MPs are urging changes to the Employment Rights Bill to prevent “rogue firms” from undermining reputable employers in the UK. The House of Commons Business and Trade Committee (BTC) pointed to the risk of the UK becoming a “dumping ground” for poor labour practices, particularly concerning forced labour in supply chains. The report calls for explicit reforms to eliminate exploitative zero-hours contracts and improve worker status. Concerns were raised about companies like Shein and Evri, which have faced scrutiny over their employment practices. The committee called for the Fair Work Agency and ACAS to be strengthened to ensure compliance with new laws and protect workers’ rights.

Britain’s 1.3m lowest-paid workers will soon be eligible for statutory sick pay (SSP) from their employers, receiving 80% of their usual earnings from day one of sickness. The change is part of the Employment Rights Bill and is expected to cost businesses up to £5bn annually. Currently, to qualify for statutory sick pay, you must have been ill for more than three days in a row and earn an average of at least £123 a week. Work and pensions secretary Liz Kendall said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay.” While the reforms aim to support low earners, concerns have been raised by business groups regarding the potential impact on absenteeism and employment costs. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said businesses were concerned the day-one entitlement “could lead to an increase in staff absenteeism that will be difficult for small and medium-sized enterprises to accommodate”.

According to a recent survey by Shawbrook, over 40% of the UK’s small and medium-sized businesses (SMEs) anticipate that the Government’s increase in National Insurance Contributions (NIC) will adversely affect their operations. The upcoming 1.2% rise, set to take effect from April 6, 2025, has prompted a third of SME leaders to consider or implement price increases for their goods and services. Neil Rudge, Shawbrook’s chief banking officer, said: “In addition to the rise in National Insurance contributions for employers, a range of other policy changes will also impact SMEs, creating a challenging environment. Many businesses will likely respond by raising prices or reducing staff – strategies that could have far-reaching implications for the broader economy.”

Rising taxes and inflation have pushed manufacturers to cut jobs at the fastest rate since 2020, according to the S&P Global UK manufacturing PMI survey. Higher costs have pushed output down to a 14-month low with the PMI recording a reading of 46.9 in February, indicating ongoing contraction. However, business optimism reached a six-month high, driven by investment spending and hopes for improved economic conditions. Tom Pugh, an economist at RSM, pointed out that weak growth in major trading partners and uncertainty around US tariffs are heavily impacting the manufacturing sector.

A recent government report on IR35 indicates that £4.2bn in additional tax has been generated since the reforms were implemented. However, experts caution that the impact of the reforms has been “continually downplayed.” The off-payroll working rules aimed to ensure that workers classified as employees pay the same tax and National Insurance contributions as direct employees. Qdos CEO Seb Maley said: “There are some bold claims in this report. These rules created confusion, uncertainty and damage to the contracting landscape. Many businesses stopped engaging contractors as a direct result of the reforms.” Dave Chaplin, CEO of IR35 Shield added: “The [IR35] rules have created a hostile environment for genuine contractors and the businesses that need their expertise – exactly the opposite of what our economy needs.”

Rupa Huq, the Labour MP for Ealing Central and Acton, has suggested the Government reverses its policy on private school fees when the economy grows. During a debate on the issue, Ms Huq raised concerns about the sector becoming more elitist as schools close and suggested targeting wealthier schools such as Eton College, rather than applied to all private schools as it is currently.

The UK Financial Ombudsman Service has reported a record 18,658 new complaints regarding car loans in the last quarter of 2024, surpassing credit cards as the most complained-about financial product.

Public confidence in the UK economy is waning, according to the City AM Freshwater Strategy poll. The survey indicates that 18% of voters are in “high financial stress,” unable to manage an unexpected £500 bill. Additionally, 35% reported troubled finances, while only 30% felt comfortable. Economist Ashley Webb from Capital Economics noted that households are opting to save rather than spend, contributing to a stagnating economy, which he predicts will “flatline at best” in early 2025. The poll also shows that over half of respondents expect economic conditions to worsen, raising concerns about Labour’s ability to stimulate growth. Nearly 44% anticipate their household finances will decline in the next year.

Jes Staley, the former CEO of Barclays, is contesting the Financial Conduct Authority’s findings regarding his relationship with Jeffrey Epstein. Staley was fined over £1.8m and banned from senior roles in 2023 after the FCA concluded he misled them about the nature of his ties to Epstein. Staley’s legal representative, Robert Smith KC, argued that Staley “has never attempted to conceal his relationship with Mr Epstein” and that the letter sent to the FCA was intended to clarify that neither he nor Barclays had knowledge of Epstein’s criminal activities. The FCA maintains that Staley acted “recklessly and without integrity” by allowing misleading statements to be sent.

HSBC UK is set to introduce its “financial health check” service in over 100 branches, following the success of a telephone initiative that assisted more than 11,000 customers. The face-to-face service, which launched yesterday, aims to help individuals assess their financial wellness by discussing spending habits, savings goals, and borrowing options. The initiative is designed to provide tailored support for unique financial journeys, with additional resources like webinars and benefit checks available to all, not just HSBC customers.