AGP Executive Report

UK Late-Payment Overhaul: The UK is set to introduce the world’s toughest late-payment protections for small businesses, including a 60-day payment cap, mandatory interest on overdue invoices, and stronger powers for the Small Business Commissioner—aimed at tackling the estimated £26bn in unpaid bills. EU Digital Identity Push: Ireland’s digital wallet consultation has closed and the government is moving into a pilot phase, while Switzerland delays its national digital ID rollout to prioritise security and trust infrastructure. EU Border Friction for SMEs: Aviation groups warn the EU’s biometric Entry/Exit System is causing up to 5-hour border waits in peak summer travel and are asking the Commission for an option to suspend it. EU Trade Support for SMEs: The EU will add €18m for Armenia and propose tariff-free access for about 80% of Armenian exports, with support potentially including an export promotion agency. Spain Short-Let Crackdown: Spain is preparing July 2026 measures that could raise VAT on tourist lets and tighten short-term rental rules, with new incentives for landlords who cut rents. Fintech Compliance Moves: Belgium selected Zetes to add qualified e-signatures to its MyGov wallet, and Australia’s AML/CTF reforms from July 1 expand reporting and verification duties for many small firms.

EU–Azerbaijan Deal: European Commission President Ursula von der Leyen confirmed a major scale-up of EU cooperation with Azerbaijan on energy, transport and digital links, including a “Peace through Connectivity Package” of up to €200m (mobilising up to €2bn) plus €20m for border-area peace support that includes healthcare, demining, skills and help for small businesses. SME Tax Relief: Ireland’s Donegal businesses get breathing room as the 9% VAT rate for food and hairdressers returns, cutting costs from 13.5% and aiming to protect jobs and competitiveness. Fashion Crackdown: France advanced tougher rules on ultra-fast fashion, with per-item fines and limits on advertising and influencer promotion targeting Shein and Temu—another compliance headache for small retailers and online sellers. Cyber Risk for SMEs: Fake “Interpol” investigation emails are spreading malware and ransomware via links to password-protected files, underlining how underinsured many small firms remain. Digital Growth for SMEs: Ghana’s MTN backed MSME digital tools with the launch of an MSME Digital Gateway Platform, while Grey Payments expanded local-currency deposit services in Ghana and Kenya to support local transactions and financial inclusion. Workforce Rules Watch: Germany is debating loosening strict dismissal protections, a potential shift that could affect hiring and job security for SMEs.

SME Digital Push: SumUp has launched consumer personal banking accounts aimed at rewarding shoppers for buying from small and medium-sized merchants, with 5% cashback in the SumUp merchant network and no transaction fees for merchants using SumUp’s consumer users. Brexit Trade Mood: New iwoca research finds UK SME leaders overwhelmingly want closer EU trade ties—74% back a closer relationship, and 60% would accept more EU regulation to get it. EU Payments Upgrade: The EU’s digital euro has cleared a key parliamentary hurdle as Brussels moves to reduce reliance on US payment giants—relevant for SMEs watching payment costs and access. Fashion Compliance Shock: France’s Senate approved tougher rules against ultra-fast fashion platforms like Shein and Temu, raising penalties and tightening the definition of “ultra-fast” for online sellers. Credit Bottleneck in Greece: A Reuters report highlights how Greece’s long-running bad-loan legacy is still locking about 1.5 million people out of bank credit, with many small businesses among those shut out. SME Sustainability Tools (Nigeria): NECA launched Nigeria’s first ESG implementation guide for MSMEs, warning ESG reporting could become mandatory by 2030 and urging businesses to start preparing now.

