UK Industry Fast Facts

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

Agriculture, Forestry & Fishing

• In the Autumn Budget 2024, the government introduced a £1 million limit on the inheritance tax relief for farms from April 2026, after that there would be a 50% relief, at an effective rate of 20%. The National Farmers’ Union (NFU) of England and Wales has labelled the Budget as “a blow to British farmers and could lead to food price rises.” Farmers warn that these measures might force them to sell their farms, while there are also worries that the tax could discourage investment in green farming technology.  
• The ADHB warned that from April 2026, the average farm valued at £2.2 million, would face an inheritance tax of £240,000. This has sparked a wave of protests and an e-petition has been signed by over 148,000 people, which calls for the retention of current inheritance tax exemptions for working farms. Despite this opposition, the Labour government stays firm with its tax reform, asserting it’s a “fair and balanced approach which helps fix the public services we rely on”. However, farmers remain steadfast in their resistance. On 4 March 2025, they organised the Pancake Day Rally, vowing to persist in their protests against the government’s inheritance tax policy.
  Labour also announced an accelerated reduction in the Rural Payments Agency’s delinked payments, which support production on many farms. The government plans to cut base payments by at least 76% in 2025, which will harm farmers' livelihoods and negatively impact output.
• On 11 March 2025, the Department for Environment, Food and Rural Affairs (DEFRA) announced it will no longer accept applications for the Sustainable Farming Incentive, which pays farmers for using environmentally farming methods. The government reported reaching 37,000 funding agreements. However, the farming sector expressed strong dissatisfaction over the lack of financial support, with National Farmers’ Union President Tom Bradshaw calling it ‘another shattering blow to English farms’.
• DEFRA reports that farming contributes about 12% of the UK's total greenhouse gas emissions. The NFU warns that achieving net-zero farming by 2040 is unlikely without increased investment in climate-friendly measures. The current government has kept the 2025-26 climate-friendly farming budget at £2.4 billion, unchanged from the previous level.
• Amid climate change concerns, farmers are being encouraged to take proactive steps to reduce their environmental impact. According to the Climate Change Adaptation report released by AHDB on 5 March 2025, farmers need to implement strategies to safeguard their businesses due to shifting temperatures. One key priority is tackling the increased risk of flooding, with Met Office UK Climate Projections estimating a 20% increase in flooding by mid-century.
• Steve Reed, the DEFRA Secretary, has expressed his support for a potential UK-US trade deal, even amid concerns from British farmers regarding the risk of cheaper American imports outcompeting local produce. As reported by Farmers Weekly, Mr Reed insists that a "fair" trade agreement can boost the UK economy while safeguarding the interests of domestic agriculture.

Mining

• The Office for National Statistics reports that the mining and quarrying sector output declined by 3.3% in January 2025, continuing its longer-term downward trend. This was mainly down to a 3.7% fall in extraction of crude petroleum and natural gas. Output from the sector dipped by 2.7% in the three months to January 2025.

• World Bank Commodities Price Data released in January 2025 shows that the annual average prices for coal and crude oil fell in the period January to December 2024 compared with the same period in 2023. Metals and minerals annual average prices have been mixed, with aluminium, copper, tin and zinc prices climbing, while iron ore, lead and nickel prices falling. Within precious metals, gold and silver recorded a hike in prices, while platinum dipped slightly over the year. An update released in March 2025 shows that precious metal prices have risen in the first two months of 2025 amid heightened global uncertainty and US President Trump tariff concerns. The prices of most metals and minerals have also hiked at the start of 2025.

• Gold has seen its price soar in recent years — this has continued strongly in 2025, reaching new highs of over US$3,000 (£2,316.75) per ounce in March 2025. Rising Middle East tensions and escalating trade war uncertainty has contributed to the surge in price of the precious metal.

• The Financial Times reports that the total cost of the Sizewell C nuclear power station is estimated to reach £40 billion, double the £20 billion projected in 2020 by developer EDF and the UK government. In February 2025, EDF announced the project is yet to attract alternative investors following a freeze in funding from its Chinese state-owned partner CGN.

• Petroineos plans to close Scotland’s largest oil refinery at Grangemouth in April or May this year, resulting in over 400 job losses. There are plans to invest £25 million to turn the refinery into a renewable energy hub.

• According to law firm Pinsent Masons, 14 oil and gas companies have been under investigation by the HMRC in relation to underpaying the Energy Profits Levy.

• The government has confirmed plans laid out in its election manifesto to halt new licenses on new oil and gas exploration; however, the consultation has also left the door open for new fields to be drilled via adjacent existing ones, a move which has been welcomed positively by the oil and gas industry.

Manufacturing

• In February 2025, the S&P Global UK manufacturing PMI dropped to a 14-month low of 46.9, down from 48.8 in January 2025. This marked the fifth consecutive month of contraction for the sector. The decline was driven by reduced new orders amid subdued client confidence in both domestic and overseas markets, as well as ongoing supply chain issues. The sector continued to face job losses as companies implemented cost control strategies and restructured ahead of the upcoming changes in wages and the employer National Insurance Contributions. Also, inflationary pressures remained strong, with both input costs and output chargers rising at an accelerated pace.

