UK Industry Fast Facts

IBISWorld presents a collection of fast facts for the different sectors of the UK economy.

Agriculture, Forestry & Fishing

• The government released the 2025 Farming Equipment and Technology Fund (FETF), allocating £46 million to assist farmers in investing in modern equipment to boost farming productivity and support sustainability. This funding provides grants that cover between 40% and 50% of equipment costs, ranging from £1,000 to £25,000 per category of funding. The categories include improving productivity, enhancing slurry management and boosting animal health and welfare.
• On 28 May 2025, Defra announced a £30 million uplift in payment rates under the Higher Level Stewardship scheme. This boost will enhance payments across 157 options, rewarding farmers who are actively contributing to environmental conservation in 2025. The focus is particularly on upland areas and other sensitive regions where farmers play a crucial role in protecting rare species, restoring habitats and maintaining traditional countryside features.
• The UK government has allocated £10 million to the Genomics for Animal and Plant Disease Consortium (GAP-DC), led by the Animal and Plant Health Agency (APHA), to enhance biosecurity through advanced genome sequencing technologies. This initiative aims to detect, identify and track pathogens across animal, plant and aquatic environments with greater precision. By swiftly identifying diseases like avian influenza and ash dieback, the programme supports timely interventions, safeguarding the UK's agriculture and farming sectors from significant economic losses. Enhanced surveillance will bolster disease control measures, protect trade and ensure the resilience of the UK's food supply chain.
• The UK agriculture sector faces mounting challenges due to prolonged drought conditions, policy shifts and financial pressures. Spring 2025 has been the driest in nearly 70 years, leading to crop failures and early irrigation efforts, particularly affecting wheat yields in regions like East Anglia and Yorkshire. Compounding these issues, the government's abrupt halt of the Sustainable Farming Incentive scheme left approximately 3,000 farmers without expected subsidies. Additionally, proposed inheritance tax reforms have sparked widespread protests, with farmers concerned about the viability of passing farms to the next generation. These factors collectively threaten the stability and sustainability of UK farming.
• The May 2025 UK-US trade agreement introduces significant changes affecting British agriculture. Notably, it removes a 19% tariff on 1.4 billion litres of US ethanol, potentially undermining the UK's bioethanol industry and threatening hundreds of jobs in northeast England and Yorkshire. This move may disrupt local markets for non-bread-quality wheat, forcing farmers to seek less profitable export options. Additionally, the deal allows 13,000 metric tonnes of US hormone-free beef into the UK tariff-free, raising concerns among British farmers about greater competition from US producers with lower costs and differing regulatory standards. While the agreement aims to bolster trade, these provisions could challenge the sustainability and competitiveness of the UK farming sectors.
• According to AHDB data, UK pig meat exports expanded by 4% in the first quarter of 2025 compared to the same period the previous year. This growth was primarily driven by a rise in shipments of offal as well as fresh and frozen pork to China. During the same time, imports of pig meat into the UK dropped by 1%. This shift in the supply chain was influenced by the outbreak of foot-and-mouth disease (FMD) in Germany in January 2025, which led to Germany losing its export license to the UK. As of May 14, Germany has been recognised by the UK as FMD-free without vaccination, which means all trade restrictions related to the disease have been officially lifted.

Mining

• The Office for National Statistics reports that the mining and quarrying sector output declined by 1.2% in March 2025. Output from the sector dipped by 0.5% in the three months to March 2025.
• World Bank Commodities Price Data released in May 2025 shows that the quarterly average prices for Brent crude oil and WTI crude oil hiked in Q1 2025 against Q4 2024. Natural gas prices also increased in the same period. However, prices eased month-on-month in April 2025 amid OPEC+ announcing production hikes and fears of slowing demand due to tariffs. Meanwhile, in Q1 2025, most metals and minerals (aluminium, copper, iron ore and tin) posted a climb, while others (lead, nickel and zinc) dropped slightly. However, all metals posted a month-on-month decline in April 2025 amid economic uncertainty. Precious metals have continued to climb quarter-on-quarter and month-on-month, particularly gold, amid heightened global uncertainty and US tariff concerns.
• The UK’s offshore energy industry association, Offshore Energies UK, has called for the government to remove the oil and gas windfall tax and replace it with a long-term mechanism, which could boost investment and strengthen the UK’s energy sector. The association states that recent ONS data shows profit for those investing in the oil and gas sector has turned negative.
• The Financial Times reports that, following the bankruptcy of Norway’s Loke Marine Minerals, an owner of the license-holder UK Seabed Resources, the UK government is seeking a domestic buyer to acquire the deep-sea mining exploration licences.  
• Norway’s energy minister has urged the UK not to give up on North Sea oil, as it will leave the country dependent on imports, reports The Telegraph. The UK has banned all new oil and gas drilling in the North Sea amid the pledge of net zero by 2050.
• North Sea oil and gas company EnQuest has slammed the current windfall tax regime, but has stated a willingness to make a big acquisition or agree to a merger deal in the region.
• The UK’s largest oil and gas producer, Harbour Energy, announced plans in May 2025 to cut 250 jobs. This has prompted Unite, the union, to slam the unfavourable government policy in the North Sea. Harbour Energy had previously axed 350 onshore jobs in 2023. 

Manufacturing

• The Purchasing Managers’ Index (PMI) stood at 45.4 in April, marking the seventh consecutive month of contraction, influenced by economic uncertainties and increased operational costs. Despite these hurdles, manufacturing remains pivotal, accounting for 44% of UK exports and 47% of private sector R&D investment. To bolster the sector, initiatives like the "Invest 2035" strategy aim to support advanced manufacturing, clean energy and digital technologies, fostering innovation and economic resilience.

