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

Agriculture, Forestry & Fishing

• 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.
• In April 2025, Norfolk councillors rejected Cranswick's plans for a 'megafarm' due to climate impact concerns. The proposal included constructing 14 barns for 14,000 pigs and 20 chicken sheds for 714,000 birds. The decision cited environmental concerns and the site's proximity to protected areas. Cranswick argued that this was a setback for sustainable British meat production.
• 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 friendly 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”.

Mining

• The Office for National Statistics reports that the mining and quarrying sector output declined by 3% in February 2025. This follows growth of 0.8% in January 2025 (revised up from a fall of 3.3% because of updated source data in the extraction of crude petroleum and natural gas industry). Output from the sector dipped by 0.7% in the three months to February 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.
• 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.
• The Financial Times reports that, following the bankruptcy of Norway’s Loke Marine Minerals, an owner of the license-holder UK Seabed �鶹��, the UK government is seeking a domestic buyer to acquire the deep-sea mining exploration licences.  
• 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.
• 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.

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 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.

• 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 March 2025, the Society of Motor Manufacturers & Traders reported a significant increase in battery electric vehicle (BEV) registrations, which surged by 43.2% compared to the previous year. Also, the total number of new car registrations rose by 12.4% in the year to March 2025.

• 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.

• Business Secretary Jonathan Reynolds announced the likely nationalisation of British Steel to protect 3,500 jobs across three UK sites. On 11 April 2025, the Speakers of both Houses of Parliament announced a recall on 2 April to consider legislative proposals aimed at safeguarding British Steel's blast furnaces. Meanwhile, North Lincolnshire Councillors voiced their support for nationalisation if a deal is not reached with the company's Chinese owners, Jingye. 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.

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.  
• 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.
• According to the Financial Times, cost estimates for upgrading Thames Water's flagship Oxford sewage facility have skyrocketed from £40 million to £435 million over just four years. Additionally, crucial upgrades promised in 2020 for 13 facilities are delayed, with completion for four projects pushed back to 2030. This situation underscores the urgent need for capital to enhance Thames Water's infrastructure.
• 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.
• The Consumer Council for Water has called for the Competition and Markets Authority to review household bill rises in England and Wales. It claims customers face £5.4 billion more in charges than needed based on Ofwat’s move to allow water companies to hike bills by 26% on average per household from April 2025 (the biggest increase since privatisation).
• 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.

• 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 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.

• As revealed by ONS data, monthly construction output is estimated to have expanded by 0.4% in volume terms in February 2025, followed by a 0.3% decrease the previous month. Construction output is estimated to have shown no growth in the three months to February, with an increase in new work (up 1.2%), offset by a fall in repair and maintenance (down 1.5%).  

• 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 1% in February 2025. Output in the wholesale and retail trade and repair of motor vehicles and motorcycles increased by 3%.

• 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.

• Welsh food wholesaler Harlech Foodservice was named as Food Wholesaler of the Year at an awards ceremony in London organised by The Caterer. The company has seen sales soar to a record £46.5 million, from £32 million and profit at £2 million amid successfully executed expansion strategy.

• 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.

Retail Trade

• UK retail footfall rose 7.2% year-on-year in April, driven by a late Easter and warm weather. Retail parks led with a 7.5% increase, while high streets and shopping centres saw gains of 5.3% and 5.6%, respectively. Regionally, Northern Ireland and Wales experienced the highest surges at 14% and 13.6%. Combined March-April footfall edged up 0.2%, indicating modest growth despite ongoing consumer caution, the British Retail Consortium reports.

• UK supermarket sales rose by 6.5% in April 2025, buoyed by a late Easter and increased consumer spending. Despite grocery price inflation reaching 3.8%, spending on Easter eggs climbed 11%, even as chocolate confectionery prices surged 17.4%. Promotional activity hit a yearly high, accounting for 29.7% of sales, with retailers intensifying price cuts to attract value-seeking shoppers. Premium own-label products saw a 23.2% increase, indicating a consumer desire for quality alongside value. Lidl experienced a 10.1% sales growth, capturing an 8% market share, while Ocado maintained its position as the fastest-growing retailer with an 11.8% sales increase. These trends highlight the UK's dynamic retail landscape, where strategic promotions and quality offerings are key to capturing consumer interest amid economic pressures.

