< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk OFFICE SOLUTIONS From wellness and sustainability to flexible culture and tech-first spaces, a new generation is reshaping how Britain works and demanding offices that earn their place in daily life. G eneration Z is beginning to change the way Britain works, not through loud confrontation but by quietly resetting expectations. They are the first generation to enter employment after the pandemic altered the meaning of presence, and that timing matters. For them, the office is no longer an unquestioned fixture of working life but a space that has to earn its relevance. The familiar sight of commuters filing through stations every morning feels less inevitable to people who spent their first internships or graduate roles working at kitchen tables. That early experience has given them a sharper sense of choice, and in exercising it, they are reshaping what the modern workplace looks and feels like. The change can be seen in the kinds of spaces companies are beginning to commission. A decade ago, a new office might have been designed around rows of identical desks and a scattering of meeting rooms. Now, it is more likely to feature a mix of café-style lounges, quiet nooks, open collaboration zones and technology-rich meeting pods. The idea is not to impress with square footage or glass façades but to create somewhere people actively want to spend time. Employers talk about “magnet not mandate”: providing an environment that pulls staff in because it feels useful and enjoyable. It is a subtle Gen Z rewrites the rules of the office Gen Z rewrites the rules of the office www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21 OFFICE SOLUTIONS but telling shift, and one largely driven by younger employees who see little point in leaving home unless the destination offers something more. Wellbeing has become part of that calculation. The conversation around mental health has grown louder in recent years, and for those in their twenties it is not treated as a side issue. Many will choose an employer as much for its culture as for its salary, and a poorly designed workspace that drains energy can be seen as a signal of deeper neglect. Natural light, greenery, ergonomic seating and the chance to step away from the desk are now viewed as basic requirements. Meditation rooms, fitness areas or roof terraces, once marketed as luxuries, are increasingly expected. Even small design decisions—like whether there is a quiet spot to decompress—carry more weight when judged through the lens of wellbeing. Technology, too, has become a litmus test. Gen Z grew up in a world of seamless apps and instant connectivity. When they enter an office and encounter clunky booking systems or patchy video links, the mismatch jars. In their view, technology is not an optional extra but a measure of professionalism. Employers are responding with investment in smarter systems: sensors that adjust lighting and air quality, booking tools that actually work, hybrid- meeting setups that do not collapse under strain. To older colleagues these upgrades may feel like welcome improvements; to younger staff they are simply the minimum standard for a credible workplace. This generation’s influence is also evident in the culture that surrounds the office. The nine-to-five template has already been dented by hybrid working, but for many in their twenties, flexibility is no longer a perk. It is the baseline. They expect to work from home when it makes sense and to come in when collaboration or community is valuable. 22 Á22 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk OFFICE SOLUTIONS Employers who impose rigid attendance rules risk appearing out of step. Those who trust staff to manage their own time, by contrast, gain credibility. This emphasis on autonomy does not mean rejecting structure altogether; rather, it reflects a preference for accountability measured in outcomes rather than hours at a desk. Inclusivity has become another defining theme. For Gen Z, accessibility is not a specialist consideration but an expectation. They look for gender- neutral facilities, sensory-friendly design, and layouts that welcome people with different needs. The same is true of cultural identity. Offices that weave in local art, sustainable materials or stories of place strike a chord with younger employees who want to feel aligned with values, not just employed by a company. It is no accident that more workplaces now display murals, commission regional artists or invest in community partnerships. These gestures speak directly to a generation alert to questions of authenticity. Sustainability carries particular weight. Climate change is not an abstract concern for people who have grown up with constant reminders of environmental strain. For them, the office is one visible arena where employers can demonstrate commitment. Energy efficiency, recycling facilities and EV charging points are more than box- ticking exercises: they are markers of sincerity. Landlords in regions such as the East Midlands, where competition for tenants is strong, have begun to notice how prominently sustainability features in client discussions. The younger the workforce, the more insistent those questions become. Perhaps most striking, though, is the way Gen Z expects work to include an element of enjoyment. This does not mean gimmicks for the sake of appearances but recognition that social connection and moments of relaxation are integral to productivity. Offices with rooftop tracks, informal lounges or communal kitchens are responding to a desire for places that feel human. Employers are discovering that what might once have been dismissed as frivolous often plays a role in building loyalty and creativity. For many young professionals, a workplace that acknowledges fun is one that acknowledges them as whole people. What is emerging is a redefinition of the office itself. It is less a fixed backdrop and more a tool, one that must adapt continuously to the people who use it. Gen Z has accelerated this change by refusing to settle for environments that do not fit their needs. Yet the benefits are not confined to them. Older colleagues also find value in workplaces that are healthier, more inclusive and more flexible. The difference is that the younger generation has had the confidence, or perhaps the impatience, to demand it sooner.