• 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 2024, EV sales increased to 19.6% (381,970 cars), up from 16.5% in 2023, but fell short of the 22% target for that year. No fines were imposed. In February 2025, the Society of Motor Manufacturers & Traders reported that electric vehicle (EV) sales grew, making up 25.3% of all new car sales. This is a notable hike from the 17.7% recorded in the same month last year.

• 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 16 February 2025, the Business Secretary launched the Plan for Steel Consultation, which addresses long-term issues in the industry including high electricity costs, unfair trading practices and scrap metal recycling, aiming to protect industrial jobs and support key industrial regions. With up to £2.5 billion allocated from the National Wealth Fund, the plan focuses on boosting steelmaking to support UK manufacturing, construction and infrastructure sectors.

• Starting 12 March 2025, President Trump imposed a 25% tariff on all aluminium and steel imports, including derivative products, to protect US industries. This decision impacts UK manufacturers, with an estimated  5% of UK steel exports and 6% of aluminium exports by volume going to the U.S. Prime Minister Keir Starmer hasn’t announced an immediate response, stating that the UK will ‘keep all options on the table’ while seeking to negotiate a free trade deal to remove these tariffs.

• According to the ONS, monthly production output was estimated to have fallen by 0.9% in January 2025, following a rise in December (up 0.5%) and a slump in November 2024 (down 0.5%). Out of 13 subsectors, nine contributed to this reduction in output. The most significant negative impacts came from the basic metal and metal products, other manufacturing and repair and basic pharmaceutical products. Production output for the three months to January 2025 was estimated to have dropped by 0.9% compared with the three months to October 2024, which is the ninth consecutive three-monthly decline in production output.

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.  
• From 1 April 2025, the UK regulator Ofwat will permit a 26% increase in water and sewage bills, averaging an additional £123, in England and Wales. Utility companies assert this hike is essential for investing in and repairing ageing infrastructure, with more increases expected in the following five years.
• Thames Water, along with five other companies — Anglian Water, Southern Water, Northumbrian Water, Wessex Water and South East Water — have appealed to Ofwat to reconsider its price determinations through a review by the CMA. They are seeking approval to raise customer bills beyond the current limits set for the end of the decade. The companies argue that the current allowed increases are insufficient to fund crucial infrastructure investments.
• As reported by the Financial Times, some Thames Water customers will see their bills rise by nearly 50% from April 2025. This significant increase is part of the company's strategy to implement permitted regulatory hikes upfront, aiming to fund essential infrastructure improvements.
• On 18 February 2025, the High Court approved a £3 billion emergency loan for Thames Water, described by Chief Executive Chris Weston as providing "a firmer financial footing". This loan, carrying a 9.75% interest rate, along with additional fees, will help the company manage its debt and prevent renationalisation, securing necessary funds until October 2025. However, critics caution that this ‘liquidity extension’ could hike customer bills by £250 annually. In March 2025, Thames Water announced interest from six potential investors to provide new equity. The company aims to finalise terms by June 2025 to enhance its financial standing.
• 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.
• In March 2025, the UK government initiated a consultation to replace the windfall tax on energy companies’ profits when it comes to in March 2030. Since the Autumn 2024 Budget, oil and gas producers have been paying a headline tax rate of 78%. The proposed new tax would activate during periods of extremely high energy prices of profits, ensuring ‘a fair return for the nation during times of unusually high prices,’ according to the Department for Energy Security and Net Zero.
• In March 2025, Welsh Water initiated a new solar project at its Five Fords wastewater treatment facility in Wrexham. This initiative includes the installation of 40,000 solar panels, which will boost solar energy at the site fivefold and account for approximately 8% of Welsh Water's annual electricity and gas consumption.

