UK Industry Fast Facts

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

Agriculture, Forestry & Fishing

• In the June Spending Review, Defra secured a multi-year funding commitment of over £2.7 billion from HM Treasury for sustainable farming and nature recovery from 2026-27 to 2028-29. Funding for the Environmental Land Management Schemes will increase by 150%, rising from £800 million in 2023-24 to £2 billion by 2028-29. However, the government announced a £100 million cut to various farming and countryside programmes, including the Sustainable Farming Incentive, Countryside Stewardship and Landscape Recovery. The National Farmers’ Union expressed frustration over these cuts and the Chancellor's decision not to reverse the inheritance tax.

• According to the AHDB's Spring 2025 Planting and Variety Survey, which examines farmers' responses to government agricultural support, 56.1% of English farms have reduced their cropped arable areas to participate in agri-environment schemes for the 2025 harvest. Farmers appear to be targeting less productive or marginal lands for environmental conversion. The survey further highlights that regions traditionally known for intensive arable farming are more likely to alter their land use. Notably, the South East and East of England have shown particularly high participation in these schemes. This is attributed to strong advisory networks and greater on-farm labour capacity, with an average of 3.6 and 3.3 workers per farm, respectively, as reported by 2024 Defra data. The additional workforce provides time-pressed farmers with more opportunities to engage with the often time-intensive requirements of agri-environment schemes.

• June marked the hottest on record, posing significant challenges for farmers who are dealing with reduced crop yields. Also, they face the risk of flooding if heavy rain falls on the dry, hardened ground. Farmers are also reporting dangerously low water levels, endangering river wildlife. Data from the UK Centre for Ecology and Hydrology (CEH) reveals that nearly one-third of the soil moisture monitoring sites in the UK recorded their driest June since at least 2013. Following prolonged dry spells, the Agriculture and Horticulture Development Board (AHDB) reported that the harvest is progressing at an unprecedented pace. Reports indicate that winter barley was already being cut in June, with an estimated 10% of the UK's winter barley area harvested by 9 July 2025.

• Research from the Energy and Climate Intelligence Unit reveals that 87% of farmers have faced reduced productivity due to extreme weather conditions. Among them, 84% reported a drop in crop yields and over three-quarters experienced a decline in income. The survey of 300 UK farmers indicates that in the past five years, 78% have been affected by drought and more than half have suffered from the impacts of heatwaves.

• Effective 13 August 2025, the new Fair Dealing Obligations (Pigs) Regulations 2025 will mandate that all new pig purchase contracts be documented in writing, signed and include explicit terms regarding pricing, duration, termination and dispute resolution. This marks a significant change in the governance of relationships between pig producers and processors. These regulations aim to enhance fairness and transparency in pig farming contracts, ensuring more equitable interactions within the industry.

• On 24 July 2025, the UK and India signed a free trade agreement (FTA) designed to boost trade between the two nations by cutting tariffs on 90% of tariff lines and reducing entry barriers, while maintaining food standards for imports. In terms of agri-food exports, the deal includes significant tariff reductions for various UK exports to India, like whisky, gin, biscuits, salmon, chocolate and lamb. For UK gin and whiskies, tariffs will be immediately reduced from 150% to 75% and will gradually decrease to 40% over the next 10 years. The tariff on lamb will be reduced from 33% to zero immediately, which is expected to support long-term growth in UK lamb exports as India's middle-class population expands. However, beef is excluded from the agreement due to India's strict controls on beef imports based on religious and cultural reasons. Also, there are no tariff concessions for UK pork and dairy exports to India.

• 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.

Mining

• The Office for National Statistics reports that the mining and quarrying sector output dropped by 3.2% in May 2025. Output from the sector dipped by 1.6% in the three months to May 2025.
• World Bank Commodities Price Data released in August 2025 shows that Brent crude oil and WTI crude oil prices were fairly steady month-on-month in July 2025, following the recent climb in prices in June due to escalating tensions in the Middle East. Meanwhile, in July 2025, most metals and minerals (aluminium, iron ore, lead, nickel, tin and zinc) posted a climb, while copper was the only one that dropped slightly. Precious metals have remained high by historical averages, amid heightened global economic uncertainty, escalating geopolitical conflict tensions and US tariff concerns.
• Published in June 2025, a study by Robert Gordon University titled ‘Striking the Balance: Building a Sustainable UK Offshore Energy Workforce’ states that the oil and gas workforce declined by about 5,000 jobs between 2023 and 2024, from 120,000 to 115,000 and if the current trend continues, this figure could plunge to between 57,000 and 71,000 by the early 2030s. Meanwhile, the workforce in the renewables segment will thrive and could climb from 39,000 to between 84,000 and 153,000 by 2035.
• Figures from Offshore Energies UK show that jobs in Scotland’s North Sea oil and gas industry have contracted by 13,400 in the past year. Between 2013 and 2023, the number of jobs in the industry plunged from 117,900 to 60,700. Critics warn that the country is becoming too reliant on imports.
• The UK government launched a tailored skills programme at the end of July 2025 aimed at supporting around 200 Aberdeen oil and gas workers shift to green energy opportunities. The Oil and Gas Transition Training Fund is part of the government’s Plan for Change and is backed by £900,000 of UK government funding.
• Equinor has signed a long-term gas sales agreement of 55 TWh of natural gas per year for a decade starting October 2025, with a contract value of around £20 billion (at current prices), in a bid to strengthen the UK’s energy security.
• In June 2025, Adura was announced as the name of Equinor and Shell’s incorporated joint venture. The venture formed the UK’s largest independent oil and gas producer in the North Sea, with both companies combining their UK offshore oil and gas assets and standout expertise to form the new company.
• The Financial Times reports that the government has called for an investigation into Prax Group, the owners of the Lindsey oil refinery since 2021, which filed for insolvency in June 2025, with hundreds of jobs at risk. It reports that the collapsed oil company owes the government up to £250 million in unpaid taxes. The site, which employed around 400 people, processed 96,600 barrels of oil a day in 2024. 

