Return-to-office mandates put talent off
The Guardian
According to a recent poll by Hays, nearly half of professionals would consider resigning if required to return to the office full-time, with 58% of female workers expressing this sentiment compared to 42% of men. The survey revealed that 77% of the workforce prefers a hybrid working model, with three days in the office being the most common arrangement. Pam Lindsay-Dunn, chief operating officer of Hays UK and Ireland, said: “Employers need to realise they are at serious risk of losing top talent if they make a full-time return-to-office compulsory.” The cost of commuting emerged as a significant concern, affecting 73% of professionals’ decisions regarding office attendance. Despite some companies pushing for more in-office time, only 8% of employers plan to enforce a return to the office in the next six months. |
Labour’s Employment Rights Bill will hammer jobs
City AM
Karen Jackson, an employment discrimination lawyer and owner-CEO of didlaw, critiques Labour’s Employment Rights Bill in a piece for City AM, stating it “swings too far” in favour of workers without considering the impact on small and medium enterprises (SMEs). She highlights the bill’s reliance on secondary legislation and warns that it could create uncertainty and hinder growth. While she supports measures against abusive practices like fire and rehire, she argues that introducing day one unfair dismissal rights is impractical and could deter hiring. Jackson also raises concerns about the Fair Work Agency’s proposed powers, suggesting they could lead to overreach. She concludes that the bill, in its current form, should not pass and anticipates significant amendments to make it workable. |
Minimum wage rise and tax raid will cost 85,000 jobs
The Resolution Foundation has warned that 85,000 jobs are at risk from Labour’s hike to national insurance contributions for employers and minimum wage increases. The Left-leaning think tank predicts that employers will have to fire staff, reduce hiring or trim hours to cope with higher costs. Nye Cominetti, an economist at the Resolution Foundation, said: “We find an employment effect of 85,000 in terms of average-hours jobs. It is a substantial number. Most of that employment effect is concentrated among low-earners.” |
CFO turnover hits record high
City AM
Over 15% of chief financial officers (CFOs) at listed companies in the UK and US departed their roles last year, marking the highest turnover rate in six years, according to research from Russell Reynolds Associates. The average tenure of CFOs has decreased from 6.2 years to 5.8 years in 2024, largely due to a high retirement rate. Ben Jones, co-head of Russell Reynolds’ European CFO practice, noted that the market pressure on CFOs is “fierce,” driven by increasing regulatory demands and external factors like tariffs and inflation. Additionally, 70 out of 275 CFOs appointed last year were women, the highest proportion in six years, with 54% being internal appointments. |
Commercial property crisis deepens
City AM
The UK’s commercial property sector is facing significant challenges due to environmental regulations and changing work patterns, writes Smart Spaces CEO Dan Drogman. The Spring Statement was a “missed opportunity” for relief, he says, with over 75% of London’s office buildings below the minimum energy standard, putting landlords under pressure to upgrade by 2030. Drogman stresses the need for targeted support, such as retrofit grants, to encourage upgrades without penalising landlords through business rates. He warns that without reform, London risks a wave of stranded assets, leading to rising vacancy rates and weakened economic activity. |
Tax burden on businesses doubles in 10 years
City AM
New research by Thomson Reuters reveals that companies contribute over 25.6% of all UK tax receipts, with total payments nearly doubling from £114bn in 2014/15 to £215bn in 2024/25. Chancellor Rachel Reeves has pledged a more pro-business approach, yet the data raises concerns about the current tax landscape, which is becoming increasingly complex. The corporation tax rate stands at 25%, and additional burdens from national insurance and other taxes are compounding the issue. With the need for innovation and technology in compliance growing, businesses are turning to AI-powered tools to manage their tax obligations more effectively, the study notes. |
Working families ‘to lose £3,500’ as NICs rise
Working families are projected to lose over £3,500 by the end of this parliament due to the increase in national insurance contributions for employers announced by Chancellor Rachel Reeves, which will rise by 1.2 percentage points to 15% from April 6. Kemi Badenoch, Conservative Party leader, labelled the levy a “jobs tax” claiming 18.6m households would be affected. The Office for Budget Responsibility estimates that 60% of the cost will be passed on to workers through lower wage growth and higher prices. By 2029-30, the average loss per household is expected to reach £842 annually. A Treasury official claimed the figures do not consider indirect economic impacts and reaffirmed the Government’s commitment to keeping taxes low for working people. |