Construction

• The latest S&P Global release reveals that the UK Construction PMI declined sharply to 44.6 in February 2025, down from 48.1 in January 2025, marking the steepest drop since May 2020. This contraction was primarily driven by a slowdown in the residential market and a significant drop in civil engineering activity. New order intakes across the sector declined due to tightened budgets and heightened economic pessimism amid ongoing challenges. Furthermore, inflationary pressures surged, with average cost burdens experiencing their greatest rise in nearly two years.
• The updated National Planning Policy Framework (NPPF) sets a clear target of building 370,000 homes annually and reinstates mandatory goals for local authorities. The Green Belt has also been revised to include a ‘grey belt’, encouraging development on low-grade greenbelt land. However, BBC’s housing tracker reports a 10% decline in new homes in England during the first six months of Labour's parliament, with approximately 107,000 new homes built since July's election.
• Keir Starmer's government faces an urgent challenge to meet its housebuilding targets, requiring a more than 50% increase in planning permissions granted annually in England. Data from Glenigan reveals that the number of homes given planning permission in 2024 hit its lowest level since 2014, underscoring the need for immediate action. In March 2025, the government introduced a new Planning and Infrastructure Bill. The proposed planning reforms in this bill aim to accelerate the process of housebuilding and the development of essential infrastructure.
• The Construction Industry Board, through its Consensus process, is evaluating industry support for its Levy Proposal, which focuses on providing training within the construction sector. A key component under consideration is raising the Levy exemption threshold for the 2026 to 2029 period, from the current range of £135,000 to £449,999 to a new range of £150,000 to £499,999.
• As revealed by ONS data, monthly construction output is estimated to have dipped by 0.2% in volume terms in January 2025, followed by a 0.2% decrease the previous month. Construction output is estimated to have expanded by 0.4% in the three months to January 2025, driven by an uptick in new work (up 1.4%).  
• Data from the Department for Business and Trade indicates that overall construction material price inflation dipped by 0.2% in January 2025, compared to the previous month and saw an annual contraction of 0.9%. Despite this, material prices for New Housing registered a 1% increase, Repair and Maintenance edged up by 1%, while Other New Work decreased by 2.2% in the 12 months to January 2025. Other builders’ ironmongery and precast concrete, including blocks, bricks, tiles and flagstones, saw the largest annual increases at 9.5% and 6.8%, respectively. Deliveries of bricks jumped by 8.5% in the year to January 2025.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale and retail trade and repair of motor vehicles and motorcycles climbed by 0.7% in January 2025. However, output in the wholesale and retail trade and repair of motor vehicles and motorcycles dipped by 1% in the three months to January 2025, the largest negative contributor to consumer-facing services output.
• The Federation of Wholesale Distributors (FWD) has coordinated a letter to the Prime Minister, signed by its member wholesalers. The letter highlights budget concerns about the National Living Wage increase and the rise in employer National Insurance, which together will add an additional estimated £141 million per year in costs to an already struggling sector.
• The Wholesale Group, which was launched in January 2025, is to welcome 11 new members, taking the total to 257 members. The buying group reports total turnover of £4.52 billion, representing 13.7% of the wholesale market and with 390,000 customers.
• The Going for Growth report by Capital Economics and commissioned by the FWD has found that food and drink wholesalers recorded turnover of £33.6 billion in 2023-24 (including £17.5 billion coming from sales to mainly small independent retailers and £13.4 billion to foodservice providers and caterers), providing direct employment for 77,000 people. In terms of gross value added, wholesalers directly contributed £3.5 billion to UK output, highlighting the important role the sector plays in the economy. 

Retail Trade

• Data from the BRC shows consumer confidence is stabilising as consumer expectations over the next three months of the state of the economy improved slightly to -35 in March 2025, up from -37 in February. Their personal financial situation improved slightly to -10 in March, up from -11 in February and personal spending on retail rose to 0 in March, up from -5 in February. Within retail, spending expectations for DIY and home improvements moved into positive territory for the first time thanks to warmer-than-average weather. Across all categories, Gen Z (18-27) expected to spend more than the previous three months in every category, while Gen X (44-59) planned the biggest cuts to spending for most items, excluding food.

• The latest ONS data shows there were 2.88 million jobs in retail in December 2024 – the lowest since data began – though more cuts are expected thanks to the incoming increases in the NLW and employer national insurance contributions. Retailers face uncertainty around the new Growth and Skills Levy and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or retrain people.

• UK footfall rose for the second consecutive month in February 2025, though growth slowed sharply, according to BRC-Sensormatic data. Total footfall increased 0.2% year-on-year, down from 6.6% in January. Retail parks continued to outperform, with footfall rising 2%, supported by larger stores, free parking and strong investment keeping vacancy rates low. High street and shopping centre footfall both rose just 0.1%, reflecting weaker performance. Retail parks have consistently attracted more shoppers over the past year, while high streets and shopping centres have seen only marginal improvements. Data covers the four weeks from 2 February to 1 March 2025.

• Card fees remain a key point of contention. The British Retail Consortium (BRC) is calling for stronger action to address excessive card payment fees imposed on UK retailers by Visa and Mastercard. These fees have risen significantly, adding to retailers’ costs and ultimately driving up prices for consumers. The BRC highlights that despite ongoing investigations by the Payment Systems Regulator (PSR), there is concern that proposed remedies may not go far enough to ensure fairer fees. Retailers rely heavily on card payments, but rising fees create unsustainable financial pressure, especially for smaller businesses. In response, retailers are exploring ways to reduce reliance on costly card payments, like encouraging alternative payment methods, improving cost efficiencies and working with industry bodies to push for regulatory change.

• Retailers voiced concerns over the £7 billion new costs introduced by the Budget. Two-thirds of Chief Financial Officers (CFOs) reported they are left with little choice but to increase prices (67%) and reduce investment in jobs and shops thanks to higher employer national insurance contributions, National Living Wage and new packaging levy. Additionally, 31% of respondents from the BRC survey noted rising expenses would lead to further automation.

