Another quarter, another reshuffle of priorities — because predictability clearly isn’t in fashion. From rising borrowing and cautious fiscal planning to digital identity rollouts and renewed scrutiny of cyber security, the landscape is shifting once again. Even the charity sector isn’t escaping review, as regulators tighten their gaze on financial resilience and governance. It’s shaping up to be a season of subtle change — the kind where “keeping up” feels suspiciously like a full-time job.

Government Borrowing Rises in September

What it could mean for businesses ahead of the Budget

September brought more than just rain — it also delivered the highest government borrowing figure for that month in five years. According to the Office for National Statistics (ONS), borrowing reached £20.2 billion — up £1.6 billion from last year — and a timely reminder that balancing the national books is easier said than done.

Despite stronger tax and National Insurance receipts, the gains were overshadowed by rising costs — particularly debt interest and inflation-linked spending. In short: the Chancellor’s fiscal “wiggle room” just got tighter.

The implications for November’s Budget

A higher borrowing bill means less space for generosity when the Chancellor steps up to the dispatch box. Nearly £10 billion was spent on debt interest alone in September — not exactly a promising setup for anyone hoping for sweeping tax cuts.

The Office for Budget Responsibility (OBR) will publish updated forecasts alongside the Budget, including the much-discussed measure of “headroom” under the government’s fiscal rules. Current estimates suggest around £27 billion may need to be raised to keep those rules intact — and, as ever, households are likely to feel part of the squeeze.

What might be in the Budget?

Chancellor Rachel Reeves has already ruled out rate hikes for income tax, VAT, and National Insurance — the political equivalent of promising not to move the furniture. But there’s still scope for creative rearranging.

Some of the current speculation includes:

• Freezing tax thresholds – A quiet but effective way of drawing more people into higher tax bands, without the need for an official “rise.”
• Balancing act between NICs and income tax – A potential cut to National Insurance paired with an equal rise in income tax. Employees see little difference, but pensioners, landlords, and the self-employed might feel it more keenly.
• Revisiting property taxes – Talk of modernising Stamp Duty or introducing an annual property levy continues to circulate, along with the possibility of trimming capital gains reliefs.
• Tightening tax reliefs on savings – ISAs and pensions may see reduced limits or smaller tax-free lump sums.

On the other hand, Reeves has hinted at “targeted support” for cost-of-living pressures — potentially including a temporary reduction to the 5% VAT rate on energy bills.

In short: expect any new taxes to arrive with thoughtful packaging and a careful label that says not technically a rise.

Keep calm and carry on (for now)

Pre-Budget season always brings a flurry of theories, leaks, and conveniently timed “sources close to the Treasury.” None of it changes the fundamentals: the real decisions only land on Budget day.

Until then, the best approach for business owners is steady and informed preparation. Understand your numbers, stay adaptable, and avoid overreacting to every headline.

We’ll share a full breakdown once the Chancellor delivers the Autumn Budget — separating the substance from the spin. If you’d like tailored guidance on how potential measures could affect your business, get in touch.

Digital ID to Become Mandatory for Right to Work Checks

A digital step forward — with some fine print

The government has announced plans to make Digital ID the standard method for Right to Work checks by the end of the current Parliament.

Think of it as the official ID app you didn’t know you needed. UK citizens and legal residents will be able to store their verified identity on their phones — similar to the NHS App or a digital wallet.

The goal? To simplify compliance for employers and reduce paperwork. A consultation later this year will help finalise how the scheme will work, and official guidance will follow during the rollout.

What employers should know

• Digital-first: The system will become the main route for Right to Work checks.
• Inclusive options: Alternatives will exist for those without smartphones or digital access.
• Security first: Encryption and multi-factor authentication will be standard.

For now, the message is simple: keep an eye out for updates, and expect to phase out manual checks sooner rather than later.

Minister Urges Businesses to Take Cyber Security Seriously

“It’s not if — it’s when”

The Security Minister, Dan Jarvis, has urged UK businesses to take cyber security seriously, calling it one of the biggest threats to the economy. Speaking at the National Cyber Security Centre’s (NCSC) 2025 Annual Review, he reminded business leaders that cyber risk is no longer just an IT problem — it’s a boardroom issue.

A growing (and costly) problem

The NCSC handled over 200 serious cyber incidents in the past year — more than double the year before. High-profile names like Marks & Spencer, The Co-op, and Jaguar Land Rover have all faced attacks.

