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Proper bookkeeping is an unavoidable task when running a small business, but learning how to keep accounts as a business owner can be stressful. That’s why we’ve designed this simple, easy-to-understand guide on double-entry accounting.

A double-entry bookkeeping system might seem daunting at first, but it’s all about debits and credits and ensuring there’s a balance–hence the phrase ‘balance the books’. It’s a powerful accounting tool when employed correctly.

At Startups, we’ve been advising small businesses on financial matters for 25 years, and we’re here to help you demystify confusing concepts. We’ll talk you through what double-entry accounting is, why it’s used, and if it’s right for your particular business.

What is double-entry accounting?

Double-entry accounting is the gold standard bookkeeping system for most businesses. It’s a type of bookkeeping where two accounting entries are created for each business transaction. So, each transaction can be found in two different places in your records.

A transaction is recorded once as a debit and once as a credit. The amount recorded as a debit must be equal to the amount recorded as a credit.

It gives you a clearer and more comprehensive view of your finances, and also helps prevent fraud.

This type of detailed accounting is particularly helpful for creating your profit & loss sheet: a document created alongside a cash flow forecast and balance sheet.

What’s the difference between double-entry and single-entry accounting?

Single-entry is a much more basic, cash-based system. While double-entry takes into account debits and credits, single-entry does not. There’s only one entry per transaction, and it’s easier to maintain.

Sole practitioners and small businesses prefer single-entry for its simplicity. It’s primarily used for tracking income and expenses, while double-entry bookkeeping can be used to track assets, liabilities, equity, income, and expenses.

A key difference to note is that single-entry accounting cannot help you produce a balance sheet. It’s also far less adept at spotting errors in bookkeeping.

This is why single-entry is only really used by freelancers and very small businesses. It can be helpful for simply filing a self-assessment tax return. Although more complex, double-entry is far more reliable and gives a much more sophisticated look into your financials.

Key accounting terminology defined

Before we go into detail on how double-entry accounting works, there are some key terms you’ll need to understand:

Assets are everything that your company owns that has value, including the money in your business account, inventory, buildings, and equipment.

Liabilities are what your company owes to other entities, such as debts and obligations. Examples include a bank business loan used to set up the company or an outstanding payment to vendors for goods or services received.

Equity is what you are left with after subtracting your liabilities from your assets. It represents the net value for owners and shareholders, and it’s used as an indicator of the business’s financial health and an investment tool.

Credits and debits are financial entries which represent debit and credit transactions within a financial account. Debits can result in an increase in assets or a decrease in liabilities. Credits function as the opposite; they will subtract from assets while adding to liabilities.

Revenue refers to all the money that comes into your business. The most common example is selling products or services in exchange for money, but it can also include interest from investments or rent from a property.

Expenses refer to the costs incurred by running a business in order for the company to generate revenue, such as rent, utilities, and office supplies.

A ledger acts as a record of all your business’s financial transactions. This includes the five main types: assets, liabilities, equity, revenue, and expenses.

How does double-entry accounting work?

The important thing to remember when trying to get your head around double-entry bookkeeping: debits and credits should always be of equal value. If they’re mismatched, that’s how you know there’s an error.

If you’re feeling confused, remember the fundamental equation:

• Assets = Liabilities + Equity

You can jump back up to our terminology section if you’re not sure what any of the individual terms refer to. The key here is balance; if a transaction increases the value of one account, then the other must decrease by an equal amount.

Ultimately, there are two sides to every story, and in double-entry bookkeeping, there are two sides to every transaction. These sides are the debit and the credit recorded in your chart of accounts. There are five main types of accounts:

• Assets
• Liabilities
• Equity
• Revenue
• Expenses

A chart of accounts contains the main accounts, as well as all their subcategories, allowing you to track your transactions and ensure they’re being recorded in the correct place. You can use accounting software to help set up and automate your chart of accounts.

When you record a transaction for double-entry accounting, you must place it in the chart of accounts category that makes the most sense. Then, you will need to understand what effect that transaction had and record that.

Here’s a step-by-step of how the process should work from start to finish.

1. Record the transaction in the appropriate journal in your chart of accounts (e.g. expenses, loans, your bank account, etc.).
2. You will need to record a credit in the appropriate journal in the left column of your ledger.
3. Record a corresponding debit into another journal on the right side of your ledger.
4. Create a summary of these account balances in your general ledger.
5. Use that information to generate a balance report.
6. If the balance is correct, then you’ve used the double-entry system correctly.