• The output of the UK's energy-intensive industries has shrunk by a third since 2021, reaching a 35-year low, highlighting their vulnerability to fluctuating electricity prices, which have inflated production costs. According to the ONS, the production levels for paper, petrochemicals, basic metals and inorganic products like cement and ceramics in 2024 were the lowest recorded since the 1990s. These challenges in the manufacturing sector, exacerbated by high energy costs and intensifying competition from the US and China, are likely to be a focal point in the government's industrial strategy to be unveiled in June 2025.

• The UK-US Economic Prosperity Deal, announced on 8 May 2025, reduces tariffs on British manufacturing exports, notably lowering car tariffs from 27.5% to 10% for up to 100,000 vehicles annually and eliminating duties on steel and aluminium. These changes have led to immediate positive market reactions, with Aston Martin and Rolls-Royce experiencing notable share price increases. Industry leaders, including the Society of Motor Manufacturers and Traders, have welcomed the tariff reductions, highlighting the relief they bring to exporters and the potential to safeguard jobs. However, while the agreement offers substantial benefits to key manufacturing sectors, it maintains a 10% baseline tariff on other UK exports, indicating that broader trade challenges persist.

• Following the UK-US Economic Prosperity Deal, the UK's only two bioethanol production plants, including the Vivergo Fuels site at Saltend, are at risk of closure due to the UK's agreement to eliminate tariffs on US ethanol imports. Trade associations caution that closing these plants could lead to CO2 shortages and send negative signals to investors regarding the development of the sustainable aviation fuel industry. The Associated British Foods trade association has urged the government to intervene with support packages for the industry to prevent these potential issues.

• Car manufacturers must meet a government mandate requiring 28% of sales to be electric vehicles (EVs) by the end of 2025, with a £15,000 fine per non-compliant car. In April 2025, electric car sales saw an 8.1% lift, with 24,558 new battery electric vehicles (BEVs) registered, representing a 20.4% market share, as reported by the Society of Motor Manufacturers and Traders. Meanwhile, UK car and commercial vehicle production plummeted by 15.8% in April, with vehicle output falling to the lowest level in over 70 years.

• Keir Starmer plans to boost defence spending to 2.5% of GDP from April 2027, aiming for 3% in the next parliament. This increase is expected to drive economic growth, create jobs in the manufacturing sector and strengthen domestic supply chains in the armaments industry. The government introduced a support hub in March to help small and medium enterprises access the defence supply chain, providing new growth opportunities and SME spending targets for the Minister of Defence due by June.

• On 26 March 2025, the Chinese owner of British Steel rejected a £500 million support offer from the UK government, intended to help transition to greener steelmaking methods. This decision has heightened concerns over the future of thousands of jobs as the company considers closing its two blast furnaces in Scunthorpe by June 2025. The UK government remains committed to negotiating with British Steel, recognising the importance of steelmaking to the economy. Gareth Stace, director of UK Steel, warned that closing the furnaces would create a ‘major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armour of national security’. Discussions about potentially nationalising British Steel remain on the table as a means to safeguard the industry's future. Councillors in North Lincolnshire are supporting calls for the government to intervene. The removal of the 25% tariff on UK steel exports following the UK-US trade negotiations has provided relief for British Steel's production and helped safeguard jobs.

Utilities

• The energy price cap set by Ofgem will climb by 6.4% for the period from April to June 2025, raising the annual cost to £1,849 for a typical household. While this hike will intensify the financial strain on households, four million households have already switched to fixed tariffs, shielding them from the change in the price cap.  
• Ofgem has announced a new price cap for the period from July to September 2025, reducing it by 7%. This aligns with UK Prime Minister Keir Starmer’s initiative to address the high cost of living. The average household will see its annual energy bill decrease from the current £1,849 to £1,720. This reduction follows a decline in wholesale gas prices and aims to provide financial relief to households.
• Faced with £20 billion in debt and urgent infrastructure needs, Thames Water has chosen the US investment firm KKR as its preferred bidder to take control of its operations and help avoid renationalisation. KKR is anticipated to invest £4 billion for a stake in the company by the end of June. The severity of the company's financial crisis was underscored by the sudden resignation of Finance Director Alastair Cochran, with Steve Buck stepping in as the newly appointed Chief Financial Officer.
• On 28 May 2025, the water regulator Ofwat announced that Thames Water would be fined £123 million for environmental violations and for not adhering to dividend regulations. The environmental violations pertain to sewage spills resulting from inadequate operation and management of wastewater treatment facilities and networks.
• Environment Agency data indicates that water companies in England recorded 2,487 pollution incidents in 2024, more than double the target set. The companies collectively aimed for a 40% reduction in pollution incidents, but instead, there was a 30% surge in incidents, as reported by Sufferers Against Sewage.
• EDF Energy announced an extension for four ageing UK nuclear power stations to enhance energy security. Hartlepool and Heysham 1, originally set to close in March 2026, will now operate until March 2027, while Heysham 2 and Torness, planned for closure in 2028, will remain open until 2030. These extensions aim to compensate for delays in the Hinkley Point C power plant, now expected to be operational in 2029, at the earliest.
• Scotland’s deputy first minister, Kate Forbes, has called on the UK government to provide certainty regarding the potential zonal pricing, which would mean “different parts of the country pay different rates for electricity based on local supply and demand”, as revealed by The Financial Times. The deputy first minister states such a move would be challenging for Scotland and could deter investment.
• The UK’s public spending watchdog, the National Audit Office, warns that the country’s water infrastructure will require £290 billion of investment to meet government targets over the next 25 years but Ofwat and other regulators like the Environment Agency and the Drinking Water Inspectorate lack understanding of the sewage and water networks’ state and a plan for delivery. The Financial Times reports that Ofwat’s poor performance would result in a 70% hike in household bills by 2030.
• Thinktank Common Wealth has called for the government to nationalise Britain’s gas power stations to ensure energy security and prevent sky-high fees by private gas-fired stations.