EU AI rules: The EU’s AI Act transparency obligations for generative systems kick in from 2 August 2026, with penalties up to €35m or 7% of global turnover—forcing SMEs and creators to rethink how they label AI-made content. EU forced labour compliance: The European Commission launched a “Forced Labour Single Portal” to help businesses prepare for the Forced Labour Regulation (applies from 14 Dec 2027), including guidance and support for small and medium companies. Germany business risk: Greece’s “vintage” loan backlog is still blocking credit for many small firms, showing how long legal delays can freeze recovery even after growth returns. UK steel supply shock: New UK steel import safeguards cut tariff-free quotas and raise duties on excess imports, warning downstream manufacturers about disrupted supply chains and higher costs. SME payments upgrade: Visa is turning smartphones into payment terminals for small merchants via Visa Accept and Visa Direct, aiming to speed up cash flow without extra hardware. Nigeria funding for SMEs: European development financiers unveiled a €20m Nigeria Country Window and signalled more support for infrastructure, agriculture, healthcare, renewables and small businesses. Cyber insurance gap: GlobalData reports only 16.8% of SMEs worldwide have standalone cyber insurance, leaving many exposed to potentially business-ending losses. Hambach forest win: Germany’s long-running Hambach Forest fight ends with permanent protection of the remaining woodland—an example of local action reshaping land-use decisions. Greece credit squeeze: A Reuters look at how non-performing loans and court backlogs keep many small borrowers shut out of banking and new lending. SME ERP with AI: UK stock-and-order business platform Klipboard launched ERP Go, an AI-driven cloud ERP aimed at helping small and medium product sellers move beyond spreadsheets.

SME Cybersecurity: GlobalData warns cyberattacks are rising for SMEs, but cyber insurance coverage is still low—Germany’s SMEs are among the most exposed (40.3% reporting incidents). UK Tax Compliance: HMRC has published another list of “deliberate tax defaulters,” naming 150+ businesses and individuals who failed to pay at least £25,000 and didn’t fully cooperate. UK Youth Hiring Support: The UK launches a £3,000 Youth Jobs Grant for employers hiring eligible 18–24-year-olds, aiming to move up to 60,000 young people into work. France E-commerce Costs: France suspends its €2 charge on low-value parcels from outside the EU from July 1, ahead of a wider EU fee change. France Retail Relief: France extends summer sales by one week after heat kept shoppers away. Albania Defence Industry: Albania signs a memorandum with Italy’s Fincantieri to restart military vessel production at Pashaliman, targeting jobs in Vlora and training links. Fintech for SMEs: Finom launches “Finom AI” inside its SME business accounts, answering questions using the user’s own financial data. Banking Governance: N26 appoints two new experts to its supervisory board, including a former NatWest digital business banking CEO. SME Finance Tech: xTool announces the O1 Omni UV printer, pitching “print on anything” capability for makers and small businesses. Tourism Pressure in Europe: Barcelona’s “ban Airbnb now” push continues, with officials weighing limits and tourist tax changes as local small firms feel squeezed.

UK Tax Crackdown: HMRC has named 150+ UK high-street businesses and individuals for deliberately avoiding tax, with London firms hit by £4.8m in penalties. France E-commerce Fees: France is suspending a two-euro charge on low-value non-EU parcels from July 1, as the EU’s higher fee regime starts—then France’s fee rises to 5 euros from November. Fast-Fashion Rules: France’s Senate passed tougher measures against ultra-fast-fashion brands like Shein and Temu, including per-product fines and bans on advertising and influencer promotion. Retail Relief: France will extend summer sales by a week to July 28 after a heatwave kept shoppers away. Hospitality & High Streets (UK): Labour leadership hopeful Andy Burnham says he would cut business rates for pubs and hospitality to revive struggling high streets. AI Research Funding (UK): The UK backs two new AI labs with £60m, aiming for open-source AI and more efficient learning. SME Digital Push (Ghana): MTN Ghana reaffirmed support for MSMEs via digital empowerment and partnerships ahead of World MSME Day. Energy Transition (Global): New market outlooks highlight growth in hydrogen fuel cells, solar EV charging, and grid transformers—signals of continued investment in clean infrastructure.

