Business

The number of UK companies falling into insolvency dropped sharply in June, offering a moment of respite for businesses after months of economic turbulence.

But experts have warned that the decline may be only temporary, with ongoing pressures threatening a renewed wave of financial distress later this year.

According to the Insolvency Service, there were 2,043 registered company insolvencies in England and Wales in June 2025, down 8% from May (2,230) and 16% lower than June 2024 (2,430).

The drop in insolvencies may ease some concerns over the health of the UK economy, which continues to grapple with rising inflation, tax pressures, and a fragile global backdrop. But figures for the first half of 2025 show that insolvencies remain slightly higher than the second half of 2024, despite being below the 30-year annual high recorded in 2023.

In June, the breakdown of insolvency types included 1,585 creditors’ voluntary liquidations (CVLs), 332 compulsory liquidations, 111 administrations, and 15 company voluntary arrangements (CVAs). There were no receivership appointments.

Paul Williams, Restructuring Partner at PKF Littlejohn, said the fall in June should be welcomed, but it doesn’t paint a full picture.

“With global and domestic markets still navigating instability—driven by international conflict and economic disruption—the UK economy remains under significant pressure,” Williams said.
“While the insolvency figures show a decline in June, the first half of 2025 saw an overall rise compared to the second half of last year.”

He cited ongoing disruptions to supply chains, US tariff policy volatility, inflationary cost pressures, and changes to employer National Insurance contributions as continued headwinds for businesses.

Williams added that while the drop in insolvencies is encouraging, it is still “far from a clean bill of health for UK plc,” urging firms to remain agile, manage risk proactively, and maintain strong financial discipline.

The broader economic outlook remains uncertain. Inflation rose unexpectedly in June to 3.6%, raising questions about the resilience of consumer demand and squeezing already tight profit margins, particularly in retail and hospitality.

Meanwhile, GDP grew by 0.7% in Q2, and employment levels have risen—offering potential signs of green shoots. Chancellor Rachel Reeves, in her recent Mansion House speech, reaffirmed the government’s commitment to reforms aimed at boosting growth, reducing red tape, and encouraging investment.

However, critics remain sceptical. Many businesses are still facing “tough times”, according to David Hudson, restructuring advisory partner at FRP.

“The slight fall in insolvencies offers a glimmer of relief—especially for hospitality and retail, which are now benefiting from record summer weather,” said Hudson.

“But this could be just a pause. Consumer confidence is still low, growth remains weak, and inflation continues to erode margins.”

Hudson warned that many businesses may have only survived by dramatically cutting costs, and without a sustained recovery in demand or a drop in input costs, the reprieve may be short-lived.

As the government approaches the next fiscal cycle and firms continue to digest the effects of tax policy changes, analysts say the business community will need to remain vigilant.

While the fall in insolvencies for June offers welcome news, experts agree that the pressures on businesses are far from over—and for many, the path to stability will depend on staying ahead of challenges before they escalate.

For now, companies are being advised to closely manage cash flow, review supplier relationships, and seek early guidance from advisers to avoid sliding toward insolvency in what remains a precarious economic environment.

Read more:
Company insolvencies fall in England and Wales, but experts warn challenges remain

In a world where networking events, business cards, and LinkedIn requests dominate professional circles, it’s easy to overlook the quiet, unassuming objects that can spark real conversations.

But some of the best connections aren’t made in meeting rooms—they’re made in elevators, airports, cafés, and yes, even at the local print shop. The truth is, certain everyday items—when done with intent—can turn into powerful networking tools without anyone seeing them coming. Let’s unpack the unexpected.

Your Coffee Cup Can Start a Conversation

Imagine standing in line at a bustling conference coffee station. You’re holding a reusable cup—not just any cup, but one with your brand’s minimalist logo and a clever slogan that captures your business’s edge. Someone leans over, chuckles, and asks where you got it. That five-second pause in a queue becomes the start of a new client relationship.

Branded drinkware isn’t new, but using it in the right setting is. The trick? Make it stylish, not salesy. Let it speak without shouting.

Tote Bags with Intentional Design

The overused conference tote bag has a bad reputation—and deservedly so. Most are dull, disposable, and forgettable. But what happens when you flip the narrative?

A thoughtfully designed tote with a bold, conversation-starting quote or eye-catching illustration turns into a walking billboard that people want to ask about. Especially in coworking spaces, airports, and creative meetups, the right tote bag can be your intro without the awkward elevator pitch. Keep it artistic, mysterious even—people love asking questions about things they don’t immediately understand.