Government prepares for tariff impact
The Prime Minister Keir Starmer has acknowledged that the UK is likely to face tariffs of up to 20% from the U.S., as President Trump has refused to sign an economic deal that could have secured an exemption. A senior government source stated that the deal, which includes concessions on artificial intelligence, tax, and agriculture, remains “on the table” but has been met with resistance from Trump’s administration. The Office for Budget Responsibility predicts a 0.6% hit to GDP, equating to £18bn, from these tariffs, potentially erasing the economic cushion left by Chancellor Rachel Reeves. Starmer’s spokesman said that the Prime Minister will act in the national interest while preparing for all eventualities ahead of Trump’s announcements. He added: “Our trade teams are continuing to have constructive discussions to agree a UK-US economic prosperity deal.” |
Bank of England boosts deposit protection
City AM
The Bank of England is set to enhance depositor protection by increasing the nationwide deposit guarantee scheme limit to £110,000, up from £85,000, which has been in place since 2017. This change aims to bolster confidence in the financial system. Sam Woods, chief executive of the Prudential Regulation Authority (PRA), said: “We want to support confidence in our banks… by raising the amount that people can keep in their account which is covered by the deposit guarantee scheme.” The Financial Services Compensation Scheme (FSCS) has compensated depositors £10.1m over the past three financial years, with total payouts reaching £20bn since 2001. |
Scotland’s SMEs face finance hurdles
The Scotsman
Research from the British Business Bank and Business Gateway reveals that smaller businesses in Scotland are facing significant challenges in accessing finance. The Scotland SME Access to Finance Report 2025 indicates that 42% of respondents reported barriers to securing funding, a notable increase from 38% the previous year. Regions such as Tayside, Central Scotland, and Fife reported the highest difficulties, with 52% of businesses affected. Despite these challenges, 41% of Scottish businesses anticipate growth in the next year, with 70% confident in meeting their future finance needs. |
SMEs need more than just words – Dr Gerard Lyons
Small and medium-sized enterprises (SMEs) represent 99.9% of all firms in the UK, employing 16.6m people and contributing significantly to the economy. But poor policy decisions and a lack of access to finance continues to thwart their progress, writes Dr Gerard Lyons, chief economic strategist at Netwealth. There needs to be a proactive policy approach to SMEs, Dr Lyons asserts, with simplified tax rules and a more predictable regulatory environment. The City also needs to step up and provide solutions to the lack of patient capital and absence of financing to allow SMEs to scale up and invest. |
Tighter link between public and private capital markets needed
City AM
According to a recent report by UK Finance, the relationship between British businesses and public exchanges like the London Stock Exchange is evolving, necessitating a new strategy. The report highlights a significant decline in the importance of public listings, with market capitalisation of UK-traded companies dropping by 17% since 2013. The report, which was supported by EY, advocates for a tighter connection between public and private markets to foster growth and liquidity, suggesting initiatives like the Private Intermittent Securities and Capital Exchange System (PISCES) to facilitate smoother transitions to public listings. Conor Lawlor, managing director at UK Finance, stated: “[The UK has] a world-class ecosystem of public and private markets,” pointing to the need for collaboration to support innovative companies. |
Crypto scams steal nearly £200m
Daily Mail
Recent analysis by Mattison reveals that cryptocurrency scams in the UK have reached nearly £200m, with 9,850 individuals falling victim in the year ending 31 October. The rise in scams correlates with increased interest in cryptocurrencies, particularly after Bitcoin surpassed $100,000. Scammers exploit this interest by promoting fraudulent investment schemes, often using fake celebrity endorsements. Nick Mattison, partner of Mattison, said: “Crypto fraud is still running at a worryingly high level and there is no certainty that regulation of the sector by the FCA will make a major dent in that level of fraud.” |
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