Just remember, there isn’t necessarily always only two entries per transaction; this is just the minimum. There may be more entries depending on the complexity of your transaction.

An example of double-entry accounting in action

Let’s put this into a simple, real-world scenario.

You need to buy a printer for your business, so you go to the shop and purchase one with cash taken from the business’s bank account. The new printer costs £300.

When it comes time to record this in your books, you make two entries into your ledger:

• An asset account (the printer) is debited for £300 (an increase).
• And another asset account (the cash you used to pay for the printer) is credited for £300 (a decrease).

Which accounting systems use double-entry?

The best way to stay on top of your bookkeeping is to use the best accounting software.

Many of the top accounting software options support double-entry bookkeeping and can automate the process.

January is coming up quickly, so now is the best time to get to grips with your accounting software to stay on top of the accounting reference date. Here are our six top recommendations:

• Zoho Books
• QuickBooks
• Sage
• Xero
• FreeAgent
• FreshBooks

Summary

Single-entry accounting is much simpler but should only be used by sole traders and smaller businesses. Double-entry accounting is far more reliable at spotting errors, giving you a more detailed look at your finances, and can be used to create a balance sheet.

This is why it’s favoured by larger and more complex businesses that want a sophisticated look into their company’s financial health. Remember, a double-entry system is all about finding the balance: if your credits and debits don’t match up, something’s gone awry. Next, make your bookkeeping all the easier by choosing the right accountant for your business.

The post What is double-entry accounting? appeared first on Startups.co.uk.

Zero-hours contracts have some negative connotations, having been viewed as exploitative. However, some argue that they offer valuable flexibility to both workers and employers.

Running a company in 2025 is a stressful endeavour, even with the help of the best HR and payroll software, so it’s understandable why employers consider zero-hours contracts. Just remember, it’s your responsibility as the employer to make sure you’re not taking advantage of your staff and that you both clearly understand the arrangement.

Of course, there are plenty of pitfalls to avoid, so we’ll highlight all you need to know. We’ll take you through the pros and cons of zero-hours contracts, and whether they’re a viable option for your business.

What is a zero-hours contract?

Also known as casual contracts, zero-hours contracts are a specific type of employment contract. They are used for on-call work or “piece work”, meaning a worker on a zero-hours contract is on call for work when you require them.

Basically, it means the employer is not required to give a worker on a zero-hours contract a set amount of work. It’s a two-way street, though, as a zero-hours contract worker isn’t always obliged to accept the work given to them.

Perception of zero-hours contracts has been largely negative in the media because the hours can be unpredictable, they can leave workers in a financially vulnerable position, and there’s an overall lack of job security.

However, they can also be attractive to workers because:

• They offer a lot of flexibility, especially for workers who need to care for families or students looking for work around full-time education.
• It gives workers the freedom to have multiple jobs simultaneously.
• They provide work experience, as a zero-hours contract can act as an extended, practical trial period.

What are the employer’s responsibilities?

This year saw the introduction of the Employment Rights Bill, which aims to increase protections for casual contract workers. Media headlines have discussed a “ban” on zero-hours contracts. But that’s not entirely true.

Instead, the new legislation aims to end exploitative practices rather than ban the contracts entirely. That means, new protections will be introduced for zero-hours workers over the next two years.

One of the key changes employers need to know is that after a 12-week ‘reference’ period, employees gain the right to request a fixed-term contract. Workers will also gain protections around short-notice cancellations, with workers entitled to compensation for reduced or cancelled shifts.

A worker on a zero-hours contract is still entitled to statutory annual leave and the National Minimum Wage. Employers are also still fully responsible for the health and safety of workers, regardless of contract type.

What are the workers’ rights under a zero-hours contract?

A worker’s rights are determined by their employment status, which is either as an employee or a worker, and not by having a zero-hours contract. Knowing the difference is critical, as incorrectly classifying your zero-hours staff as a worker instead of an employee can have legal consequences.

Determining the classification can be tricky, as it depends on the written terms of the contract and how those terms are applied in practice.

For zero-hours contract workers, this will mean they are entitled to:

• A written statement of employment, to be given to the worker either on or before the start date
• National minimum wage
• Paid annual leave (statutory minimum holiday entitlement of 5.6 weeks)
• Rest breaks
• Pension auto-enrolment (depending on qualifying conditions)
• Statutory sick pay (depending on whether specific eligibility has been met)
• Payslips
• Protection from unlawful discrimination
• Protection for whistleblowing

For employees, staff are guaranteed the same rights as above, but additionally, they are also entitled to:

• Family-related leave
• Protection from unfair dismissal
• Statutory redundancy pay

As of 2015, there has been an exclusivity ban on zero-hours contracts. This means that an employer cannot include a clause in their zero-hours contract banning staff from seeking or accepting work from another employer.

