Family businesses have long been the cornerstone of economies worldwide, blending tradition with entrepreneurial spirit. However, as the baton passes from one generation to the next, the dynamics within the family can become complex, especially when it comes to managing the delicate balance between empowerment and entitlement. The future success of a family business often hinges on this critical distinction in the attitudes and behaviours of next-generation leaders. Empowered Leadership: Nurturing Ownership and Responsibility An empowered next-generation leader is someone who has been given the tools, knowledge, and opportunities to thrive in the family business—but most importantly, they have earned their place. Empowerment comes from a combination of strategic grooming, education, and real-world experience. It is cultivated over time through mentorship, hands-on involvement, and exposure to both the highs and lows of the business. Empowered leaders are typically characterised by: A strong work ethic : They have worked their way up in the company or have developed their own skill sets that bring value to the family business. They understand the importance of meritocracy and are driven by the desire to contribute rather than to receive. Ownership mentality : Empowered individuals are deeply invested in the business's success and understand the weight of their responsibility. They see the business as a legacy to steward, not a personal asset to exploit. Vision and adaptability : They can navigate both the traditional values of the family and the evolving challenges of the market. This flexibility allows them to innovate and drive the business forward while staying grounded in the family’s core principles. Collaborative leadership : Empowered leaders foster teamwork and respect across generations. They seek out feedback, collaborate with outside advisors, and are open to ideas beyond their own. For example, consider the case of a third-generation leader who spent years working in different departments of the business, including time outside of it, gaining a wider industry perspective before taking on a leadership role. They were not handed the position; they earned it, which commands respect both inside and outside the family. This empowered approach allows them to lead with confidence, vision, and credibility. Entitlement: The Risk of Unchecked Privilege On the flip side, entitlement can be the Achilles' heel of any family business. An entitled next-generation member expects power and position by virtue of their last name rather than merit. This mentality can erode not only the culture within the company but also its long-term viability. Entitlement often manifests as: A sense of automatic inheritance : Entitled individuals may assume that leadership roles or ownership stakes are guaranteed, regardless of their contributions or qualifications. This leads to complacency and a lack of drive to prove oneself. Resistance to learning and growth : Instead of seeking mentorship and development, entitled family members may resist feedback or challenges to their authority. This limits their personal growth and weakens the overall leadership team. Lack of accountability : Entitled leaders might shirk responsibility when things go wrong or place blame elsewhere. Without a strong sense of accountability, decisions can be short-sighted and driven by self-interest rather than the business’s long-term success. Alienation of other employees : Non-family employees often become disillusioned if they see a family member being promoted based on name rather than ability. This can lead to disengagement, loss of talent, and decreased morale within the company. A classic example of entitlement is a next-gen leader who is placed in an executive role with no prior experience, expecting respect and deference simply because of their lineage. Without the earned authority or operational understanding, they can make misguided decisions, damaging both the family’s reputation and the company’s success. The Consequences of Entitlement in a Family Business Entitlement can be dangerous, not only for the individual but for the entire family business. Entitled leaders often fail to earn the trust of employees, partners, and even other family members, leading to conflicts, power struggles, and inefficiency. Moreover, it undermines the company’s reputation, as customers and competitors alike can sense a lack of competent leadership. In the worst-case scenarios, entitlement can sow discord within the family itself, causing fractures that may lead to the business being sold off, mismanaged, or divided. When entitled heirs are handed control without proper preparation or respect for the business's legacy, the company risks stagnation or collapse under ineffective leadership. Fostering Empowerment Over Entitlement The key to ensuring the next generation is empowered rather than entitled lies in how families approach succession planning, leadership development, and communication. Here are some strategies for fostering empowerment in the next generation: Early Engagement and Education : Next-gen members should be introduced to the business early, but not through leadership positions. Encourage them to work in different areas of the company or even outside of it. A strong educational foundation, coupled with real-world experience, helps develop the skills and perspective necessary for leadership. Merit-Based Opportunities : While family legacy is important, roles should be based on ability and potential. Create clear pathways for advancement that are open to both family and non-family members, emphasizing results and competency. Mentorship Programmes : Pairing next-gen leaders with seasoned mentors inside and outside the family business can accelerate learning and instil a sense of responsibility. It’s critical that the next generation understands they have much to learn before they can lead effectively. Accountability Structures : Family businesses should implement structures that ensure all leaders, including family members, are held accountable for their actions. Regular performance reviews, strategic goal-setting, and transparent decision-making processes can prevent entitlement from taking root. Open Dialogue About Succession : Clear, candid conversations about succession are essential. This helps set realistic expectations for all family members and avoids misunderstandings about roles and responsibilities. Cultivating Values, Not Just Wealth : Families should emphasize the business's core values over the material wealth it generates. By focusing on what the business represents and the responsibilities it entails, future leaders are more likely to feel connected to the legacy rather than entitled to its rewards. Family businesses have the unique ability to pass not just wealth but wisdom from one generation to the next. Whether a business thrives or falters often depends on whether the next generation embraces an empowered mindset or succumbs to entitlement. Empowerment leads to stewardship, growth, and sustainability, while entitlement risks stagnation, conflict, and decline. For families looking to preserve their businesses for future generations, the challenge is clear: create an environment that fosters empowered leaders—those who have earned their place, respect the business's history, and are ready to carry it forward into the future with skill, humility, and vision. In doing so, they ensure that the family legacy is one of enduring success, not squandered opportunity."

