This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Retailers received a disturbing warning this week when ASOS customers received a message through the company’s official app claiming that hackers had compromised customer information. The attackers used a trusted communication channel to issue ransom threats, demonstrating how a cyber incident can reach customers directly and damage confidence in a business. ASOS said payment-card details and passwords were not affected, although some basic personal information may have been exposed. The incident raises an important question for every small business: how secure are the outside platforms you rely upon?

Welcome to the UK Defence Journal Weekly Brief, our snapshot of the key developments shaping UK defence policy, procurement and industry, and what to watch in the week ahead. Week in Context Security at home dominated the defence agenda this week after the incident outside RAF Fairford, which has put the question of Iran's reach into Britain right at the top of the news and raised plenty of questions that haven't been answered yet. Armed officers arrested five men in Whelford, about two miles from the base, on suspicion of Explosives Act offences, and they were then further arrested on suspicion of preparing a terrorist act, with around 85 households evacuated while Army bomb disposal teams examined the vehicles.

           

              Kemi Badenoch has proposed spending £10 billion on “Britannia Shield”, a new integrated air and missile defence system intended to protect the UK from drones, cruise missiles and ballistic missiles. The proposal has inevitably been described as a British version of Israel’s Iron Dome, although in practice Britain would need a much broader network of radar, missiles, aircraft, ships and counter-drone systems. The problem Badenoch has identified is real: Britain does not have sufficient layered air defences to protect the whole country, its critical infrastructure and its overseas bases from a sustained modern aerial attack.

            Defence Ministers of the Joint Expeditionary Force (JEF) and Allies met at Keflavik Air Base, Iceland, today (02 October) to advance the JEF's role as a key pillar of European and Euro-Atlantic security. From: Ministry of Defence and The Rt Hon Wes Streeting MP Published: 3 October 2026 Defence Ministers of the Joint Expeditionary Force (JEF) and Allies met at Keflavik Air Base, Iceland, today (02 October) to advance the JEF’s role as a key pillar of European and Euro-Atlantic security. Following guidance from Leaders at the Helsinki Summit in March, Ministers agreed upon further action across the JEF’s key priorities.

              Is life mirroring art? Britain rehearses for the war nobody wants Imagine waking up to find your mobile isn't working, the internet is down, card payments are failing and cash machines aren't responding. Supermarket deliveries are disrupted, businesses can't access their systems, and nobody is quite sure whether Britain is under attack or simply suffering a catastrophic technical failure. No bombs have fallen and no Russian tanks have crossed a NATO border, but ordinary life is beginning to seize up. It sounds like the plot of TV drama The Wargame. Yet Britain is preparing for precisely this kind of hybrid threat, and in my view not before time.

            The UK is ramping up its defence of the High North and Baltic to combat Russian hybrid threats with the Joint Expeditionary Force conducting major exercises across the region. From: Ministry of Defence and The Rt Hon Wes Streeting MP Published: 2 October 2026 Royal Marines conducting interdiction operations during Exercise Lion Protector 26. Hundreds of British personnel train with allies from the UK-led Joint Expeditionary Force (JEF) to counter rising Russian threat in Exercise Lion Protector 26. Training takes place across the North Atlantic, High North, and Baltic Sea, with Royal Marines conducting the first exercise in the Faroe Islands since the Second World War.

            UK-Iraqi security cooperation is set to enter a new phase, as the Global Coalition's military mission against Daesh in Iraq, Operation Inherent Resolve, successfully concludes and its forces - including UK personnel - depart. Ministry of Defence UK-Iraqi security cooperation is set to enter a new phase, as the Global Coalition’s military mission against Daesh in Iraq, Operation Inherent Resolve, successfully concludes and its forces - including UK personnel - depart.  Following more than a decade of operations, training and capacity building, Iraqi Security Forces (ISF) and the Kurdish Peshmerga have secured the enduring territorial defeat of Daesh in Iraq and are now well placed to take primary responsibility for the country’s security.  