Custom Stickers That Stick in People’s Minds

Here’s one most professionals overlook: custom stickers. Not childish ones. We’re talking sharp, stylish stickers designed with brand intelligence—ones that land on laptops, notebooks, or even travel gear. Whether handed out at an event or tucked into a client thank-you pack, good stickers have a strange power.

They don’t scream “marketing.” Instead, they whisper, “Hey, this is different.” And that whisper often echoes across café tables and coworking desks when someone notices the sticker and asks, “What’s that from?” Just like that—you’re talking business.

Bookmarks as Bookmarks—and Icebreakers

If you’ve ever handed someone a business card and watched it disappear into a black hole of a wallet, you’ll understand the brilliance of a bookmark. Especially one that features a quote, a design, or a brand message that feels personal.

Slide it into a book you gift. Tuck it into client welcome packs. Or leave a few at your favorite local bookstore. It’s a networking tool disguised as a thoughtful gesture—subtle, useful, and surprisingly effective.

Branded Clothing Done Right

Let’s be clear—nobody’s making meaningful connections in loud, overbranded t-shirts anymore. But a high-quality hoodie with a small embroidered logo or a unique patch? That’s different. It invites curiosity without trying too hard.

If you’re in creative, tech, or lifestyle industries, a sleek garment can function like armor: representing your brand while staying stylish. It’s personal branding at its quietest—and that’s often where the best conversations begin.

Think Beyond the Pitch

Real networking doesn’t always come from polished elevator speeches or polished LinkedIn bios. Sometimes, it comes from the way your laptop looks, the bag slung over your shoulder, or the notebook sticker that catches someone’s eye.

So next time you think about networking, skip the predictable and look around. You’re likely already carrying your best tool—it just doesn’t look like one yet.

Read more:
The Unexpected Items That Double as Networking Tools

Netflix has used generative artificial intelligence to create visual effects in one of its original TV shows for the first time, as part of a wider strategy to reduce production costs and accelerate timelines.

The streaming giant revealed that AI technology was used to produce a complex scene in its new Argentine sci-fi drama The Eternauts, featuring the collapse of a building in Buenos Aires. The sequence marks the first use of final AI-generated footage in a Netflix original film or series.

Co-chief executive Ted Sarandos said the decision to use generative AI—software capable of creating images and video based on text prompts—enabled the production team to deliver the effects ten times faster than through traditional VFX method “The cost of it just wouldn’t have been feasible for a show in that budget,” Sarandos said. “That sequence is the very first generative AI final footage to appear on screen in a Netflix original series or film. The creators were thrilled with the result.”

The announcement comes as Netflix posted a 16% year-on-year increase in revenue, reaching $11 billion (£8.25 billion) for the quarter ending June 30. Profits surged from $2.1 billion to $3.1 billion, buoyed by the release of the third and final season of Squid Game, which has drawn over 122 million views to date.

While Netflix’s use of AI has drawn praise for its innovation and cost-efficiency, the move also reopens debate about AI’s role in creative industries. Critics argue that generative AI often learns from existing artistic works without the consent of their creators, and that increasing use of automation could displace human artists and technicians.

Concerns over AI were central to the Hollywood strikes of 2023, during which the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) called for stricter regulation around AI’s use in film and television.

Netflix, however, has positioned its deployment of AI as a tool to democratise access to advanced visual effects—especially for lower-budget productions.

“It’s about enabling storytelling that otherwise wouldn’t be possible,” Sarandos added. “We’re not talking about replacing creativity, but enhancing it with the right technology.”

The integration of generative AI into Netflix’s pipeline signals a potential shift in how streaming giants balance production ambition with economic discipline. With increasing pressure to produce blockbuster content at scale, AI could become a core part of the toolkit for mid-tier and international series.

As studios face rising costs, tighter profit margins, and evolving viewer expectations, the question is no longer whether AI will reshape entertainment—but how far, how fast, and on whose terms.

Read more:
Netflix turns to generative AI for visual effects in original series The Eternauts

In an era where industrial efficiency and intelligent manufacturing are of paramount importance, engineer Andrii Nikulin stands out on the forefront of innovation, having worked in many European countries and well-known industrial companies as an auditor or head of engineering projects.

The Ukrainian engineer, with over 11 years of international experience, is rethinking industrial automation and process optimization, using artificial intelligence to create the intelligent factories of the future across Europe and the United States.

