Every owner knows the moment in the marketing meeting where the plan meets the bank balance. The social posts are cheap. The email list costs next to nothing.

The blog is a weekend’s work. Then someone says the word “video”, and the room goes quiet, because everyone at the table knows what a proper thirty-second clip has always cost: a crew for a day, a location, an editor, and an invoice that makes a founder wince. For most firms the honest answer was to skip it, and then to watch better-funded competitors look more established for no reason other than the size of their production budget.

That flinch is worth writing about, because it is starting to fade, and not for the reasons the usual hype cycle gives. The story is not that “AI can make video now” in some vague futurist way. It is that one specific capability crossed a line this year, and that line happens to sit almost exactly where a small firm’s real needs begin.

The number that actually changed is thirty seconds

The tool behind most of this conversation is Seedance 2.5, the latest video model from ByteDance, the company that owns TikTok, which it unveiled in June at its Volcano Engine FORCE event. Set the launch language aside and the useful fact is dull and specific. From a single written prompt or one reference image, it renders a continuous thirty-second shot at native 4K, with the sound generated in the same pass as the picture rather than added afterwards.

Thirty unbroken seconds reads like a trivial figure until you have tried to make anything usable with the earlier generation of these tools. The first wave of AI video fell apart the moment it ran past a few seconds. Faces drifted, hands rearranged themselves, backgrounds melted, and the clip collapsed before it could say anything at all. Holding a coherent scene steady for a full thirty seconds is not a cosmetic upgrade. It is the difference between a novelty you show a colleague and something you are willing to put a brand name against. Thirty seconds is a pre-roll ad. It is a product explainer. It is the establishing shot of a campaign. It is, near enough, the unit of video a small firm actually buys.

What that does to a marketing budget

Picture the video a typical SME wants across a single month and never commissions, because no one piece can justify a shoot on its own. A short spot for a new product. A looping backdrop for the website’s hero section. A fifteen-second cut to test in paid social. A seasonal teaser for the week before a launch. On their own, none of them clears the bar for hiring a crew, so most owners go quietly without and accept that their channels look thinner than the business really is.

Generating those pieces from a prompt and a handful of reference images folds that whole list into an afternoon. The saving is not only cash, though the cash is real enough. It is that the decision itself changes shape. The question stops being “can we afford to make this” and becomes “is this worth twenty minutes to try”, and a great many ideas that never survived the first question sail past the second.

There is a strategic point buried in that shift. When an attempt costs almost nothing, you can put three visual directions for the same campaign in front of the team before committing, rather than staking the budget on one and hoping. The reference handling matters here too: Seedance 2.5 accepts up to fifty inputs in a single run, so you can feed it your product, your brand palette and a location still and get output that keeps a consistent look across the whole clip, which is exactly the thing small firms usually lose when they cobble content together from whatever is to hand. Take a small homeware shop with a new autumn range. Last year that was one hero photo and a caption. Now it is a warm thirty-second sweep across the display for the site, a square cut for Instagram, and two alternative teasers run against each other to see which lands, all built from the same reference shots in a morning. None of that was affordable a year ago.

The music video is the clearest proof

If you want to see how far the floor has dropped, look at the one form of video that was always the most expensive per second anyone made: the music video. For most of its history it was a rich artist’s privilege, funded by a label that expected to recoup the cost, and independent musicians simply went without. Those musicians are, in every practical sense, small businesses. They run their own release schedule, their own marketing and their own cash flow, with no backer standing behind them.

The distance the technology has covered shows up cleanly in the version numbers, which is the kind of before-and-after a sceptic can actually check. Seedance 2.0, barely a year old, produced clips of four to fifteen seconds at up to 1080p and took twelve reference inputs. Seedance 2.5 lifts that to a single thirty-second shot at native 4K and up to fifty references, and those references can include audio. For a musician that last detail matters more than the resolution, because it means feeding in the actual track and asking for visuals that move with it, instead of describing a mood and hoping. ByteDance also reports around twenty per cent better prompt adherence than the older model, though that figure is the company’s own rather than an independent test.

