Business
The Best MBA for Entrepreneurs
May 26, 2023
January 4, 2025
By Evans Momodu
1 minute read
The recent autumn budget from Chancellor Rachel Reeves introduced an increase in employer's National Insurance contributions (NICs), raising the cost of employment and likely affecting hiring and investment plans across industries.
Specific sectors face their own headwinds. The car industry, for instance, is under pressure to increase electric vehicle sales to avoid penalties.
Meanwhile, consumer-facing businesses, including retail and hospitality, are contending with both the NICs rise and an impending increase in the national living wage.
These factors disproportionately strain the hospitality sector, which is still grappling with subdued consumer confidence.
Retailers, in particular, have highlighted their struggles through a wave of profit warnings issued before Christmas, followed by reports of weak footfall during the sales period.
Despite these challenges, there are glimmers of optimism. The housebuilding sector is forecast to see gradual improvements in 2025, offering a potential bright spot in an otherwise difficult economic environment.
Source: Sky news