              By Lt Col Stuart Crawford Andy Burnham says national security “cannot come at the expense of social security”. He repeated the thinking behind that assertion in his Labour conference speech, arguing that investment in people and stronger communities would make Britain more resilient and “more able to meet its NATO obligations on defence”. It is an attractive political proposition, but it avoids an uncomfortable piece of arithmetic. The Institute for Fiscal Studies estimates that meeting Britain’s commitment to spend 3.5 per cent of GDP on core defence by 2035 will require finding around another £25 billion every year, in today’s terms, compared with the Government’s newly announced plans.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news A If you’re a sole trader or landlord who should already be using Making Tax Digital but haven’t signed up, HMRC may now do it for you. Automatic enrolment started in September for people whose 2024–25 returns show qualifying income above £50,000, potentially leaving thousands of small business owners having to catch up with digital records and quarterly updates. And this isn’t simply a problem for higher-earning sole traders: the threshold falls to £30,000 next April and £20,000 in 2028, bringing millions more people towards a tax system built around continuous digital record-keeping rather than the traditional annual scramble to complete a return.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Interest rates didn’t rise this month, but Britain’s small businesses shouldn’t assume they’ve escaped. Three members of the Bank of England’s nine-person Monetary Policy Committee already want Bank Rate increased from 3.75% to 4%, inflation has climbed to 3.1%, and the Bank now expects it to move above 4% early next year. Even Governor Andrew Bailey says rates may have to rise if high energy prices persist. For small businesses already battling higher wages, energy, fuel and borrowing costs, the question is no longer whether rate rises are conceivable.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Sir Jim Ratcliffe is mothballing three Ineos chemical plants in Hull and putting the blame squarely on “ridiculously high” gas prices. Ineos says European gas now costs 12 times as much as in the US and that its plants can no longer compete globally. If one of Britain’s biggest industrial companies can’t make the numbers work, small and micro businesses with far thinner margins and almost no hedging power have reason to worry. Gas and electricity prices remain far above historic norms and industry leaders are warning about Britain’s competitiveness.

               Sometimes governments are given an unexpected opportunity to reconsider a bad decision. Our Government has just been handed one over the Chagos Islands. It should take it. The proposed agreement to transfer sovereignty over the Chagos Archipelago to Mauritius is now effectively on hold. Defence Secretary Wes Streeting has confirmed that Britain cannot proceed without American support, while the payments promised to Mauritius will not begin unless and until the treaty is ratified. That is significant. It should also prompt a much wider rethink. As one of the parliamentary advisers to the Friends of the British Overseas Territories, I have watched the Chagos debate with increasing concern, not simply because of the enormous strategic importance of Diego Garcia, but because of the message it sends to Britain's other Overseas Territories.

            Last week I attended a moving and emotional service in the Canongate Kirk in Edinburgh, where the Standard of the 4th Royal Tank Regiment (Scotland’s Own) was re-dedicated in a simple but memorable ceremony. For those of you who may not be quite up to speed, the Fourth – more commonly known as 4RTR – was one of four Royal Tank Regiments still in existence when I joined the Regiment as a wet-behind-the-ears subaltern in 1980. I won’t go into too much detail, but there is nothing quite as challenging as presenting yourself as a brand-new Lieutenant in front of a troop of hardened Scottish soldiers.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Could global stock markets be heading for a serious correction? Nobody knows, but warnings about stretched valuations, AI investment, leverage and government debt are becoming difficult to ignore. The IMF now identifies an AI-driven market correction as one of the financial-stability risks it takes particularly seriously. Small-business owners might reasonably wonder what any of that has to do with running a café, plumbing business, shop or small manufacturer. Potentially quite a lot, because you don’t have to own shares to suffer the economic consequences when markets tumble.

              It has been a matter of record that Britain’s armed forces have been under-funded and under-resourced for some time now, dating back several decades to the collapse of the Soviet Union and the end of the Cold War. Now we are told that all non-essential training for larger units is to be put on hold until April next year to save money. Only those units to be deployed will receive the full and appropriate training package. I understand that my own old unit, the Royal Tank Regiment, has had its live firing training at the Castlemartin tank ranges in Wales cancelled.