Family businesses stand apart from other enterprises in many ways, but one of the most defining characteristics is the powerful interplay of emotions. Beyond financial assets and market strategies, these companies are infused with a unique form of currency: emotional capital. Emotional capital refers to the trust, loyalty, and shared values that exist within the family and are embedded into the fabric of the business. This often underappreciated resource can be a driving force for success, but if mismanaged, it can also be a source of tension and conflict. Defining Emotional Capital At its core, emotional capital in a family business encompasses the emotional connections, relationships, and bonds that are formed through generations of shared experience. It includes the collective goodwill, trust, and mutual understanding that develop over time, shaping how family members work together and how they make decisions for the business. Emotional capital is intangible but deeply influential, particularly in how it motivates people and sustains commitment to the company’s long-term vision. In many cases, emotional capital is what binds family members to the business. While financial capital might provide the resources for growth, it’s emotional capital that fuels passion, loyalty, and a sense of stewardship. It’s the feeling of pride in the family name, the desire to carry on a legacy, and the sense of responsibility to ensure that the business not only survives but thrives for future generations. Emotional Capital as a Competitive Advantage When managed well, emotional capital can be a significant competitive advantage for family businesses: Trust & Loyalty : Trust is the foundation of emotional capital in family businesses. Family members often trust each other more deeply than business partners in non-family enterprises, which can lead to faster decision-making, greater flexibility, and less bureaucracy. Loyalty within the family can also translate to loyalty within the business, creating a stable workforce and long-term commitment to the company’s success. Long-Term Vision and Stewardship : Emotional capital encourages a long-term perspective. Family members often view themselves as stewards of the business rather than merely shareholders looking for short-term returns. This emotional connection to the legacy of the business allows for decisions that prioritise sustainability over immediate profit, which can lead to steady growth and resilience in the face of economic downturns. Resilience and Adaptability : Family businesses tend to be more resilient because emotional capital can act as a buffer during challenging times. When a family’s shared emotional investment in the business is high, members are more likely to stick together and support one another through tough decisions, such as navigating crises, pivoting in response to market changes, or restructuring the business model. A Culture of Shared Values : A strong sense of shared values, often inherited from the founders, can create a cohesive company culture. This culture fosters a sense of belonging among both family and non-family employees, leading to higher engagement, lower turnover, and a more harmonious workplace. Employees who are aligned with the values of the family business often feel more motivated and committed, enhancing overall productivity. The Dark Side of Emotional Capital: Challenges and Pitfalls While emotional capital can be a powerful asset, it also has a dark side if not carefully managed. The close-knit nature of family relationships can lead to emotional entanglements that affect business decisions, sometimes in ways that are detrimental. Family Conflict : One of the most significant challenges in family businesses is the potential for conflict. When emotions are deeply intertwined with business decisions, disagreements about the direction of the company, succession planning, or personal dynamics can escalate quickly. Long-standing family tensions can spill into the business environment, making it difficult to separate personal feelings from professional responsibilities. Entitlement and Favouritism : Emotional capital can sometimes foster entitlement, especially if certain family members feel they are owed a position or stake in the business without having earned it. This can lead to resentment among other family members and employees, potentially undermining morale and creating divisions within the company. Favouritism, whether real or perceived, can erode trust and damage the emotional foundation that the business relies on. Resistance to Change : The deep emotional attachment to tradition and legacy can also create a resistance to change. Family members may be hesitant to adopt new strategies, technologies, or leadership styles that threaten the established way of doing things. This can make it difficult for family businesses to innovate or respond to external pressures, potentially leading to stagnation. Emotional Decision-Making : Emotion-driven decisions can be a double-edged sword. While the long-term vision of a family business is often an advantage, overly emotional decision-making can cloud judgment. For example, a founder may be reluctant to step down or transition leadership to the next generation, despite it being in the best interest of the business. Alternatively, a desire to avoid conflict may lead to delays in addressing pressing issues, such as restructuring or bringing in external expertise. Building and Managing Emotional Capital For emotional capital to truly be an asset, family businesses must be intentional about how they build and manage it. Here are some strategies to harness emotional capital effectively: Fostering Open Communication : Emotional capital thrives in an environment where communication is open, transparent, and respectful. Family businesses should create formal and informal channels for dialogue, ensuring that all family members feel heard and valued. Family councils, regular meetings, and structured family governance can help address issues before they escalate into full-blown conflict. Establishing Clear Roles and Boundaries : To prevent emotional spilling over and affecting business decisions, it’s critical to establish clear roles and boundaries. Family members should have defined responsibilities based on their skills and expertise, rather than their familial status. Additionally, it’s important to separate family matters from business discussions, ensuring that personal relationships don’t cloud professional judgement. Promoting Meritocracy : Merit-based decision-making