Jarvis’s message was clear: businesses of all sizes are potential targets, and the cost of inaction is high — both financially and reputationally.

Support tools available

The good news: help exists, and much of it is free.

• Cyber Action Toolkit – Step-by-step guidance for small businesses and sole traders to strengthen defences.
• Cyber Essentials certification – A recognised standard proving your business is protected against common threats. For smaller firms, certification includes built-in cyber liability insurance.
• Early Warning service – Used by 13,000+ organisations to receive alerts of potential attacks in real time.
• Takedown Service – Over 1.2 million phishing campaigns removed, with half taken down within an hour.

Why this matters for your business

Jarvis has written directly to the CEOs of FTSE 100 and 250 companies, urging them to make cyber risk a board-level priority. The letter also recommends requiring Cyber Essentials certification within supply chains — a sign that expectations are shifting across industries.

In other words: what’s considered “good practice” today may become “expected compliance” tomorrow.

What to do next

1. Start with the basics – Explore the NCSC’s Cyber Action Toolkit.
2. Get certified – Cyber Essentials is becoming a recognised business standard; it may soon be required by clients or suppliers.

Jarvis put it bluntly: “It’s not a case of if you’ll face a cyber-attack — it’s about being ready when it happens.”

Charity Commission Warns on Key Risks for Charities

Financial pressure meets rising demand

The Charity Commission has published a new Charity Sector Risk Assessment, outlining the biggest challenges currently facing charities in England and Wales.

The findings? It’s a tough landscape. Many organisations are reporting increased demand, rising costs, and greater reliance on reserves to stay afloat.

Key risks identified

• Operating deficits – 22.5% of charities reported spending more than they earned in 2023, up from 20% in 2022.
• Demand vs funding – Inflation is eroding real income while the need for services continues to grow.
• Overuse of reserves – Reserves are there for rainy days, but some charities are burning through them too quickly.
• Public trust – Misuse of funds, unauthorised payments, or false Gift Aid claims remain rare but have outsized reputational impact.
• Governance and safeguarding – Alongside financial stress, governance lapses and cyber threats remain under the spotlight.

What trustees should do

The Commission advises trustees to:

• Review financial forecasts regularly.
• Strengthen risk management and oversight.
• Identify early warning signs and act quickly when issues arise.

The regulator will also launch a new awareness campaign this autumn, reminding trustees of their responsibilities around financial stewardship.

For a deeper dive, the full report is available on the Charity Commission’s website. If you’d like tailored advice on strengthening your charity’s financial position or governance practices, we’d be happy to help.

Preparing Your Business for Life Beyond You

How to help your business thrive when you step back

When Spotify’s founder, Daniel Ek, announced he’d step down as CEO after nearly 20 years, it was a textbook example of planned succession. Different scale, same principle: at some point, every business owner faces the question — what happens when I’m not at the helm?

Here’s how to prepare your business for life beyond you.

1. Build a capable leadership team

Ek’s transition was years in the making. His deputies were already running much of the business — meaning continuity, not chaos. For smaller companies, it’s about gradually giving trusted managers more responsibility while you’re still around to support them.

2. Separate ownership from management

Stepping back doesn’t have to mean selling up. You could remain a shareholder or board member while someone else manages daily operations. It’s a practical way to stay invested — without being the bottleneck.

3. Get your systems in order

If key processes exist only “in your head,” the business isn’t ready for life without you. Document workflows, update contracts, and ensure financial systems are clear and automated where possible. The fewer mysteries, the smoother the handover.

4. Redefine your own role

Ek is now focused on long-term strategy and regulation — areas where his experience adds the most value. Likewise, consider what only you can do, and what can be delegated. The less time you spend firefighting, the more time you have for direction and growth.

5. Communicate the transition

Change creates uncertainty. Staff may worry about stability; clients may worry about consistency. Be transparent. Outline the plan, express confidence in your successors, and show that continuity is the goal.

Final thoughts

You don’t need to be running a global tech company to plan your exit well. Whether you’re looking at retirement, a role shift, or just a slower pace, preparing early helps protect the value you’ve built — and ensures your business can thrive long after you’ve stepped back.

If you’d like guidance on business continuity, succession planning, or long-term strategy, we’re here to help.

Categories: Positive Accountant