              Argentina may lack the naval strength to retake the Falklands, but its refurbished F-16 fighters and potential use of civilian vessels mean the threat cannot simply be dismissed. The more troubling question is whether Britain retains the firepower to defend the islands—or mount another 1982-style task force if their defences were overwhelmed. Argentina’s President Javier Milei has upped the ante once again over the sovereignty of the Falkland Islands—Las Malvinas to Argentina—demanding that they be “handed back” to the government in Buenos Aires. Britain has responded that the islands are British and will remain so for as long as that is the wish of the Falkland Islanders.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s small businesses aren’t just paying tax. They’re spending nearly £25bn a year complying with the tax system. Now Shadow Chancellor Andrew Griffith says they are being “squeezed dry” and is demanding no further business tax rises alongside a major assault on tax red tape. For Britain’s microbusinesses, the interesting question isn’t which politician wins the argument. It’s whether somebody finally makes running a business simpler. Photo by Jon Tyson on Unsplash £25BN FOR WHAT?

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s economy has unexpectedly grown by 0.4% in July. Great news. Except stronger growth could make the Bank of England more willing to put interest rates up, with some City economists reportedly predicting as many as four increases over the next year. For small businesses already struggling with borrowing costs, that would put a rather large sting in the tail of Britain’s recovery. Photo by Beatriz Cattel on Unsplash GOOD NEWS – WITH A CATCH…

              Britain is preparing to call former soldiers back to the colours as the Government finally confronts an uncomfortable truth: our Armed Forces may simply be too small for a major war. Up to 95,000 veterans are theoretically available through the Strategic Reserve, and a huge mobilisation exercise is planned for 2027. There’s just one rather serious problem. The MoD may not know where many of them are – and even if it finds them, will they actually come back? British Army Strategic Reserve Call Up Armed Forces Minister Louise Sandlher-Jones has announced that ‘some’ British army veterans in the so-called Strategic Reserve will be called back to the colours next year as part of a major exercise to test the UK’s resilience for war.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news The Prime Minister has promised to “make life easier” for businesses and says he is “acutely conscious” of the pressures they face. Britain’s microbusinesses now need more than warm words. They need lower hiring costs, simpler taxes, affordable energy and regulation designed for firms without departments full of experts. TACKLING THE COST OF DOING BUSINESS Microbusinesses employing fewer than 10 people account for approximately 95% of the UK’s private-sector business population. They are not miniature versions of large companies.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Hundreds of community pharmacies could disappear as soaring business rates collide with already stretched NHS funding. A National Pharmacy Association survey of 420 pharmacies found 48% were considering closing and 55% looking at relocating to escape unaffordable rates. This isn’t simply another retail closure story. Pharmacies bring people onto high streets, provide essential NHS services and take pressure off GPs and hospitals. Lose them and the damage spreads far beyond the dispensary. The bills don’t add up…

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s graduate jobs market has hit its lowest recorded level. AI is absorbing junior work while rising employment costs make inexperienced employees more expensive to recruit. A generation is leaving education to discover that the first rung of the career ladder is disappearing. New Adzuna figures show graduate vacancies fell 45.6% in the year to July, leaving just 8,383 roles nationwide. In 2017, graduates could choose from more than 55,000. A perfect storm Graduate recruitment is being squeezed from three directions.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s scorching summer isn’t just uncomfortable. It’s becoming an economic crisis. Extreme heat had already cost the UK an estimated £4.4 billion by the end of July, according to analysis from green thinktank Verdant. June alone reportedly cost £2.36bn, with July pushing the total to £4.4bn. August could send the bill even higher. Small businesses feel the heat Heatwaves hit businesses from every direction. Workers slow down, machinery overheats, transport is disrupted and outdoor jobs are postponed or cancelled.