• A survey of CFOs at 52 retailers has revealed significant concern about trading conditions over the next 12 months, according to BRC. 70% of respondents “pessimistic” or “very pessimistic” about trading conditions over the coming 12 months, while just 13% said they were “optimistic” or very “optimistic” (17% were neither optimistic nor pessimistic). The top three concerns are falling demand for goods and services, inflation and the mounting regulatory and tax burden.

• According to new research by the Retail Technology Show, millennials now make more purchases than Gen Z across social media platforms, including TikTok, Instagram and Facebook at 21 purchases over the past year vs 14. As shoppers’ seemingly insatiable appetite for content-led commerce continues to grow, this has given rise to a new cohort of "TikTok made me buy it" consumers, an increasingly valuable shopper segment that retailers want to tap into.

Transportation & Warehousing

• From March 2025, tube and rail fares in London will increase by an average of 4.6%. Nonetheless, Mayor Sadiq Khan has committed to freezing bus and tram fares until 2026, providing some relief for commuters.

• Lothian Buses and Edinburgh Trams have announced a 10% fare hike effective from 6 April 2025 due to cost pressures. Adult single fares will rise from £2.00 to £2.20, while children's tickets will increase from £1.00 to £1.10.

• 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.

• In March 2025, the Department for Transport announced new funding to advance smart airport technology, aiming to enhance security and reduce delays. Six British tech companies will share £450,000 to develop cutting-edge smart screening technology.

• 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.

• Following Labour’s pledge to nationalise the railway network, the government plans to take South Western Railway into public ownership. In May 2025, the contract held by FirstGroup and MTR will transfer to the DfT’s Operator of Last Resort.

• 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 UK government has postponed the final approval for Gatwick Airport's second runway. Transport Secretary Heidi Alexander has indicated her willingness to approve the project if Gatwick revises its plans to include stronger targets for public transport access and accelerates the implementation of a noise mitigation scheme. Gatwick has until 24 April 2025 to meet these requirements.

• Andy Lord, Transport for London's Commissioner, emphasised to the Financial Times the urgent need for a long-term funding agreement from the UK government. This funding is essential to replace 50-year-old Tube trains and prevent the road and rail infrastructure from deteriorating. Although TfL received £485 million for capital spending in the 2024 Autumn Budget for 2025-26, future funding remains uncertain.

• In March 2025, a £400 million bid was submitted to the government to fund the replacement of Tyne and Wear Metro's outdated safety-critical signalling system, which has surpassed its 40-year lifespan.

Accommodation & Food Services

• ONS data reports that output in accommodation and food service activities dropped by 2.4% in January 2025, after growth of 0.9% in December 2024. It was the largest negative contribution to output in the services sector in January 2025. Food and beverage service activities output dipped by 2.1%, after growth of 2% in December 2024, while accommodation fell by 3.4% in January 2025 following a contraction of 1.9% in December 2024.
• Despite lower borrowing costs, lingering economic uncertainty is keeping consumer confidence subdued. More consumers are turning to saving, which spells bad news for the accommodation and food services sector.
  A poll by the Chartered Institute of Personnel and Development has found that the hikes in taxes faced by businesses announced in the Autumn Budget mean many employers are looking to cut jobs. According to the poll, hospitality was one of the sectors with the fastest growing share of employers expecting to cut workers.
• According to UKHospitality in March 2025, hospitality business confidence has plunged to its lowest level since October 2022 amid concerns over the upcoming tax hikes from April 2025. The association has called for the government to delay the hike in employer national insurance contributions (NICs). CGA by NIQ’s Business Confidence survey states that only 14% of businesses feel optimistic about the hospitality market as they face a £3.4 billion hit in additional annual costs.
• A British Beer and Pub Association survey of pubs, bars, restaurants and hotels found that 70% expect to reduce employment numbers as a result of growing costs and reduced rates relief from April 2025.
• In a further blow to pubs and bars, the regulation allowing customers to purchase alcohol to take away (which was introduced to support businesses during the COVID-19 pandemic) will not be renewed after 31 March 2025.
• Hospitality business insolvencies have climbed by 21% at the start of 2025, from 225 in December to 273 in January 2025. This number was also up 3% compared to January 2024. This is down to slow hospitality trade at the start of the year.
• Research data from Avani Solutions reveals that the UK hospitality industry is losing £212 million annually due to beer wastage.
• The Heineken Cider Report 2025 reveals that the UK cider market is now worth £2 billion to the UK on-trade market, with 342 million pints and 114 million bottles of cider sold in 2024.
• Intercontinental Hotels Group has acquired Ruby Hotels, its 20th brand, for €110.5 million (about £88 million) in February 2025. Founded in 2013, Ruby Hotels has 20 hotels in Europe, three of which in London, with a pipeline for 10 further hotels over the next three years across more European cities and plans for potential expansion into the US by the end of the year.
• Hyatt Hotels plans to focus on the UK and expand its portfolio by 30% (adding over 1,000 rooms) over the next two years as the country remains a strong growth market for the hotel chain.
• Lancashire-based hotel Park Hall Resort & Spa has become the first UK hotel to adopt an AI Concierge, designed by Inntelo AI, which communicates with guests over the phone and WhatsApp, available 24/7. Working alongside the hotel staff, the use of the AI tool aims to enhance guest experiences and streamline operations.
• VisitBritain estimates 41.2 million inbound visits to the UK in 2024, with £31.5 billion spent. It forecasts 43.4 million visits and £33.7 billion spend in 2025.
• In a bid to boost inbound tourism, the UK Tourism body VisitBritain has launched a global screen tourism campaign called ‘Starring GREAT Britain’ at the end of January 2025. The campaign draws on popular film and TV moments. The idea behind the campaigns comes from the body’s screen tourism research which found that “more than nine-out-of-10 potential visitors to the UK would be keen to visit film and TV locations during a trip”, as reported by UKinbound.

