diff --git a/frappe/app.py b/frappe/app.py
index d07c42dff2..30ea5ff4ca 100644
--- a/frappe/app.py
+++ b/frappe/app.py
@@ -225,11 +225,11 @@ def serve(port=8000, profile=False, site=None, sites_path='.'):
 
 	if not os.environ.get('NO_STATICS'):
 		application = SharedDataMiddleware(application, {
-			'/assets': os.path.join(sites_path, 'assets'),
+			'/assets': frappe.safe_decode(os.path.join(sites_path, 'assets')),
 		})
 
 		application = StaticDataMiddleware(application, {
-			'/files': os.path.abspath(sites_path)
+			'/files': frappe.safe_decode(os.path.abspath(sites_path))
 		})
 
 	application.debug = True
diff --git a/frappe/public/less/navbar.less b/frappe/public/less/navbar.less
index 26a2645ec9..d044a730fd 100644
--- a/frappe/public/less/navbar.less
+++ b/frappe/public/less/navbar.less
@@ -19,7 +19,7 @@
 
 	// instead of changes within BS3 itself
 	.nav > li > a {
-		padding: 10px 10px;
+		padding: 8px 10px;
 	}
 
 	.navbar-search-icon {