EU Digital Euro Push: The European Parliament’s Economic and Monetary Affairs Committee backed a digital euro plan to cut reliance on US payment giants, with the ECB providing infrastructure and merchants expected to see lower fees—vote in early July. UK Microbusiness Growth: Small Business Britain’s “Small and Mighty Live” returned to spotlight microbusiness scaling, delivered via a free six-week programme with Xero and ARU Peterborough that has supported 5,000+ micro firms since 2022. UK Devolution Agenda: Labour leadership hopeful Andy Burnham pledged a “biggest rebalancing of power” by shifting decisions from Whitehall to regional mayors, including a “Number 10 North” in Manchester—aimed at boosting growth in every postcode. Health & Safety Costs: UK SMEs face major compliance pressure as HSE fines average about £44.1m a year (2021–2025), with Breathe HR urging audits to avoid business-breaking penalties. Social Media Footfall: Amex research says social media drives 1.7bn visits to UK high streets annually, with Gen Z most likely to return and share. Agri-Food Exports: DEFRA says UK food and farming businesses gained £80m in new export opportunities, with attachés removing 20 trade barriers and opening routes for cheese, trout, poultry/eggs and more. Cybersecurity Partnership: A new EU-Ghana security and defense deal puts cybersecurity and digital resilience at the centre as Ghana’s digital economy expands.

UK Politics & Devolution: Andy Burnham, Britain’s prime-minister-in-waiting, is set to unveil his economic agenda, leaning on devolution and pledging to stick to current borrowing limits to calm markets. SME Finance & Trade: Afreximbank puts Africa’s trade finance gap at about $74bn (2025), with small firms hit hardest; Ecobank and AfCFTA are pushing new financing to help SMEs, women-led and young entrepreneurs trade across borders. EU Carbon Costs for Small Firms: India is seeking to cut the compliance burden from the EU’s carbon border rules, with reporting costs for MSMEs described as steep and hard to meet. SME Digital Payments: A Mastercard study says South African SMEs show strong digital maturity, with high online payment acceptance and clear demand for simpler, safer payment options. Tax Compliance Pressure: HMRC has named a major UK tax defaulter list, including a Bolton-area alcohol smuggling-linked case involving £490k unpaid tax. Platform Rules & Extremism: An investigation says far-right “femonationalist” groups have used PayPal for merchandise and donations despite hate-discrimination restrictions, raising questions about enforcement. Energy Transition Markets: New reports flag rapid growth ahead for solar panels and lithium-ion batteries, with investment and EV/energy-storage demand driving expansion. Tourism Readiness: Nepal’s tourism boom is real, but coverage warns government institutions and infrastructure are still unprepared for the surge.

Private Credit Stress Test: Blackstone has limited redemptions from its flagship private credit fund to 5% after requests hit 10%, with other managers (including Partners Group) doing similar moves—an early warning for smaller firms facing higher rates and tougher repayment conditions. Veteran Entrepreneurship Support: NatWest is expanding its Accelerator support community with X‑Forces Enterprise, aiming to back around 340,000 veteran-owned UK small businesses via mentoring, peer networks and funding access. Tax Relief for Micro Firms: Philippine business groups praised BIR reforms, including a one-time tax abatement for micro taxpayers and the removal of redundant VAT audit units to cut compliance burden. Brexit Fallout for Farmers: UK farmers say post-Brexit trade deals are flooding cheaper meat into the market, hitting beef prices and threatening mainstream British food viability. Trade Finance Gap for SMEs: Afreximbank puts Africa’s trade finance shortfall at $74bn (2025), with small firms hardest hit due to collateral and credit-history barriers. EU Carbon Cost Pressure: India is seeking help to cover most CBAM compliance costs for MSMEs, as the EU carbon tax raises reporting and embedded-emissions expenses. UK Hospitality VAT Push: UK hospitality leaders are urging VAT cuts (from 20%) after closures, with Michelin chef Tom Kerridge’s petition topping 230,000 signatures. UK Export Pitching: Yorkshire’s SealStop joins a Great British Pitch India delegation to meet South Asian buyers ahead of a potential UK‑India FTA.