As part of this, zero-hours contract workers have protections against discrimination for working for other employers. It’s illegal for workers to face unfair treatment if they choose to work for a different employer.

Zero-hours workers are fully entitled to engage in work elsewhere; you can’t prevent them from undertaking other work.

Are zero-hours contracts right for my business?

Generally speaking, zero-hours contracts are favoured by businesses that have seasonal requirements or frequently need staff on short notice. This allows employers to save on overheads, as you’ll only be paying for the hours you need the workers for.

Businesses that zero-hours contracts may work for

Businesses that would most benefit from zero-hours contracts are those that see a large and predictable fluctuation in staff, especially those that see a rise and fall in demand for labour during quieter trading periods.

Here are some examples below of businesses that would most benefit from zero-hours contracts:

• Construction
• Deliveries
• Warehouse work
• Retail
• Hospitality
• Catering
• Care work
• Education

Businesses that zero-hours contracts may not work for

Zero-hours contracts are largely unsuitable for businesses that rely on continuity, stability, and highly trained skillsets. Using zero-hours contracts in these types of environments could cause great harm to the company culture and infrastructure.

Some examples of these types of businesses include:

• Professional services like law firms, accountancy firms, engineering firms, or consultancies
• Specialist manufacturers
• Tech and software industries
• Crucial public sector and civil service roles

What should you include in your zero-hours contract?

If you decide to implement a zero-hours contract as part of your business, you’ll need to ensure it’s drafted correctly and precisely. Crucially, you need to include that you’re under no obligation to provide work to the worker.

Employment status must be clearly defined in the terms of the contract. If you intend to engage them as a worker, rather than an employee, then the contract must state that there is no obligation to accept the work you offer and that it is not the intention of either party to enter into an employment contract.

You should also state that there will be no continuing employment relationship between the periods of work. You need to include the specifics of how the work will be offered, as well as the notice period, benefits, and relevant pay. If the benefits differ from those of employees on guaranteed hours, you need to make this extremely clear in the contract.

You should also clearly state in the contract that annual leave entitlement is strictly accrued based on hours actually worked. Also, remember that it’s illegal to include an exclusivity clause.

Summary

You should think carefully before implementing a zero-hours contract for your business. There are alternative options that might be more suitable, like part-time employment, fixed-term contracts, offering overtime, or using a staffing agency. 

Ensure that you are very clear in your advertisement and during the interview that you’re offering a zero-hours contract, not fixed-term or full-term employment. As an employer, you should also have a clear and constructive conversation with your prospective worker as to whether a zero-hours contract is right for them. 

You should also regularly review the nature of your relationship to determine if it still fits the criteria of a zero-hours contract. Avoid cancelling shifts at the last minute and give your workers as much notice as possible. 

The post What is a zero-hours contract? A guide for employers appeared first on Startups.co.uk.

Flexible working models like a four-day working week could be the key to retaining talent, as a new survey makes it clear that employees will move from and to jobs for this staff benefit.

New data suggests that employees are not only keen, but would be prepared to take a financial hit to gain the flexibility of four days working.

It comes as a growing number of firms are opting to take part in national pilot programmes of a four-day working week to gauge whether it can work for them.

Our own research suggested in 2023 that 78% of employees would be in favour of adopting this flexible working model, but did add that they would want to know how it would impact their pay, and how it would be implemented.

What does the data say?

With the Employment Rights Bill around the corner, the findings from Owl Labs show that those working in small businesses in the UK would be willing to sacrifice, on average, 8% of their salary for a four-day week.

73% of employees termed the four-day week as “an important benefit”, with this figure rising to 77% among Millennials and 72% among Gen Z. A staggering 45% said that they would give up 10% or more of their salary to get this perk.

The study also polled views on everything from stress in the workplace to the impact of employer political views, and even AI avatars. However, it is the stark figures on flexibility that stand out.

The report brought together the views of 2000 UK employees as part of a wider survey of 8000 respondents working in the UK, US, Germany, and France.

As well as revealing the readiness to take a financial hit, the data also revealed that 93% of those working in small businesses would take action if they were no longer allowed to work remotely or hybrid.

