UK consumer confidence rose 1.7 percentage points in the third quarter of 2024, according to the latest Deloitte Consumer Tracker, based on responses from 3,200 UK consumers aged 18+ between 6 and 8 September 2024. All six measures of the index improved in Q3 2024, marking the eighth consecutive quarter of improvement to consumer confidence, taking it to its highest level since before the pandemic. Key Findings: Eight consecutive quarters of improved consumer sentiment mark highest level of confidence since Q2 2019; Sentiment towards children’s welfare and job opportunities provided biggest confidence boost; Consumer sentiment towards the state of the UK economy fell five percentage points on the previous quarter, but remains significantly improved year-on-year; Spending on discretionary items rose, reaching positive territory for the first time since Q3 2021. The improvement is in part due to a significant increase in consumer sentiment towards children’s education and welfare, up five percentage points to its highest level since Q3 2016, following the introduction of the government’s free childcare offering. Meanwhile, there was also a significant rise in sentiment towards job opportunities and career progression, which saw a two-percentage point increase to its highest level since the second quarter of 2019. At the same time, consumers are feeling slightly more positive about their job security, up 0.5 percentage points in Q3, as the labour market remains strong. Céline Fenech, consumer insights lead at Deloitte, said: “Consumer confidence has rebounded to pre-pandemic levels, marking a significant milestone and reflecting an improving economic environment for consumers. This is driven in part by growing optimism about personal circumstances, bolstered by a strong labour market that instils confidence in job security and career opportunities.” Consumers less confident about state of economy ahead of Autumn Budget Consumer confidence towards the state of the UK economy dropped by five percentage points in Q3 2024 as consumers await the outcome of the upcoming Autumn Budget. However, this remains 20 percentage points higher than the same period a year ago. Consumer sentiment around their level of debt improved marginally (+0.8) in Q3 following the first cut to interest rates in August. Consumers have also been focusing on paying off debts, with fewer consumers (18%) saying they saw an increase in their debts in the last three months compared to the previous quarter (21%). Ian Stewart, chief economist at Deloitte, said: “The Bank’s interest rate decision in August was a significant moment, marking the first cut in four years. This, along with inflation now falling below the two percent target, and growth in real income, paints a more positive picture for a consumer sector which has been hit hard by high inflation and interest rates. While consumer sentiment about the economy edged lower this quarter, the overall mood is of cautious optimism among UK consumers.” Summer of culture and sport prompts spending Easing inflationary pressures led to day-to-day spending falling for the second consecutive quarter, down 2.4 percentage points on the previous quarter. Spending on grocery (-3.8), housing (-5.3) and transport (-4.3) have seen some of the biggest decreases, with inflation in those categories having eased significantly in the last year. At the same time, spending on discretionary items rose by 1.9 percentage points in Q3, moving into positive territory for the first time since Q3 2021. The improvement was driven by strong growth in spending on holidays (+3.2), restaurants (+5.5), and clothing (+3.0), as consumers prioritised small treats and activities over the summer period. The data shows that spending across almost all leisure categories improved on the previous quarter, with particular boosts to eating out (+5.5), short holiday breaks (+4.7), and culture and entertainment (+4.1). Of those consumers who indicated they spent more compared with the previous quarter, a higher proportion (22%) said this was because they bought more items and/or spent on more activities than usual (compared with 19% in Q2 2024). Meanwhile, of those who said they spent less in the last three months, fewer said it was because they were trying to save money by paying for fewer items and activities (45%) compared with last quarter (49%). Fenech continued: “Signs that consumer spending is bouncing back are starting to emerge. Spending on non-essential goods and services is now in positive territory for the first time since Q3 2021 when consumers emerged from the pandemic. With many consumers enjoying socialising outdoors, updating their holiday wardrobes, plus a host of sporting and cultural events, it’s not surprising to see discretionary spending receive a much-needed boost." “However, despite the economy returning to normal levels of growth, consumer demand remains weak, with the hangover from high inflation continuing to negatively impact purchasing power. Business sentiment is also lagging behind that of the consumer, with a higher proportion of UK CFOs rating the level of external financial and economic uncertainty facing their business as high or very high in Q3." “Whether consumer sentiment improves, as well as the prospect for business trading this Christmas, will depend on what the Chancellor announces in the upcoming Budget, another Bank of England rate cut, and the strength of the jobs market.”