              Donald Trump’s extraordinary decision to publish a map labelling the Strait of Hormuz “new US territory” might have been intended to frighten Iran. Instead, it underlined how little progress Washington has made in reopening one of the world’s most important trade routes. The declaration has no standing in international law and has not persuaded commercial shipping that the Strait is safe. Traffic remains around 90% below pre-conflict levels, with fewer than 20 commodity vessels passing through during the most recent weekend. For Britain, this is no distant dispute between Washington and Tehran.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Inflation has climbed to 2.9% as rising energy and fuel costs feed through to household bills. For Britain’s small businesses, however, the headline figure tells only part of the story. Their own costs can be increasing considerably faster while customers have less disposable income to spend. The rise from 2.6% in June has been driven heavily by energy, including higher gas and electricity bills following July’s Ofgem price-cap increase. Petrol and other fuel costs have also added pressure, while clothing and furniture prices didn’t fall as much as normally expected during the summer sales.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Around 300,000 freelancers, side hustlers and small-scale earners are set to escape the hassle of completing a full Self-Assessment tax return as the reporting threshold for trading and property income rises from £1,000 to £3,000. Tax will still be due on income above the existing £1,000 allowance, but a simpler reporting system should replace the full return for many people. The change is aimed squarely at people earning relatively small amounts from freelancing, gig work, property or fledgling businesses.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news If I had one message for the new Chancellor before the Budget, it would be this: create a proportionate, light-touch tax and employment regime for businesses with fewer than 20 employees. The UK has around 5.6 million small businesses, employing 16 million people and generating £1.6 trillion in turnover. Yet the smallest are expected to navigate rules designed for companies with HR, finance and compliance departments. Photo by Ben Rosett on Unsplash Hiring shouldn’t be this difficult…

             Yasmin Alibhai-Brown: Almost every part of our society needs to take a long, hard look in the mirror Yasmin Alibhai Brown This article originally appeared in the I paper “It takes a village to raise a child” – a proverb attributed to some African cultures – inspires people who believe in communal responsibility in local and national spheres. Yet, the most nurturing societies can get swept into a moral panic and brutishly bring down anyone they suspect of wrongdoing. In Uganda, my old homeland, a thief would be chased by a mob, caught, beaten, sometimes to death.

              A tanker has been hijacked by six armed men in the Gulf of Aden today, 20 August, after issuing a distress call around 136 nautical miles east of Al Mukalla, Yemen. UK Maritime Trade Operations says the attackers boarded the vessel, seized control and began redirecting it towards Somalia. We don’t yet know the tanker’s nationality. But it raises an obvious question for Britain: what happens when the ship calling for help is British? The uncomfortable answer is that there may not be a Royal Navy warship anywhere near enough to help.

              Putin warns Britain: his shadow war may already be here Russia has threatened Britain with “consequences” after British-made drones were reportedly used by Ukraine to attack targets inside Russia. The warning came directly from the Russian Embassy in London, according to Reuters, which said Moscow accused Britain of escalating its involvement in the war. The UK Ministry of Defence did not confirm that British drones carried out the attacks, but reiterated Britain’s commitment to supporting Ukraine. Photo by Gayatri Malhotra on Unsplash This isn’t the first Russian threat against Britain.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news The surprise departure of John Lewis boss Peter Ruis has sent ripples through Britain’s retail industry, but thousands of small suppliers may have the most to lose. With the department store warning that trading has become “really tough”, artisan producers, food makers, designers and family-run businesses are bracing for tougher times. When one of Britain’s biggest retailers cuts costs, smaller businesses can feel the consequences through smaller orders, tougher negotiations and supplier shake-ups. Shockwaves as John Lewis boss quits…

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               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s economy has finally delivered some good news. Growth is up, we’re leading the G7, consumers are spending and businesses are investing. But before anyone cracks open the champagne, small businesses are still battling soaring costs and global uncertainty threatens this fragile recovery. New ONS figures show GDP grew 0.4% in the second quarter of 2026, following 0.6% in Q1. The UK is now 1.2% bigger than a year ago and looks set to top the G7 growth league for a second consecutive quarter.

