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I’m Dan, a freelance small business journalist and event host with 20+ years of experience. If you’re looking for small business-focused content or an engaging event host, I’d love to help. Get in touch.
Royal Mail given go ahead to drop second-class post on Saturdays and some weekdays: What do small businesses think?
Royal Mail has been given permission to scrap its second-class post service on Saturdays and some weekdays by communications regular Ofcom.
Under the universal service obligation, Royal Mail is required to deliver first and second-lass letters six days a week, but with a significant fall in the number of letters being sent and poor delivery performance, the service said reform is needed.
Ofcom has now announced that from 28 July, it will allow Royal Mail to deliver second-class letters on alternate weekdays. This means Monday, Wednesday, Friday in one week and then on Tuesday and Thursday the following week. Saturday second-class deliveries will be dropped completely. There will be no changes to first-class deliveries.
Ofcom estimates that the changes mean Royal Mail could make annual net cost savings of between £250m and £425m, “enabling it to invest more in improving its delivery performance”. It was fined £5.6m in 2023 for its poor delivery record.
Ofcom’s Natalie Black said: “These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.
“But changing Royal Mail’s obligations alone won’t guarantee a better service – the company now has to play its part and implement this effectively. We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.
“As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year.”
Second-class post changes: What do small businesses think?
When Royal Mail first proposed the changes, I covered the story for Enterprise Nation and several small business owners told me it would have a negative impact.
Becci Coombes, founder of hyggestyle.co.uk, said: “Post which should take 48 hours currently is routinely taking up to a week, so our concern is that any item not delivered on one of their “off days” is going to end up even further delayed.
“This is yet another blow to small rural businesses who rely on the Royal Mail as the only available service provider, and yet more damage to their reputation as a reliable courier in an increasingly competitive market.”
Sarah Laker, founder of Stationery Supplies, said: “Card giving is on the rise despite the poor service currently offered by Royal Mail, and the thought of second class being reduced to two days a week is simply awful. This great British tradition will be severely affected, as will all the businesses along the chain.”
Alison Boutoille, founder of CityStack, said: “I designed our product to ensure it would fit in a mailbox and could be sent as a large letter. The majority of our products are shipped using the second-class delivery option, and the price for first-class has once again increased significantly this month.
“Consequently, our customers will be forced to choose between enduring long wait times or paying a hefty fee for expedited shipment, which is particularly frustrating given that our product itself isn’t expensive.”
Government provides £400m for investment fund managers from underrepresented backgrounds, and £50m for female-led funds
The British Business Bank will invest £400m in a new initiative aimed at improving diversity in the UK’s venture capital industry, with support for women, ethnic minorities, people with disabilities and those from deprived backgrounds.
Starting in 2026, the bank will back more diverse fund managers through its Enterprise Capital Funds programme, invest in supporting micro-funds operated by new investors and support funds to invest smaller amounts in individuals wanting to be investors, but without personal wealth or connections.
The bank said it will target at least 50% of investment going to female fund managers, as well as deliver an extra £50m for female-led venture capital funds, on top of the previously announced £50m.
Research shows only 2p of every £1 invested in venture capital funding in the UK goes to female-founded businesses and just 13% of senior individuals on UK venture capital investment teams are women.
A new report released this week by the Investing in Women Code says that investing in female and ethnic minority-led businesses could add 13% to the value of the UK equity market.
Louis Taylor, CEO of British Business Bank, said:
“To deliver the government’s growth mission it is critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter who they are or what their background is.
“The UK equity market currently experiences a significant funding gap for diverse founders, negatively impacting their ability to start a business.
“This new £400m Investor Pathways Capital initiative will support diverse and emerging fund managers across the UK, in turn supporting talented entrepreneurs currently underserved by the UK equity market. It has the potential to unlock the UK’s full commercial potential and boost the UK economy.”
Investing in Women Code
Signatories to the Investing in Women Code commit to support the advancement of female entrepreneurship in the UK. A total of 290 are currently signed up.