EU Carbon Tax Relief for SMEs: India is seeking to have the compliance burden from the EU’s CBAM carbon tax softened, with reporting that a plan could absorb about 90% of costs for micro, small and medium enterprises—an issue that matters for exporters facing steep reporting demands. UK Hospitality Under Pressure: Chef Tom Kerridge’s “VAT’s The Problem” petition targets the UK’s 20% hospitality VAT, arguing it’s pushing pubs and restaurants “at breaking point” and calling for a cut to 10%. SME Export Push (UK-India): Yorkshire water-saving valve maker SealStop is among 40 small firms pitching in London under the Great British Pitch India initiative, aiming to build direct buyer links ahead of a proposed UK-India free trade deal. EU Finance for Ukraine: The EBRD signed more than EUR 500m in new Ukraine support at URC 2026, including EU-backed funding and loans for energy security and renewable projects. Local Business Continuity (UK): P&G Wells, Britain’s long-running independent bookshop, won a Small Business award in Winchester—an upbeat reminder of what survives when communities back local shops.

SME Finance & Recovery: The EBRD signed over EUR 500m of new Ukraine support at URC 2026, including EUR 100m from the EU and deals to back renewables and energy security—plus a 189MW wind project loan package. UK Startups & Compliance: UK advisers say more founders are registering companies before trading for legal protection, credibility and smoother banking/investment access, while demand is also rising for virtual registered offices to keep correspondence off home addresses. Hospitality Pressure in the UK: Chef Tom Kerridge’s campaign to cut hospitality VAT from 20% to 10% is gaining traction as pubs and restaurants warn they’re at breaking point. Local Food & Exports: Donegal’s food businesses push back on bureaucracy that could choke growth, while a Yorkshire valve maker SealStop pitches to Indian buyers via a Great British Pitch India programme. Sustainability for SMEs: Donegal biotech Niskus Biotec targets paid clients for upcycling food-and-drink waste into higher-value proteins. Energy & Water Resilience: Zimbabwe commissioned the Wanezi Dam under a UK/UNDP climate adaptation programme, aiming to boost irrigation, food production and incomes. Business Risk & Growth: A Franklin County dairy plant in Vermont is set to reopen this fall after shutdowns—an “ray of hope” for local jobs and supply chains.

SME Awards & Local Business: P&G Wells, Britain’s long-running independent bookshop in Winchester (trading since 1789), won the Small Business category at the Winchester Business Excellence Awards 2026, highlighting how tiny teams can still compete on service and staying power. Export Push for SMEs: SealStop, a Yorkshire water-saving valve maker, joined the Great British Pitch India initiative and pitched to Indian buyers at a Downing Street reception, aiming to build export channels ahead of a UK-India free trade deal. Company Setup Made Easier (UK): UK Companies House online registrations are increasingly fast, with correctly filed applications often approved within 24 hours—good news for founders trying to start trading quickly. High Street Pressure from Mega Warehouses: Amazon’s new Northampton-area fulfilment centre adds to a UK footprint of 20m sq ft, raising fresh concerns for town-centre retailers and jobs. Cyber & SME Risk: A report flags that small businesses are most exposed to cyberattacks yet least insured, underlining a growing protection gap. Energy Access for Productive Use: Nigeria’s Rural Electrification Agency commissioned a 505kWp solar mini-grid in Lagos State to power five underserved communities, including small businesses and services.

Digital Euro Push: The EU cleared a key hurdle for a digital euro framework, aiming to reduce US payment dominance—big implications for European SMEs that rely on card rails and cross-border payments. Cyber Insurance Gap: A new survey flags that many European SMEs are cyber-vulnerable yet least insured, with Germany among the most exposed—raising pressure on premiums and risk management. SME Tech Security: Synology issued critical fixes for MailPlus Server vulnerabilities, warning of internet-exposed deployments—another reminder for small firms running self-hosted systems. Ukraine Finance for Energy: Ukraine and the EBRD moved to speed up financial instruments and guarantees to attract private investment in power plants, while expanding credit access for medium-sized businesses. Moldova Digital Identity: Moldova launched EVO 2.0 and signed a Mastercard digital country partnership to expand digital ID, payments, and remote onboarding for businesses. Circular Biotech in Ireland: Donegal’s Niskus Biotec is targeting paid clients for tech that upcycles food and drink waste into proteins—aimed at helping firms hit ESG targets. UK Retail Pressure: Amazon opened a new mega warehouse near Northampton, adding to the squeeze on UK high streets and retail jobs. Brexit Aftershock: Ten years on, reporting highlights how Brexit still bites for small businesses and fuels calls for a reset in UK–EU ties. UK Employment Permits Update (Ireland): Ireland expanded which roles qualify for employment permits and plans changes to the 50:50 rule—relevant for SMEs hiring skilled staff. Local Food Costs: In Wisconsin, restaurants paused fish fries due to soaring cod prices—an example of how supply shocks can hit small hospitality margins.