The upshot is not that an unsigned artist can now summon a Hype Williams video from a laptop. It is that the visual which used to sit permanently out of reach, a proper thirty-second piece with a consistent look and a deliberate camera move, is now something they can attempt on the same afternoon they finish the mix. The logic that frees a musician frees a plumber, a bakery or a two-person software firm just as neatly.

Where it still falls over

None of this replaces a real shoot when the work genuinely calls for one. If an idea leans on a specific human performance, a presenter’s face doing something exact, a choreographed sequence, you still need people in a room and someone directing them. Emotional acting, the flicker of a real expression, is the hardest thing for any of these systems to fake, and it is precisely what a lot of the best video lives on. Anyone selling a prompt as a full stand-in for that is overreaching. The models have tells if you look closely, and hands are still where they most often give themselves away.

There is a cost discipline the demos never mention, either. Length and resolution are what burn through credits, so a full thirty-second 4K render is not free, and going for maximum quality on the first attempt is exactly how you watch a good idea come out wrong at full price. Signing in and the starter credits cost nothing, which is enough to render a first clip and learn how Seedance 2.5 behaves before any real money is involved, but the tap is not unlimited. The workflow that keeps it cheap is unglamorous: draft the shot short and at low resolution, correct one thing at a time, and only pay for the finished 4K version once the cheap draft already works.

The sensible way to file all this is not as the end of video production but as the removal of one particular barrier. The barrier was cost, and it kept the single most persuasive format in marketing out of reach of exactly the firms that most needed to persuade. It is coming down. What a business does with the room that opens up is, as ever, the part no software will do for you.

Almost half of British companies plan to increase investment over the next 12 months, according to research published by Lloyds Banking Group, with 47 per cent intending to raise spending and 7 per cent reporting that their appetite to invest had decreased.

About three quarters of those surveyed said investment was “essential for future growth and resilience”. Confidence was highest among businesses in the East Midlands, Scotland, London and the northwest, Lloyds said, with most spending directed towards technology and artificial intelligence infrastructure.

Amanda Murphy, chief executive of business and commercial banking at Lloyds, said that “while many businesses have already secured funding for investment, a significant proportion have yet to deploy it”.

She said: “Investment drives productivity, competitiveness and long-term growth. Ensuring businesses have the confidence, funding and support to move forward will be critical.”

A fall in energy prices and stable economic conditions were among the factors that would prompt businesses to invest more, the research suggested. Rising operating costs, weaker trading conditions and liquidity constraints were among the biggest deterrents to increased spending.

Lloyds said businesses were most worried about the rising cost of production, which the bank said was likely to be tied to higher energy prices triggered by the Gulf conflict, poised to enter its sixth month. Renewed attacks between the United States and Iran have triggered a resurgence in the price of Brent crude, the international oil benchmark, which is trading at about $93 a barrel. The benchmark has moved sharply with each turn in the conflict since fighting began in February.

The findings echo a separate Lloyds survey at the end of June, which found that business confidence had dipped over the month amid persistent concerns about inflationary and cost pressures. The bank’s index of sentiment among private-sector companies dropped by 3 points to 44 per cent, below the 12-month average of 47 per cent, according to figures Lloyds published on 30 June. Economic optimism fell by 4 points to 31 per cent. The June barometer was based on responses from 1,200 firms.

Andy Burnham, the prime minister, is hoping for an increase in business investment, an area of weakness in the UK economy. Office for National Statistics figures published on 30 June show whole economy investment, which covers business and public sector spending, was 18.9 per cent of GDP in the first quarter of the year, the lowest of the G7 nations.

The same ONS release put business investment up 0.9 per cent in the first quarter, though still 1.3 per cent below the level recorded in the same quarter a year earlier. Transport was the largest contributor to the quarterly increase.