Leading glass packaging company Croxsons, has once again provided their primary packaging expertise for award-winning gin distillers, Silent Pool, in the unveiling of their limited-edition 10th Anniversary Celebration Edition Gin. The release is in tribute to the passion, dedication and artistry that has defined Silent Pool Distillers over the last decade. Croxsons, known for its high-quality packaging solutions for the spirits industry, has collaborated closely with Silent Pool to create a bespoke bottle for the celebration edition. The iconic Silent Pool teal glass, complete with intricate copper botanical designs, showcases a bold number 10 in recognition of the distillery’s remarkable journey. The packaging serves not only as a collector’s item but as a symbol of the strong partnership between Silent Pool and Croxsons, which has played a vital role in the brand’s success over the years. Handcrafted in the Surrey Hills, the 10th Anniversary Celebration Edition Gin features Silent Pool’s signature four-step production process, using a specially crafted botanical recipe that highlights pear notes, a nod to their early days producing pear eau de vie. The gin offers a sophisticated, multi-layered profile with floral chamomile, elderflower and pear, balanced by warming ginger and vanilla, elevated by a rich infusion of heather honey. Silent Pool Distillers’ Sophie Best said: “Celebrating ten years of Silent Pool Gin is a remarkable achievement and we wanted to create something truly special to honour our journey. The 10th Anniversary Celebration Edition Gin is not just a tribute to our past but also a celebration of what lies ahead. Working with Croxsons to craft such a distinctive and beautiful bottle has been a delight and we’re excited for our customers to experience this exceptional gin, both in taste and design.” “We are thrilled to continue our long-standing partnership with Silent Pool Gin, particularly for such an important milestone,” added Tim Croxson, CEO of Croxsons. “The 10th Anniversary Celebration Edition is a true testament to their craftsmanship and we are proud to have played a part in helping create a package that complements the quality of the gin inside. The design captures the spirit of Silent Pool, combining tradition with innovation, which is something both of our brands value deeply.” This limited-edition gin is packaged in a 1-litre bottle making it a stunning addition to any collection or home bar. Silent Pool Gin’s 10th Anniversary Celebration Edition Gin will be available at selected Surrey retailers and online via the Silent Pool website. Learn more about Croxsons here

The LEGO factory in Kladno has completed yet another phase in the expansion of its rooftop solar park, supporting the company’s commitment to increase capacity and production of renewable energy at its sites. With these new solar panels, the company has more than doubled the total renewable energy generated at the factory – increasing from an existing 1 MWp of energy generated by previously-installed solar panels to a total of 2.5 MWp. This total capacity is the equivalent of powering 400 homes. Michaela T. Horáková, general manager of the LEGO factory in Kladno, says: “Expanding our renewable energy capacity at our factory is a key part of our commitment to minimizing the environmental impact of our manufacturing activities and reducing our carbon footprint. The newly installed solar panels are projected to reduce the factory’s overall carbon footprint by more than 9% of its total annual electricity consumption in the coming years.” The new solar panels have been installed on recently constructed buildings and previously unused rooftop areas of the factory in Kladno. There are now twice as many panels as before, covering an area of approximately 11,000 m2. The –9% reduction of total electricity consumption equates to approximately 1,800 tonnes CO2. Increasing renewable energy investments on a global scale By increasing the production of renewable energy in its factories and buying renewable energy, the company is reducing the absolute figures for the emissions in its factories, stores and offices. Last year, construction began of two new factories, one in Vietnam and another near Richmond, Virginia, USA. The factories are on track to begin operations in 2025 and 2027, respectively, and the ambition is to include on-site and off-site solar facilities with the capacity to match the total annual energy requirements of each factory. At the same time, the company has increased its investments in solar capacity across its manufacturing sites in Denmark, the Czech Republic, Hungary, Mexico and China to a total maximum capacity of 15.6 MWp in 2023, representing a 16% increase relative to 2022. The company also plans to build a solar park in Billund, Denmark, with the ambition of meeting the energy needs of its offices and facilities throughout the city where the legendary LEGO brand was born over ninety years ago.

