Analysis of published insolvency notices shows that more than 1,100 businesses across the UK have faced winding-up orders in the first fifteen weeks of 2025. This is up almost a quarter compared to the same period in 2024 and marks the fastest rate of corporate closures since 2010. The City AM analysis also shows that almost 2,200 firms have faced winding-up petitions as creditors look to recover unpaid debts. This is more than a fifth higher than a year ago and the highest rate since 2012. Tom Russell, vice president of insolvency and restructuring trade body R3, said “a number of economic and political issues” are putting pressure on businesses, adding: “High costs and cautious consumer and client spending mean creditors are being more aggressive about pursuing the money they are owed.” Shadow Business Secretary Andrew Griffith has suggested that the Government “is engaged in a tax and culture war against wealth creators,” adding that it is “no surprise that businesses are being wound up at the fastest rate for a decade.”

Ministers have been warned that changes to the business rates system could push up costs for high-street retailers, manufacturers and SMEs, putting firms at risk. The warning, from a coalition of logistics professionals and industrial investors, argues that such businesses would be disproportionately affected by plans to apply a higher business rates multiplier to business with a rateable value over £500,000. Investors including Segro, Prologis and Tritax Big Box say the “blanket approach” by the Government “risks driving up costs across supply chains, fuelling inflation and deterring investment into precisely the sectors the Government wants to grow.” John Webber, head of business rates at real estate agent Colliers, warned: “The Government is rushing through Parliament new business rates legislation that has not been properly thought out.”

Industry leaders have issued a warning that UK manufacturers may begin cutting jobs “within weeks” unless the Government secures a trade deal to mitigate the impact of Donald Trump’s tariffs. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), told MPs that the tariffs could have a “severe, significant and immediate” effect on high-end carmakers like Rolls-Royce and Aston Martin. He has also urged ministers to consider a temporary furlough scheme to support affected workers. Stephen Phipson, chief executive of Make UK, echoed these concerns, indicating that layoffs could start by summer if a deal is not reached.

Bank of England rate-setter Megan Greene has warned that an increase to employer National Insurance contributions (NICs) and a higher national living wage will push up inflation and lead to a “shake-up” of the labour market. She suggested that businesses could “decrease employment, decrease hours, offer lower wage increases,” and warned that higher NICs may “eat into profits.” Ms Greene, an external member to the Bank’s Monetary Policy Committee, suggested that the “big risk is that there could be a big shakeout in the labour market,” with an increase in unemployment, but noted that there are “no signs of that yet.”

Conservative leader Kemi Badenoch has pledged to abolish Labour’s tax on family farms if elected, saying the IHT reform is “immoral and cruel.” The new policy, set to take effect in April 2026, imposes a 20% tax on agricultural assets exceeding £1m, which many farmers fear will jeopardise food security and force them to sell land. Rachel Reeves, the Chancellor, introduced the reform to address a £22bn deficit, but experts predict it will only generate £115m annually, potentially costing the economy £14.9bn and leading to significant job losses.

The rollout of a scheme designed to assist low-paid workers in receiving pension payments has been postponed due to IT complications, HMRC has announced. Approximately one million workers, predominantly women in part-time roles, are set to experience delays in receiving a promised £70 payment. The Government has legislated to address inequalities in pension contributions, but the implementation of these changes will now be delayed until 2026. Steve Webb, partner at LCP and a former Pensions Minister, said: “It is very disappointing that low-paid workers will now face even more delay in receiving the tax break on pension saving that most other workers take for granted.”

The Government’s decision to put British Steel into public ownership means workers are no longer at threat from mass redundancies. China-based Jingye, the previous owner, had been consulting on up to 2,700 job losses. However, new chief commercial officer Lisa Coulson has confirmed that officials are “closing the redundancy consultation without action,” meaning a “difficult and worrying time” for staff is over. A spokesman for Unite union said the union “is pleased that British Steel have come to their senses and realised that job losses are not the way to ensure Britain remains an industrial power.”

The amount of empty office space across the UK has started to fall for the first time since 2020, according to figures from commercial real estate data firm CoStar. The analysis shows that UK office vacancy fell to 8.6% at the end of March, compared with 8.7% at the start of 2025. Data shows that 4.6% of UK office space was vacant at the start of the pandemic. CoStar says corporate renters moved into 1m sq ft more office space than they exited in Q1, with vacancy rates dipping in about 50% of the country’s big towns and cities. Meanwhile, analysis from Remit Consulting shows that UK offices are now the busiest they have been since before the first lockdown, with an average daily occupancy rate of about 38%. While this marks a post-pandemic high, it remains far below the 60% level seen before the pandemic.

Tom Selby, director of public policy at AJ Bell, discusses the adoption of AI by The Pensions Regulator (TPR) and the Pension Scams Action Group (PSAG) as they look to combat pension scams. He describes efforts to stop pension scammers as a “perpetual game of whack-a-mole,” highlighting the ongoing challenge of shutting down fraudulent websites. Mr Selby emphasises the importance of using technology to protect vulnerable individuals from scams that promise early access to pensions or high returns on investments. He urges the Government to implement a Pensions Tax Lock to provide stability and reduce speculation that scammers exploit.

The International Monetary Fund (IMF) has downgraded its UK growth forecast by 0.5% due to concerns over a potential trade war stemming from US President Donald Trump’s new tariffs. The IMF now expects the UK economy to grow by 1.1% this year. It also pulled back on its forecast for 2026, saying it foresees growth of 1.4% for the UK economy – down from a previous prediction of 1.5%. Analysts did, however, upgrade Britain’s growth forecasts for 2028 and 2029 by 0.1 percentage point each. Despite the downward revision for 2025, Chancellor Rachel Reeves noted that the UK is still expected to be the fastest growing European G7 country, suggesting that the IMF “has recognised that this government is delivering reform which will drive up long-term growth in the UK.” The IMF has also downgraded its prediction for overall growth in 2025, saying it expects the global economy to expand by 2.8%. The US is forecast to see growth of 1.8% this year, marking a significant downgrade on the 2.7% the IMF predicted in January.

Small business owners in the UK are grappling with the challenge of disconnecting from work, with 70% feeling guilty about taking time off, according to research by Uswitch.com. The study, which surveyed 1,000 entrepreneurs, reveals that 65% work between 30 to 50 hours weekly, with 40% exceeding 40 hours. This heavy workload increases the risk of burnout, which costs UK businesses £28bn annually due to stress-related absences. Andy Elder, Uswitch business current accounts expert, emphasises the need for entrepreneurs to prioritise work-life balance, saying: “SME owners are the backbone of the UK economy, but the pressure to always be ‘on’ takes its toll.” To alleviate stress, he suggests leveraging automation tools, improving invoicing processes, and scheduling regular breaks.