Almost half said that they would start job hunting, while 27% would expect a raise to make up for the lost flexibility, and 4% said that they would simply quit. Of those who would job hunt, a quarter said that they would then look for a more flexible role than their previous employment.

Hybrid working as the new norm

Despite the fact that the Return to Office mandates keep coming, this latest report confirms that flexibility is now expected by the vast majority of employees.

The data showed that nearly two-thirds of those surveyed already work in a hybrid model. They go in either three days (40%) or four days (27%) a week – both of which are up from 2024. The findings suggest that they want this to continue.

As well as working from home and adopting a four day working week, other models are also gaining interest. The survey found that 67% of workers are interested in microshifting. This is structured flexibility with short, non-linear work blocks matched to their energy, duties, or productivity. This number increased to 72% for Gen Z and Millennials, compared to 45% for Gen X and 19% for Boomers.

For those looking to move roles, this kind of flexibility is high on their want list. Of the 28% who said that they were actively looking for a new job, half put a better work/life balance as their main reason. This figure was the same as 2024, but a step up from 41% in 2023.

Employee engagement

With employment costs having risen after the employer NIC rise in April, the report flags the question as to whether a shortened work schedule could be the answer to balancing the books, and both keeping and attracting talent.

The results would suggest that many employees are now used to flexibility. They also believe that it should be allocated to fit an employee’s circumstances. As Frank Weishaupt, CEO of Owl Labs, explains: “68% believe that employers should provide more flexibility for those that need it most, like working parents”.

If this flexibility is taken away, employees will quickly voice their anger or even move roles. The survey revealed that nearly a third of workers admitted that they have posted about their job/employer negatively on social media.

For those businesses seeking out the best talent to ride out these stormy seas, the survey revealed that 44% of those interviewed were prepared to reject any role that does not offer flexible hours.

Even ahead of the sweeping reforms from the Government, employees are showing a strong stance on what they want from their employment; and businesses who can deliver the work-life balance that is so valued, could get their pick of the best people for their business.

The post Britons would take an 8% pay cut for a four-day work week appeared first on Startups.co.uk.

Business owners, especially those in the ecommerce sector, could be hit hard by changes Meta is proposing that could allow customers to opt out of ads on sites like Facebook and Instagram.

For those who advertise online on either platform, there could be a significant impact on their earnings as Meta brings in a new subscription model for users that would allow them to use the platforms ad-free.

The move is due to “UK regulatory guidance and following extensive engagement with the Information Commissioner’s Office (ICO),” says the social media company. Specifically, the move is to quash regulatory concerns about personalised ads served using users’ data.

What is the new subscription model?

Meta has formally announced the new subscription model on its blog. It explains that it will cost £2.99/month on the web or £3.99/month on iOS and Android, for the first Meta account.

“It is more expensive to subscribe on iOS and Android because of the fees that Apple and Google charge through their respective purchasing policies”, it explains. Those with additional accounts will pay £2/month on the web or £3/month on iOS for each of these.

Users can expect the option to subscribe will appear “over the coming weeks”, says the company.

Those who choose not to subscribe will continue to see ads; though Meta does reinforce that they have some control including the Ad Preferences option. It reinforces that it does not sell personal data to advertisers.

Why is Meta doing this?

This is essentially an olive branch to the ICO, which had brought its concerns over targeted adverts to the company.

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

A similar ad-free model is already available in the EU, but it has been deemed problematic by regulators. It is also more expensive than the UK offering, initially set at €9.99 a month.

As The Guardian details, the European Commission fined Meta €200m arguing that the access to a version of the platforms that uses less personalised data to serve ads should be free. It added that the subscription model goes against the Digital Markets Act, and that those not paying the fee should get an equivalent service.

Indeed, Meta took a dig at the EU in its blog post announcing the UK model. It wrote: “EU regulators continue to overreach by requiring us to provide a less personalised ads experience that goes beyond what the law requires, creating a worse experience for users and businesses.”

What does this mean for SMEs?

The impact will be dictated by how many users opt to subscribe. For some customers with multiple accounts, the costs of going ad-free will quickly accumulate.

It looks unlikely that Meta will back down as it states firmly in its blog post that “personalised ads are the best experience for people and businesses”. It also is effusive in its praise of the UK’s “more pro-growth and pro-innovation regulatory environment”.

It also mooted this subscription model in March so there has been quite a build-up. As with the rise of AI search, businesses will have to monitor the customer take-up to understand the revenue impact, and adapt accordingly.
Not least because marketing on Meta is not a cheap option. Firms will need to assess whether this marketing spend might be better used elsewhere if their engagement drops.