Construction

• The latest S&P Global release reveals that the UK Construction PMI rose to 46.6 in April 2025, up from 46.4 in March, signalling the slowest decline in output levels for three months. Construction output has been negatively impacted by heightened business uncertainty, which has delayed new projects and resulted in further declines in new orders and staff numbers. Civil engineering was the weakest sector, while residential construction posted the mildest decline of 2025, showing some resilience. Cost pressures remained elevated amid climbing material and labour costs.

• The construction sector is grappling with a significant shortage of both bricks and labour. The Home Builders Federation estimates that 240,000 new recruits are needed to meet upcoming housing commitments, with a particularly dire need for 20,000 bricklayers. This scarcity threatens to stall housebuilding efforts in the UK. In response, major housebuilders in England are increasingly turning to timber as an alternative to bricks to address these challenges, as reported by the Financial Times.

• The government faces an urgent challenge in meeting its ambitious goal of constructing 1.5 million homes during its term. Achieving this target necessitates a more than 50% increase in annual planning permissions in England. In response, the government introduced a new Planning and Infrastructure Bill to accelerate the process of housebuilding and the development of essential infrastructure. Also, in May 2025, the government announced a streamlining of planning regulations concerning land use, regulatory processes and financial frameworks. This initiative is supported by increased funding aimed at assisting SME housebuilders, with the goal of accelerating housing construction and achieving the established ambitious targets.

• The UK government has reduced England’s Road Building and Repair budget for 2025-26, with a £4.8 billion allocation for major highways, marking a 5% decrease from the current budget. The government also announced a £1.6 billion fund for councils to fix local potholes.

• The Department for Education has introduced the Construction Framework 25 (CF25), a new initiative valued at up to £15.4 billion. This framework aims to support the construction and refurbishment of educational facilities across England. Beginning in January 2026 and lasting six years, CF25 will encompass new builds and renovation projects for schools, colleges and universities.

• NHS Scotland has extended its construction framework, Frameworks Scotland 3. Initially awarded in 2020 with a value of £650 million and set to conclude in November 2025, the framework will now continue until November 2027. This extension aims to address ongoing uncertainties in public capital funding and will support the delivery of future projects.

• As revealed by ONS data, total construction output is estimated to have shown no growth in Q1 2025 compared to Q4 2024, whereby over the period, new work grew by 0.9%, while repair and maintenance fell by 1.2%. Monthly output is estimated to have increased by 0.5% in March 2025, following a 0.2% hike in February 2025.

• According to the Financial Times, data from the Scottish Property Federation and Savills shows that the number of build-to-rent units under construction dropped by 26% in Q1 2025 compared with the same quarter in 2024 amid weakened investor confidence.

• The Home Builders Federation warns that ministerial plans to impose a minimum level of solar panels on most new-build homes will be hard to achieve and will slow house building. Under a proposal by the housing department, most new homes should have solar panels covering 40% of a building’s footprint, as reported by the Financial Times.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale and retail trade; repair of motor vehicles and motorcycles climbed by 0.9% in March 2025, marking the largest positive contribution in the services sector. The wholesale trade, except for the motor vehicles and motorcycles industry, clocked in the largest positive growth, at 1.5%.

• Co-op Wholesale has reported a 5.5% drop in revenue in the 12 months to 4 January 2025 to £1.4 billion, with a loss of £1 million compared to a profit of £14 million in the previous year. The company has invested in lowering the prices of its brand lines for wholesale customers, contributing to the drop in sales. Recently, Co-op Wholesale secured a multi-year agreement with UK motorway service operator Roadchef to expand its presence in the segment. The move aligns with the wholesale operator’s strategy to expand its presence in the B2B sector.

• According to the Fresho UK Fruit and Veg Report 2025 by the wholesale order management platform, the “UK’s fruit and veg wholesale industry has remained resilient over the past three years, despite ongoing rising business costs”. It reveals that the average number of lines per order has dropped consistently from 10.31 lines in 2021 to 9.69 lines in 2024, suggesting customers are streamlining purchases amid cost pressures. Fresho also highlighted an emerging trend of climbing orders containing prepared items (rising by 29.9% in 2024) as customers grapple with labour shortages and rising wages.

• Leading Scottish wholesaler United Wholesale Scotland has expanded by acquiring London-based Time Wholesale Services, making it its first cash and carry in England and fourth overall. 
  The Grocer reports that wholesale platform Platter, which is a B2B platform allowing suppliers to manage buyers and oversee the product journey, has raised £350,000 in a pre-seed funding round.

Retail Trade

• Food inflation in the UK has climbed for the fourth month running, reaching 2.8% in May, with fresh food prices up 2.4% year-on-year, the BRC reports. Beef is a key culprit, as wholesale prices surge due to supply issues and global demand. Retailers are also grappling with a £5 billion hit from higher National Insurance and wage costs, plus a looming £2 billion packaging tax. While non-food prices remain in deflation, the pace is slowing and retailers warn that rising statutory costs could push prices higher still. Shoppers may need to brace for a pricier summer basket.

• Oxford Street is back in business. Vacancy rates have plummeted to just 0.5% - the lowest since pre-pandemic days, Savills reports - thanks to a surge of international retailers and big-name openings like IKEA and Nike’s RunTown pop-up. With £118 million poured into store revamps, prime rents are climbing, up 3.3% last quarter alone. This revival signals renewed confidence in UK retail, especially for flagship locations. But with limited space and rising rents, smaller brands may struggle to keep up.

