Small business leaders are urging government action following the latest increase in unemployment.

Official labour market figures from the Office for National Statistics (ONS), have shown the unemployment rate rising to 4.7 per cent. On top of that the number of people on payroll has dropped and wage growth has slowed.

Policy chair of the Federation of Small Businesses (FSB), Tina McKenzie, said the figures were “disturbing”.

She went on: “They add to a weight of evidence that if you make it more expensive and riskier to give someone a job, the result will be fewer jobs. More people are already being locked out of opportunities, the benefits bill will rise even further, and the growth and prosperity we so desperately need will become more out of reach.

“Ramping up job taxes, pushing through 28 new bits of employment legislation, and then on top of that mooting a hike in employer pension costs, is not a recipe for job-creation and economic growth.

“Innovative, ambitious and compassionate small employers, who want to grow and create good opportunities for people, are absolutely up against it, with sky-high costs of doing business and a stagnant economy. Ministers should start basing policy-making on real-world evidence

New FSB research has found that twice as many small businesses reduced staff in the second quarter of 2025 (20 per cent) than increased their employee numbers (nine per cent), with similar numbers predicted for the next three months (19 per cent and eight per cent respectively).

Tina McKenzie added: “For the first time in the 15-year history of FSB’s quarterly Small Business Index, more small businesses expect to shrink or close over the next 12 months than the number which expect to expand.

“That’s more than alarming for the economy and the communities up and down the UK in which these hard-working businesses operate.

“Small businesses currently provide more than half of all private sector employment – more than 16 million jobs, in every part of the country. Jeopardising that is not in the interests of workers, job-seekers or the economy.

“There is some very clear writing on the wall. The government must, collectively, take its head out of the sand and read it.

“That includes improving the worst aspects of the planned employment legislation, supporting small employers to make rises in statutory sick pay affordable, and creating the conditions in which it’s attractive for talented, aspirational people to start their own business.”

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WNJ provided corporate finance and tax advice to a Lancashire based animal feed products business during its successful sale process.

Family run McGuinness Feeds, based in Penwortham, which will celebrate 50 years in business next year, has been acquired by SugaRich, Europe’s leading provider of sustainable surplus food solutions for the food and feed sector.

The deal grows SugaRich’s market presence while ensuring the continued presence of a respected industry name. McGuinness Feeds will continue to trade under its own brand.

McGuinness Feeds was founded by Tony McGuinness in 1976 and pioneered the direct transportation of wheat-feed from flour mills to animal feed manufacturers using its own fleet of trucks.

It established a trusted supplier base, working closely with long-term partners in the industry. Under the subsequent leadership of Tony’s sons Anthony and Barry, the business has grown from 1,500 tonnes per month in its early years to 15,000 tonnes per month today and a turnover of £40million.

The WNJ team, which was led by partner Paul Woodburn and included senior tax consultant Steve Towler, advised the company and the McGuinness family throughout the sales process on all tax and corporate finance matters.

It also worked to convert the McGuiness Feeds partnership into a Limited Company in order to facilitate the deal. Vincents Solicitors provided legal advice and guidance.

The acquisition was part of a carefully planned transition as Anthony McGuinness prepares for retirement.

SugaRich saw the opportunity to invest in the McGuinness Feeds brand and business, ensuring its continuity under Barry McGuinness’ leadership.

The sale assures ongoing relationships with suppliers and customers, while preserving the trusted reputation that McGuinness Feeds has built over the decades.

SugaRich and McGuinness Feeds have maintained a strong trading relationship for more than 35 years, both supplying and purchasing wheat-feed.

Founded more than 50 years ago, SugaRich works with food manufacturers to reduce waste and repurpose surplus products.

Andy Newton, chief executive of SugaRich, said: “McGuinness Feeds has a remarkable history, and we are honoured to continue their legacy while leveraging their expertise to enhance our offerings.”

Barry McGuinness said: “WNJ’s service, help and advice over the years has been invaluable.”

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As tax collection costs continue to rise HM Revenue and Customs (HMRC) has been branded a “lumbering dinosaur.”

A report from an influential group of MPs says HMRC’s attempts to transform its services through Making Tax Digital, while generating extra revenue, have imposed hundreds of millions in extra costs on the taxpayer, with more to come.

Sir Geoffrey Clifton-Brown MP, who chairs the House of Commons Public Accounts Committee (PAC), said: “The report makes clear that it will cost self-assessment taxpayers £200m more than they save, and this is completely intolerable.”

The PAC report calls for realistic plans to simplify the tax system and for HMRC to quickly address the decline in trust taxpayers have in it.

The costs of tax collection increased by £563million (15 per cent) in real terms over the period 2019-20 to 2023-24, with 240 tax policy changes announced in the years 2022-24.

HMRC’s compliance productivity has fallen, with returns declining from over £1.4m per compliance worker pre-pandemic, to £1.27m in 2023-24. This decline took place despite HMRC employing more senior staff, which added over £100m to its salary costs from 2019-20 to 2023-24.

The PAC report also says that trust in HMRC has also fallen among large businesses, small businesses, agents and individuals and it needs to work with taxpayers to quickly address the decline.

The committee of MPs has also called on HMRC to make sure it is well-placed to capitalise on the opportunities presented by the technology.

It says that AI has the potential to improve HMRC’s productivity and services – but its report finds that HMRC’s out of date tech will constrain its use, while making it more vulnerable to the use of AI by bad actors.