Information

• ONS data reports that output in the information and communication subsector fell by 0.03 percentage points in January 2025, though it has expanded by 0.02 percentage points over the three months to January 2025.
• BT has urged SMEs across the UK to switch from analogue to digital networks as it has found that 22% of small businesses still use traditional landlines and fax machines. ISPreview states that BT migrated 300,000 UK business customers from legacy phone lines to digital broadband and phone solutions in 2024.
• In February 2025, Ofcom published proposals for upper 6 GHz spectrum to be made available and shared between mobile and Wi-Fi services. It says that “this new spectrum would provide a large increase in capacity for both mobile and Wi-Fi services, laying the foundations for future generations of data-hungry technologies, such as virtual and augmented reality and AI”.
• The government is set to invest £20 million into Anglo-Danish rocket maker Orbex, as per the Financial Times. This will be in the form of a loan to fund “the company’s small launcher through to lift-off in Scotland” in 2025. The investment would make the government a shareholder in the company.
• In March 2025, the government pledged £23 million for telecoms research and development aimed at expanding connectivity to underserved regions.
• FTTH Council Europe reveals that the UK is the fasting growing full fibre market in Europe. Providers added 4.2 million homes passed in the year to September 2024, as reported by telecoms.com.
• The Competition and Markets Authority (CMA) has ruled that Microsoft has used its software dominance to stifle competition in the cloud services market in the UK. The regulator states that the lack of competition in cloud services was “likely to be leading to higher costs, less choice, less innovation and lower quality of service for businesses and organisations”, reports The Financial Times. In response, the Financial Times reports that the tech giant has accused the CMA of “looking backwards” by ignoring AI’s significant impact on the tech industry.
• Following an order from the UK government, Apple is withdrawing its cloud encryption service in the UK, sparking opposition from the tech industry over data privacy as this move would allow the government to access private consumer data. At the start of March 2025, it was announced that Apple is taking legal action with an appeal to the Investigatory Powers Tribunal.
• From 17 March 2025, Ofcom can begin enforcement action against online platforms under the Online Safety Act if they fail to safeguard users against harmful content.

Finance & Insurance

• London insurance market organisations have welcomed the UK Government’s policy paper, which advocates for a regulatory approach that supports growth. They agree that the current system hampers economic expansion and discourages private sector investment. HM Treasury highlighted excessive reporting requirements and administrative burdens, like form-filling, as clear obstacles for businesses. The paper promotes key principles, including regulation that remains targeted, proportionate, transparent and predictable. It also emphasises the need for adaptability to keep pace with innovation, ensuring that regulatory frameworks don’t stifle progress but instead create an environment that fosters economic development.

• Car insurance premiums are under scrutiny as the UK's largest car insurers have imposed hidden costs on customers paying monthly instalments, adding to double-digit interest rates. These charges, often undisclosed, include transaction and service fees, increasing the overall cost of insurance. This practice raises concerns about transparency and fairness in the industry.

• The Bank of England has held the base rate at 4.5%. Rates are kept high to reduce inflation, or price rises. Higher rates lower households' spending power and encourage saving – in turn reducing price hikes. A big majority on the Bank's rate-setting committee are concerned about inflation, which is only expected to tick further upwards in the coming months. Annual wage growth of 5.9% is also too high for the Bank's liking. The Bank Rate is expected to remain at 4.5% until May at least on the back of February's guidance on rates. The key words surrounding the prospects for rate cuts were "gradual" and "cautious".

• Insurers paid out a record £585 million for weather-related damage to homes and possessions in Britain last year, following record-breaking rain and storms. Data from the Association of British Insurers (ABI) shows claims for damage from windstorms, flooding, and frozen pipes in 2024 exceeded the previous record set in 2022 by £77 million. The 2024 figure was also £127 million higher than weather-related payouts in 2023. The UK government has pledged £2.65 billion for flood defences over the next two years, but the ABI is calling for guaranteed long-term funding. Insurers want the government to commit at least £1 billion a year from 2026 onwards, highlighting that every £1 spent on flood defence maintenance saves £7 in capital costs.