The post Facebook and Instagram set to go ad-free in the UK appeared first on Startups.co.uk.

The first changes will be felt from the Employment Rights Bill in April, with reforms becoming law over the next two years in stages.

Views on the reforms continue to be polarised, with some business owners, notably recruitment firms, arguing that they are unworkable. Others suggest that the reform will make the workplace a safer place for the majority of employees.

This week, analysis by a leading thinktank revealed that the bill will lead to greater protections for more than a million workers, particularly through new restrictions placed on zero-hours contracts and day-one unfair dismissal rights.

What does the report say?

The report says that 1.2 million workers would have been protected from “severe insecurity” in the workplace if the unfair dismissal measures had already been in place in 2023 with a six-month statutory probation period.

It comes from a thinktank called The Work Foundation at Lancaster University, which analysed data from 2023-24 using the UK Insecure Work Index.

It further states that the number of workers in secure jobs would have risen by 3.9 million to 17.8 million. In particular, 92.5% of zero-hour contract workers would have benefitted from the new right to guaranteed hours.

It also addressed a counter proposal – the 12-month statutory probation period – and said that this would leave 6.1 million workers in “severely insecure work”, with only 700,000 experiencing more secure work.

The report calls on the Government not to dilute reforms and also argues that if “even relatively small extensions to the length of the new statutory probation period” are made, there will be a huge impact.

The delays could “mean over a million fewer people benefit from secure work and, most worryingly, hundreds of thousands could remain stuck in severely insecure work,” the researchers write.

Protection for disadvantaged groups

The research also drilled down to look at the impact of these two reforms on disadvantaged groups.

The team says that severely insecure work would have been reduced by 8.3 percentage points for workers aged 16-24. Meanwhile, Black and Asian workers would have seen a reduction of 4.6 and 4.5 percentage points respectively.

Looking specifically at retail jobs, they state that an additional 150,000 retail workers would have experienced secure employment.

What do SMEs need to do?

There is pushback against the reforms. The changes to zero-hours contracts are facing the ire of recruitment companies, who argue they will lead to reduced hiring and more work being carried out by self-employed contractors.

For SMEs, there will be less flexibility and there will be a financial implication for changes to parental rights and sick leave. However, the financial impact of not complying will be far more onerous, as this could mean legal fees and staff leaving.

Business owners need to start reviewing their contracts, looking at their payroll and HR processes and, in particular, how they manage shift workers now as the first reforms will become law in just seven months.

It might also be wise to look ahead at the reforms set for 2026 and 2027 to determine how much work is needed there to be compliant.

While the reforms are sweeping, the benefits to staff, as this latest report suggests, are tangible; and this might help companies retain the best talent in a difficult economic climate.

The post One million workers to benefit from zero-hours contract ‘ban’ appeared first on Startups.co.uk.

New figures reveal a sharp 19.8% increase in insolvencies between January and July 2025, a worrying sign of the significant financial strain that the UK business population is facing.

The summer months proved particularly challenging, with June to July alone seeing a 6.7% jump, the steepest monthly rise so far this year.

This wave of closures is rippling through the hospitality industry, which has been hardest hit, leading to job losses and a dwindling choice of surviving pubs and eateries.

Together, they highlight the bleak position many businesses face as costs soar and customer spending fails to follow suit.

What’s behind the surge in insolvencies?

Analysis by the Morning Advertiser shows insolvencies rising across the board from 273 in January to 327 in July. While there were minor dips in February and April, the overall trend has been upwards, with June – July marking the most dramatic increase at 6.7%.

Earlier data from the government’s Insolvency Service also highlighted the problem. In the 12 months leading up to June 2025, accommodation and food service activities ranked among the industries with the highest number of insolvencies across the UK economy.

At the time, Saxon Moseley, partner and head of leisure and hospitality, commented:

“Rising costs, including food inflation, energy, national minimum wage and employers’ national insurance contributions have contributed to the increase in insolvencies this year, combined with sluggish consumer demand.”

Rising costs and sluggish demand cripple industry

As Moseley outlines, operators are under pressure from multiple directions. Food inflation, soaring energy bills, and rising labour costs, including both minimum wage increases and higher employer NIC contributions, are eating into already tight margins.

At the same time, consumer confidence has taken a hit in response to the cost-of-living crisis. Many households are understandably cutting back on optional spending, with bars and restaurants feeling the effects.