is essential to maintaining the integrity of emotional capital. Family businesses that reward competence and contribution, rather than birth-right or favouritism, cultivate an environment of fairness and accountability. This builds trust, not just within the family but also with non-family employees, ensuring that the emotional bonds within the business are inclusive rather than exclusive. Succession Planning with Emotional Intelligence : Succession planning is one of the most emotionally charged processes in a family business. A successful transition requires not only a practical strategy but also emotional intelligence. Leaders should prepare the next generation by providing them with mentorship, opportunities for growth, and a clear understanding of the business’s values. Addressing emotional concerns—such as legacy, identity, and family dynamics—can help ensure a smoother transition and preserve emotional capital across generations. Balancing Tradition with Innovation : While emotional capital is often rooted in tradition, family businesses must strike a balance between preserving their legacy and embracing innovation. Encouraging younger generations to bring new ideas and fresh perspectives, while still honouring the family’s values, can help the business stay competitive in a rapidly changing world. Emotional capital is an invaluable yet often overlooked asset in family businesses. It drives loyalty, commitment, and a sense of purpose that can propel a company forward through generations. However, like any form of capital, it requires careful management. By fostering open communication, promoting fairness, and addressing emotional challenges head-on, family businesses can transform emotional capital from a potential source of conflict into a powerful engine for growth and longevity. Ultimately, emotional capital is about more than just business—it’s about the relationships that define a family’s legacy. When nurtured and respected, it can be the glue that holds both the family and the business together, ensuring that the enterprise not only survives but thrives for generations to come.

The Bill, which has been touted as the biggest upgrade to rights at work for a generation, brings forward 28 separate reforms. However, last Thursday’s announcement put a renewed focus on the already familiar headlines of the Bill, rather than offering up new details. This week, the Government brought forth an additional announcement, warning employers of a potential rise in National Insurance tax – which could put further strain on financial budgets, employee wages and consumer prices. According to a recent poll from Robert Walters , the Bill could boost the confidence of just over two-fifths of UK professionals to seek new job opportunities. Meanwhile, a third of UK employers still feel ‘left in the dark’ over how the new laws will impact them and state needing more clarity. A further fifth of employers’ state that they their hiring focus may shift towards temporary and contract professionals. Contrastingly, a quarter are certain that the Bill will have minimal impact on their hiring plans. Richard Harris, Chief Legal Officer at Robert Walters: "The Government’s employment law overhaul is being touted as the most transformative in a generation - and for good reason. It’s geared towards protecting what Labour often calls “working people” over “corporate elites”. However, make no mistake—it will impact nearly every company." “Understandably, it’s caused some worries for business. However, with the benefits for wider society, industry bodies and corporations may be tempered in their public stances on these concerns. It will be fascinating to see how consultations on the details play out. Certainly, smaller businesses and start-ups are more exposed to dealing with complexity, compliance costs and impact of things going wrong.” Chris Eldridge, CEO of Robert Walters UK and Ireland: “Companies across the UK will be forced to adapt and innovate in response to the Bill. Whilst the longer-term repercussions are considered, we are likely to witness an increase in temporary and contract roles, as they look to exert more controls over staffing costs." “We may also notice a more specific increase in temporary-to-permanent contracts implemented as a technique by employers looking to retain longer cost control or trial periods." “With the Bill not set to come into effect until at least 2026, and the budget announcement mere weeks away, we will continue to keep an ear-to-the-ground for further announcements.”

Shepherd Neame has extended its pouring rights partnership with EFL Championship team Millwall Football Club. The independent Kent brewer and pub company was announced as the official provider of beer, cider, wines, spirits and soft drinks at Millwall FC’s stadium The Den in July last year. A three-year deal was initially agreed, but following the success of the partnership, it will now run for another five years. As part of the new agreement, the former matchday shop, in the corner of the Coldblow Lane and Dockers stands, has been transformed into a new pub-style space for fans to enjoy on matchdays. The ‘Spitfire Bar’, named after Shepherd Neame’s award-winning Spitfire collection of beers, will be open to all fans from tomorrow (Saturday, October 19) ahead of the match against Derby County. To celebrate the opening, a pint of Spitfire or Hurlimann lager will be available in the Spitfire Bar, for the reduced price of £5, from opening at midday until one hour before kick-off. Millwall Chief Commercial Officer Luke Wilson said: “We’re delighted to be enhancing our partnership with Britain’s oldest brewer. Building long-term relationships with key partners, and finding new ways to enhance the fan experience at the Den, are two of our key priorities. Shepherd Neame’s renewed commitment to the club so early on in our partnership, and comprehensive support with providing a brand new space for fans on matchdays, is testament to the strength of the relationship we’ve built in such a short space of time. The Spitfire Bar will be a great space for fans to relax and enjoy a beer in on matchdays, while being sheltered from the elements.” Shepherd Neame’s Chief Executive Jonathan Neame said: “We are incredibly pleased to announce this extension to our successful partnership with Millwall Football Club, and to unveil the new Spitfire Bar for fans to enjoy. The Lions have an incredibly loyal base of supporters, and we look forward to joining them in celebrating the club’s achievements during the coming season.”