• Bank of England data on the number of mortgages approved to finance house purchases are a leading indicator of house sales. Mortgage approvals for house purchases reached a lockdown-related record low in May 2020. Approvals then increased significantly towards the end of 2020 but are now lower. Mortgage approvals for house purchases in January 2025 were up 18% on a year ago but broadly unchanged from December 2024. There were 66,189 mortgage approvals in January 2025, compared with 55,941 in January 2024.

• The Economic Crime and Corporate Transparency Act 2023, effective 1 September 2025, introduces a ‘failure to prevent fraud’ offence, creating new legal risks for firms. This strict liability offence targets 'large organisations' with at least two of these criteria: over 250 employees, more than £36 million turnover, or over £18 million in assets. Firms outside this scope should still reassess fraud prevention measures, anticipating possible regulatory expansion. The Financial Conduct Authority is expected to urge supervised firms to strengthen fraud controls in line with this legislation.

• The Prudential Regulation Authority released Policy Statement SS11/24 on solvent exit planning, requiring firms to align with its guidelines by 30 June 2026. The objective is to ensure insurance firms have clear plans for an orderly solvent exit, protecting policyholders and financial stability. Firms must establish robust exit strategies, considering capital, governance and operational risks. Compliance is required by 30 June 2026, reducing market disruption risks.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 3.9% in February 2025 compared with February 2024. Prices inched upward by 0.4% month on month and the average house price stood at £270,493. The housing market has remained resilient despite ongoing affordability pressures, with total housing transactions in the second half of 2024 up 14% on the same period in 2023. However, transactions in 2024 were still 6% lower than pre-pandemic levels.

• Figures from lender Halifax in February 2025 reveal that the number of UK first-time buyers surged by 19% in 2024, to some 341,068 first-time purchases. This signals some improvement in mortgage affordability amid reduced borrowing costs.

• According to property portal Zoopla, the average house price in the UK in January 2025 was 1.7 times higher than the average price of a flat, with this gap widening to a 30-year high. Demand for flats has been constrained by hiking service charges and cladding concerns, while individuals’ demand for more space has supported demand for houses.

• A survey by the Royal Institution of Chartered Surveyors reveals a drop in buyer demand in the UK housing market in February 2025, close to its weakest levels since late 2023. Higher stamp duty costs coming into effect in April is expected to further weaken the housing market.

• As revealed by the Financial Times, real estate company Cushman & Wakefield states that a record 17 leases above the £100 per sq ft ceiling were signed in 2024, which is more than all previous years put together. This is down to prices climbing significantly on the back of intense competition for ultra-premium space as companies attempt to get employees back to the office.

• The Financial Times reports that Deutsche Bank, which has its UK HQ at Moorgate in London, “has identified a surplus of 125,000 sq ft of space above its current London office requirements”. This could result in the firm looking to reduce its office space in London.

• According to real estate company CBRE, the UK commercial property returned 7.7% in 2024, higher than in 2022 and 2023, but also above the average annual return of 7.2% recorded by the CBRE UK Monthly Index since the turn of the century. The company anticipates “increased investment into UK real estate in 2025 as investors seek to capitalise on current pricing and improved expectations for total returns over the next few years”. In December 2024, UK commercial property recorded a total return of 1.1% in December, boosted by a 0.6% hike in capital values over the month, while rental value increased by 0.5%. Industrial and Retail both recorded total returns of 1.3%, while the Office sector recorded a 0.7% climb in December 2024.

• US-based trading giant Jane Street plans to double its London office space, expanding its presence in the City of London up to 500,000 sq feet in the next few years, as reported by the Financial Times. This comes on the back of the trading firm recording substantial growth in recent years.