Political instability has added to uncertainty for businesses in the UK, with Burnham becoming the fifth prime minister in four years. He has promised to be “a pro-business leader of the Labour Party, as I was a pro-business mayor of Greater Manchester”.

Last week he cut business rates for pubs, clubs and live music venues in England by 20 per cent, which he described as “a first step” for struggling companies. Bosses have called for the government to go further and fundamentally reform the business rates system, which was overhauled in last November’s Budget with the end of the relief scheme introduced in 2020.

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

The Trump administration on Tuesday announced a ban on new foreign-made humanoid robot imports to the US over “unacceptable risks” to the country’s national security.

The move applies to advanced robots – including humanoid and four-legged machines. Many of them are made in China, which is locked in a race with the US to develop robotics and artificial intelligence (AI).

The Federal Communications Commission (FCC) also banned the import of power inverters – a device used in data centres and solar panels – which it said could also pose a risk to the US economy.

FCC chairman Brendan Carr said the agency was doing its part “to secure America’s critical supply chains”.

The BBC has contacted the Chinese embassy in Washington as well as major Chinese robot manufacturers Unitree, UBTech and AgiBot.

The FCC has added the items to its Covered List – a register of goods and services that are deemed a risk to US national security.

The ban applies to new foreign-produced advanced robotic devices and power inverters and does not prevent the sale or import of any existing models that had been previously authorised by the FCC.

The FCC cited concerns that the use of foreign-made inverters could allow overseas firms to turn them off, steal data, facilitate remote access and surveillance by “foreign government actors, or be otherwise exploited through a cyberattack.”

It added that the use of robots made outside the US could allow “malign actors to surveil Americans, enhance the capabilities of foreign intelligence services, or to remotely commandeer the robots.”

Chinea’s exports have come under intense scrutiny by the US as the Trump administration attempts to address trade imbalances with the world’s second largest economy.

Despite being the world’s biggest exporter of electric vehicles, China has been effectively shut out of the American market by a 100% tariff.

US Treasury Secretary Scott Bessent has also warned that Chinese AI firms could face sanctions over allegations that they have stolen American intellectual property.

In response the Chinese government has said its country’s development of AI was “the result of its own dedication and effort as well as international cooperation”.

Chinese technology firms have rapidly developed humanoid robots to be used in settings including factories and homes.

Companies have also been quick to market their machines to businesses and the public ahead of US humanoid robot rivals like Elon Musk’s Tesla and Boston Dynamics.

American Airlines on Tuesday said flights are resuming after the Federal Aviation Administration (FAA) issued a nationwide ground stop for all flights following a systemwide IT outage that disrupted operations across its network.

“A technology issue briefly impacted connectivity for some of our systems on Tuesday evening,” the airline said in a post on X. 

“Systems are coming back online now and flights are departing again. We put a temporary ground stop in place while our teams worked to resolve the issue. We apologize to our customers for the inconvenience.”

Earlier, the airline acknowledged the outage and said its IT team was working to restore affected systems as quickly as possible.

“We’re currently experiencing a systemwide IT outage. Our IT team is working to get everything restored as quickly as possible,” the company said. 

“Our team’s working hard to get everyone back on track asap, and we’re sorry for the inconvenience,” the air carrier added. 

The airline has not said what caused the outage.

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The Fair Work Agency, the labour market enforcement body created in April under Labour’s Employment Rights Act, responded to 2,741 labour abuse inquiries in the first quarter of this year, up 87 per cent on the same period a year earlier, according to its chief executive, Lisa Pinney.

National minimum wage inquiries rose 19 per cent to 2,933 over the same period. Pinney attributes the increase to “greater awareness” about workers’ rights and about the agency itself.

The agency asks itself two questions daily, Pinney says. The first: “How do we get money that’s owed back to individuals?” The second, in serious cases: “How do we make sure we take legal action to prevent it from happening again?”