The introduction of a long-term industrial strategy is set to bring a surge of offshore manufacturing production back to the UK according to a major annual survey on the investment landscape for UK industry published today by Make UK and RSM UK. Key Findings : Almost three quarters of companies believe re-shoring will accelerate in response to an industrial strategy Half of companies would increase investment in existing UK facilities Only 1% of companies say an industrial strategy will make no difference to their business Confidence in domestic demand and improved export outlook driving investment Two thirds of companies invest up to 10% of turnover in capital, almost three quarters up to 10% in R&D UK owned companies have higher investment intensity than foreign owned Almost three quarters of companies (70%) believe that the re-shoring of production back to the UK will accelerate in response to an industrial strategy, with just 3% saying it would make no difference to prospects for re-shoring. The findings are just two of a range of forecast benefits from such a strategy including greater investment in UK facilities, increased investment in automation and R&D, as well as a renewed push to increase exports to the EU. Publishing the survey ahead of next week’s Autumn Statement and, in response to the green paper on industrial strategy announced last week, Make UK backed the survey results with a call for the Chair of the Industry Strategy Council to announce the composition of the sector sub-groups as soon as possible, including advanced manufacturing, on which the Government intends to focus. According to Make UK these sub-sector groups should be given the remit to focus on the future technologies in which the UK can become self sufficient and resilient in the future, with a focus on national security. As such, the groups should be given the ability to call on cross Department resources and support where necessary. Fhaheen Khan, Senior Economist at Make UK, said: “Manufacturers are ready to unleash the benefits to investment from a long-awaited industrial strategy. It’s clear that this will bring a wide range of benefits and aid companies who are accelerating their moves into greater use of automation and digital technologies, with increased recruitment of higher-level skills." "Given the US, Europe and China are moving at pace with plans to boost investment in green technologies in particular, the UK needs to match these efforts step for step.” Mike Thornton, head of manufacturing at RSM UK, added: “It’s clear the impact a comprehensive, forward-looking strategy will have on manufacturers." "Rather than lagging behind the UK’s economic recovery, strategic clarity will unlock growth, innovation and even kickstart a re-shoring bonanza - creating jobs, boosting key business and infrastructure investment and improving productivity.” According to the survey, as well as increased re-shoring, half of companies would increase investment in existing facilities in the UK, almost a third (30%) would increase automation and increase exports to the EU (29%), while more than a quarter (26% would increase R&D. Just 1% of companies said the introduction of an industrial strategy would have no impact on their business. The survey also shows that compared to perceived beliefs, UK owned companies have higher levels of investment intensity than foreign owned companies in both plant & machinery (8.7% compared to 4.7%%) and R&D (5.5% compared to 5%). According to Make UK this shows the potential benefits to investment in the UK from an industrial strategy which creates growth among home grown businesses who then scale up. Looking ahead to the Autumn Statement, more than half of companies (56%) say reducing Corporation Tax would have the biggest impact on investment, closely followed by the expansion of capital allowances to software (53%) and the extension of full expensing to leased and second hand machinery (46%). Separately, almost a third of firms (30%) said that high interest rates were the biggest obstacle to raising finance adding to pressure on the Bank of England to cut rates at its meeting next month. As well as analysing the impact of Government policy, the survey also provides a comprehensive view of investment trends across UK manufacturing. It shows that plant and machinery, along with labour, remains the top priority for companies’ investment in the next twelve months (53% and 52% respectively). Amid the ongoing debate about the investment performance of UK industry compared to peers, almost two thirds of companies (64%) invest up to 10% of their turnover in plant and machinery with a further quarter (26%) investing between 10% and half of turnover. Furthermore, almost three quarters of companies (72%) invest up to 10% of turnover in R&D, while almost one in five (18%) invest between 10% and half. The survey of 209 companies was conducted between 27 July and 21 August.

John Good Group is pleased to announce its acquisition of Nothing But Ltd, trading as Padlocks.co.uk, an online retailer of padlocks and security solutions based in Liverpool. This acquisition represents a strategic move for the John Good Group, marking its entry into the e-commerce product marketplace, and whilst niche – one with significant potential for growth and expansion. Padlocks.co.uk , a well-established business with strong partnerships with world-renowned lock manufacturers including ABUS and Squire, offers a diverse range of padlocks and security products. In addition to distributing high-quality products, the company has developed its own brand, Shield, which complements its extensive product range. Padlocks.co.uk has built a trusted reputation, serving prestigious clients such as the NHS, Harrods, The Royal Mint, and Network Rail, while also providing specialised solutions, such as salt-resistant locks for the marine industry. The current Padlocks.co.uk team will continue to play a significant role in the business during an extended handover period. CEO of John Good Group, Adam Walsh, said, “It is an exciting acquisition for John Good Group as we bring this e-commerce business into the group. We’ve got great digital marketing, creative skills in the business, as well as a heritage in importing and exporting products, storage and logistics. I feel we’ve got the perfect blend of experience to help Padlocks.co.uk go on the next wave of growth." "We also have a strategic objective to diversify the range of the businesses the Group invests in, and this is a step in the right direction to achieving that.” Rich Quelch, the Group’s current Chief Marketing Officer, will take on an additional role as Managing Director at Padlocks.co.uk. Adam continues, “It is a great opportunity for Rich to take this step up and the responsibility that comes with being a Managing Director. Rich has done a great job since he joined us in 2022, and has proven he has all the right skills to help stimulate new growth and make a positive financial contribution from his efforts." "I’m looking forward to seeing what he can achieve on the next stage of his career, and the benefit he can bring the John Good Group. I’d also like to welcome all the team from Padlocks.co.uk to the John Good Group. We’re going to go on an exciting journey together.”