Read more:
Ukrainian еngineer Andrii Nikulin leads industrial transformation with AI in Europe and the USA

Ocado’s chief executive Tim Steiner has blamed Chancellor Rachel Reeves’s tax rises for pushing up the price of groceries, warning it is “unrealistic” to expect businesses to absorb significant increases in labour costs without passing them on to consumers.

Speaking after the UK’s annual inflation rate rose to 3.6% in June, Steiner said the combination of higher employer National Insurance Contributions and a 6.7% increase in the minimum wage was fuelling price pressures in food retail and distribution.

“Am I surprised to see inflation coming through? Of course not,” he said. “You can’t increase the cost of labour in food production, food distribution and food retailing in the way that we have, with National Insurance increases and the minimum wage increases, and not expect to see prices move. That would have been a wholly unrealistic expectation if anyone had that.”

Food inflation ticked up from 4.4% to 4.5% in June, compounding the impact on households already grappling with rising grocery bills.

Retailers and industry groups have warned that the fiscal measures announced in Reeves’s autumn budget—including a £25 billion hike in employer NICs—would inevitably lead to higher prices on the shelves, as companies pass on increased labour and input costs.

Despite the pressures, Steiner insisted that Ocado Retail—the company’s online grocery joint venture with Marks & Spencer—was working to keep prices in check.

The average customer basket value rose by just 0.7% to £124.19 in the six months to 1 June, which the company said reflected a 1.4% increase in average item prices, far below the national food inflation rate.

“It’s not good to make people more expensive,” Steiner said, referencing the increased costs employers now face.

His comments come as Ocado Group reported a sharp turnaround in its financial results, posting a £612 million profit for the first half of the year, compared with a £153 million loss during the same period in 2024. The swing was largely driven by a revaluation of its stake in Ocado Retail.

Revenues in the group’s technology solutions business, which sells warehouse automation systems to global retailers, climbed 13.2% to £674 million. Sales at Ocado’s UK retail division rose 16.3% to £1.53 billion, although the unit posted a £25 million loss after tax.

Industry experts echoed Steiner’s warning that rising input costs are hitting retailers across the board. Balwinder Dhoot, director of the Food and Drink Federation, said:

“The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef and lamb climbing in price—alongside high energy and labour expenses—these rising costs are gradually making their way into the prices shoppers pay at the tills.”

Steiner also addressed the ongoing £190 million payment dispute with Marks & Spencer, describing the dialogue as “constructive”. M&S has withheld the payment amid a legal row over unmet performance targets related to the joint venture.

“We’ve got a very strong working relationship with them and spent a lot of time with them in the last few weeks,” Steiner said.

He added that Ocado had seen “very minimal, if any” disruption from the cyberattack that recently affected M&S systems.

Investors welcomed the results, sending Ocado shares up more than 12% when markets opened on Thursday.

With inflation, taxation, and wage costs continuing to squeeze margins, the political and economic pressure on the government is mounting—especially as food price hikes directly affect millions of consumers and voters. As speculation grows around further fiscal tightening in the Chancellor’s next Budget, retailers are warning that affordability may become the next crisis on Britain’s high streets.

Read more:
Ocado chief blames Reeves’s Budget for rising food prices as inflation climbs

Uber has announced plans to roll out a fleet of 20,000 self-driving taxis after striking a landmark $300 million (£224 million) deal with electric vehicle maker Lucid Group, marking a major leap forward in its autonomous ride-hailing ambitions.

The ride-sharing giant will begin deploying the Lucid Gravity SUVs—equipped with self-driving technology developed by robotics company Nuro—from next year. The vehicles will be introduced gradually over six years, starting in a major US city in 2025.

As part of the partnership, Uber will also take a $300 million equity stake in Lucid, making it the EV manufacturer’s second-largest shareholder after Saudi Arabia’s sovereign wealth fund. Uber is also investing hundreds of millions of dollars in Nuro to strengthen its self-driving technology pipeline.

Uber’s chief executive Dara Khosrowshahi said the programme has the potential to reshape urban mobility.

“Autonomous vehicles have enormous potential to transform our cities for the better,” he said.
“We’re thrilled to partner with Nuro and Lucid on this new robotaxi programme, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world.”

The deal highlights Uber’s continued strategy of partnering with, rather than building, autonomous vehicle technology in-house—marking a clear departure from the approach under former CEO Travis Kalanick.

In recent years, Uber has established partnerships with companies including Waymo, Volkswagen, and most recently China’s Baidu, with whom it struck a deal to deploy robotaxis across parts of Asia and the Middle East.

Uber already operates self-driving taxis in select US cities and is working closely with regulators and infrastructure partners to expand services further.

However, competition in the space is intensifying. Tesla launched its own robotaxi service in Austin, Texas last month, with Elon Musk pledging expansion into Los Angeles and San Francisco, despite a US regulatory investigation into its Full Self-Driving (FSD) software following a series of accidents—including one fatality.

The Uber deal also provides a timely boost for Lucid, whose co-founder and CEO Peter Rawlinson stepped down last year following steep financial losses. New CEO Marc Winterhoff has vowed to double production of the company’s flagship Gravity SUV—retailing at $95,000 (£70,000)—as part of a broader turnaround plan.

News of the Uber agreement sent Lucid shares soaring by 25%, as investors reacted positively to the endorsement from one of the world’s largest mobility platforms.

Uber also confirmed it remains ready to introduce autonomous vehicles in the UK but is awaiting regulatory approval. While the previous UK government had forecast self-driving cars would hit British roads by 2026, the new Labour administration has said this is unlikely to happen before the second half of 2027.

The move positions Uber as a frontrunner in the global race to commercialise self-driving technology at scale. It also underscores the company’s push to monetise autonomous mobility through strategic investments rather than expensive internal R&D.

With major players like Alphabet (Waymo) and Amazon (Zoox) pouring billions into the space, Uber’s multi-partner approach could offer a faster and more flexible route to market.

The deployment of 20,000 autonomous vehicles across Uber’s network over the next six years could reshape not just the ride-hailing experience—but also the competitive dynamics of the entire transport sector.

Read more:
Uber to buy 20,000 self-driving taxis in $300m Lucid partnership

This week, XRP finally succeeded in breaking through the key neckline of $2.65, taking a decisive step after the “cup-handle pattern” was completed.

This technological breakthrough not only ignited market sentiment, but also attracted a large amount of capital inflows. At the same time, DOGE, as a popular currency in the crypto market, also recorded a steady rise. In the face of this round of capital and user enthusiasm, the cloud mining platform DOT Miners announced that it will simultaneously open high-yield cloud mining channels for XRP and DOGE, providing a new option for holders to make profits without trading.

According to the platform, users only need to transfer their XRP or DOGE to the platform to access its high-performance computing system based on the Polkadot network, with an average daily income of up to $3,200, without the need for hardware equipment. The channel is designed to “charge and mine”, automatically settle returns daily, and support withdrawals at any time.

A spokesperson for DOT Miners said that the launch was a positive response to the market and provided a new way for investors who are bullish on XRP and DOGE to “profit while holding coins”: “The rising market is worth celebrating, but what is even more worthwhile is that when your assets are not moving, they can also generate value for you every day.”

How to earn passive income with DOT Miners?

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Enjoy the benefits: Automatically settle benefits every 24 hours, check details at any time, return principal when the contract expires, and get stable returns without any operation.

Why choose DOT Miners?

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Endorsed by large enterprises: Mining giant “Bitmain” has made strategic investments, and the platform is strong and has a steady development.

Advanced security: Cloudflare protection, EV SSL encryption, and multi-factor authentication are used to protect your assets in all aspects.

Referral reward program: Invite friends to register and purchase contracts to get a permanent rebate of 4.5% of their investment amount. The more referrals, the more you earn.

About DOT Miners

DOT Miners is a technology investment company headquartered in the UK, focusing on Bitcoin cloud mining services. The platform has provided services to users in more than 100 countries around the world, and is committed to promoting the popularization of blockchain infrastructure through technological and financial innovation.

We are also actively involved in public welfare, supporting global financial education and digital inclusion projects, and helping more people understand and access the crypto world.

Learn more: www.dotminers.com

Read more:
Turn Your XRP and DOGE into $3,200 Daily Using DOT Miners

OpenAI has launched a powerful new AI assistant feature for ChatGPT that allows users to delegate everyday tasks like browsing the web, making restaurant reservations, and shopping online—marking a major leap in AI’s ability to act, not just analyse.

The new ChatGPT agent, available from this week to users on paid “pro”, “plus”, and “teams” plans, gives the chatbot autonomy to interact with files, browsers, calendars, and software such as spreadsheets and presentations. However, it will not launch in the EU for now, and the company has acknowledged that the enhanced capabilities bring heightened risks.

In a blog post announcing the update, OpenAI said: “The model not only thinks but also acts.”

The rollout follows similar initiatives from Google and Anthropic, as AI firms race to release “agents”—systems capable of handling multi-step computer-based tasks with limited human oversight. These assistants can complete everything from planning travel to organising documents or conducting online research, and are designed to toggle between systems to get jobs done efficiently.

While the new assistant promises greater convenience, OpenAI has been transparent about the potential dangers of granting an AI model active control. The company confirmed that the agent will always seek user permission before taking any irreversible or consequential action, such as making purchases or deleting files.

“You’re always in control,” the company said. “ChatGPT requests permission before taking actions of consequence, and you can easily interrupt, take over the browser, or stop tasks at any point.”

As part of its safety strategy, OpenAI has introduced guardrails to prevent misuse, including malicious prompts hidden on websites and suspicious instructions like bank transfers. The system has also been trained to reject tasks that could lead to security breaches or biohazard creation, despite no current evidence that the model is capable of facilitating such harm.

In a live demonstration, the AI was asked to scan a user’s Google Calendar for a free evening, search for restaurants rated 4.3 stars or higher across several cuisines, and return options—all within 10 to 15 minutes. Users can pause, redirect, or clarify instructions mid-task, mirroring a human assistant experience.

While the tool is aimed at productivity and convenience, it has also sparked speculation about commercial applications, such as earning commission through retail recommendations or checkout links.

OpenAI CEO Sam Altman has previously floated the idea of charging a 2% fee on transactions generated through the company’s “deep research” services.

However, OpenAI said the current assistant does not include ads, sponsored placements, or paid product recommendations, and there are no plans to introduce them.

Independent analysts have raised concerns over how future AI assistants might prioritise results. Niamh Burns, a senior media analyst at Enders Analysis, said:

“It’s easy to say the system will require your approval before making a purchase, but what goes into the process of that system finding the products? Would brands be able to pay for visibility in results?”

As AI companies look to monetise and differentiate their services, pressure is mounting to balance utility, ethics, and trust.

The ChatGPT agent is currently available only to subscribers of OpenAI’s paid plans, positioning it as a premium productivity tool for professionals, teams, and power users.

Its launch signals a shift in AI development—from reactive models that provide information, to proactive assistants capable of completing real-world tasks autonomously.

But as OpenAI pushes boundaries, it also opens the door to greater regulatory scrutiny and the need for clear user transparency. The AI assistant may soon be able to do more than draft an email—it could also be making decisions on your behalf.

For now, OpenAI’s message is clear: the user stays in control. But as agents grow more capable, the world will be watching how they are used—and who ultimately benefits.

Read more:
OpenAI launches ChatGPT personal assistant capable of browsing, shopping, and managing files

Entrepreneurial energy remains high across the United States, with over 5.2 million new business applications filed in 2024.

A new report by financial software firm Wave has revealed a surprising picture of where startups are thriving — and many of the most successful states aren’t the usual suspects like California or New York.

Wave’s study ranked all 50 US states using six weighted factors: new business applications, existing business density, opportunity-driven entrepreneurship, job creation by startups, first-year survival rates, and local search interest in “how to start a business.” All metrics were adjusted per 100,000 residents to ensure fair comparison, resulting in an overall “Entrepreneurship Strength Index.”

Wyoming ranked No. 1, outperforming all other states in entrepreneurship. The state registered an astonishing 10,000 business applications per 100,000 people in 2024 — over six times the national average. With 8,600 active businesses and 85% of entrepreneurs launching ventures by choice rather than necessity, Wyoming also boasts one of the highest startup survival rates at 77%. Local interest in entrepreneurship is equally strong, with the highest number of monthly “how to start a business” searches per capita.

Montana came second, driven by strong job creation and solid survival rates. The state saw 2,400 applications, nearly 6,700 businesses, and posted an impressive 81% survival rate for new firms. Importantly, 76% of new businesses were founded out of entrepreneurial desire, not economic desperation.

Utah took third place with the nation’s highest rate of opportunity-driven entrepreneurship: 91%. Despite a smaller business count per capita (4,500), Utah maintained high levels of job creation and posted a strong 82% startup survival rate.

Delaware secured fourth place thanks to high business formation (5,400 applications), strong survival rates (82%), and a motivated founder base. Colorado followed in fifth, buoyed by strong interest in business formation and a robust job creation profile.

