Aldi staff benefit from a welcome payrise, plus all the latest business news
Today we review whether Aldi’s high hourly rate for retail staff is viable, plus we cover all the latest business news including this Autumn’s Business Finance Week, and Labour’s productivity expert.
Aldi Leads the Way on Pay: Is High Pay a Good Approach?
Aldi introduced a pay boost last week for its store assistants that will see their pay rise to at least £13.02 per hour nationwide, making it the first UK supermarket to pass the £13 mark. Within the M25, rates will start at £14.35, rising to £14.66 with length of service. All staff, regardless of age, will receive the same minimum rate – well above the new National Living Wage of £12.21.
This move follows Aldi’s policy of paid breaks, worth around £1,425 per year to the average store colleague, further strengthening its reputation as a leader on pay and conditions.
What are the benefits of Aldi’s approach? Are there downsides?
The benefits of Aldi’s approach
Higher pay can certainly deliver some clear business advantages. These include:
- Attracting and keeping staff – competitive pay helps reduce staff turnover, which saves on recruitment and training costs.
- Boosting productivity – well-rewarded employees are more motivated, which can translate into better customer service and improved store performance.
- Positive brand image – standing out as an employer that values its workforce helps Aldi with recruitment, customer loyalty, and wider reputation.
- Consistency for staff – paying the same rate regardless of age supports fairness and can create a stronger workplace culture.
The potential downsides
However, not every business can match Aldi’s scale and financial muscle. Many businesses do not have sufficient buying power or margins to be able to absorb increased pay rates.
As large employers raise pay, staff in smaller businesses may expect similar increases, putting those businesses under pressure to follow suit and increase wages.
What can you do?
Aldi’s move shows how pay can be used strategically, not just as a cost but as an investment in people and performance.
For smaller businesses, the lesson may be less about matching Aldi pound-for-pound and more about finding sustainable ways to reward staff – whether through competitive pay, fair contracts, or other benefits that support recruitment and retention.
Business Finance Week Coming This Autumn
From 30 September to 9 October, the British Business Bank will host Business Finance Week – a nationwide programme of free events designed to help smaller businesses get to grips with their funding options.
The programme includes in-person events across the UK as well as online webinars, making it accessible whether you prefer to attend locally or join from your desk.
For many small and growing businesses, finance can be one of the toughest areas to navigate. With so many options available – from loans and grants to equity and alternative finance – it’s not always easy to know which is the right fit. Business Finance Week aims to cut through the complexity.
For a full list of upcoming events, see: https://www.british-business-bank.co.uk/news-and-events/events/business-finance-week
Government Brings in Productivity Expert to Drive Growth
The government has announced that Professor John Van Reenen, a leading economist from the London School of Economics, will be advising the Chancellor directly on how to improve the UK’s productivity.
His appointment is part of the government’s Plan for Change, aimed at boosting economic growth and raising living standards across the country.
Professor Van Reenen is an academic who has focused on productivity, innovation, and how businesses perform. He previously served as Chair of the Chancellor’s Council of Economic Advisers. In this new role, he will spend one day a week without pay for 12 months working with the Treasury, starting in September.
What this could mean for businesses
Productivity – how much value is created for the time and resources put in – is still a concern for the government. Low productivity growth can be a drag on wages and business competitiveness.
Rachel Reeves, the Chancellor of the Exchequer, said: “We still have work to do to build an economy that works for working people.” She believes that Professor Van Reenan’s appointment will help to bring that about.
For businesses, the appointment may indicate what future policies may appear over the coming year, such as:
- Supporting investment in new technology and processes.
- Encouraging training and skills development.
- Making it easier to scale and grow operations.
- Creating a more stable environment for long-term planning.
This appointment on its own won’t transform the economy, but it highlights that productivity is on the agenda for the next year.
See: https://www.gov.uk/government/news/chancellor-appoints-growth-adviser
Business Property Revaluations – Be Ready for 2026
The Valuation Office Agency (VOA) is encouraging businesses to sign up for a business rates valuation account so they can find out their new commercial property valuation.
Every three years the VOA updates the rateable values of all business properties in England and Wales. The next revaluation will take effect on 1 April 2026, based on open-market rental values as at 1 April 2024.
Business rates are calculated from your property’s rateable value. This is not the same as your final bill, but it is the starting point. Local councils apply a multiplier and any relevant reliefs to arrive at what you actually pay.
The new valuations will be published a few months before next April. Signing up for a business rates valuation account will give you access to your property’s details and allow you to find out what your future rateable value will be as early as possible.
Your account will also allow you to:
- Check that the VOA has the right details for your property.
- Let the VOA know if something’s wrong.
- Understand how your property’s valuation was worked out.
- Tell the VOA if you believe your current property valuation is incorrect.
Having information as early as possible will give you extra time to plan for any changes to your business rates bill rather than having to react when it arrives.
See: https://www.gov.uk/government/news/stay-informed-about-your-business-rates