               This is an article by Liz Barclay - read the complete article at After nearly two years of bad news, Britain’s jobs market may finally be turning a corner. Temporary hiring is gathering pace, wages are picking up and employers are slowing the relentless cuts to permanent recruitment. It is far from a full recovery, but for millions of jobseekers it offers a welcome glimmer of hope. For small firms, the rise in temporary work also offers much-needed flexibility when higher employment costs and economic uncertainty continue to make permanent hiring a gamble.

               This is an abbreviated article by Liz Barclay – read the full article at Business111.com/news Britain’s small businesses aren’t just facing a cost of living crisis – they’re trapped in a cost of doing business crisis. New figures reveal business costs have rocketed by 70 per cent over the past decade, leaving firms shelving investment, stopping hiring and fighting to survive. Firms hit by 70% cost surge Photo by Eyestetix Studio on Unsplash I’ve been talking about the cost of doing business since the pandemic. For small and micro businesses, add it to the cost of living and you’ve got crises squared.

               This is an article by Liz Barclay - copyright Few things are more British than standing outside a pub on a warm evening, drink in hand and chatting with friends. But Westminster City Council is considering proposals that would discourage “vertical drinking” and restrict ordering at the bar. Supporters say the move would reduce noise and excessive drinking. Critics say it would destroy centuries of pub culture and place even more pressure on struggling businesses. Closures continue Photo by Jonathan Borba on Unsplash London Mayor Sadiq Khan has criticised the plans, calling them restrictive and anti-growth.

               This is an article by Liz Barclay - copyright Britain likes to call itself a world-class destination for entrepreneurs, but many founders are becoming less convinced. New research from The Entrepreneurs Network (TEN) suggests that high costs, taxes and weak international promotion are damaging the country’s appeal. Even London, Europe’s leading start-up hub, is losing some of its shine. Founders’ verdict Seven in ten founders say Britain does a poor job of promoting itself internationally, while tax remains the single most important factor influencing where entrepreneurs choose to build their businesses.

               This is an article by Liz Barclay - copyright Small businesses were promised freedom from the endless ESG forms, diversity statements, net zero targets and social value questionnaires that have clogged up public sector contracts for years. Instead, many fear they have simply landed on another square in the great game of procurement snakes and ladders. The Government is tearing up ESG, net zero and diversity requirements in public procurement and replacing them with a new jobs-first approach. From 2027, firms bidding for public contracts will be judged less on paperwork and more on whether they create jobs, train young people and raise wages.

               This is an article by Liz Barclay - copyright Britain’s entrepreneurs are once again cutting their own wages to keep their businesses alive. New figures from Enterprise Nation show that three-quarters of founders now pay themselves less than £20,000 a year. The figures reveal the reality behind the popular image of wealthy business owners. Rising costs and shrinking margins mean many founders are struggling simply to survive. Photo by Austin Distel on Unsplash Founders pay the price The Enterprise Nation Small Business Barometer shows owners are coping with economic pressure in the way they always have: by paying themselves less.

               This is an article by Liz Barclay - copyright We may complain about hosepipe bans and shorter showers, but these inconveniences are merely the visible signs of a much larger crisis. Britain is running short of water, and the consequences for the economy could be enormous. Everything the Government says it wants more of — homes, artificial intelligence, factories, transport links and food production — depends upon reliable water supplies. Yet ageing infrastructure, decades of underinvestment and growing demand mean some parts of the country are already approaching a point where development simply cannot continue.

               This is an article by Liz Barclay - copyright - click here for the full article  Bread, milk, vegetables, meat and even biscuits are all heading in one direction: up. Heatwaves, drought and failing harvests are driving prices higher across the world, and Britain is about to feel the effects. As crops fail and imports become more expensive, families already struggling with the cost of living face another squeeze. The global picture Food prices are rising again, with extreme weather the main culprit. Heatwaves across France, Spain, Italy and Eastern Europe have damaged wheat, maize and vegetable crops, while olive oil, fruit and cereals have all become scarcer.

