Labour’s most powerful union backer has warned that Keir Starmer is in danger of bolstering support for Nigel Farage, arguing that the government has failed to support oil and gas workers and watered down plans to boost employment rights.

Sharon Graham, the general secretary of Unite, said voters could be left feeling “duped” by Labour after the government scaled back planned changes to ban zero-hours contracts and exploitative “fire-and-rehire” practices.

As polls show Reform UK on course to become the largest party in the next parliament, the leader of the UK’s largest private sector union said Labour had not adopted its proposals to create new jobs for workers in fossil fuel industries.

Speaking to the Guardian before the start of the annual TUC conference on Sunday, Graham said Labour had a short time to turn things around or see support from union members leach away to other parties.

“They have one year to get this right because Nigel Farage is on their tail.

“And don’t get me wrong, Farage is not the answer, but he is a good communicator. And whether we like it or not, when he is talking about net zero, and about what’s happened to communities and workers, people are hearing what Labour used to say.”

She said that, with high inflation already taking a toll on household budgets, mooted tax rises in Rachel Reeves’s autumn budget would be the final straw for many Labour voters.

Graham said Labour needed to avoid taxing workers to fill the gap in the public finances and start drawing up plans for a wealth tax.

“If this keeps happening, the feeling that workers always pay, but they’re leaving the super-rich totally untouched – I think they won’t recover from it,” she said.

Echoing the Trades Union Congress general secretary Paul Nowak’s call for higher taxes on the richest households, she said: “[Labour] were very front foot forward with winter fuel. Now they should say absolutely [a wealth tax] is a good idea.”

Anger at Labour ministers from inside Unite’s ranks was high, she said, bringing the union close to cutting off party funds.

The fate of 30,000 workers in the oil and gas industry features on Graham’s list of priorities after a year spent trying to convince the energy secretary, Ed Miliband, that he should put more effort bringing green jobs to the UK.

He said: “Green jobs are not delivery workers on an electric scooter. I am talking about people in the oil and gas industry making the switch to green energy jobs.”

She said Unite had put forward proposals for investments in making sustainable aviation fuels and wind turbines to Miliband that had gained little traction.

There would be an almost unanimous vote to block further donations to Labour if a vote on the union’s political levy were held today, she said.

Earlier this year, its members overwhelmingly voted to suspend Angela Rayner’s membership over the former deputy prime minister’s “support for pay cuts” to striking Birmingham bin collectors.

The strike could continue for another six months after bin workers voted this week for pay cuts of up to £8,000 to be reinstated.

When it suspended her membership, Unite said Rayner had backed special commissioners appointed by her department against Birmingham city council’s management, who were prepared to end the dispute.

Graham said anger boiled over when the government amended the employment rights bill (ERB) to allow councils to fire and rehire workers.

Under the amendments, councils will gain the ability to sack and rehire workers on worse pay and conditions if they are in financial distress – an opt-out already secured by private sector organisations.

The ERB is expected to be agreed by MPs later this year and take effect from next spring, with elements such as the implementation of day-one rights to sick pay and unfair dismissal protections delayed until 2026.

Extra powers for unions to recruit new members and gain collective bargaining rights will be on the statute books from April 2026, allowing access for those at companies that have locked out unions for decades, including Amazon.

Employers organisations are upset by clauses in the legislation that reduce the thresholds for unions to gain recognition agreements.

Graham said Labour had watered down previous “no ifs, no buts” commitments and allowed employers to ultimately refuse access, forcing unions to embark on lengthy appeals.

“Most blue-chip companies allow access to trade unions and negotiate with them. It is the hostile employers that don’t. And if you look at the collective bargaining pieces in the ERB there isn’t much to grab hold of,” she said.

Rachel Reeves could stop giving money away if she wants to close the UK’s looming spending gap. And baby boomers could be her first target.

At the moment the chancellor gives away more than £50bn in tax relief for pension saving, most of which goes to wealthier boomers and better-paid gen Xers who do not need the money and would save anyway if state support was more limited.

A remodelling of pension subsidies – cutting the 40p higher rate to a flat rate of 25p for all savers – could claw back £10bn to £20bn in extra income tax and national insurance payments, depending on how the new regime is constructed.

In a separate but related move, Reeves could reduce or scrap the tax-free allowance, a privilege that allows for a quarter of retirement savings to be taken as a tax-free lump sum.