Do you really need a carbon reduction plan? In 2024, the answer for UK family businesses is a resounding yes – and not just because it’s the right thing to do for the planet. Today, it’s becoming an essential part of doing business in the UK. At AXIOM, we’ve written about the importance of carbon reduction plans before. At that time, the UK government had set out that all firms bidding for major contracts worth over £5m for Central Government and arms-length public bodies had to have a carbon reduction plan in place. Things have moved on quickly since then. Now, companies must also publish their net zero plans online with annual updates. The NHS has introduced similar stipulations for suppliers wishing to tender for their contracts. Today, it’s never been more important for businesses to report on their carbon emissions and demonstrate their commitment to net zero. What’s Driving Carbon Reduction Plans? In 2024, we’re seeing an increasing number of private sector organisations follow the government’s lead, and asking to see proof of their suppliers' carbon credentials. This reflects a wider trend of companies being more focused on reducing their own Scope 1, 2 and 3 emissions. Scope 3 emissions (those linked to an organisation’s supply chain) account for 80%+ of the emissions for most organisations and cutting them depends on supplier engagement. Companies depend on data, proof and carbon reduction plans from their suppliers to deliver on their own net zero ambitions. As part of this, organisations are introducing sustainability criteria into the procurement process that includes ensuring suppliers are committed to cutting emissions. For family businesses without a carbon reduction plan in place, dealing with these companies is becoming increasingly difficult – and they are likely to be excluded from the procurement process. Downward Pressures – Key Drivers Behind Supplier Net Zero Demands There are several factors that are encouraging suppliers to report on and cut emissions. These include: A Focus on Scope 3 As we mentioned above, for many industries, a large portion (80%+) of carbon emissions come from the supply chain (Scope 3). Unlike Scope 1 and 2 emissions, Scope 3 emissions are more challenging to report and reduce (having the right software platform like AXIOM makes it much easier!). By embedding net zero requirements into procurement processes, organisations can gain both visibility and control over supply chain emissions. It allows them to see where their Scope 3 emissions are coming from, and where they can focus their efforts in reducing these emissions. This can either be by putting pressure on the existing suppliers, or looking elsewhere! Government Legislation With its procurement rules on major contracts and NHS work, the government has set a precedent that the private sector is following. It’s also creating a chain reaction – as companies that want to work with the government themselves put pressure on their own supply chains to follow suit. Reputational Benefits People have never been more aware or concerned about climate change, and businesses know that! Getting serious about sustainability and cutting emissions isn’t just a positive for the planet, it has wider organisational and reputational benefits too. Whether a family business wants to attract employees, enhance its environmental credentials and market reputation, or gain access to finance, having a carbon reduction plan in place can help. Derisking The Supply Chain In many areas of the world, climate change is already having an impact on supply chains - whether it’s crop failures, or disruption and damage from extreme weather. For family businesses thinking on a generational timeframe, working with suppliers to achieve net zero is an investment in mitigating these risks and building long term resilience. Carbon Reduction Planning - Key Takeaways The key takeaway is that if you don’t have a carbon reduction plan in place, you need one! Without a Carbon Reduction Plan, your organisation is leaving opportunities on the table, and you are limiting the kind of contracts you can win. Outside of this, you may also be risking losing customers, negatively impacting employee recruitment and retention, and damaging your reputation. Having a carbon reduction plan in place puts you in the best position to take advantage of current and future business opportunities with the ever-increasing number of companies that demand one as part of the procurement process. Scope 3 Emissions and Carbon Reduction Plans With Scope 3 making up the lion’s share of emissions for most organisations, cutting these is an essential part of achieving Net Zero – and to do that, you need to be able to measure and report on them. This can be challenging and complicated, as it requires engagement with your suppliers. One way of overcoming this challenge is by utilising dedicated and specialist software that has been specially designed to calculate and monitor key emissions. About AXIOM AXIOM provides family businesses with complete visibility, access and control over the data required for quick and easy reporting. This is done using carbon reporting software which seamlessly collates emissions data across the year, automatically calculates GHG emissions and accurately reports on scope 1, 2 and 3 emissions. AXIOM help make the reporting process simple to ensure compliance and maximise chances of securing the contracts that matter, so that a business can grow to its full potential. Supporting family businesses in their sustainability journey is a genuine passion of theirs– and they are committed to providing the right tools to make this easier.