• President Trump has delayed a hefty 50% tariff on EU goods until 9 July 2025, following a cordial chat with European Commission President Ursula von der Leyen. While this buys time for negotiations, UK retailers remain on edge. Brands like Nike and Shein are already upping prices, anticipating increased costs. For UK retailers, this means potential price rises and supply disruptions, especially for those sourcing from or selling to the US. With the clock ticking, the sector braces for possible turbulence ahead.

• April brought a sunny surprise for UK retailers, with sales volumes jumping 1.2% - the strongest monthly rise since July 2022, the ONS reports. Food stores led the charge, up 3.9%, as shoppers stocked up for barbecues and Easter feasts. Department and household goods stores also saw gains, while clothing and other non-food sectors dipped slightly. Online sales edged down 0.3%, suggesting shoppers preferred the high street in the sunshine. This marks the fourth consecutive month of growth, hinting at a resilient retail sector. However, with inflation ticking up and costs rising, retailers may face challenges ahead.

• Optimism may be short-lived. PwC’s spring 2025 data shows consumer sentiment fell from -8 in January to -12 by the end of March, its lowest level since September 2023 and the lowest under the new government. UK consumers are tightening their belts, with spending intentions hitting a two-year low. Shoppers plan to cut back across nearly all categories except groceries. This shift reflects growing economic concerns, even among financially secure households. For UK retailers, this means bracing for reduced consumer spending, particularly in non-essential sectors like fashion and home goods. The focus now shifts to value-driven offerings and strategic pricing to navigate this cautious consumer landscape.

Transportation & Warehousing

• Transport for London has put forward a proposal to increase the congestion charge by 20%, raising it from the current £15 per day to £18 per day, effective from 2 January 2026. This proposal is currently open for public consultation. TfL also plans to remove the 90% discount currently available to residents living within the congestion charge zone, unless they own a pure electric vehicle. These measures are expected to generate an additional £30 million in revenue for TfL in 2026, helping to restore its financial stability.

• The Air Passenger Duty to go up in 2026-27, by £2 for short-haul economy flights and £12 for long-haul ones, while rates for private jets are set to go up by 50%.

• The Sustainable Aviation Fuel (SAF) Mandate became law in 2025, mandating that 2% of this year's aviation fuel comes from sustainable sources. Targets are set to rise to 10% by 2030 and 22% by 2040. To support this shift, the Department of Transport announced a £63 million investment for 2025-26 in the Advanced Fuels Fund, aligning aviation expansion with environmental goals.

• The UK government ramps up road repairs with a £1.6 billion investment for 2025-26, fixing potholes and restoring roads in England — a nearly 50% funding boost from the previous year.

• On 25 May 2025, South Western Railway became the first train company to be nationalised under the Labour government, which aims to bring nearly all rail services in England back under public ownership by 2027. During the launch of SWR's renationalisation, Transport Secretary Heidi Alexander stated that she could not guarantee that nationalisation would lead to lower fares.

• The Department for Transport warns that black cabs could disappear from London within 20 years unless action is taken. With the Plug-in Taxi Grant being reduced from £6,000 to £4,000 per vehicle for 2025-26, suggested measures include boosting loans for new electric vehicles and reforming the Knowledge test to lower entry barriers.

• Heathrow Airport’s CEO, Thomas Woldbye, has announced the airport’s largest private investment programme to date, which includes the development of a third runway, with plans to be submitted to the government by Summer 2025. The investment aims to enhance existing infrastructure and support the construction of the new runway, ultimately boosting the UK economy. Airport officials are confident that by upgrading current facilities, they can accommodate up to 100 million passengers annually.

• The government has approved the expansion project for London Luton Airport, but the decision regarding Gatwick Airport's second runway is still pending. Although the Transport Secretary has indicated a "minded to approve" stance, further engagement with Gatwick is required to address specific concerns. These include setting stronger targets for public transport access and expediting the implementation of a noise mitigation scheme. The final decision on Gatwick's second runway is anticipated by October 2025.

• More than 60 travel industry bosses, including from Tui, Jet2, Abta and Tourism Alliance, have signed a letter to the minister for EU relations to secure a youth mobility visa as it would remove some of the cost and red tape on businesses looking to employ UK staff in the EU and vice versa.

Accommodation & Food Services

• ONS data reports that output in accommodation and food service activities climbed by 0.04 percentage points in March 2025. Output in the food and beverage service activities expanded by 1.3% in the month. Meanwhile, accommodation activities output contracted by 2.2% in the three months to March 2025, the largest negative contribution over the period.
• A May 2025 survey by hospitality associations, including UKHospitality, The British Institute of Innkeeping, the British Beer & Pub Association and Hospitality Ulster, has found that about a third of hospitality venues were operating at a loss amid the tax hikes (minimum wage and NICs) from April. The survey found that about 60% have been forced to cut jobs, while 63% lowered staffing hours to reduce costs. Further, over half of the members surveyed cancelled investment and 76% were forced to hike prices.
• UKHospitality Scotland, representing over 8,000 venues, has called on the government to pause further regulations, like the incoming single-use cup tax and alcohol advertising proposals, as businesses scramble to adjust to other cost pressures.
• Heineken UK is committing £40 million to its Star Pubs sites, with about a quarter of the 2,400 sites to benefit from enhancements and some receiving revamps.
• The UK-India trade deal signed in May 2025 will grant Indian chefs easier access to hospitality positions in the UK through the Service Supplier visa route.
• Vegan restaurant chain Neat Burger has closed down its remaining UK locations following recent financial difficulties, just six years after its launch.
• Hotel chain Premier Inn’s owner, Whitbread, announced a 1% dip in revenue to £2.9 billion in 2023-24 and a 2% drop in revenue per available room in the UK. Total revenue decline was driven by a fall in food and beverage sales, while UK accommodation sales remaining flat as lower occupancy rates were offset by room openings. It also reported a 14% contraction in adjusted pre-tax profit to £483 million, though it also announced a £250 million buyback. Whitbread reported weaker business and leisure bookings in the UK, particularly in the capital.
• BWH Hotels has recently acquired seven independent hotels, as part of its target to add 100 hotels over the next five years and reach 20,000 rooms across the UK by 2029.
• VisitBritain reports that British residents took 90 million overnight trips in England and 106 million in Britain in 2024, both down by 10% on 2023.
• UK staycations stand to receive a boost as the government plans to cut red tape as part of its Plan for Change, making it easier for businesses to offer package deals, giving consumers better value and supporting growth across the tourism sector. Potential measures include removing barriers preventing small businesses, including B&Bs and restaurants, from working together to create tailored UK holiday experiences. It would make it easier for businesses (like hotels, attractions and restaurants) to bundle offers together, giving travellers “more affordable, flexible and convenient options for their staycations”.
• Emirates, the world’s largest international airline, has signed a deal with Britain’s national tourism agency to boost inbound tourism to the UK from over 140 global destinations.