Boomers have been exercising their “right” to tax-free cash for decades at everyone else’s expense. While some savers need the money to pay off debts or help with the cost of living, it has always been unclear why this indiscriminate benefit should be gifted to those who, by definition, have more money than most by virtue of having a pension.

Fears that pension reform is imminent have already triggered a rush of older savers keen to exit with the biggest bag of tax-free cash they can muster.

According to a freedom of information request by the wealth manager Evelyn Partners, figures from the Financial Conduct Authority show that individuals withdrew £18.1bn from their pension pots in the year to the end of March, up from £11.25bn in the previous year.

The figures showed that most of the money taken out was in the second half of the tax year, after it became clear that Labour would need to raise more cash to keep the public finances in balance over the rest of the parliament.

Such is the yawning gap in the public finances that Reeves, one of the few senior ministers to remain in the same post in Friday’s post-Angela Rayner reshuffle, needs to consider big, bold reforms to taxes that are outmoded and unfair. But what kind of reforms and how to do it? On the question of wealth and how to go about taxing it, the Treasury is sailing on an open sea without the navigational instruments needed to give a sense of direction.

One of the main problems is the total lack of agreement among the UK’s main thinktanks, academics and the population at large about which taxes are most in need of being reworked.

There was a time when the government of the day would sponsor a royal commission to consider the best way forward. But these days ministers are always in too much of a hurry. Or consider that a commission will choose remedies they find awkward, placing them in a politically difficult position.

The Mirrlees Review of 2010-11 attempted to clean up a complex tax system and eliminate many of the most egregious tax breaks. There is little sign of a follow-up.

In addition to pensions, ministers could overhaul council tax, which has a special place in the pantheon of bad taxes. The arguments for a change are many when the annual payments are based on property values from a previous century and the limited number of bands mean that the most expensive homes pay little more than the cheapest.

Oxford University’s John Muellbauer suggests the government switch to a tax based on a percentage of a property’s value. A veteran housing expert, the Nuffield College professor would abolish the top two tax bands – G and H – and instead levy a charge of 0.5% of the property’s value. For the first time the tax on a £10m home would not be £3,000 to £4,000 a year, but more like £50,000.

This shift would involve valuing about 1.1m homes in the G and H bands, which is much easier than valuing all 29m homes, which many economists and thinktanks advocate as part of a complete overhaul.

Muellbauer calculates that the new property tax levy could raise up to £10bn for Reeves, who under his plan would cream off the excess generated by the shift, leaving councils no worse off. Older boomers who refuse to downsize could defer their payments with a small surcharge. Over time, band by band, the whole council tax system could be modernised.

This proposal satisfies the most immediate need for money to fill Reeves’s budget shortfall while putting in place a system that can be expanded over time.

Muellbauer lacks public backers, despite presenting his work inside Whitehall and to various thinktanks. And yet without the kind of support that gives such proposals momentum, the Treasury can be expected to dither.

There are rival proposals aimed at the main wealth taxes already on the statute book – council tax, capital gains tax and stamp duty on property purchases – but they all call for a more comprehensive overhaul, one that will be politically more difficult for Reeves to pursue.

Given the need for No 10 and the Treasury to agree a plan ahead of the autumn budget, thinktank rivalry and academic competition could be the boomers’ saviour. Pension changes and Muellbauer’s plan deserve support, yet without a coalition behind them, ministers will probably want to stick with their standard mode of operation: muddling through.

By David Malan 

Digital transformation has shifted from a corporate luxury to a strategic imperative. Once the domain of multinational giants with expansive budgets and dedicated IT departments, it is now being driven by small and mid-sized businesses (SMBs) that are leveraging AI and automation to reshape how they operate and compete. These businesses are not merely adapting, they are architecting a new digital paradigm.

Rather than pursuing sweeping infrastructure overhauls, SMBs are embracing modular, scalable technologies that align with their operational realities. Cloud-based platforms and AI-powered tools are enabling them to streamline workflows and respond to market shifts in real time. This democratisation of digital capability is levelling the playing field, allowing SMBs to challenge incumbents and disrupt traditional models.

For many SMBs, digital transformation begins with a simple challenge: how to do more with less. AI and automation offer a compelling answer, not only through complex deployments, but through accessible platforms that simplify repetitive tasks and unlock strategic bandwidth. Intelligent systems now handle invoice processing, HR documentation and logistics workflows with speed and precision, freeing teams to focus on creative problem-solving and long-term planning.