The committee also urges HMRC to build taxpayers’ needs into how it designs its systems, stressing the utmost importance of learning from the rollout of flagship transformation programme Making Tax Digital (MTD).

It says MTD was imposed without much consultation on businesses, who did not know what the administrative costs would be.

These came to an estimated net additional cost of £300m for businesses paying VAT over the period 2019-20 to 2023-24.

The committee says it warned in 2023 that HMRC had lost sight of needing to put taxpayers at the heart of changes to the system, and finds no strong evidence to suggest productivity improvements or other benefits for most VAT traders following MTD’s introduction.

Sir Geoffrey Clifton-Brown said: “HMRC needs to do much more to restore trust and confidence in its taxpaying consumers.

“The cost of its systems rising, trust from taxpayers declining, and a system of ever-growing complexity – the challenges on day one for the new incoming chief executive of HMRC are clear.

“It is time for HMRC to prioritise modernising its own systems so that it is fit to enter the second quarter of the 21st century. The potential for new technologies such as AI to augment HMRC’s efforts to tackle these issues is clear, and HMRC must move at pace to seize the opportunities it presents”.

He added: “It is truly frustrating to see how much of its business the tax authority still does by post. Customers at the moment are forced to engage with an authority that is frankly a lumbering dinosaur.

“HMRC’s attempts to transform its services through Making Tax Digital, while generating extra revenue, have also imposed hundreds of millions in extra costs on the taxpayer, with more set to come.”

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Chancellor Rachel Reeves confirmed a £2.2bn defence spending boost in her Spring Statement however it came on the back of a disappointing fall in forecasted economic growth.

As widely predicted, there were no further tax increases or surprises for businesses, who were hit hard by the chancellor’s autumn Budget with its employers’ NI hike and a record £40bn in tax rises.

However, the forecast from the Office for Budget Responsibility (OBR) halved the UK’s growth in 2025 from two per cent to one per cent.

And since the statement, the UK and the world’s economy has been hit by American President Donald Trump’s global tariffs. His move will see a 10 per cent tariff on all UK exports to the US.

The OBR has cautioned that becoming embroiled in a trade war could undo the £9.9bn headroom the chancellor has built into the economy.

The situation around growth and economic uncertainty has led some experts to warn that the government might have to raise taxes later in the year, if the economy and public finances get worse.

The Institute for Fiscal Studies said the chances of Rachel Reeves meeting her fiscal rules were ‘a coin toss’ and there was a “good chance” that the economic forecast will “deteriorate”.

In her statement, the chancellor said that defence spending will increase to 2.5 per cent of GDP from April 2027, by reducing overseas aid to 0.3 per cent of gross national income.

Confirming an additional £2.2bn in spending for the Ministry of Defence next year, she said it was necessary because of the need to move quickly in a “changing world”.

She said that she wanted the “whole country” to feel the benefits of the increase.

The chancellor said the government was also taking forward work to “significantly reduce the costs of running government” by 15 per cent, or £2bn, by the end of the decade. She said that the state can be “leaner and more agile”.

She also told the Commons that the OBR had assessed that Labour’s planning reforms “will lead to housebuilding reaching a 40 year high”.

Changes to the national planning policy alone, she said, will help build more than 1.3 million homes in the UK within the next five years.

This will take Labour within “touching distance” of its promise to build 1.5 million homes in England this parliament, she added.

She said the government’s plan to get Britain building will drive growth in the economy and put more money in people’s pockets.

MPs were told it was not right people were evading tax. The autumn Budget contained measures to raise £6.5bn by a crackdown on tax avoidance and evasion by the end of the forecast period. The chancellor said new measures would increase this by £1bn.

A pioneering angel investor network has been launched in Lancashire to support early-stage business growth.

The programme, called ‘fhunded angels’, has been launched by Lancashire County Council and is thought to be the first network of its kind in the UK to be led and managed by a local authority at such a scale.

The aim is to bring ambitious startups to the attention of private investors looking for exciting ground-floor investment opportunities.

Such investors – often referred to as ‘angels’ – are typically a mix of successful entrepreneurs, exited founders, and sector specialists, with personal money to invest.

They are also all certified as either a high net worth individual, or a certified sophisticated investor, as defined by the UK Financial Promotion Order (FPO).

Those behind the initiative see angel investment as a way for Lancashire to address the chronic lack of early-stage finance available to startups more generally in the UK, especially outside London.

The amount of individual angel investments – which are usually made in return for shares in the business – are often within the £50,000-£150,000 range, but angels can also band together and invest jointly.

Co-investing with other finance providers, such as VC funds, is another way angels can help create larger investment pots.

The county council has already welcomed several investors to the network. Most have a strong connection with Lancashire, and share an interest in wanting to help boost the County’s innovation economy.

One such angel is Jeremy Gidlow, a highly successful tech entrepreneur based in Lancaster.

He said: “As someone interested in early-stage investment opportunities, especially in Lancashire’s growing tech sector, I was eager to get involved in the project.

“Now that it’s live, I am excited to work with my fellow angels to discover those dynamic and disruptive Lancashire startups that are currently under the radar.”

Any Lancashire entrepreneurs seeking angel investment – and any investors meeting the FPO’s criteria who are interested in joining the fhunded angels community – can contact the fhunded team via the fhunded website – www.fhunded.co.uk.