Information

• ONS data reports that output in the information and communication subsector climbed by 1.2% in March 2025, making it the second-largest positive contributor to growth in the services sector. This was mainly driven by the computer programming, consultancy and related activities subsector (up 3.7%) and the motion picture, video and TV programme production, sound recording and music publishing activities industry (up 5.3%). The sector recorded a 1.9% rise in output in the three months to March 2025.
• Vodafone has completed its merger with Three UK, creating a £16.5 billion company named VodafoneThree, which is the largest mobile network in the UK with over 27 million subscribers. This is the biggest shake-up in the UK telecoms sector recently, meaning there are now only three main mobile network operators. Vodafone has committed to investing over £1 billion in expanding its network coverage in the next year, with the new company to invest over £11 billion in its coverage over the next 10 years. According to The Guardian, Vodafone owns 51% of the new company, while CK Hutchison (Three UK’s parent) owns 49%.
• TalkTalk has reported a drop in broadband customers to 3.2 million in February 2025, from 3.6 million in the prior year, amid intensifying competition from alternative providers. Research by Enders Analysis reveals TalkTalk’s share of the UK broadband market has dipped to 11% from 14% in 2022, while altnets have expanded their market presence to 7% (up from 3% in 2022). TalkTalk has also announced it plans to cut more jobs this year, following the 350 jobs slashed last year (20% of the total workforce), as reported by The Financial Times.
• Altnet Community Fibre, which is backed by private equity firm Warburg Pincus and serves 1.3 million homes in London, has posted its first profit, at £8 million in 2024, though it still recorded a large pre-tax loss of £118.5 million amid significant network investments. In terms of a customer base, Community Fibre ranks third among altnets with 336,000 in 2024, only behind CityFibre and Hypertonic.
• In April 2025, Ofcom finalised the new child safety measures for sites and apps to introduce from 25 July 2025, ordering firms to act to prevent children from seeing harmful content online, under the Online Safety Act.
• UK’s cyber security watchdog, the National Cyber Security Centre, warns businesses to update and strengthen encryption methods by 2035 as they should prepare for a heightened risk of quantum computer hacking, though quantum computing is still in its very early stage.

Finance & Insurance

• UK mortgage rates are rising again. The average two-year fixed mortgage rate now stands at 4.90%, with five-year deals averaging 5.24%. This uptick follows an unexpected inflation increase to 3.5% in April, leading lenders like Halifax, Nationwide, NatWest and Santander to raise rates, particularly affecting borrowers with substantial equity. Approximately 500,000 homeowners with five-year fixed-rate mortgages from 2020 face significant payment hikes as their deals expire, potentially increasing monthly payments by £510 if they revert to standard variable rates averaging 7.13%. This scenario may lead to higher default risks, impacting insurers and financial institutions managing mortgage-backed assets.

• Revolut is developing a rewards-based credit card for UK customers, building upon its existing RevPoints loyalty programme. The planned credit card will be tailored to Revolut's various subscription tiers, allowing users to earn points on spending, which can be redeemed for travel perks, gift cards and airline miles. This move positions Revolut to compete with established companies like American Express in the UK's rewards credit card market. For the UK's insurance and finance sector, Revolut's entry could intensify competition, prompting traditional banks and insurers to reassess their credit card offerings and loyalty schemes. Additionally, as Revolut expands its financial services, including plans for mortgages and private banking, it may influence consumer expectations and drive innovation across the sector.

• Marsh’s Insurance Premium Tracker shows that in Q1 2025, UK commercial insurance rates declined by 6%, driven by heightened competition among insurers. Financial and professional lines saw a notable 10% decrease, while cyber insurance rates dropped by 6%, reflecting improved cybersecurity measures and increased market capacity. Conversely, casualty insurance rates rose by 4%, influenced by factors such as inflation and rising claims costs. These trends offer UK finance and insurance firms opportunities to negotiate better terms and broaden coverage. However, the uptick in casualty rates underscores the need for robust risk management strategies to mitigate potential liabilities.

• Skipton Building Society has introduced a “Delayed Start” mortgage, enabling first-time buyers to defer repayments for the initial three months post-purchase. While offering immediate financial relief, interest accrues from day one and is added to the total loan, increasing long-term costs. Targeted at borrowers needing up to 95% loan-to-value, this product addresses the financial strain many face during the early stages of homeownership. This new product may stimulate mortgage demand and prompt insurers to reassess risk models, potentially leading to new products tailored for first-time buyers' unique financial profiles.