Generation6 is proud to announce the release of "From Stigma to Strength | Cultivating Mental Health for a Thriving Family Business," edited by Co-founder, CEO, and Advisor Andrew Keyt. This pioneering publication, which has already become a Top New Release and #1 Bestseller in Mental Health on Amazon, addresses the often-overlooked issue of mental health within family-operated businesses, serving as an indispensable guide for business owners and their advisors. This book is a key addition to the Innovation Series of Generation6 | Family Enterprise Advisors. With contributions from 11 seasoned professionals across mental health, family business advising, and legal fields, "From Stigma to Strength" equips readers with practical strategies to address specific mental health challenges such as narcissism, depression, anxiety, ADHD, substance use disorders, and dementia. “Family businesses are the cornerstone of our economy, yet the complex dynamics between family and business often complicates navigating mental health issues," said Andrew Keyt, book editor and CEO of Generation6. "Our goal with 'From Stigma to Strength' is to transform how mental health is perceived and managed within these businesses, ensuring both the success of the business and the well-being of the families involved.” The book offers an in-depth exploration of mental health within family business contexts, structured into three parts: • Part One provides a framework for the mental health landscape for family businesses, examining the interplay between family dynamics and mental health. • Part Two discusses common mental health issues including narcissism, anxiety, depression, and more, with actionable advice for addressing these challenges. • Part Three focuses on practical strategies like neuropsychological testing and legal considerations in mental health. "From Stigma to Strength" is an essential resource for family business owners, advisors, and anyone seeking to build a stronger, healthier family enterprise. It is available for purchase on Amazon.com .

The LEGO Group is kicking off a comprehensive training programme for hundreds of its team members at its new LEGO factory in Binh Duong province in southern Vietnam. The programme is designed to equip employees with the skills and knowledge necessary to operate high-tech production equipment ahead of the factory’s grand opening in the first half of 2025. The training programme will include both hands-on learning overseas at the company’s factories worldwide, as well as local-on-the-job training, creating an exchange between newly hired employees in Vietnam and international colleagues with deep subject matter expertise. Participants will be exposed to scenario-based knowledge and learn troubleshooting skills across a range of functions, including moulding, packing, continuous improvement and more. Jesper Hassellund Mikkelsen, Senior Vice President and General Manager of LEGO Manufacturing Vietnam, said: “Our team members are our most important assets. I’m incredibly thankful for the close collaboration we have had with other LEGO factories around the world to design trainings that provide our colleagues with best-in-class knowledge into the scale and technology behind what we are building at the site. These trainings are essential in ensuring operational readiness and are the foundation on which future team successes are built.” The programme places quality and expertise at the forefront, incorporating best-in-class manufacturing practices from LEGO factories around the world. For example, the company’s factory in Billund, Denmark is helping to train new employees in Vietnam on moulding, while the factories in Jiaxing, China and Kladno, Czech Republic are lending their expertise on packing. The factory in Jiaxing, China also plays a significant role as the company’s only other Asia-based manufacturing site. The China factory hosted the first round of trainees in August for a weeks-long exchange. The LEGO Manufacturing Jiaxing Diversity & inclusion team welcomes trainees from LEGO Manufacturing Vietnam to the factory. The acceleration of hiring and launch of the training programme marks a significant milestone for the factory as it progresses towards operational readiness. Construction of the factory is now approximately 85% complete with test production on track to begin later this year. The LEGO Group announced its investment in a new factory in Vietnam in 2021 and is committed to creating more than 4,000 jobs over the next 15 years.

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."

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.

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.