Its remit is set to widen. The government has not yet fixed the date from which the agency will take responsibility for policing holiday and sick pay. A Department for Business, Innovation, Science and Trade consultation on holiday pay compliance and enforcement closes on 22 September.

The Resolution Foundation, a think tank, estimates that 900,000 workers a year have some holiday pay withheld, with the total owed worth about £2.1 billion. The Low Pay Commission estimates that about 371,000 people were underpaid the national minimum wage in 2024.

The agency has replaced the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority, which had a combined annual budget of £47 million. The merged body has a budget of £60 million, a team of 650, and works alongside the National Minimum Wage compliance team.

Last week, agency staff visited a fruit farm in Scotland alongside other government agencies following reports of poor working and living conditions, including mouse and rat infestations in caravans housing workers, inconsistencies relating to pay and hours worked, and excessive working hours. Some of those affected were foreign citizens working under the UK’s seasonal worker visa scheme. The farm owner has made improvements since the visit.

At the same time, minimum wage enforcement officials wrote to employers in Yorkshire and the Humber, Dorset and Hampshire to check payrolls ahead of planned investigations in those areas.

Businesses that identify underpayment of salaries, sick pay or holiday pay can avoid enforcement action by disclosing it and making good the arrears. Employers who are caught are likely to be fined and can be named and shamed. Last October, nearly 500 employers were fined more than £10 million for failing to pay the minimum wage, with £6 million received by 42,000 employees. The companies included Centrica, Cineworld and Holland & Barrett.

Pinney says she is open to extending naming and shaming to other areas, such as holiday and sick pay. “It does drive change,” she says.

Industry groups have raised questions about how the new rights will be enforced in practice. The Recruitment and Employment Confederation supports the agency’s creation and its pledge to help employers, but wants risk-based enforcement.

“It can be easy to find areas where there are unintentional errors or minor infringements, but it is really important to find those rogue operators who may not be so plainly in sight,” says Lorraine Laryea, the confederation’s chief standards officer.

Pinney says the agency will set out its approach before new powers commence. “As the various different powers are switched on there will be communications ahead of that so that businesses are clear what’s going to happen and how,” she says. “There won’t be any situation where we’re going to say ‘this power is switched on tomorrow, we’ll be on your doorstep’.”

The agency will take covert action where it has intelligence of serious breaches, working with bodies including the National Crime Agency. Its stated preference is otherwise to give notice. “We would much rather support and enable businesses to do their reviews, to do the right thing, to make any changes,” Pinney says. “We recognise most businesses want to do the right thing. We also recognise that people make mistakes.”

Its powers include civil penalties, legally binding undertakings, applications for director disqualification and recommendations to prosecute. It can fine employers who do not pay employment tribunal awards or Acas settlements, bring tribunal claims on behalf of individuals, and offer legal assistance in civil proceedings.

Social care and construction are the agency’s two priority sectors. The cash-in-hand “grey economy”, including hand car washes and nail bars, is also under scrutiny. Pinney has begun discussions with Companies House, HMRC and the Insolvency Service on directors who place companies into administration, leaving unpaid wages and tax, then restart the same business, a practice known as phoenixing.

The agency also has power to prosecute exploitation under the Fraud Act, which requires a lower evidential bar than modern slavery legislation. The Gangmasters and Labour Abuse Authority was reported to have dropped more than 100 cases involving the exploitation of migrant workers because they did not meet the legal threshold.

“Bad things are happening and we want to take action, but we haven’t been able to meet that bar for modern slavery previously,” Pinney says. “We think these new powers will help.”

Pinney joined in April from the Mining Remediation Authority, having previously been an executive at the Environment Agency. She plans a Fair Work Assembly in the autumn, bringing together academics, unions, government agencies and businesses. The agency is also working with Acas on a digital “shopfront” for employers. “Businesses want to get information from one place,” she says.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk