The S&P Global UK services PMI survey revealed a score of 51.1 in December, a slight increase from November’s 50.8, indicating marginal growth. However, the services sector is experiencing its most significant job cuts since January 2021, driven by concerns over weak consumer confidence. Tim Moore, economics director at S&P Global Market Intelligence, said: “Survey respondents suggested that falling business and consumer confidence… had led to a considerable loss of growth momentum.” Despite some areas showing robust expansion, overall demand remains weak, with 23% of businesses reporting workforce reductions. The outlook for new orders is subdued, and many companies are freezing hiring due to rising payroll costs and economic uncertainty.

As the working from home (WFH) trend wanes, 2025 may mark a significant shift back to the office for many Britons. James Reed, chairman and CEO of the Reed Group, says in a piece for the Express that “proper face time with colleagues… is important after all.” Research indicates that 68% of companies are encouraging employees to return to the workplace, as productivity levels remain a concern. Despite some resistance, with 29% of workers believing office presence won’t aid progression, the “in-person premium” is expected to grow in importance amid a cooling jobs market. The rise in job applications by 19% in 2024 suggests a wealth of talent available for employers, says Reed, making it crucial for job seekers to be present in the office to enhance their career prospects.

Recent research by Adzuna, utilising data from Goldman Sachs and the Organisation for Economic Co-operation and Development (OECD), has identified jobs least likely to be affected by artificial intelligence (AI). The study highlights that roles requiring specialist human interaction, such as dermatologists, are among the safest, with an average salary of £86,229 and a significant increase in job vacancies. Other resilient professions include dentists, veterinarians, and various blue-collar jobs like plumbers and carpenters. The International Monetary Fund has projected that AI could impact nearly 40% of all jobs over time, but this research suggests that certain careers will remain in demand despite technological advancements.

GB Bank has announced a significant expansion of its lending capabilities, now offering loans of up to £15m. Launched in August 2022, the bank initially provided property development loans ranging from £500,000 to £5m, primarily supporting regional property developers and small to medium-sized businesses. The increased capacity aims to assist larger and more complex residential and commercial property projects, especially in London and the South East. CEO Mike Says expressed enthusiasm about the expansion, stating: “We are thrilled to kick off 2025 with this exciting announcement.” He added that the bank is well positioned to champion property-backed lending across the UK.

The Learning and Work Institute (LWI) warns that the UK’s economic growth is at risk due to a widening “skills chasm” between regions. By 2035, 71% of Londoners and 65% of adults in Scotland are projected to hold degrees, contrasting sharply with just 29% in East Yorkshire. Stephen Evans, LWI’s chief executive, said: “This report shows a tale of two countries, with the magnetic pull of London drawing in talent from elsewhere.” The report highlights that areas like the West Midlands have 27% of adults with qualifications below GCSE level, compared to only 9% in west London. To close this gap, over 4m additional people outside London would need higher education qualifications. A Department for Education spokesperson said: “We have established Skills England to tackle skills shortages and support businesses to drive growth. It will ensure we have the highly trained workforce needed for the industries of the future, laying the foundations for stable growth.”

As the January 31 deadline approaches, 5.4m individuals are hurrying to complete their tax returns. According to HMRC, nearly 25,000 people submitted their returns on January 1, while 38,260 did so around New Year’s Eve. Missing the deadline could lead to an initial £100 fine, even if no tax is owed, with additional penalties accruing over time. Myrtle Lloyd, HMRC’s director general for customer services, stressed the importance of timely filing, stating: “We know completing your tax return isn’t the most exciting item on your new year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.”

Recent research by Whisky and Wealth Club reveals that cryptocurrencies have emerged as the third most popular investment in the past year, with a remarkable 49% increase in online searches. Despite their volatility, digital assets are attracting investors looking for high-risk, high-reward opportunities. In 2024, global crypto investment reached a record $44bn (£35bn), according to CoinShares. The Financial Conduct Authority (FCA) reports that 7m people in the UK own some form of cryptocurrency, reflecting a shift towards alternative investments beyond traditional assets.

Analysts at Peel Hunt predict that UK food inflation may reach 4% by the end of 2025, a significant increase from their previous forecast of 1.5%. This adjustment is attributed to rising employer national insurance contributions, a hike in the national living wage, and the implications of the Employment Bill. The report highlights the UK’s dependence on EU imports and the challenges posed by regulatory changes, which are expected to further elevate prices. Peel Hunt stated: “For now, it is not food commodities, crude oil or sterling causing food inflation in the UK as opposed to the UK Government’s policies.” The forecast suggests that food prices will continue to rise, with the impact of these changes likely felt at the consumer level.