• Embedded insurance - integrating cover into digital platforms - is emerging as a solution to underinsurance among UK SMEs. Rising premiums have led 27% of SMEs to reduce coverage, heightening financial vulnerability, according to broker, Gallagher. By embedding insurance within services like accounting software or e-commerce platforms, insurers can offer tailored, accessible protection, potentially closing coverage gaps. This approach not only enhances customer experience but also opens new distribution channels for insurers, driving innovation in product design and delivery. As adoption grows, embedded insurance could significantly reshape the UK's insurance landscape, aligning products more closely with SME needs.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 3.5% in May 2025 compared with April 2024. Prices climbed by 0.5% month on month and the average house price stood at £273,427. Despite economic uncertainty, Nationwide reports that underlying conditions for potential home buyers in the UK remain supportive, with unemployment remaining low and earnings rising. The report highlights that house prices in rural areas have hiked by 23% over the last five years, while prices in urban areas climbed by 18%.

• ONS data shows that average UK monthly private rent reached £1,332 in the 12 months to March 2025, a hike of 7.7%. Meanwhile, the rate in London stood at £2,243, the most expensive region in the UK.

• A survey by the Royal Institution of Chartered Surveyors reveals buyer demand weakened in March 2025 due to consumers becoming more cautious amid heightened trade war uncertainty. The survey clocked in the weakest demand sentiment since September 2023.

• According to Zoopla, improved mortgage affordability and high supply mean the UK housing market is recording its most active May since the pandemic boom in 2021. However, despite strong buyer interest, sellers are forced to settle for lower prices, with the average home being sold for £16,000 below the asking price.

• One of the largest London landlords, British Land, reveals there has been growing demand for second-hand offices in prime locations due to a shortage of new properties being constructed, more people returning to the office and sky-high rents. According to CoStar and reported by the Financial Times, the amount of office space under construction in the UK has dropped to its lowest level in a decade (to 23 million square feet in Q1 2025) due to prolonged economic uncertainty and high costs hurting builder confidence.

• Canary Wharf Group’s office buildings lost £180 million in value in 2024 to £4.2 billion, following the £954 million lost in 2023, highlighting the troubles in the commercial office market, as revealed by The Financial Times. It reports that Canary Wharf has seen prices dip by more than other central locations in the capital like the City of London.

• Norges Bank Investment Management, Norway’s oil fund, has reached a £570 million deal to acquire a 25% non-controlling stake in the £2.7 billion Covent Garden estate from landlord Shaftesbury Capital, which will continue to manage the estate.

• US asset manager State Street is becoming the latest firm moving away from Canary Wharf as it has made an agreement to buy an office block in the City of London for £333 million.

• According to CBRE data, capital values for UK commercial real estate hiked by 0.3% and rental values climbed 0.4% in March 2025. The commercial real estate provided a total return of 2.1% in Q1 2025. The office sector returned 1.7% in Q1 2025, compared to 2.3% for the industrial sector and 2.8% for the retail sector.

• According to the latest Investment Property Forum’s The Size & Structure of the UK Property Market report and reported by CoStar, the total value of residential and commercial real estate by the end of 2023 stood at £9.3 trillion. Commercial property valuation dipped in the period 2020-2023 from £1.114 trillion to £949 billion.

Professional, Scientific & Technical Services

• ONS data reports that output in professional, scientific and technical services climbed by 0.04 percentage points in March 2025.
• The European Commission is proposing for the EU to recognise British professional qualifications, though they would still need visas from member states they want to work in. This proposal would benefit UK lawyers and engineers as well as strengthen UK-EU relations.
• A new advisory firm, Unity Advisory, has been launched in the UK by former EY and PwC senior executives. The firm is backed by private equity firm Warburg Pincus, with a focus on mid-sized businesses. In an attempt to differentiate itself and avoid potential conflicts of interest, the firm will not offer audit services.
• PKF Littlejohn has overtaken BDO in the latest AIM Advisers Rankings Guide for the first time since 2017, with 85 AIM-listed clients against BDO’s 84 clients.
• KPMG’s report from the end of 2024 titled The move to mandatory reporting has found that 95% of the world’s biggest corporations are now publishing carbon targets, up from 80% in 2022.
• From 1 September 2025, accountancy firms face a new regulation called Failure to Prevent Fraud, which comes under the Economic Crime and Corporate Transparency Act. It makes organisations criminally liable if an employee or agent commits fraud for the company’s benefit, unless it proves it had reasonable fraud prevention procedures in place at the time.
• Despite the free-trade deal agreed between India and the UK in May 2025, it fails to open up the Indian market for business to UK law firms, leading to the Law Society expressing its disappointment.
• The Legal Aid Agency (LAA), which oversees billions of pounds of legal funding and has access to sensitive client information, suffered a cyber security incident in May 2025, with hacked data potentially including contact details and addresses, personal and financial information dating back to 2010. This led to the LAA suspending its online service.
• Challenger consultancy firm Elixirr has posted a 30% global revenue hike in 2024 to £111.3 million.
• The Institute of Practitioners in Advertising reveals that UK advertisers have cut their advertising budgets for the first time since Q1 2021 amid heightened fears of a trade war and subdued consumer confidence.
• The Financial Times reports that, following heavy industry lobbying by the Committees of Advertising Practice and the Advertising Standards Authority, the UK government is delaying the implementation of the junk food advertising ban to change guidance to allow pure brand marketing. The ban is aimed at unhealthy food advertising before 9pm in an effort to tackle child obesity.

