UK businesses employing minimum wage staff will see costs increase by over £2,000 per worker this year, with the tax burden reaching a record high, according to the Centre for Policy Studies. The average cost to employ someone over 21 earning the minimum wage will rise to £24,806, which is £2,367 more than in 2024. This increase is driven by the national minimum wage rising from £11.44 to £12.21 and the employer national insurance rate increasing from 13.8% to 15%. Daniel Herring, a tax and fiscal researcher for the CPS, said: “The more of an employee’s salary is owed in tax… the more costly it is for businesses to create and sustain jobs.” Major retailers like Tesco and Sainsbury’s have warned of potential job cuts and price hikes due to these tax increases.

As British workers return to the office post-festive season, many face stricter attendance mandates from major employers. Amazon has implemented a five-day in-person requirement, while BT has introduced a “three together, two wherever” policy for its 50,000 office-based employees and PwC has curbed remote working. Despite a gradual increase in office attendance, with figures rising from 29% to 33% between July 2022 and September 2024, many workers are reluctant to abandon the hybrid model. The trend is echoed globally, with hybrid job postings increasing by 31% in 2024. As companies tighten attendance rules, tensions may rise, the Guardian suggests, as seen in a recent strike vote by Metropolitan police staff over increased office requirements.

The UK’s manufacturing sector has experienced a significant decline, reaching its lowest level in nearly a year, according to the S&P manufacturing purchasing managers’ index (PMI). The index fell to 47.0 in December, down from 48.0 in November, indicating widespread downturns across various sectors, particularly among small and medium-sized enterprises (SMEs). Rob Dobson, director at S&P Global Market Intelligence, said: “Manufacturers are facing an increasingly downbeat backdrop,” as business confidence plummeted to a two-year low, largely due to tax increases announced in the Government’s recent Budget. The survey highlighted a drop in factory output, new orders, and employment, with job cuts reaching a ten-month high. The overall economic momentum appears to be stalling, raising concerns about the future of the manufacturing industry in the UK.

Business leaders in the UK are showing a slight increase in confidence, with the Institute of Directors (IoD) reporting a four-point rise in its economic optimism index to -61 in December. Despite this improvement, Anna Leach, the IoD’s chief economist, cautioned that businesses remain “fearful of higher costs over the next 12 months,” with 87% of respondents expressing concerns. The upcoming rise in employers’ national insurance contributions to 15% and a 6.7% increase in the minimum wage are significant factors. While there are signs of potential growth, such as a rise in the trading conditions sub-index to +8, the overall sentiment remains low compared to historical averages.

Motorists with company cars are facing significant tax increases due to new benefit-in-kind rules set to take effect in April 2025. Vehicles like the Ford Ranger and Nissan Navara will be reclassified as cars, losing their previous tax advantages. Andy Wood from Tax Natives cautioned that “big changes are coming for double-cab pickups,” warning that costs could rise dramatically for those using these vehicles as job perks. Currently, a basic rate taxpayer pays around £806 in income tax for a Ford Ranger, but this could soar to £4,440 after the changes. However, a transitional arrangement allows those who purchased vehicles before 6 April 2025 to continue under the old rules until April 2029, providing some relief for businesses.

According to a survey by AJ Bell, UK households are increasingly anxious about potential tax increases in 2025, with 83% of the 1,530 respondents expressing concern. Chancellor Rachel Reeves previously announced £40bn in tax rises, primarily affecting businesses, but has not ruled out further hikes. Economists, including Paul Johnson from the Institute for Fiscal Studies, suggest that without significant economic growth, further tax increases may be necessary. AJ Bell cautioned that even the mere prospect of tax hikes could dampen consumer confidence, which has already been affected by Labour’s economic messaging. Laith Khalaf, head of investment analysis at AJ Bell, stressed the need for the Government to provide stability regarding taxation on long-term savings to encourage public spending and investment.

The Labour Government will likely be forced to raise taxes again, an FT poll finds, as economic growth is expected to be too weak to draw in sufficient funds.

Board games are increasingly being utilised as educational tools, allowing trainees to engage in themed scenarios that address real-life challenges so they can explore problems and devise solutions while exploring the ramifications of their decisions. Melvin Bell, director of Focus Games, notes that games are often used for learning at a senior level,” adding: “Serious games started off being used to disseminate ideas and are now used at companies including KPMG and EY.”