SME Sustainability Tool in ASEAN: The East Asia Business Council will pilot the “Circular Business Check” with Philippines MSMEs (alongside Indonesia and Thailand), using an EU SWITCH-Asia-supported self-assessment to turn sustainability pledges into measurable ESG action, with a wider ASEAN rollout planned for September. EU vs Corporate Rules: US lawmakers have written to the EU ambassador opposing the Corporate Sustainability Due Diligence Directive, warning it could raise compliance costs and create legal uncertainty for American firms. UK Energy Costs for Small Firms: UK home battery demand is rising fast, with plug-in storage now expanding access for households and small businesses as regulators raise energy price caps. Payments Regulation Pressure: A US congressional hearing debated whether payments rules built for deposit-taking banks still fit a world of platforms, digital assets and AI-driven money movement. EU Digital Euro Push: EU lawmakers advanced a digital euro framework aimed at reducing US payment dominance, with committee approval moving the plan forward. SME Finance Boost in Africa: Kenya’s Green Mini-grid programme (EU and French support) switched on Phase 2 in Turkana, adding solar and storage for about 100,000 households. SME Export/Investment Focus: Sri Lanka’s Ceylon Chamber of Commerce outlined a three-year plan to deepen SME support, strengthen exports and attract investment after incorporating 18 recommendations into the 2026 budget.

EU-US Trade Friction: US House committee chairs Guthrie, Hill and Jordan have written to the EU ambassador opposing the Corporate Sustainability Due Diligence Directive, warning it could raise compliance costs and create legal uncertainty for American firms. SME Sustainability Push: New UK research finds 45% of small businesses increased sustainability work over the past year, and 65% plan to do more in the next 12 months, with many reporting better financial outcomes. Fintech Funding for SMEs: Airwallex raised $320m at an $11bn valuation, pitching “autonomous finance” and AI agents—aimed at expanding services for businesses and cross-border payments. Energy Costs & Home Storage: UK coverage highlights how plug-in home batteries can help households and small businesses charge when power is cheap and sell back at peak times, as installations rise. SME Lending Mindset Shift (UK): Lloyds says SMEs are moving from short-term survival to longer-term planning as confidence and growth focus return. Tourism Pressure (Croatia): Dubrovnik’s record visitor numbers are straining housing and local life, adding to Europe’s overtourism debate. EU Payments Policy (Digital Euro): EU lawmakers advanced the digital euro framework to reduce US payment dominance, a move with potential knock-on effects for European merchants.

SME Finance & Growth: The EU is preparing a tax reform aimed at cutting business costs, including removing withholding tax on cross-border dividends, interest and royalties within the bloc and reducing compliance burdens—promising big savings especially for smaller firms. SME Support & Skills: The UK is rolling out more help for independent businesses, with new guidance on company registration and banking compliance for directors, plus a push to make it easier to transfer SME ownership. Payments for SMEs: myPOS has partnered with Italy’s Bancomat to let Italian merchants accept Bancomat payments in-store, with Bancomat Pay for online stores expected soon. Local Business Starter Units: Northumberland’s Coal Regeneration Trust is investing £13.5m in Ashington’s Ashwood Business Park to create starter units for SMEs, with government matching via the Growth Mission Fund. Cyber & Trust for Small Firms: A new CyCOS transition moves SME-focused cyber support from a university pilot into professional management under CIISec. Energy & Climate Tech: EU carbon capture and storage faces tougher odds as project announcements fall and adaptation policy progress remains uneven, raising questions for decarbonisation delivery.