Education

• The UK government is investing £9.5 million to expand the PINS (Partnership for Inclusion of Neurodiversity in Schools) programme to 1,200 additional mainstream primary schools, supporting around 300,000 neurodivergent pupils. The initiative aims to improve training for teachers, boost parental engagement and create more inclusive learning environments. Early results show improved attendance, behaviour and pupil wellbeing. This move signals a shift towards early intervention and greater inclusivity in mainstream education. However, proposed changes to limit access to Education, Health and Care Plans (EHCPs) have raised concerns that some children could lose essential legal support. While PINS is a positive step, it may not fully replace the tailored provisions EHCPs currently guarantee. The expansion could ease pressure on specialist schools, but its success depends on effective delivery and ongoing support for both staff and pupils.
• A recent survey by the Child Poverty Action Group reveals that 16% of UK secondary pupils have missed school due to a lack of essentials like uniforms, meals, or transport. Among students eligible for free school meals, this figure rises to over 25%. Nearly half of those absent cited not having the correct uniform or kit, while others pointed to unaffordable meals and trips. This underscores the financial barriers many families face, affecting children's access to education. The charity urges the government to expand free school meal eligibility and eliminate the two-child benefit cap to alleviate these challenges.
• UK universities are under scrutiny for relying on unregulated recruitment agents who lure international students. Cash-strapped institutions, facing funding shortfalls, have turned to these agents to boost overseas enrolments and income. However, this practice has led to students arriving with unrealistic expectations about courses and support. The lack of oversight raises concerns about the quality and integrity of UK higher education, potentially damaging its global reputation. For the education sector, this highlights the urgent need for stricter regulation of recruitment practices to protect students and maintain the UK's standing as a trusted destination for international study.
• The UK government has issued funding guidance to the Office for Students (OfS) for the 2025-26 academic year, allocating £1.348 billion - a £108 million reduction from the previous year. An additional £84 million in capital funding is designated to support growth in priority subjects. The funding prioritises high-cost disciplines like nursing and midwifery, initiatives promoting equality of opportunity and support for world-class specialist providers. However, the guidance also indicates a shift in funding priorities, with reduced support for subjects like journalism, media studies and publishing. Franchised providers will no longer receive student premium funding, potentially impacting access for students in these programmes. These changes come amid financial challenges for universities, including declining international student numbers and rising operational costs. Sector leaders express concern that the funding cuts may exacerbate existing pressures, affecting the sustainability and diversity of higher education offerings in the UK.
• The UK higher education sector is confronting significant financial challenges, the Office for Students (OfS) warns. Nearly half of England’s universities (45.2%) anticipate deficits for 2024–25, up from 29.6% the previous year. This downturn is driven by a 15.5% drop in international student numbers, frozen domestic tuition fees since 2017 and rising operational costs. Consequently, institutions are implementing cost-cutting measures, including staff reductions and course closures, with an estimated 10,000 job losses across the sector. The government plans to raise tuition fees from £9,250 to £9,535 in September 2025, but this is viewed as insufficient to address the sector's £1.6 billion deficit. The Office for Students warns that without substantial reforms and increased funding, the financial sustainability of many universities remains at risk. More mergers between universities could be on the cards as a result of growing financial pressures, Vivienne Stern, chief executive of Universities UK (UUK), suggests.
• The UK government plans to tighten student visa regulations, focusing on applicants from Nigeria, Pakistan, and Sri Lanka due to concerns over visa overstays and subsequent asylum claims. In 2024, over 16,000 of the 108,000 asylum applications were from international students. Universities UK warns that these measures could exacerbate the sector's financial crisis, as international students contribute significantly to university revenues. A recent survey revealed that 25% of universities have made redundancies, 49% have closed courses and 18% have shut departments. Further restrictions may deter prospective students, intensifying financial pressures on higher education institutions.
• The UK government's 2025 immigration white paper outlines major reforms affecting universities. Key changes include cutting the post-study work visa from two years to 18 months, reducing opportunities for international graduates to gain UK work experience and potentially making the UK less attractive to them. A proposed levy on international student fee income is intended to fund the UK’s education and skills sector, but may strain university finances, particularly for institutions heavily dependent on overseas tuition. Additionally, stricter compliance rules for sponsoring international students (like tighter visa refusal rates and course completion benchmarks) could increase administrative burdens and risk for universities.