Professional, Scientific & Technical Services

• ONS data reports that output in professional, scientific and technical services fell by 0.02 percentage points in January 2025, though output climbed in the three months to January 2025.
• Accounting and business advisory firm Xeinadin has expanded its presence in the small business advisory market by acquiring London-based accounting firm Raffingers, adding 70 professionals to its network. This move, which is the firm’s largest to date, follows recent acquisitions of Landmark Accountants and CB Reid.
• According to Accountancy Age, in the latest Corporate Advisers Rankings Guide compiled by Adviser Rankings, which compares auditor standings from November 2024 to February 2025, PwC has extended its lead in the FTSE 350 market, cementing its dominance with big clients. Meanwhile, mid-tier challenger firm PKF Littlejohn has recorded substantial growth, adding the highest number of new AIM clients and now being just three clients from overtaking Big Four firm KPMG.
• The Financial Reporting Council has launched an investigation into mid-tier accounting firm MHA for its audit of failed construction company ISG. Just recently, the top 20 UK accounting firm announced plans to float in London and aims to raise £125 million as part of its IPO.
• Data from Tussell reveals that large consultancies won government contracts worth £1.5 billion in 2024, up on the £1.4 billion in 2023 and £1 billion in 2022. This comes despite the government’s commitment to cut spending on costly external advisers to have better control over public finances. The Financial Times reveals that a government spokesperson states they’re on track with plans to save £550 million in 2024-25.
• The Financial Times reports that a stagnant UK economy threatens growth in the UK consulting market in the year ahead, with more firms looking to attract overseas clients instead.
• In March 2025, consulting giant Accenture acquired financial services and digital transformation management consultancy Altus Consulting and global construction consultancy services provider Soben.
• According to data from the legal market intelligence platform Solomonic, 3,380 commercial lawsuits were filed in England’s High Court in 2024, a 10% drop from 2023 and the lowest level in six years. The Financial Times reports that this is “as litigation funders become warier of financing claims and more companies turn to arbitration to settle disputes”.
• Analysis from a survey of 100 UK-based law firms by Greenarc reveals that the legal sector places cybersecurity (92%) as the top focus area, followed by cost management (81%) and digital transformation (68%). Only about 51% of firms listed sustainability as a priority, though 66% claimed they had sustainability targets in place.
• Research by Acquire Professional Services states the private equity firms have invested £1.18 billion into UK law firms since 2019, with a record £534 million invested in 2024. Some law firms have become more open to external funding to boost growth and digital transformation efforts amid intense competition.
• The Financial Times reports that, according to data from legal recruiter Edwards Gibson, a record number of senior lawyers have moved jobs in London amid intense expansion by US law firms in the capital, with 155 partner moves in January and February (49% higher than the same period in 2024).

Education

• The UK government has allocated over £1 billion to assist schools in managing the upcoming increase in employer National Insurance contributions, set to rise from 13.8% to 15% in April 2025. This funding includes £930 million for mainstream and high-needs settings, £25 million for schools with early years provision, and £155 million for post-16 schools and further education colleges. The grants aim to cover the increased costs for both teaching and support staff, as well as centrally-employed teachers. Notably, for the first time, mainstream schools with special units and resourced provisions will receive additional funding to address their higher staffing expenses. Despite this support, early feedback from school leaders indicates potential funding shortfalls ranging from 10% to 35%, raising concerns about the adequacy of the allocated grants to fully cover the increased National Insurance costs. 
• In March 2025, the House of Lords recently voted against a government proposal to revoke charitable rate relief for private schools in England, marking a significant setback for the administration. The government's plan aimed to remove business rates relief from approximately 1,040 private schools holding charitable status, potentially affecting around 40% of independent schools. Critics, including Lord Shinkwin, argued that such measures could harm vulnerable students, particularly those with special educational needs and disabilities (SEND), many of whom are educated in the independent sector. Concerns were also raised about increased pressure on the already strained state education system if private schools were to close as a result.
• The Department for Education (DfE) has acknowledged that schools can afford less than half of the proposed 2.8% teacher pay rise for the 2025-26 academic year. While school funding is expected to increase by 4.3% next year, costs are projected to rise by 3.6%, leaving a budgetary 'headroom' sufficient for only a 1.3% pay increase. Consequently, schools would need to cover the remaining 1.5% through budget efficiencies. This shortfall may compel schools to make cuts in other areas to accommodate the pay rise. School leaders have expressed concern, noting that funding letters suggest an average funding rise of just 0.5% next year, once the impact of previous pay rises is considered. Some fear potential cash term losses if local councils divert funds from core school budgets to support high needs systems.
• UK higher education unions seek ‘ambitious’ 7%. Inflation-busting rise demanded despite thousands of job cuts across sector and as University and College Union’s own staff vote to strike again. The unions' claim includes calls for all staff to move onto a 35-hour working week, with no loss of pay, a new minimum pay rate of £15 an hour and restoration of previously agreed joint work to tackle issues around workload, casualisation and pay inequalities tied to ethnicity, gender and disability.
• Falling international student numbers threatens universities – despite the rise in domestic fees. The Observer notes the rise in National Employers’ Contributions from April 2025 has left many institutions worse off overall. Concerns have been underlined by UCAS data showing that applications for study visas were 13% lower in the year to the end of January than they were a year earlier, driven by a clampdown on students bringing dependants.
• Since 2017, English universities have faced income decline due to frozen £9,250 fees amid inflation. About 90 universities are restructuring, implementing redundancies to reduce wage bills. Nearly a quarter of top UK universities are cutting staff and budgets, risking 10,000 job losses, raising concerns about harming the sector's international reputation.
• The UK government will invest £20 million in new regional improvement teams to address struggling schools. Currently, over 600 'stuck' schools in England have repeatedly poor Ofsted reports, affecting 300,000 students. These students typically achieve worse results by 14 percentage points in primary and a grade lower per subject in secondary school. RISE teams will create tailored improvement plans, with up to £100,000 in funding available for specialist support per school, compared to the previous £6,000 grant. The initiative seeks to strengthen the school accountability system and deliver better outcomes for pupils and parents.
• Since 1 January 2025, private schools are no longer exempt from VAT and have faced a 20% rise in fees. The government estimates the additional tax income will amount to £460 million extra to spend on state schools. A series of independent private schools announced plans to close due to financial challenges, including the introduction of VAT on school fees and rises in the national minimum. The list includes Loughborough Amherst School and Earl Spencer’s prep school, Maidwell Hall.
• Introduced into Parliament in December 2024, The Children’s Wellbeing and Schools Bill introduces a wide variety of measures to help children and families, from school reform and home education to safeguarding. Core focus areas include teacher training and ensuring all schools have qualified teacher status. The Bill sets out that all teachers will be part of the same core pay and conditions framework – whether they work in a maintained school or an academy, while also mandating the curriculum and assessment system undergo review.