Its new report also revealed that angel investors supporting the code have backed more all-female founding teams than all-male teams in the UK for the first time, while across all signatories, more female-only teams received funding than mixed-gender and all male teams.
However, much progress still has to be made, with the total value of investments going into female led teams much less than that of all-male (15% vs 37%). The remainder has gone to mixed teams.
Hannah Bernard, head of Barclays Business Bank and co-chair of the Invest in Women Taskforce, said:
“It’s heartening to see that once again IWC signatories are recognising the value of backing women-led businesses in the UK and are outperforming the broader market – proving that more diverse decision-making teams deliver better outcomes.
“We’re seeing real momentum in the number of women now shaping investment decisions, and the data shows this is directly linked to greater backing for female entrepreneurs.
“That’s why programmes like the BBB’s new Investor Pathway Capital programme are so important and will help even more women break into Venture Capital. This is a core principle of the Invest in Women Taskforce – when you change who holds the capital, you change who gets funded.
“The Investing in Women Code plays a vital role in helping us track progress and drive meaningful change across the wider industry and we urge more LPs to sign up and recognise the proven value of backing women. The Invest in Women Taskforce looks forward to deepening its partnership with the IWC to accelerate momentum and unlock the full potential of female entrepreneurs across the UK.”
New government support worth £2,500 to help small businesses protect their intellectual property
Small businesses are being encouraged to apply for new government support to protect their intellectual property from threats including cyber criminals, hostile states and large competitors.
The new Secure Innovation Security Reviews scheme will initially help up to 500 small and medium-sized companies in sensitive areas such as artificial intelligence, transport, defence, energy and advanced robotics.
Advice delivered by the initiative could include tips for strengthening checks on prospective employees to reduce insider threats, and cyber security measures to guard against common cyber attacks.
According to the National Protective Security Authority (NPSA), 39% of companies have only one protective security or cyber measure in place and 55% do not conduct pre-employment screening of new personnel.
National Cyber Security Centre (NCSC) CEO Richard Horne said:
“Small and medium-sized businesses power the UK’s innovation engine, but where ideas thrive, threats are never far behind.
“States, state-backed competitors, and cyber criminals target cutting-edge ideas and valuable data, exploiting gaps in cyber and protective security defences to launch attacks that can cripple organisations and steal their most sensitive innovations.
“That’s why building resilience is no longer optional – it’s essential for business growth and survival. I encourage SMEs across the UK to take advantage of the NCSC and NPSA-backed Secure Innovation Security Reviews scheme.”
To take part in the scheme, companies need to apply through Innovate UK here and contribute £500. The remaining £2,500 is covered by the government.
The reviews involve an expert visiting the company to carry out a security health check, against a framework developed by NPSA and NCSC.
The business will receive a bespoke report with recommendations for improvement. The expert will follow up after six months to check on the improvements made.
Climate-focused start-ups offered chance to pitch to hundreds of investors
Small businesses focused on environmentally friendly initiatives such as climate technology, fashion waste, biodiversty and clean energy can apply for the 2025 edition of BE100, the competition that allows entrepreneurs to pitch in front of investors.
The scheme is run by Blue Earth Summit, which takes place in London on 15-17 October.
Applications are open until 5 September, after which judges will select the BE100 2025.
The chosen businesses will then be invited to pitch across various stages at the Blue Earth Summit, with six finalists competing for the top prize.
Business grants open for applications
£1,000 skills champion grant for community groups and businesses in Lincolnshire.
Grants between £3,000 and £30,000 for East Devon small and micro businesses.
Grants of up to £2,000 for young entrepreneurs aged 18-30 in Cumbria.
Grants of £2,500 to £10,000 to open new high street premises in Bristol.
£2.7m fund for agri-tech and food technology businesses in mid and north Wales.
Grants of up to £7,500 for small and medium-sized businesses in East Cambridgeshire.
I’m Dan, a freelance small business journalist and event host with 20+ years of experience. If you’re looking for small business-focused content or an engaging event host, I’d love to help. Get in touch.
Dan Martin 