For smaller businesses in particular, the combination of higher overheads and shrinking demand can be lethal. Unlike larger chains, independents often lack the financial buffer to absorb sudden changes, making insolvency an increasingly realistic outcome.

The bleak cumulative result of rising input costs, declining footfall, and the pressure to keep prices competitive is that many hospitality businesses have no other option but to call it a day.

What will the Budget bring?

With the Autumn Budget approaching, hospitality bosses are searching for a light at the end of the tunnel.

In calls for financial relief, businesses are urging the government to consider reduced employer NIC contributions, targeted small business incentives, investment in consumer spending initiatives to support footfall, and a long-awaited reform of business rates.

Still, expectations need to be realistic. With the Chancellor under significant financial pressure, generous support for businesses looks unlikely.

For hospitality operators, the focus should remain on what’s in their control, such as reviewing costs and implementing operational efficiencies to build resilience against further shocks. “Many operators are now in survival mode,” added Saxon Moseley.

“As a key creator of jobs, the sector is a cornerstone for the UK economy, and therefore, a fragile hospitality industry presents an economic headache for the Chancellor.”

Moseley has also joined various industry groups pressing for Rachel Reeves to address the sector’s challenges head-on, as reported by The Caterer.

“Taking steps to overhaul the business rates system, as well as supporting the industry to respond to recent tax increases, would help alleviate pressure on operators, keep more businesses solvent, and in turn allow them to invest in jobs for the future,” he added.

The post Insolvencies up nearly a fifth since January appeared first on Startups.co.uk.

SMEs are far from optimistic about the prospect of good news in the Autumn Budget.

New research reveals that more than three in four business leaders have little to no confidence that November’s Budget will support growth.

And, while 56% respondents anticipate an uplift in revenue, more than a fifth expect profitability to fall in the next 12 months.

Only one in ten expect any improvement in the wider economy, underlining the deep sense of caution and concern among UK SMEs.

Where business leaders see hope – and pressure

The figures come from Vistage, a global business performance and leadership organisation, which published its quarterly CEO Confidence Index for 2025.

The results reflect an overall dip in confidence, with the index falling to 88 in Q3 2025, down from 89.5 in Q2 and 107.1 a year ago.

Much of this decline stems from the precarious state of the economy. While 57% of SMEs expect revenue growth, at the same time, 22% predict a drop in profitability. To survive this period of instability, 42% of businesses plan to raise prices in the coming months, while 19% have already increased prices by 7–10% this year.

At the same time, one in four businesses report a drop in consumer demand and spending. This creates a difficult balancing act: raising prices enough to stay afloat without totally alienating your customer base.

Autumn Budget and SME priorities

The Autumn Budget has the power to shift the economy, but most SMEs aren’t convinced it will deliver in their favour. Vistage’s index shows that 76% of leaders lack confidence that the Chancellor will introduce policies to support growth.

In an ideal world, more than half of respondents (58%) say cutting business taxes, such as Corporation Tax or Employer National Insurance, would be their top priority.

Other requests include investment in infrastructure (20%), reducing regulatory burdens (10%), targeted investment incentives (9%), and labour market support (4%).

In our report on what the upcoming Budget might contain, we found that many founders are pressing for a reversal of recent employer National Insurance (NI) hikes, alongside a clear commitment not to raise taxes further.

Industry groups, such as UKHospitality, have also been pressing for reform of business rates and NI contributions, as well as a reduced VAT rate for the sector, already demonstrated by many EU countries.

But sadly, expectations may fall short of reality. Economists estimate the Chancellor may need to find as much as £40bn, so tax rises look increasingly likely, while generous support packages appear less so.

Are people still the greatest asset?

Despite these pressures, SMEs remain committed to growth through their workforce. The Vistage survey shows that 37% plan to expand their teams over the next 12 months.

Rebecca Drew, Managing Director of Vistage UK and Ireland, said: “While leaders are grappling with rising costs, weaker customer demand, and uncertainty around government policy, many are still focused on growth — planning to expand their team and invest in employee engagement.”

However, the labour market presents its own challenges. Industries continue to struggle with hiring, while wider trends complicate recruitment. At the end of August, it was revealed that hospitality has accounted for more than half of all job losses in the UK since last October.

The rise of AI adoption and outsourcing to freelance virtual assistants has raised concerns over job security and team morale. SMEs can usually rely on the Budget to ease the uncertainty over the next year, but it seems that few are depending on that this autumn.

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