What's in the news this month - June 2026

The UK government’s formal commitment to legislation to stamp out late payments is an historic moment, according to the Federation of Small Businesses (FSB).

The FSB says small firms have spent years battling a culture of poor payment practices by big businesses towards their smaller suppliers.

The government’s plans for more stringent rules around prompt payment will go ahead in this parliament, the King’s Speech confirmed.

These will include maximum payment terms of 60 days while late payments will also be subject to mandatory interest of 8% above Bank of England base rate.

Tina McKenzie, Policy Chair of FSB, said:

‘Late payment destroys thousands of viable small firms a year, damages growth, hits confidence, and keeps hardworking business owners up at night wondering how they will cover wages, bills, and tax payments.

‘For too long, large businesses have used small suppliers as a free overdraft. That’s why FSB has fought hard for these changes and worked in partnership with the government to make them happen.

‘Among the other measures, regulating unscrupulous third-party intermediaries, such as energy brokers and consultants, ending hidden commissions and cowboy sales tactics, is a much-needed move, and we hope the plans set out today will mean small firms finally get a fair deal and transparent energy prices.

‘Proposals to raise visitor levies in England come at a time when the tourism and hospitality sectors are on their knees. If the legislation goes ahead, it must be designed with small firms in mind and avoid being a deterrent to tourism itself.’

Internet link: FSB website

The International Monetary Fund (IMF) has upgraded its forecast for the UK’s growth this year but warned the Iran war could hit the economy.

The growth estimate has been upgraded to 1% from 0.8% for 2026 by the IMF.

It said inflation would increase ‘temporarily’ due to higher energy prices. As the UK imports more energy than it produces domestically, it is more sensitive to rapid rises in global prices.

But the IMF suggested the Bank of England does not need to raise interest rates, which are currently at 3.75%, this year in response.

Chancellor of the Exchequer, Rachel Reeves, said:

‘The IMF upgrading its growth forecasts and backing our fiscal strategy is yet more proof that this government has the right economic plan.

‘The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran. Putting our stability at risk when signs of progress are emerging would leave families and businesses worse off.  

‘Instead, this government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future.’

Internet link: IMF website HM Treasury press release

One in three new parents are missing out on Child Benefit payments in their baby’s first year, according to HMRC’s figures.

The tax authority is urging parents who welcomed a baby this spring to claim now via the HMRC app or online at GOV.UK.

HMRC’s data shows that while more than 6.8 million parents received Child Benefit in the year to August 2025, only 68.8% of them claimed the crucial government support before their baby’s first birthday.

It says that more than 140,000 babies were born between April and June last year and while many parents are enjoying new beginnings this spring, the latest statistics show thousands of families could be missing out on much-needed cash by delaying their claim.

Child Benefit is worth £27.05 per week – or £1,406.60 a year – for the eldest or only child and £17.90 per week – or £930.80 a year – for each additional child, with no limit as to how many children parents can claim for.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘Spring is a wonderful time to welcome a baby and claiming Child Benefit as soon as possible means your family can benefit from much-needed financial support.

‘It is quick and easy to claim Child Benefit via the HMRC app at a time that suits you.’

Internet link: HMRC press release

New company car advisory fuel rates have been published and took effect from 1 June 2026.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR

Small businesses and the self-employed struggling with their finances to receive a helping hand as debt advice services are strengthened, the Treasury has announced.

The Treasury is making a £4 million funding boost over three years for business debt advice services support.

The funding will go towards expanding access to expert support to help businesses get back on track. The Treasury says this will benefit an additional 16,000 businesses over the next three years to total 75,000 businesses.

The Treasury says the funding builds on the success of the Business Debtline delivered by Money Advice Trust

There will be an additional £2 million funding this year to help modernise debt advice, it added.

Rachel Blake, Economic Secretary to the Treasury, said:

‘From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.

‘We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.’

Internet link: GOV.UK

Hospitality businesses, teams and organisations are being urged to sign a new petition calling for the government to cut the VAT rate for the sector to 10% by UKHospitality.

The trade group has launched #VATsTheProblem, a sector-wide campaign asking for the government to cut the rate of VAT for hospitality businesses, so it is in line with European levels.

UKHospitality is urging the entire sector to back its call by signing a new petition, with the aim to get a million signatures.

Hospitality groups, including the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality, are also supporting the campaign.

Celebrity chef and business owner Tom Kerridge said:

‘Our sector is under huge pressure. We know it. We live and breathe it every day.

‘We know that the key to unleashing hospitality’s potential to grow and thrive into the future comes through a VAT cut. We’re making sure government knows that too.

‘This is a nationwide campaign with ambassadors big and small spreading the word to everyone that will listen, all asking for the same thing; a cut to hospitality’s VAT to 10%.’

Internet link: UKHospitality website

Threequarters of UK workers are not on course to save enough for a ‘moderate’ lifestyle when they retire, according to a report by Pensions UK.

The report says a moderate lifestyle will cost £32,700 for one person and £45,400 for two – but estimated just 23% of the working population were on course to reach such a level.

According to the report, a minimum retirement lifestyle costs around £13,900 annually for a one-person household and £22,500 for two people.

Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said:

‘Today’s saving levels will not be enough for the retirement they expect. It is expected that around 82% of people reaching a minimum standard of living, but far fewer will go beyond that.

“That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work. The government is right to be considering whether minimum contributions need to rise through the work of the Pensions Commission.

‘We also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions. This could help ‘bridge the gap’ until policy catches up and we see higher savings levels set in legislation.’

Internet link: Pensions UK website