SOFIAH NICHOLE SALIVIO

News Editor

Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.

The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.

In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.

The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.

Discovery phase

ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.

The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.

Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.

“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.

Public sector focus

ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.

The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.

Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.

The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.

For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.

The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.

KAREN JOY BACUDO

Finance Editor

Taxfix has found that many UK sole traders are changing their business structure or considering a return to salaried work because of Making Tax Digital. The findings suggest the policy is affecting self-employment beyond tax reporting.

According to the tax app company’s data, nearly a quarter of sole traders affected by the rules have already set up, or started setting up, a limited company because of Making Tax Digital. A further 57% said they had considered doing so.

The figures suggest a reform intended to expand digital tax reporting is also shaping decisions about legal structure. For sole traders, incorporation brings a different set of accounting, filing and compliance duties, even if some see it as a way to manage the burden of the new reporting system.

The survey also found that 45% of respondents had considered leaving self-employment and returning to permanent salaried work because of Making Tax Digital. That points to a possible effect on business formation and the size of the self-employed workforce at a time when policymakers remain focused on growth and productivity.

Age appears to influence how people are responding. Among 18 to 24-year-olds, 29% said they had already set up or begun setting up a company at least partly because of Making Tax Digital, compared with 28% of those aged 25 to 34. The share fell to 21% among 35 to 44-year-olds, 20% among 45 to 54-year-olds and 14% among those over 55.

A similar pattern appeared in views on returning to employment. Six in 10 respondents aged 18 to 24 said the tax changes had made them consider going back to salaried work, compared with 48% of those aged 25 to 34, 43% of those aged 35 to 44, 39% of those aged 45 to 54 and 40% of those over 55.

Record keeping

The research indicates that many sole traders are still adjusting to the practical demands of digital record keeping. Four in 10 said they had started keeping digital records but were not confident they were doing it correctly, while 46% said they were using compatible software and felt ready to submit.

That split suggests awareness has improved, but confidence remains uneven as quarterly reporting approaches. For some businesses, the challenge appears to extend beyond software adoption to the wider time and administrative demands of staying compliant.

The survey found signs that the changes are already affecting day-to-day business decisions. While 39% said they felt more on top of their finances, 29% said they had become more cautious about taking on new work, 25% said they had raised or planned to raise prices to cover the extra administration, and 19% said they had delayed plans to grow or invest.

The figures suggest a mixed picture. Some sole traders say digital reporting is helping them manage their finances more closely, while others appear to be limiting activity, passing on costs or postponing expansion.

Employment concerns

For those considering leaving self-employment, moving back into a salaried role is not seen as straightforward. More than a third, or 37%, said they were worried they would struggle to find a job that matched their current income.

The main concerns were lower income, cited by 41%, followed by a competitive labour market at 32%, age discrimination at 31%, spending too long outside traditional employment at 29%, and fears that employers might view self-employment negatively at 24%.

This suggests Making Tax Digital may be putting pressure on workers who do not see an easy alternative in the wider labour market. It also raises the prospect that some may be changing their business structure not because it suits their commercial needs, but to avoid extra administrative strain.

“Making Tax Digital was meant to modernise the system. Instead, our research suggests it’s pushing many to change their business structure or leave self-employment entirely. What’s particularly concerning is that with nearly a quarter (23%) of sole traders setting up, or starting to set up, a limited company, incorporation is increasingly being viewed as an escape route. But incorporation isn’t a shortcut to less admin. Limited companies face their own complex filing obligations, with a broader set of tax, accounting and filing requirements. While closing the tax gap is an important goal, if sole traders respond to MTD by incorporating, the policy could instead push businesses outside the very system it was designed to bring them into. The focus now must be on simplifying the system and making compliance achievable, not something to be worked around,” said Oliver Harcourt, Senior Director, Taxfix.

SOFIAH NICHOLE SALIVIO

News Editor

Optimizely has published research showing that 75% of UK consumers find the marketing they receive irrelevant, highlighting a widening gap between consumer expectations and marketers’ ability to meet them.

The survey covered 1,000 UK consumers and 100 UK marketers. It found that many consumers are frustrated by generic, repetitive and poorly targeted messages, while marketers say time constraints, fragmented data and disconnected systems are limiting their work.

Among consumers, 69% said the marketing they receive is often generic or not tailored to them. The same proportion said they often receive duplicate messages or emails from brands, suggesting repetition remains a common problem across channels.

Volume is also an issue. Some 61% of consumers said they feel overwhelmed by the amount of marketing they receive, while 56% said it is becoming harder to find brands that communicate in a useful and engaging way.

The findings suggest poor relevance is starting to affect how people respond to brands. Nearly half of consumers, or 42%, said they disengage when content feels irrelevant, and 35% said they are more likely to unsubscribe from emails and other marketing communications after a poor or irrelevant experience.

Marketer pressures

On the marketing side, the research suggests many teams are under pressure to produce campaigns without the resources they need. Six in 10 marketers said they often have to launch campaigns without enough time or data to optimise them.

More than half, or 54%, said they move from one campaign to the next without enough time to evaluate performance properly. Another 66% said managing multiple tools and platforms creates unnecessary work.

This points to a structural problem for marketing departments trying to meet rising demand for more relevant communications. Consumers want messages that reflect their interests and behaviour, but marketers say the systems behind campaign planning and delivery are often disconnected.

In practice, that can leave brands sending more communications without improving quality. Repetition, weak targeting and poor timing can all reduce a campaign’s value, especially when consumers already feel inundated by promotional material.

AI questions

The research also touches on the role of artificial intelligence in marketing. While AI tools have been widely adopted to help teams produce content more quickly, the findings suggest speed alone has not solved the relevance problem.

One executive at the company linked the issue to how the technology is being used. “Consumers can tell when marketing wasn’t made for them, and our research shows they’re tuning it out because of it,” said Tara Corey, SVP, Marketing at Optimizely.

Corey added: “The irony is that AI was supposed to help fix this, but so far, it’s mostly just helped marketers make more of the same. The real opportunity isn’t more content, it’s better content, and that means using AI to clear away the busywork so marketers can actually focus on strategy and creativity again.”

The data comes as many brands try to balance automation with pressure for better customer engagement. Businesses have increased their use of email, mobile alerts and digital advertising, but consumers appear to be drawing a sharper distinction between communications they find useful and those they dismiss.

For marketers, the results suggest the challenge is no longer simply reach or frequency. The more pressing issue is whether organisations can organise their data, tools and workflows well enough to send messages customers consider relevant.

The findings also show that when that does not happen, the commercial risk is immediate: 35% of consumers said they are more likely to unsubscribe from marketing communications after a poor or irrelevant experience.