• UK department stores are shaking off their outdated reputation. Debenhams has introduced virtual try-on technology for beauty products, enabling customers to see real-time makeup applications on their faces. The retailer plans to expand this feature to fashion items using animated avatars, enhancing personalisation and interactivity online. This initiative, powered by Be Retail Social, aims to boost customer confidence and engagement across Debenhams' digital platforms.

• Amazon has launched its budget-focused "Haul" service in the UK, offering thousands of fashion, home and lifestyle products priced at £20 or less, with most under £10, though delivery can take up to two weeks. This strategic move targets cost-conscious consumers and directly challenges fast-fashion competitors like Temu and Shein, which have rapidly gained market share through low-cost offerings.

Transportation & Warehousing

• 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.

• 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.

• 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.

• On 3 April 2025, the government approved London Luton Airport’s expansion project, despite planning inspectors recommending its rejection due to environmental concerns. This project aims to increase the airport's annual passenger capacity from 18 million to 32 million by 2043. Key developments will include the construction of a new terminal, additional taxiways and aircraft stands. The expansion is also expected to create 11,000 new jobs.

• According to Department for Transport figures, Britain’s motorway length has inched upward from 2,265 to 2,330 miles over a decade, between 2014 and 2024, while by comparison, other European countries have built thousands of miles of new highways during the period, reports The Financial Times.

• 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 February 2025. Output in the food and beverage service activities expanded by 2.1% in the month.
• 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.
• IHG Hotels & Resorts has debuted its midscale Garner hotel brand in the UK. Since its launch in 2023, the brand has expanded to over 117 hotels open or in the pipeline globally.
• Budget hotel chain Travelodge has acquired 11 existing properties across the UK, boosting its market presence across key locations like Birmingham, Liverpool and Manchester. The move includes nine former Hotel Campanile sites and exchanged contracts on two other properties.
• 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.
• The Non-Domestic Rating (Multipliers and Private Schools) Act received Royal Assent in April 2025, making provisions for a permanently lower business rate multiplier for hospitality businesses. The legislation will be implemented from April 2026, with UKHospitality calling for the maximum discount to be applied to hospitality sites with a rateable value of less than £500,000.
• The UK Cabinet Office has decided to cut the budget allocation for the ‘GREAT Britain and Northern Ireland’ tourism campaign by 41% to £10.57 million for 2025-26, from £18.085 million in the prior year, as reported by the Financial Times. The campaign promotes the UK as a global visitor destination, managing to generate £210 million in additional tourism expenditure from its 2023 marketing strategy.
• 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 2.2% in February 2025, making it the largest positive contributor to growth in the services sector. Five of the six industries in the sector recorded growth in the month, with the largest positive contributions coming from computer programming, consultancy and related activities (up 2.0%), telecommunications (up 3.5%) and publishing activities (up 6.4%). Information and communication sector output expanded by 1.6% in the three months to February 2025.
• 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.
• Ofcom reports that 5% of the UK population (2.8 million people) don’t have internet access at home, mainly elderly people aged 85 years and over. The main reasons why people don’t have home internet access include “no need/not interested” and “broadband set up costs are too high”.
• 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.
• Ofcom has indicated that challengers to BT’s Openreach dominance are gaining ground, pointing toward a more competitive UK broadband market. The Financial Times reports that Ofcom could consider reducing restrictions placed on Openreach after 2031 due to the expansion of rival networks like Virgin Media O2 and CityFibre. Recent analysis by the Independent Networks Cooperative Association states that altnets now serve 16.4 million homes, a stark increase from the 8.2 million in 2022.
• 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

• 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.

• In April 2025, UK mortgage and rent spending growth slowed to 5.2% year-on-year, down from 5.4% in March, as lenders reduced mortgage rates, Barclays’ data shows. This moderation reflects cautious optimism in the housing market. Notably, 23% of mortgage holders are making average monthly overpayments of £221 to shorten loan terms by four years, indicating proactive debt management. Renters' confidence in purchasing a home within five years rose to 20%, up from 15% in March, spurred by declining mortgage rates and a potential Bank of England rate cut. These trends suggest increased mortgage activity and potential shifts in insurance demand, as consumers seek to capitalise on favourable lending conditions.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 3.4% in April 2025 compared with April 2024. Prices dipped by 0.6% month on month and the average house price stood at £270,752. The drop in prices was expected due to the end of the stamp duty in April, with transactions surging in March as buyers rushed to get house purchases completed to avoid extra taxes. The housing market is expected to remain flat in the next few months, which is a pattern observed after the end of stamp duty holidays.