The uptick in enforcement action by the tax authorities over National Minimum Wage (NMW) compliance coincides with their enforcement budget increasing to over £27.8m – more than double the amount in 2015/16. It also comes following recent announcements from His Majesty’s Revenue and Customs (HMRC) regarding plans to recruit more than 5,000 additional compliance officers to strengthen their enforcement across all areas of tax. These statistics are taken from a new report by the Department for Business and Trade (DBT) which details HMRC’s enforcement activity during the 2022/23 tax year which saw an increasing number of cases closed and a significant level of arrears identified. The report includes a focus on HMRC’s newest form of enforcement, the ‘Geographical Compliance Approach’ (GCA) which uses a three tiered method designed to encourage employers to comply with the rules and make payments of NMW arrears due to workers. The last of these phases is formal enforcement by HMRC, with any arrears identified during this phase subject to 200% penalties and the employer being publicly named for breaching the rules. Throughout, workers are contacted and encouraged to whistle blow, and the report highlights an increased number of HMRC enforcement cases have been opened due to worker complaint. During 2024, three further locations have been added to HMRC’s GCA with more expected to be announced in the next 12 months. Therefore businesses are being urged to review their payroll records, particularly those items listed in letters HMRC commonly sends to employers during the GCA. These are: Deductions taken from pay that reduce pay for NMW purposes. Unpaid working time, such as time before or after a shift, travel, training and on standby. Rates of pay, with the NMW age brackets recently changing in April 2024. Apprentices, with a focus on study time, whether the apprenticeship agreement is in place for the duration and if the individual qualifies for the reduced rate of pay. General records being available for the six-year period required by law. Other key statistics noted in the report include: HMRC closed almost 3,200 cases with more than 900 involving arrears. A total of £13.66 million in arrears was identified for more than 108,000 workers and HMRC issued 750 penalties totalling £13.72 million. Nearly 12 million workers were reached by targeted communications campaigns. Targeted enforcement continued to be the primary method of identifying arrears, accounting for 74% of closed cases, up from 71% in 2021 to 2022. The DBT says: “This government is absolutely clear that anyone entitled to be paid minimum wage should receive it. The enforcement of the minimum wage is therefore essential and we are committed to cracking down on employers who break the law in this area in all sectors across the economy.” Kyle Newton, Head of National Minimum Wage, at UK top 10 accountancy firm Azets, has welcomed the findings as a stark reminder of how common HMRC enforcement of NMW is and warned businesses to review their records ahead of HMRC issuing a letter to help minimise their financial and reputational risk. He said: “My key take-aways from this report is the sheer scale of HMRC enforcement. Since 1999, 90,000 investigations have been completed and 1.5 million workers have received NMW arrears.” “HMRC is very much taking a geographic compliance approach which targets employers in a particular region. In 2022 to 2023, HMRC sent 17,600 letters to employers across three new locations, Belfast, Cornwall and Watford, so more than 5,000 letters a region." “This approach has bought NMW enforcement to many small businesses who were unaware they were breaching the rules.” “I am pleased to see the report provides an overview of the three-tiered approach which demonstrates HMRC are still intending to support employers with compliance and minimise penalties as far as possible." “However, regardless of penalties, any NMW arrears will lead to an unexpected financial cost for the business, not to mention the additional National Insurance employer contributions and pension contributions." “Landing an unexpected bill will be no mean feat for a business which has to absorb increased NMW rates applying from April 2025. The report also highlights how informed workers are of their rights." “During 2022 to 2023, 3,489 HMRC enforcement cases were opened due to a worker complaint, of which 89.6% of these were made direct to HMRC. “This does not come as to much of a surprise given the report highlights that HMRC sent out 550,000 text messages and many will have seen the Check Your Pay campaign." The NMW rate has been £11.44 since last April, but this report covered the 2022 to 2023 financial year when the rate was between £9.50 and £10.42. With new NMW rates to be announced in the Autumn Statement and these widely estimated to exceed £12 per hour (effective from April 2025) more workers are expected to come within the scope of HMRC enforcement activity. The report highlights statistics about workers in the North East, which was one of the regions subject to the Geographic Compliance Approach earlier this year and Kyle has warned that there will be no let-up in HMRC activity in protecting the rights of workers. This Geographic Compliance now spans 12 locations, with the East Midlands most recently announced, with Liverpool being making up the three locations announced this year. Previous areas have included Cardiff, Birmingham, Cornwall, Watford, Glasgow and Belfast, with more expected to be announced in 2025. HMRC usually pursues the civil enforcement route in order that workers receive their arrears quickly, however, for the most serious non-compliance offences HMRC can refer cases for criminal investigation and prosecution. Kyle added: ”The NMW is made up of several components across five core pillars – it is not just an hourly rate of pay. As an employer, unless you understand these pillars and have policies in place to govern and control each, then you are at risk of non-compliance. It’s like a game of dominos, if one falls down, they all do. “With HMRC continually ramping up enforcement and the government granting the Low Pay Commission further powers to align NMW rates with real living costs, now more than ever there is a greater probability of businesses facing scrutiny. “Employers should take proactive steps to ensure compliance before a letter lands on their desk. Reviewing your payroll controls is a must, but reviewing your wider working time practices is essential as often payroll doesn’t hold all the information you require to ensure NMW compliance.” Kyle has urged any businesses currently being subject to the geographic compliance approach by HMRC, and perhaps have been contacted by letter, to take professional advice at the earliest opportunity. “Whilst HMRC offers support during phase 2, this is limited to the call discussion and referring the business to review guidance. It doesn’t include a review of records and is reliant on the employer undertaking their own checks." “NMW is complex and making payment without taking advice could lead to you overpaying, or worse, not fully rectifying the matter, which leads to further HMRC enforcement, such as 200% legal penalties and public naming.”