One of the most impactful applications is intelligent document processing (IDP), which automates data extraction, validation and routing. In sectors like logistics and healthcare, this translates into faster approvals, reduced errors and improved customer service. For example, a regional logistics firm that automates bill-of-lading workflows can cut administrative overhead, accelerate delivery timelines and reduce disputes – all while enhancing client satisfaction.

These gains are not theoretical. They are quantifiable and repeatable. Processes that once took hours now happen in seconds. Accuracy improves, compliance strengthens and employees spend less time chasing paperwork and more time delivering value. This shift reframes digital transformation from a technical upgrade to a strategic enabler, one that empowers SMBs to operate with greater precision and purpose.

Bridging the physical and digital divide

While cloud-native platforms and AI tools dominate the conversation, many industries still rely on physical documentation. In sectors such as healthcare, legal services and shipping, paper remains a critical part of daily operations. Here, technologies like optical character recognition (OCR) and smart scanners play a pivotal role in bridging the gap between physical and digital workflows.

Digitising paper documents is a foundational task. Without it, even the most advanced AI systems cannot function at full capacity. OCR ensures that data is complete, searchable and ready to fuel automated processes. It also supports regulatory compliance by making records accessible and auditable. This step, often overlooked, is essential for unlocking the full potential of AI-powered transformation.

Moreover, the integration of OCR with AI-driven platforms enables SMBs to build systems that are not only efficient but also adaptive. These systems respond to real-time inputs, adjust workflows dynamically and provide actionable insights that inform strategic decisions. The result is a business environment where physical constraints no longer hinder digital progress and where transformation is truly end-to-end.

The convergence of physical and digital capabilities also enhances customer experience. In industries where documentation is central to service delivery, digitisation allows for faster turnaround, fewer errors and more personalised engagement. SMBs that invest in this bridge between worlds are – simply put – elevating their brand and strengthening client relationships.

From efficiency to intelligence

Forward-looking SMBs are moving beyond basic digitisation toward adaptive intelligence. They’re deploying AI to refine decision-making, personalise customer engagement and dynamically adjust operations. No-code platforms, embedded analytics and AI assistants are designed with SMBs in mind, offering enterprise-grade capabilities without the complexity. This evolution marks a shift from reactive operations to proactive strategy.

Transformation is no longer about replacing outdated systems. It’s about reimagining how work gets done. AI enables businesses to anticipate customer needs, optimise resource allocation and uncover patterns that were previously invisible. Real-time analytics provide clarity in decision-making, while automation ensures consistency and scalability. The result is a smarter organisation that can pivot quickly and confidently.

Importantly, these tools are increasingly accessible. Vendors are building solutions tailored to SMBs’ pace, budget and technical capacity. This accessibility removes barriers to entry and empowers smaller firms to experiment, iterate and scale without the overhead of traditional IT infrastructure. The emphasis shifts from technology adoption to strategic integration, where every tool serves a clear business purpose.

In this context, AI becomes more than a productivity enhancer. It becomes a growth engine. SMBs that embrace this mindset are truly transforming – using data to drive innovation, automation to unlock capacity and intelligence to shape the future of their industries.

Transformation as a continuous journey

Viewing digital transformation as a finite project is a strategic misstep. For SMBs, it must be a continuous journey, one that evolves alongside market dynamics, customer expectations and technological advancements. Success lies in cultivating a culture of experimentation, setting clear objectives and measuring outcomes rigorously.

The most successful SMBs don’t chase technology. They pursue clarity and invest in solutions that are intuitive, scalable and directly tied to business outcomes. Whether it’s accelerating operations, predicting market trends or enhancing customer experiences, AI becomes a strategic ally when deployed with purpose.

In today’s hyper-competitive landscape, digital transformation is existential. AI sits at the heart of this shift, unlocking new levels of insight and engagement. For SMBs willing to embrace this evolution, the rewards are tangible: accelerated growth, smarter operations and stronger customer relationships. Ultimately, success is no longer defined by size or resources. It’s defined by adaptability and the courage to innovate continuously. SMBs that embody these traits are leading the charge in a digital-first world.

About the Author

David Malan is the Sales Director for DocuWare, overseeing sales, pre-sales and marketing activities across the United Kingdom and Ireland. With over 18 years of experience in Document Management, David has focused on DocuWare’s Electronic Content Management (ECM) solutions since 2012. Throughout his career, David has developed extensive expertise in business process optimisation, helping organisations improve efficiency and reduce costs by implementing content and document management solutions that streamline operations.