Florida ranked sixth overall, maintaining a large pool of entrepreneurs and active companies. With 2,700 business applications and one of the densest populations of active companies (6,700), Florida’s 80% startup survival rate and 4% startup job creation rate cemented its status as an entrepreneurial stronghold.

Idaho came in seventh, with 89% of business owners motivated by opportunity — behind only Utah and North Dakota. With solid company density and strong job creation, Idaho continues to punch above its weight.

California, a perennial innovation hub, ranked eighth — notable more for its economic impact than startup volume per capita. It had the highest job creation rate by startups at 4.3%, and a leading 83% startup survival rate. While it trails smaller states in business density, California’s startup quality and economic influence remain unmatched.

Why smaller states lead

“The study highlights that smaller states consistently rank higher in business formation and survival rates compared to larger population centers,” said a spokesperson for Wave. “States where people start businesses out of passion — not necessity — tend to perform better across the board.”

Interestingly, Nevada, despite ranking tenth, posted the highest startup survival rate at 83%. North Dakota tied Utah for the highest percentage of opportunity-driven founders (91%).

Wave’s findings also show that local business curiosity is a strong indicator of entrepreneurial strength. Colorado, for instance, ranks second in Google searches per capita for “how to start a business,” a sign of high local engagement.

While larger states like California and Florida remain innovation hubs, it’s the smaller, often overlooked states that are proving to be the most fertile ground for new businesses. With high survival rates, strong support ecosystems, and lower barriers to entry, these regions offer an appealing alternative for entrepreneurs seeking opportunity, resilience, and community support.

Read more:
The unexpected US States where entrepreneurs are thriving

Jobs in the UK’s retail and hospitality sectors have declined at their fastest rate in recent history following Chancellor Rachel Reeves’s October budget, which increased employer National Insurance Contributions (NICs) by £25 billion.

According to analysis of HMRC payroll data by The Times, employment in supermarkets, pubs, bars, and hotels has contracted sharply since the announcement, reversing a decade-long trend of job creation in these sectors.

Retail alone saw 45,600 jobs lost in the nine months following the budget—compared to an average increase of 3,400 jobs over the same period in each of the previous ten years. In hospitality, pay-rolled employment shrank by 83,800, reversing what would normally have been a gain of nearly 31,000 jobs.

The findings suggest that the combination of higher employer NICs and the 6.7% minimum wage increase implemented in April has significantly raised the cost of employing entry-level and part-time staff—leading many businesses to reduce headcount.

Across the economy, payrolls have declined by 184,700 since October, with 70% of those job losses concentrated in retail and hospitality.

Business leaders have criticised the chancellor’s strategy, warning that the government’s tax policy is disproportionately impacting sectors that provide flexible work and vital first-job opportunities—particularly for young people and returners.

Helen Dickinson, Chief Executive of the British Retail Consortium, warned that the cost of employing entry-level workers has jumped by 10% in recent months, while the cost of part-time roles has soared by over 13%.

“From young people taking their first step into the world of work to parents and carers returning to the workforce, retail offers opportunities that meet the needs of people in all corners of the country,” she said. “These increases in employment costs are putting those opportunities at risk.”

The job losses coincide with a rise in the UK unemployment rate to 4.7%—its highest in four years—and the slowest private sector wage growth since 2022, according to the latest data from the Office for National Statistics.

Economists now expect that Reeves may announce further tax increases in the autumn to plug a growing hole in the government’s finances. Analysts estimate that weak growth and higher borrowing costs have pushed the Treasury £20 billion over its fiscal target of funding day-to-day spending entirely through tax revenues.

Labour’s manifesto ruled out raising income tax, VAT, or individual NICs, placing pressure on the chancellor to seek additional revenue from businesses and capital taxes. Some economists have suggested that Reeves could reverse the four-point cut to employee NICs introduced by former Chancellor Jeremy Hunt—potentially recouping tens of billions of pounds.

The continued deterioration in labour market conditions is likely to increase pressure on the Bank of England to cut interest rates at its next meeting in August. Despite a slight uptick in inflation to 3.6%, markets are still betting on a quarter-point cut to bring the base rate down to 4%, with further easing expected before the end of the year.

Philip Shaw, Chief UK Economist at Investec, said: “Very little has taken place over the past month to shake our view that interest rates will come down again in both August and November.”

For now, businesses in the UK’s most labour-intensive sectors remain braced for more financial strain—and are urging the government to reconsider policies they argue are punishing employment and undermining recovery.

Read more:
Hospitality and retail jobs plummet since Rachel Reeves’s budget, sparking backlash over NICs hike