Professional services group Gateley, is showing its support for girls in sport by partnering up with cricket apparel range, Maiden, supplying around 20 girls from the ages of 9-23. Maiden Cricket, started by schoolgirls Honor (16) and Cat (15), was created after the sisters were fed up with a lack of cricket clothing available to young female sportswomen. The only options available were unflattering, old, hand-me-downs from brothers or uncomfortable unisex options. With the support of their family, these two teenage entrepreneurs have created four pieces of kit: Night Watch Trousers, Pace Pullover, Mid – On Top and Test Match Trousers. Andlyn White, Responsible Business Manager at Gateley expresses her support of Maiden, saying, “We are proud to champion this inspiring small business that supports the female sporting community. At Gateley, we understand the importance of giving all genders equal opportunities from day one and we are thrilled to help young females in experiencing the value of achievement, camaraderie and the long-term benefits on mental health and confidence as a result of being part of a team sport”. Gateley is eager to support inspiring businesses, through sponsorship and promotion on its podcast “Purpose Pod”. Honor, founder of Maiden, and her father Ollie have appeared on an episode of the podcast, discussing the importance of championing women in sport, the inspiration behind the brand, and the changes they want to make in the cricket community. Honor Black from Maiden says, “We are so grateful to Gateley for supporting our small business from the very beginning, providing advice and a platform for us to share our important story of female empowerment in sport and sponsoring the Rising Stars.” From this initial partnership between Gateley and Maiden, the two companies have continued to work together, with Gateley sponsoring the “Rising Stars” initiative that Maiden Cricket has started. Budding female cricketers can join this new community, where they will receive discounts on kit, webinars from inspirational women in sports, invitations to events and many more opportunities. Ashneet Chahal, a Rising Star who has been sponsored by Gateley says, “I have received the clothes, and I am in love!” after opening her Maiden Cricket kit and “can’t wait to be part of your journey and see how far women’s cricket can go.” Maiden are currently on the lookout for Maiden ambassadors – young female cricketers keen to wear the apparel on the field and inspire other girls to play and look their best.

Negativity surrounding the subject of menopause is increasing, according to research by digital women’s wellness magazine Living360 . The research reveals UK women would like to be better informed about menopause (95%), are unsure of what to expect with the onset of menopause (70%) and are still unclear on what healthcare is available (over 60%). Interestingly, women's negative perceptions about the topic tend to increase from the start of perimenopause through to post-menopause. Even with increased media coverage and celebrities discussing menopause more, many women in the UK still feel unprepared and uninformed. Key Findings: 90% of pre-menopausal women report wanting to know more about menopause before it starts and, overall, 95% of women believe education and awareness of menopause needs to be improved for those yet to go through it. 70% of pre-menopausal women feel uninformed about the changes and symptoms to expect. Over 60% of women feel uninformed about the healthcare choices available during and after perimenopause, with women in perimenopause and post-menopause continuing to not know (63.1% and 64.2% respectively). Feelings of negativity towards menopause increase while going through it, with research revealing negativity rises from 28% to 61% in perimenopausal women and 22% to 37.9% in postmenopausal women. Young women today feel more negatively about menopause than those before them, as 54.1% of pre-menopausal women reported feeling negatively about this stage of life, in comparison to 22% and 28%, as detailed above. Living360 editor Mattie Lacey-Davidson says: “The fact that women can go through perimenopause, which often lasts years, and still come away feeling uninformed about the healthcare choices available to them is shocking. The government and the NHS need to be doing more to help women.” Mattie says: “It’s a missed opportunity that the NHS Health Checks available every five years to anyone aged 40 to 74 (without certain pre-existing conditions) fail to mention menopause.” The NHS Health Checks consist of a few basic measurements: height, weight, blood pressure and cholesterol; and lifestyle questions that can contribute to poor health such as smoking, drinking and exercise. Mattie concludes: “Menopause is often compared to puberty but, in fact, it’s much more of a drastic change than that. There’s no other time a person in the UK would be expected to deal with such a variety of serious physical and mental health symptoms without regular medical support.” Living360 surveyed 627 women over the age of 18 who were pre-, peri- and postmenopausal — 5.5% were unsure if perimenopause had started, and 95% of all women surveyed think education needs to be improved for young women prior to entering perimenopause.