Manufacturing

• The Purchasing Managers’ Index (PMI) rose to 48 in July 2025, up from 47.7 the previous month. Although output, new orders and employment continued to contract, the pace of decline eased. Notably, both the consumer and intermediate goods sectors returned to growth following prolonged contraction periods of eight and five months, respectively. Despite these positive changes, manufacturers faced ongoing challenges, particularly in key export markets. US tariffs contributed to postponed spending decisions, leading to a decline in new orders for the tenth consecutive month. Overall, weak market demand, rising staff costs and subdued confidence prompted further reductions in employment during July. Nevertheless, input costs and selling prices remained relatively stable throughout the month.

• As part of the Industrial Strategy, UK PM Keir Starmer announced a £2 billion investment over four years to 2029, aimed at reducing energy prices by up to 25% for thousands of businesses to stimulate growth. The new British Industrial Competitiveness Scheme will lower electricity costs for over 7,000 energy-intensive businesses in sectors like automotive, aerospace and chemicals. Eligible businesses will be exempt from paying certain green levies, with the scheme set to take effect in 2027.

• The UK-US Economic Prosperity Deal, 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. 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.

• Toyota has announced plans to ramp up car production in the UK in 2026 to enhance flexibility following the disruptions caused by US tariffs. The company intends to shift some production of its GR Corolla high-performance hatchback from Japan to its Burnaston plant in Derbyshire. This move will help Toyota maintain its manufacturing presence in the UK as the government prepares to unveil its new industrial strategy.

• 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 July 2025, electric car sales saw a 9.1% lift annually, with 29,825 new battery electric vehicles (BEVs) registered in the month of July, representing a 21.3% market share, as reported by the Society of Motor Manufacturers and Traders.  

• Despite supply chain challenges and tariff uncertainty, Rolls-Royce shares reached a record high, driven by strong demand for its engines used in large Airbus and Boeing aircraft, as well as power generators for data centres. The company projects its underlying operating profit for 2025 to be between £3.1 billion and £3.2 billion, as reported by the Financial Times.

• The UK government has announced several significant measures to accelerate the adoption of EVs. This includes a £63 million investment dedicated to expanding EV charging infrastructure. Additionally, a £700 million subsidy package has been introduced to reduce the cost of purchasing new electric cars. As part of this initiative, households can receive a discount of up to £3,750 when buying a new EV priced below £37,000. These measures aim to make electric vehicles more affordable and accessible to the public.

• The government hasn’t yet made a decision regarding the long-term future of British Steel. According to the Secretary of State for Business and Trade, the objective isn’t to nationalise British Steel, despite the Secretary having powers to issue directions or take control of steel operations in England at risk of closure. This authority allowed the government to assume control of British Steel’s operations temporarily. The removal of the 25% tariff on UK steel exports, following UK-US trade negotiations, has provided relief for British Steel’s production and helped safeguard jobs.

Utilities

• The energy price cap set by Ofgem dropped by 7% for the period from July to September 2025, reducing the annual cost to from £1,849 to £1,720 for a typical household. This reduction in gas and electricity bills will provide some financial relief for households, aligning with UK Prime Minister Keir Starmer’s initiative to address the high cost of living.

• The government has announced plans to abolish Ofwat and introduce a new, unified regulator aimed at reducing water pollution in England’s rivers, lakes and seas, while also protecting households from significant bill hikes. This new regulator will consolidate the water-related responsibilities currently held by Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate. By streamlining operations, the government aims to eliminate the existing complexities that hinder effective service delivery to customers. In light of this transition, David Black, Chief Executive of Ofwat, will step down at the end of August, amid growing scrutiny of water companies and their regulatory bodies.

• Thames Water has faced a significant setback in its efforts to secure future stability after the US investment firm KKR withdrew from a deal to inject new equity into the company. This development leaves the company's debt-ridden future uncertain and increases the likelihood of temporary nationalisation. Despite Thames Water's financial troubles, the UK Environmental Secretary has firmly stated that the company won’t receive any leniency concerning fines for breaching environmental standards. Meanwhile, the company's creditors are urging for emergency legislation that would protect the business from certain legal obligations as a condition of their support.