• 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 property portal Zoopla, homes in England and Wales are selling faster than ever, with 52% of homes selling within two months of listing, up from 49% in the prior year.

• 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.

• 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.

• 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 the Financial Times, East Village Management Limited, which is the Olympic Village estate management company and is responsible for fire safety, has raised its fire safety provision to £432 million amid fire safety defects at the estate.

• 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.

• As reported by the Financial Times, since the introduction of the Register of Overseas Entities in January 2023, which is issued to offshore companies that have failed to adhere to transparency legislation in the property market, only 14 of the 444 fines issued to companies have been collected.

• 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 fell by 0.5% in February 2025, mainly due to a 6.1% drop in the scientific research and development industry.
• 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.
• EY is being investigated by the FRC over its audits of the Post Office in the period 2015 to 2018. The FRC also fined EY £4.9 million for failure to meet standards in its audit of Thomas Cook which collapsed in 2019.
• MHA has confirmed plans to list on the London Stock Exchange, with plans to raise just over £100 million through the IPO. AccountancyAge reports that the valuation stands at £269 million.
• Forvis Mazars has reported revenue growth of 8.3% in the 12 months to August 2024, reaching £362.4 million. Across service lines, audit services climbed by 15.1% while sustainability services surged by 45.4%, despite the challenging wider economic climate.
• Accounting and business advisory firm Xeinadin has continued its expansion activity by acquiring JCS Accountants and Mudd Partners LLP, boosting its regional presence in the South of England.
• As part of its technology investment strategy, EY has integrated AI into its global Assurance tech platform, with the aim to transform its audit services and enhance the audit experience worldwide.
• 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, which oversees billions of legal funding and has access to sensitive client information, suffered a cyber security incident in May 2025.
• 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.

Education

• 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.
• UK universities, led by the Russell Group and Universities UK, have issued a joint call for urgent government action to address a growing financial crisis in higher education. They warn that the current funding model is unsustainable, putting teaching quality, research output and the UK's global academic reputation at risk. Institutions are facing large deficits, which cannot be solved through efficiency measures alone. Key concerns include a 16% real-terms drop in research funding and a tuition fee cap that hasn’t kept pace with inflation. Universities are urging the government to increase the Strategic Priorities Grant, raise tuition fee caps, boost research funding and recognise the value of international students. Without intervention, the sector could see a decline in quality, student support and research capabilities, threatening the long-term sustainability and competitiveness of UK higher education.
• UK universities are facing a financial crisis, prompting widespread redundancies and course closures. Over 10,000 staff roles are expected to be cut by the end of 2025. The University of Dundee is planning major job losses to tackle multimillion-pound deficits. Key issues include frozen tuition fees, rising operational costs and a drop in international student numbers because of visa restrictions. These pressures are forcing universities to reduce staff and axe courses — particularly in arts and humanities — limiting academic choice and damaging morale. The impact is significant - job insecurity, reduced course availability and threats to research and innovation. Prospective students may be deterred, further weakening the sector. Without urgent government action, the long-term sustainability of UK higher education is at serious risk.

Healthcare & Social Assistance

• 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 the first quarter of 2025, UK healthcare mergers and acquisitions (M&A) activity remained steady, with 59 deals completed - matching the volume from the same period in 2024. Health and social care transactions accounted for 48% of all deals, indicating sustained investor interest in these sectors, LaingBuisson reports. This consistent M&A activity suggests ongoing consolidation and investment within the UK healthcare landscape, potentially leading to improved efficiencies, expanded services and enhanced patient care across the system.
• NHS nurses in the UK may strike over the government's proposed 2.8% pay rise, which the Royal College of Nursing (RCN) deems "completely unacceptable" amid a 25% real-terms pay erosion since 2010. RCN General Secretary Nicola Ranger warns that without significant improvements, nurses could take industrial action similar to junior doctors, who secured a 22% pay uplift over two years through strikes. Potential nurse strikes could exacerbate existing NHS challenges, including staff shortages and patient care disruptions. The government faces pressure to address pay concerns to maintain healthcare workforce stability and service quality.
• 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

• 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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