               This is an article by Liz Barclay - copyright Few things are more British than standing outside a pub on a warm evening, drink in hand and chatting with friends. But Westminster City Council is considering proposals that would discourage “vertical drinking” and restrict ordering at the bar. Supporters say the move would reduce noise and excessive drinking. Critics say it would destroy centuries of pub culture and place even more pressure on struggling businesses. Closures continue Photo by Jonathan Borba on Unsplash London Mayor Sadiq Khan has criticised the plans, calling them restrictive and anti-growth.

               Britain's growth ambitions are colliding with an uncomfortable truth: you cannot build homes, power artificial intelligence or expand industry if there isn't enough water. No water, no growth: the crisis ministers don't want to talk about While politicians argue about taxes, immigration and inflation, another threat is quietly holding back the economy: Britain is running short of water. We may grumble about hosepipe bans, shorter showers and being told to turn off the tap while brushing our teeth, but these are merely the first signs of a much larger problem. Britain is running out of water, and the consequences stretch far beyond our gardens.

               Britain’s fragile economic recovery is facing its biggest test in years as the conflict between Iran and the United States continues to cast a shadow over global energy markets. Economists at EY have warned that the future of the British economy could depend on events thousands of miles away in the Strait of Hormuz, one of the world’s most strategically important shipping routes. If oil and gas supplies remain disrupted, businesses could face another surge in costs, inflation could accelerate sharply and growth could stall. For households and small firms that have already endured years of rising prices, labour shortages and economic uncertainty, the prospect of another global shock will make deeply uncomfortable reading.

               This is an article by Liz Barclay - copyright Go to for the complete story Edinburgh’s controversial new visitor levy has reignited the row over tourist taxes. Supporters say visitors should contribute towards local services, while critics argue the charge will drive people away and damage small businesses. With Wales introducing its own scheme and councils in England watching closely, the debate is only just beginning. The UK’s first Edinburgh has introduced a 5% charge on overnight stays, capped at five nights. The launch has been rocky, with reports of cancellations, confusion and concerns from small businesses.

               Britain’s housebuilders are facing what industry leaders describe as the toughest conditions since the financial crash of 2008, raising fresh fears for the thousands of small businesses that depend upon the construction sector for their livelihoods. New housing developments have fallen to their lowest levels in more than a decade, major developers are cutting profits and shelving projects, and builders’ merchants are reporting weakening demand across the board. The effects are already spreading far beyond construction sites. Plumbers, electricians, landscapers, decorators, suppliers and local retailers all rely on a healthy housing market to keep money flowing through local economies.

               Britain’s water industry is facing a reckoning. Rivers are running dry, reservoirs are shrinking, pipes are leaking, sewage spills continue to outrage the public and household bills keep rising. Now, some MPs are calling for a radical solution: stripping failing water companies of their shareholder-owned structures and turning them into not-for-profit co-operatives. Supporters say the move would end decades of dividend payments and put investment, resilience and accountability first. Critics argue that, with climate change driving more droughts, floods and extreme weather events, the scale of investment required may simply be too great.

               Britain’s business leaders appear to like the direction of travel but are still reserving judgment on the man behind the wheel. A new poll suggests that while Labour has established an early lead on the economy, trade, jobs and support for business, many employers remain unconvinced that Andy Burnham is the right person to lead the country. After years of political upheaval, rising costs and economic uncertainty, business owners are looking for something increasingly rare: stability. Warm words and ambitious promises may have won attention, but companies across the country now want evidence that the new government can deliver.

               Builders pull back as Britain’s student housing market hits breaking point Britain’s student housing crisis is about to become much worse. The country’s biggest student accommodation provider has warned that soaring construction costs, tougher regulations and falling investment returns are making new developments financially impossible. Developers say they now need rents of more than £300 a week to make projects viable, far above the current average outside London. As builders abandon schemes and landlords leave the market, the result could be fewer homes, higher rents and even greater pressure on a housing system that is already struggling to cope.