From the conception of Furniture Village in 1989, we always wanted a business where everyone who worked within it could share in the rewards of their efforts, over and above the standard practice of commission and performance related bonuses. With the share buyback in October 2022 resulting in the business becoming 100% family owned, we were able to implement a company wide profit-sharing scheme known as the ‘Family Partnership’. Given the results produced in 22/23, we were very pleased to be able to share approximately £1.25 million with all eligible employees across the business (around1000) in the inaugural profit share scheme payment, which was actioned in August last year. Marisa Keenan joined the business 25 years ago and works at our Group Head Office in Slough. She started in the accounts team before moving into marketing as our Advertising Executive and was later promoted to Campaign Manager. She said, “I am proud to work for Furniture Village, a family run business with family values at its heart. I am thrilled that our individual and collective hard work, commitment and dedication is being recognised with the employee profit scheme. This motivates the whole team and drives us to always perform at our best, which plays an important role in the continued success of the business.” Whilst we are all aware of the economic headwinds that face retail in general and big ticket in particular over this past year, there will always be a market for good quality, good value, home furnishings, presented well and served right. We are therefore very proud to announce improved results for the year ended June 2024. Our order intake last year was up some 3% on a ‘like for like’ basis, which together with improved margins and strong cost controls enabled us to produce an even stronger trading performance last year with profits in the order of £12.35 million, a record year outside the immediate post Covid period. Whilst the troubles in the Middle East and Suez in particular caused a degree of disruption to deliveries, our supply chain and fulfilment teams were able to work smartly to contain the disruption to a minimum. These results far exceeded the prior year and the budget we set ourselves and the additional profit generated has enabled us to double the amount paid out in our Family Partnership Profit Share scheme this year to around 1050 of our employees of circa £2.25 million! *Profit before Family Partnership - £12.35 million *Family Partnership profit share - £2.25 million *Profit before tax - £10.1 million *Cash - £40.0 million “Whilst these results are as yet un-audited, given the integrity of our financial reporting over the years, we have every confidence that our reported results will mirror these.” Eamon Wynne, CFO.  Peter Harrison, Chairman commented: “Improving performance is not a God-given-right, especially in the big-ticket sector, which is often more sensitive to economic and political fluctuations. However, our commitment to taking care of our customers and, most importantly, our own people has proven invaluable during these uncertain times. We firmly believe in bringing our people along with us, and these results are a testament to their extraordinary efforts, for which we are immensely grateful. The same goes for all of our highly valued suppliers whom themselves have battled against the same difficult trading conditions as a result of various economic and political challenges.”  Charlie Harrison, Managing Director said: "Once again, we have demonstrated that it is possible to be profitable and cash generative yet still ‘do it properly’, as we say. We have no borrowings and no external shareholders, but sufficient funds to continue to grow organically by investing in new and existing stores as well as online." "Throughout the years we have been very considered and deliberate in our expansion strategy and our plans are to continue to grow in a sensible, measured way, taking advantage of the right opportunities when they become available." "We have recently announced that we will be opening our first store in Edinburgh, Scotland on Boxing Day 2024 – swiftly followed by three or four more. Fully recognising the immense opportunities presented by ever improving technology, we are also investing substantially in a new ERP system which will be up and running in the next 18 to 24 months and we are similarly very grateful to Sci>Net and many of our own highly skilled personnel for helping us to bring home this project successfully.” Thank you, Peter and Charlie Harrison on behalf of the Board of Furniture Village Furniture Village Colchester store, opened December 2022

St Austell Brewery has gained a listing for its first ever low-alcohol IPA with Morrisons. Proper Job 0.5% is due to launch in the supermarket on the 23rd October and will be available in 286 stores across the country. Independent and family-owned St Austell Brewery has been meticulously tweaking its recipe to create a low alcohol beer which celebrates Proper Job - its flagship IPA - with its famous hop-filled flavour profile. The full-strength version of the beer is the best-selling bottled IPA in the off trade* and St Austell Brewery has high ambitions that its 0.5% equivalent will become one of the best no/low IPAs on the market. Brewed with the same heartfelt craft, Proper Job 0.5% uses a special yeast to create a low-alcohol take on its bold original. Ryan Crisp, Off Trade National Account Manager for St Austell Brewery, said: “We’re thrilled to partner with Morrisons as the first supermarket to stock our debut low-alcohol beer. Proper Job 0.5% has been the overwhelming favourite against many of our competitors in extensive taste tests and we can’t wait for more customers to be able to purchase it readily in stores across the country.” Harry Ball, Morrisons Buying Manager for Craft Beer & Ale added: "We're excited to have Proper Job 0.5% hitting Morrisons shelves this October. This is an important market for us and one we know customers enjoy exploring new options in, so we're thrilled to be able to offer it in our stores." The new listing comes off the back of the business’ bold Proper Job rebrand in March 2024 which features a striking new typeface and more prominent colourways, leaning on the brand and elevating its credentials. Proper Job 0.5% will be launching in Morrisons at an introductory More Card price of £1.50 per 500ml bottle until the 31st December.