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 FINANCE Cautious banks and a fragile economy are pushing companies towards alternative lenders, testing resilience and reshaping the funding landscape. A ccess to finance has always been a defining factor in how businesses grow, survive or disappear. In 2025, the challenge feels sharper than in recent memory. Economic turbulence, stubborn inflationary pressures and a cautious banking sector have created conditions where the old routes to capital no longer appear straightforward. Businesses that once relied on traditional loans or overdraft facilities are finding banks more reluctant to extend credit, and that hesitation is forcing them to look elsewhere. Conversations with owners and advisers reveal a consistent frustration: the bar for approval has risen, even for firms with solid trading records. Banks point to higher regulatory scrutiny and their own need to manage risk in a volatile environment. For many entrepreneurs, however, it feels like a loss of trust. The result is a widening gap between the demand for capital and the willingness of mainstream lenders to provide it. In this space, alternative providers are stepping in, offering speed and flexibility at a price. The growth of peer-to-peer lending platforms, specialist finance houses and non-bank lenders has been notable. The new face of business finance 24 Á24 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE These organisations position themselves as responsive to the needs of small and medium-sized enterprises, promising rapid decisions and fewer bureaucratic hurdles. Their rise has not gone unnoticed by traditional institutions, some of which are beginning to partner with or mimic these models. Yet the very popularity of alternatives underlines the frustrations businesses feel with mainstream banking. Entrepreneurs are often willing to accept higher interest rates or stricter repayment terms if it means they can access funds when opportunities arise. For companies in sectors such as manufacturing, hospitality and retail, this search for funding is not only about expansion but survival. Rising energy costs, supply chain disruptions and wage pressures have stretched cash flows thin. Many firms have little room for error, and a delayed loan decision can mean missed contracts or deferred investment. The sense of fragility is compounded by uncertainty about consumer confidence. Even as some headline indicators show resilience, day- to-day trading remains unpredictable, making it harder for businesses to present the kind of assured forecasts banks prefer. Private equity and venture capital continue to play a role, particularly for firms with scalable models or strong intellectual property. However, the number of businesses that fit those categories is relatively small. For the vast majority, what is needed is working capital to bridge the gap between invoices and payments or to fund equipment upgrades. Here the squeeze is most visible. Invoice financing and asset-based lending are growing in importance, but they are often seen as last resorts rather than first choices. The stigma attached to such tools, though gradually fading, still lingers. The state of the wider economy is an unavoidable backdrop. Inflation has moderated from the peaks of recent years but remains sticky, eroding margins and complicating planning. Interest rates, though expected to ease gradually, are still higher than many managers have experienced in their careers. These conditions shape the lending landscape in ways both obvious and subtle. On the one hand, banks must preserve capital ratios and avoid www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 FINANCE From April 2027, unused pension funds will be pulled into the scope of Inheritance Tax (IHT). That might dent the appeal of traditional pensions for some. But for business owners, the Small Self- Administered Scheme (SSAS) continues to offer something different: flexibility, control, and strategic value. More Than Just Retirement Savings A SSAS isn’t limited to cash, stocks and bond investments. It can buy the UK commercial property where the business operates from, borrow to buy, or lend directly to the sponsoring business. That means pension funds can fuel business growth today while securing long-term retirement wealth. Succession Planning with Flexibility Even under new IHT rules, SSASs typically provide discretionary death benefits. Trustees can allocate benefits in line with members’ wishes, helping families navigate IHT exposure. Keeping nominations up to date is key to making this work effectively. Extra Efficiency for Profitable Businesses Defined Benefit (DB) SSASs can offer an additional edge. Contributions are calculated to deliver a target pension, usually resulting in larger allowable amounts going in, with the potential benefit of Corporation Tax relief at 25% (subject to status). Scheme pensions paid from DB SSASs also remain outside the scope of IHT. Why SSAS Still Stands Out The new rules change the pensions landscape, but they don’t take away what makes SSAS unique. For entrepreneurs, SMEs and family businesses, it’s more than a retirement wrapper – it’s a tool for succession, investment, and growth. In a shifting financial environment, SSAS remains a cornerstone of planning – and one of the most versatility that business owners should be aware of. For further information call 0333 320 9230 or visit wbrgroup.co.uk Caitlin Southall – Director of SSAS at WBR Group risky exposures. On the other, businesses are desperate for credit to navigate precisely the uncertainties that make lenders nervous. The mismatch is structural, not temporary, and it is redefining the relationship between finance and enterprise. Against this backdrop, the financial services industry faces its own set of difficulties. Profitability has been squeezed by regulatory compliance costs, technology investment and competition from fintech entrants. At the same time, public trust remains fragile. High-profile mis-selling scandals may be years behind us, but scepticism lingers. For younger business owners in particular, loyalty to a single bank feels outdated. They are more inclined to shop around, compare online options and question fees. This shift in attitude compounds the pressure on traditional institutions, which must reinvent themselves while maintaining stability. Technology is both a disruptor and an enabler in this environment. Digital-first lenders use algorithms to assess creditworthiness, often drawing on alternative data such as payment histories or online sales patterns. This can open doors for businesses that struggle with conventional metrics, such as limited collateral or short trading histories. Yet the reliance on data-driven decisions raises questions about transparency and fairness. An opaque algorithm can be