Steve Reed, the communities secretary, said the investment marked an important step in reversing the decline of town centres.
“Our high streets are the beating heart of Britain, where communities come together and local businesses can grow,” Reed said. “Town centres have suffered from high streets falling into decline, and that is why we’re taking action to turn the tide with this crucial investment and more to come.
“We have listened to what people are telling us and that’s why we’re giving them the power and control to breathe new life back into our high streets and restore the sense of pride communities feel.”
However, many business owners say the scale of the funding is dwarfed by the pressures facing high street firms, particularly rising business rates, higher wages and weak consumer spending.
Jess Magill, co-founder of Powderkeg Brewery, said the government was acknowledging the problem but failing to address its root causes.
“While it’s great that the government is recognising the problem, the level of funding is nowhere near enough,” she said. “With business rate hikes, the government is taking away with one hand and throwing crumbs back with the other.
“Many towns are stuck with run-down retail centres owned by private property firms happy to leave units empty. Add to that the squeeze on household budgets and it’s clear we need far more than this to stop shops, pubs and restaurants closing.”
Others questioned how far the money would stretch once divided across the country.
Clive Bonny, managing director of Strategic Management Partners, said the numbers did not stack up.
“The UK has around 325,000 small independent high street retailers,” he said. “£150 million spread across them works out at only a few hundred pounds per business. We need transparency on who gets this money, how it will be spent and what return on investment the government expects.”
The most scathing criticism focused on the broader economic context facing high streets.
Rohit Parmar-Mistry, founder of Pattrn Data, said the funding failed to address the underlying causes of decline.
“This initiative is a trivial sticking plaster on a gaping economic wound,” he said. “You can repaint shop fronts and open community hubs, but if local people have no disposable income, businesses will still fail.
“The decline of the high street isn’t cosmetic – it’s systemic. Real regeneration comes when people have money in their pockets to spend. Until that’s addressed, this is just managing decline with a smile.”
The criticism comes amid mounting pressure on the government from retailers and hospitality firms warning that rising taxes and the withdrawal of pandemic-era support risk accelerating closures in town centres. While ministers insist the £150 million is only the start of a wider strategy, business groups are calling for deeper reform on business rates, rents and consumer affordability if high streets are to recover sustainably.
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High streets to receive £150m boost – but business leaders warn it is “a sticking plaster on a gaping wound”

The billionaire brothers behind Betfred have topped the Sunday Times 2026 Tax List, after paying an estimated £400.1 million to the UK Treasury, making them the country’s biggest individual taxpayers.
Fred and Peter Done, founders of the betting empire, took the top spot in the annual rankings, with around half of their contribution linked to gambling duties generated by Betfred’s nationwide chain of betting shops.
The list, now in its eighth year, highlights the scale of tax paid by Britain’s wealthiest business figures and celebrities, even as concerns grow over a steady migration of high-net-worth individuals overseas.
Pub tycoon Tim Martin ranked eighth, with a personal tax contribution just under £200 million. His company, JD Wetherspoon, operates 794 pubs and paid a total of £837.1 million in taxes last year, averaging more than £1 million per pub across corporation tax, VAT, business rates and gaming duties.
Martin, who owns 26.7% of the group, said he had no complaints about his personal tax bill, describing taxation as a political choice for voters rather than a personal grievance.
Other leading contributors in the top ten included financiers Alex Gerko, Chris Rokos and Peter Hargreaves, alongside retail figures such as Mike Ashley of Sports Direct, Tom Morris of Home Bargains, the Perkins family behind Specsavers, and Stephen Rubin, a major shareholder in JD Sports and owner of Speedo.
Among public figures, Harry Styles emerged as the highest-contributing celebrity, ranked 54th overall, with an estimated £24.7 million tax bill. Most of his contribution stems from touring and merchandise income generated through his company, Erskine Records.
He finished ahead of fellow singer Ed Sheeran, who paid just under £20 million in tax after receiving a £41 million dividend last year.
At 72nd on the list, Erling Haaland became the youngest entrant. The Manchester City striker, whose earnings exceed £500,000 a week before bonuses and image rights, is estimated to have paid £16.9 million in UK tax.
Other notable names included JK Rowling, the Timpson family, Dyson founder James Dyson, and Douglas and Iain Anderson of the GAP Group, which supplies infrastructure for festivals and major events.
The 2026 list coincides with what the Sunday Times describes as an ongoing exodus of wealthy individuals from the UK. Fourteen of those featured are now resident overseas, with several based in Monaco, Jersey, Guernsey, Portugal, Cyprus, Dubai and the United States.
Despite the trend, Peter Done, 78, said he had no intention of leaving Britain. “We owe this country,” he told the newspaper, adding that successful entrepreneurs have a responsibility to pay tax where their wealth was created.
According to HMRC data, the top 1% of earners in the UK — those earning more than £219,000 before tax — currently contribute around 26.6% of all income tax receipts. While still significant, that share has fallen from 30.7% in 2021–22, partly due to frozen income tax thresholds and the relocation of some high earners abroad.
The Sunday Times Tax List is compiled using the most recent company accounts filed up to 10 January and includes a broad range of levies, from corporation and dividend tax to capital gains, income tax and sector-specific duties such as gambling and alcohol taxes.
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Betfred brothers top Sunday Times tax list with £400m bill as stars and entrepreneurs pay record sums