Healthcare & Social Assistance

• NHS leaders in England are bracing for a modest 2% funding increase in 2025, a figure that falls short of the sector's escalating needs. This limited boost raises concerns about the NHS's ability to address ongoing challenges, including staff shortages, rising operational costs and increasing patient demand. The constrained budget may impact service delivery and the implementation of long-term health initiatives. Healthcare professionals and unions are urging the government to reconsider the funding allocation to ensure the NHS can maintain its commitments to patient care and system improvements.
• NHS waiting lists in England rose to 7.42 million in March, up by nearly 19,000 from February - the first increase in seven months. This setback challenges government claims that backlogs are improving. While waits of over 52 weeks dropped slightly, overall progress appears fragile. The data arrives as the government works on a draft 10-year NHS plan, expected in spring, though critics say it lacks impactful policies. Labour has pledged major improvements, including treating 92% of patients within 18 weeks by the end of this parliament - an NHS standard last met in 2015. The healthcare sector faces mounting pressure to deliver on these goals. Without significant investment and clear reform, ambitions may fall short, leaving patients stuck in long queues and the NHS under continued strain.
• The UK government’s upcoming 10-year NHS plan, informally called the ‘three-seven’ plan, is expected to focus on clearing waiting lists and stabilising services in its first three years, with more substantial reforms delayed until later. Health Secretary Wes Streeting has set three core priorities: shifting care from hospitals to the community, digitising the NHS and focusing more on prevention than treatment. Chris Thomas, formerly of the Institute for Public Policy Research, has taken over as lead writer of the plan. While the Department of Health insists reforms will begin immediately, limited funding and a rising waiting list - now at 7.42 million - raise doubts about how quickly changes will take effect. The delay could prolong existing pressures on the healthcare system and affect the government’s ability to meet key targets.
• NHS social workers in England will receive a 3.6% pay rise for 2025-26, aligning with current inflation rates. Health Secretary Wes Streeting asserts this will translate to a real-terms increase over the year, based on projected inflation trends. The raise, recommended by the NHS Pay Review Body, surpasses the government's initial 2.8% budget allocation. To accommodate this, the Department of Health and Social Care plans to implement efficiencies, like reducing staff at NHS England and cutting corporate services, ensuring frontline services remain unaffected. This adjustment applies to NHS staff under Agenda for Change contracts, including approximately 4,300 social workers. In contrast, local authority social workers have been offered a 3.2% increase, leading unions - UNISON, GMB and Unite - to advise members to reject the proposal. The disparity in pay rises between NHS and council-employed social workers may exacerbate recruitment and retention challenges within local authorities, potentially impacting service delivery across the UK's social care sector.
• Announced in May 2025, King’s College London has developed a groundbreaking AI model trained on de-identified NHS data from 57 million patients to predict future healthcare needs. By analysing patterns in electronic health records, the AI forecasts potential disorders, symptoms, medications and procedures. This innovation enables earlier interventions, more personalised care and improved resource planning within the NHS. It also aids in identifying at-risk individuals, enhancing clinical decision-making and streamlining patient recruitment for clinical trials.
• In April 2025, the UK government introduced a new initiative to integrate cutting-edge technology into adult social care, aiming to enhance patient care, reduce staff workload and promote independent living. Announced by Health Secretary Wes Streeting, the plan includes training care leaders in digital tools like motion sensors, video telecare and artificial intelligence for predictive care and administrative tasks. This move is part of a broader strategy to transition from analogue to digital systems in social care, supporting the government's 10-Year Health Plan. The initiative also encompasses the creation of new career pathways and a £12 million investment in staff training to improve recruitment and retention. While the Local Government Association welcomed the focus on technology, it emphasised the need for additional funding to address immediate sector challenges.
• As of April 2025, the minimum salary threshold for skilled workers, including Health and Care Visa holders, has increased to £25,000 per annum. This change renders many entry-level Band 3 roles ineligible for international sponsorship unless future pay awards exceed this threshold. Additionally, care providers must now demonstrate efforts to recruit domestically before hiring overseas workers. The cost of Certificates of Sponsorship has risen to £525 and care workers are no longer permitted to bring dependents under new visa applications. These measures have led to a notable decline in international applicants, exacerbating existing staffing shortages in health and social care. The Cavendish Coalition warns that these policies could hinder service delivery and patient care unless addressed through comprehensive workforce planning and investment.

Arts, Entertainment & Recreation

• In May 2025, the UK and India signed a new cultural cooperation agreement aimed at boosting collaboration across the arts, entertainment and recreation sectors. The deal focuses on joint initiatives in film, fashion, music and the arts, with both governments recognising the potential for these industries to drive economic growth and strengthen bilateral ties. UK Culture Secretary Lisa Nandy and India's Minister for Culture and Tourism, Gajendra Singh Shekhawat, highlighted the agreement's role in fostering people-to-people connections and international partnerships. For the UK's creative industries, this agreement opens avenues for increased collaboration, talent exchange and market expansion. It's expected to enhance the UK's global cultural presence and provide new opportunities for artists and organisations within the sector.
• The UK Gambling Commission has launched an enhanced Consumer Voice framework to deepen its understanding of gambling behaviours across Great Britain. This initiative enlists four specialist research companies to gather insights from diverse and often underrepresented groups, including those affected by gambling-related harms. For the UK's arts, entertainment and recreation sector, this development signals a shift towards more consumer-informed regulation. Companies in areas like betting, gaming and live events may need to adapt their practices to align with emerging consumer insights and regulatory expectations. This could lead to changes in marketing strategies, customer engagement and compliance measures, ultimately influencing how these sectors interact with their audiences.
• The UK Gambling Commission's latest data reveals a 7% year-on-year increase in online Gross Gambling Yield (GGY) for Q4 2024-25, reaching £1.45 billion. Slots led this growth, with an 11% rise to £689 million and a 6% uptick in active monthly accounts to 4.5 million - a record high. Conversely, high street betting shops saw a 3% decline in GGY to £554 million, alongside a 5% drop in total bets and spins. The boost in online gambling may divert consumer spending from traditional entertainment venues, while the decline in physical betting shops could impact associated businesses. Companies within the sector may need to adapt by enhancing digital engagement strategies and exploring new revenue streams to align with evolving consumer behaviours.
• Recent research by the University of Glasgow indicates a significant rise in online gambling among UK pensioners, with nearly 39% of individuals aged 65-74 engaging in online betting - a 124% increase since 2019. This surge is attributed to factors like increased isolation during COVID-19 lockdowns and aggressive marketing by online gambling platforms. The trend raises concerns about financial exploitation and mental health issues among the elderly, who may be more vulnerable to gambling-related harms. Experts advocate for targeted interventions, including enhanced support tools and stricter regulations, to protect this demographic and mitigate potential risks associated with online gambling.
• A recent UKActive report indicates a record 11.5 million gym memberships in the UK, with Generation Z (ages 13-28) driving this surge. This shift reflects a preference among younger individuals to socialise through health-focused activities like group exercise and strength training, moving away from traditional venues like pubs. This trend may positively impact the UK healthcare sector by promoting healthier lifestyles and potentially reducing future healthcare demands. Experts note that gyms are becoming social hubs for Gen Z, offering in-person interactions that contribute to both physical and mental well-being.
• Gambling companies in Britain might need to revise their advertising strategies following a ruling against a betting firm for unlawfully targeting a problem gambler with over 1,300 marketing emails. The judge noted that although the man hadn't opted out of marketing, he was deeply entrenched in gambling addiction and unaware of how his data was utilised. The Gambling Commission has introduced measures to protect consumers better. However, campaigners argue the industry often fails to identify high-risk gamblers. According to the Office for Health Improvement and Disparities, around 1.6 million adults in England who gamble could benefit from treatment or support for harmful gambling.

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