as frustrating as an unresponsive loan officer, especially if the outcome is negative. Regulation is still catching up, leaving borrowers to navigate a complex and sometimes confusing marketplace. There is also a cultural dimension to the funding landscape. British businesses have traditionally been more cautious about borrowing compared with their counterparts in the US. The preference for organic growth or self-funding is deeply ingrained. But as pressures mount, that conservatism is being tested. More owners are finding themselves compelled to explore financial tools they once dismissed, from revenue-based financing to crowdfunding. Each carries its own risks, but the very fact they are being considered shows how necessity is reshaping attitudes. What emerges from this picture is a financial ecosystem in flux. The boundaries between banks, fintechs, investors and alternative providers are blurring, each competing to fill the gaps left by the others. For businesses, this creates both opportunity and complexity. Choice has expanded, but so has the need for careful comparison. The cheapest option is rarely the fastest, and the fastest is rarely the cheapest. Advice, whether from accountants, brokers or peer networks, has never been more important. M aking Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system by requiring digital record-keeping and quarterly reporting. If you are a sole trader or landlord with income over £50,000, MTD will apply to you from 6 April 2026. This change is the most significant change to UK tax reporting since self-assessment was introduced nearly 30 years ago and will affect how you manage your tax affairs. Who will be affected? You will need to comply with MTD if: * You are registered for self-assessment * You earn income from self-employment, rental property or both * Your combined income from these sources exceeds £50,000 (based on your 2024/25 tax return) HMRC plans to extend MTD to those earning over £20,000 in future phases. What will change? Under MTD, you will be required to: * Use HMRC-approved software to maintain digital records * Submit quarterly updates of income and expenses * Finalise your annual tax position digitally, including other income, allowances and reliefs If you have both rental and self-employment income, you will need to submit eight quarterly reports per year, plus a final declaration. What you’ll need to do * Choose and set up compatible software * Register for MTD with HMRC * Keep digital records for each business or property * Consider using a separate bank account for business/rental transactions to simplify record-keeping This will increase your administrative workload, so early preparation is key. How we can support you We offer a range of flexible service packages to suit different needs: * Standard Package: you manage your own digital records and software. We assist with your annual tax return based on your quarterly submissions and other income details. * Premium Package: we handle everything—from software setup and bookkeeping to quarterly submissions and your final return. * Tailored Options: If you need support somewhere between these two, we can customise a package to match your level of involvement, budget and business complexity. Our goal is to make MTD manageable, not overwhelming. Next steps MTD is now only a few months away for some taxpayers. Delaying setup may limit your options and increase the risk of non-compliance. We recommend discussing your readiness with a professional tax advisor as soon as possible. If you would like support or guidance or have any questions, we would be happy to guide you through what is likely to be a period of adjustment and work with you to make your transition to MTD smooth, compliant and stress-free. For more information, please visit www.streets.uk or email info@streets.uk 26 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ACCOUNTING Making Tax Digital: less paper, more peace of mind Tracy Priest, associate director at Streets, breaks down the Making Tax Digital initiative.28 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk EXPORTING Embracing exporting Confidence in exporting is fragile against a volatile global backdrop, increasing complexity and costs, but the Government is looking to turn the tide, aiming to support businesses to boost their growth by accessing international markets. Embracing exporting www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 EXPORTING D amaged in the wake of Brexit, the pandemic, and a volatile global landscape in which tariffs are being thrown back and forth, for many local businesses the last few years has seen exporting become significantly more difficult. New red tape forced numerous firms out of Europe, while for others COVID-19 disrupted supply chains and lowered demand, and recently the USA’s actions have led to increased costs and constant uncertainty. Against the backdrop of these precarious conditions and sluggish growth in- country, the UK Government is attempting to take steps to bring new life to international trade, to support firms to reach novel markets. At the forefront of this is the newly released Trade Strategy, which includes £5bn into a new ‘Ricardo Fund’ to support UK regulators and overseas trade teams in removing regulatory barriers for 30 Á UK businesses trading abroad. It also details the expansion of the credit capacity of UK Export Finance (the UK’s export credit agency) to £80bn, a new Small Export Builder to give smaller firms better access to export protection insurance, and introduces improvements to help overseas buyers finance repeat orders from trusted UK suppliers in a more streamlined way. The Trade Strategy additionally targets more mutual recognition of qualifications to enhance the UK’s status as a superpower in services exports. It follows the unveiling of a new Board of Trade, earlier in the year, made up of a range of CEOs and business leaders to help boost companies’ exports. The Government is meanwhile looking to power forward trade deals to support export growth, with agreements with India, the US and the EU perhaps most significant — announced in quick succession back in May. The UK-India Free Trade Agreement (FTA) is set to add £4.8bn to the economy and £2.2bn to wages each year, while India’s average tariff on UK products will drop from 15% to 3%, which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier. Aligned with the UK’s Industrial and Trade Strategies, the deal is touted to support the sectors which drive the most growth for the economy. Manufacturing sectors, for example, will benefit from tariffs cut on Next >