Healthcare & Social Assistance

• On March 19, 2025, Members of Parliament overturned House of Lords amendments that would have exempted adult social care providers from the forthcoming increase in employer National Insurance contributions (NICs). Starting April 2025, the employer NIC rate will rise from 13.8% to 15%, and the salary threshold for contributions will decrease from £9,100 to £5,000 annually. While public sector organisations like councils will receive grants to offset these costs, independent care providers will not receive similar support. The Nuffield Trust estimates that this NIC increase will cost England's 18,000 independent adult social care providers £940 million in the 2025-26 fiscal year. Additionally, a 6.7% rise in the National Living Wage next month will further strain these providers. Collectively, these measures are projected to add £2.8 billion in costs for providers in 2025-26, with £2 billion affecting council-commissioned care. Provider leaders have criticised the decision, warning that it could lead to the closure of many care services, thereby reducing support for vulnerable populations.
• In response to Prime Minister Keir Starmer's announcement to abolish NHS England, Harry McQuillan of Numark emphasises the need to fully integrate community pharmacy into the healthcare system. He notes that, despite pharmacies' proven value, NHS England has historically underfunded and underutilised the industry. McQuillan cites the 2024-2025 flu vaccination service specification, which restricted trained pharmacy technicians from administering vaccines without a pharmacist present, as an example of missed opportunities because of bureaucratic inertia. He advocates for recognising pharmacies as essential healthcare providers, capable of reducing pressures on GPs and hospitals, and calls for proper funding and integration to enhance patient care.
• The waiting list for hospital treatment rose to a record of 7.7 million in September 2023, but has since fallen to around 7.5 million in December 2024. The 18-week treatment target has not been met since 2016. The number of people going to A&E was slightly above pre-pandemic levels in winter 2024. The proportion of patients spending more than four hours in hospital A&E grew substantially between 2015 and 2020. A new record high of 50.4% was reached in December 2022. In January 2025, 42.3% of patients waited over four hours in hospital A&E.  The number of patients waiting over 12 hours for admission after a decision to admit has increased substantially since the middle of 2021. The 62-day waiting time standard for cancer hasn’t  been met in recent years.
• On 4 March 2025, the government announced a 7.7% increase in funding for care homes providing nursing care in the community, which is tailored to an individual’s needs and health outcomes. This includes administering medicines and performing procedures. The funding will help reduce the pressure on hospitals by preventing unnecessary admissions and supports the discharge of individuals into social care settings to free up hospital beds. The uplift for 2025 to 2026 means the standard weekly rate per person provided for NHS-funded nursing care will increase from £235.88 to £254.06 from 1 April 2025, with funding paid by the NHS directly to care homes which provide nursing care. The higher rate will increase from £324.50 to £349.50.
• Local communities are set to receive £200 million in funding for family and school nurses, sexual health clinics and other public health services. This investment is a key part of the government’s Plan for Change, shifting the focus from hospital to community and from sickness to prevention to build a more sustainable, fit for future NHS.  

Arts, Entertainment & Recreation

• 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.
• ONS data shows Arts activity shrinks by 15% between July and October 2024. The drop in the category – which includes the performing arts, support activities, artistic creation and arts facilities – is contributing to reduced output in the wider category of arts, entertainment and recreation. This fell by a cumulative 4.1% over the same period.
• The Department for Culture, Media and Sport is set to introduce a statutory levy on gambling companies to help fund addiction treatment. New online gambling limits to be set – £5 per spin limit will apply to all adults aged 25 and over with a £2 per spin limit for 18 to 24-year-olds.
• According to the Entertainment Retailers Association (ERA), UK music sales hit record high as Taylor Swift tops album sellers. ERA data reveals that consumption of music in the UK – based on sales and streams – grew by 9.7% in 2024 to 200.5 million album equivalents. The volume of audio streams grew by 11% to 199.6 billion.
• The BBC has commissioned new art and culture programmes as part of its commitment to Art & Culture. New Arts TV programmes unpack contemporary culture, celebrate British creativity and explore landmarks in the global story of art including Renaissance: The Blood and The Beauty, Simon Schama’s History of Us and the return of epic series Civilisations.

For more information on any of the UK’s 600+ industries, log on to www.ibisworld.com, or follow IBISWorld on LinkedIn.