• The UK's energy regulator, Ofgem, has provisionally approved £24 billion of investment in England's gas and electricity networks. This initiative aims to enhance energy security and facilitate the transmission of more clean energy from renewable sources. However, this move may raise already high household bills. The funding will support the completion of 80 major energy infrastructure projects by 2030.

• Centrica plc, one of the UK's largest energy groups, has secured a £20 billion agreement to purchase 5 billion cubic meters of gas annually from Norway's state-owned Equinor. This agreement will commence in October 2025 and continue until 2035, bolstering the UK's energy supply and price stability. Additionally, the contract includes a provision for transitioning from natural gas to hydrogen sales in the future, supporting the growth of the UK's hydrogen economy.

• The government's National Wealth Fund is set to provide funding for the development of the Sizewell C nuclear power station, offering £36.6 billion in loans through money raised in the gilts market. Banks supported by France's export credit agency will also contribute a further £5 billion in debt, while the UK government will provide £3.8 billion in equity. Moreover, households will contribute to the project, which is expected to become operational by 2035, with a construction-phase surcharge estimated to be approximately £1 per month.

• The UK government has announced that the debt-funded Sizewell C power station project in Suffolk is projected to cost approximately £38 billion in 2024 prices. However, according to the Financial Times, the actual cost could be significantly higher when financing expenses are taken into account, potentially exceeding official government estimates by tens of billions of pounds.

Construction

• The latest S&P Global release reveals that the UK Construction PMI fell to 44.3 in July 2025, down from 48.8 in June, marking the steepest contraction in activity since May 2020. The decline is attributed to site delays, reduced volumes of new business and diminished customer confidence. Notably, civil engineering experienced the sharpest drop, while residential building activity also saw a contraction. New orders have now decreased for the seventh consecutive month, with companies highlighting fewer tender opportunities and waning client confidence. As a result, employment in the sector continues to decline, as firms reduce both hiring and the use of subcontractors. Although input prices have increased, this has been at the slowest rate since January.

• According to the Building Cost Information Service (BCIS), construction companies represented 17.2% of all insolvencies in England and Wales in May 2025, with 385 registered construction businesses becoming insolvent. This marks an 18.5% climb compared to April 2025. Data from EY suggests that the construction sector is particularly vulnerable to financial difficulties. This vulnerability is due to the inherent nature of contract cycles and the cash flow management challenges faced by contractors and subcontractors.

• On 19 June, Chancellor Rachel Reeves announced a transformative 10-year, £725 billion infrastructure strategy as part of the government's Plan for Change. This ambitious initiative aims to propel economic growth and enhance public services. The strategy commits £9 billion annually to refurbishing health, education and justice facilities, ensuring safer hospitals, modernised schools and renovated courts. Additionally, it allocates funds for vital infrastructure projects, including £1 billion for maintaining key transport structures like bridges and £590 million to launch the Lower Thames Crossing project. Furthermore, a £16 billion public investment will facilitate the construction of over 500,000 new homes, addressing the nation's housing needs.

• In August 2025, Mace was appointed as the construction manager for the £1.1 billion life science-led redevelopment of the British Library’s St Pancras site in Central London. This project will include a 9,290-square-meter extension to the British Library, along with 55,742 square meters of commercial facilities.

• The government faces the pressing challenge of meeting its ambitious target of constructing 1.5 million homes by 2029. This goal requires increasing annual planning permissions in England by over 50%. In response, the government has introduced a new Planning and Infrastructure Bill to expedite the construction of homes and essential infrastructure development. However, a recent study by City and Guilds highlights a significant obstacle: a chronic shortage of skilled workers. The research shows that 76% of construction businesses are struggling to recruit qualified labour, casting doubt on the feasibility of reaching the target.

• The UK government has pledged to construct up to 40,000 new homes on disused railway land, including former goods yards, industrial sites and station buildings, over the next decade to meet its housing target. The Transport Secretary has made these brownfield sites available for development as part of a £1 billion initiative. To lead this effort, the government has launched a new public property company, Platform4, which will oversee the delivery of these 40,000 new homes.

• As revealed by ONS data, monthly construction output is estimated to have dropped by 0.6% in May 2025, following three consecutive periods of positive growth, including an increase of 0.8% in April 2025. Total construction output expanded by 1.2% in the three months to May 2025, with new work increasing by 0.9% and repair and maintenance by 1.5%.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale and retail trade; repair of motor vehicles and motorcycles dropped by 1.5% in May 2025, the largest negative contributor to the services sector over the month.

• Leading Scottish wholesaler United Wholesale Scotland has expanded by acquiring London-based Time Wholesale Services, making it its first cash and carry in England and fourth overall.

• Sandea Wholesale, a company founded in 2019 that specialises in FMCG and part of Sugro UK, has announced the acquisition of Swastik International (UK), strengthening its FMCG portfolio and boosting its logistical capabilities.

• A survey by the Advantage Group ranked Glasgow-based wholesaler JW Filshill as the Best in Class among UK wholesalers and convenience symbol groups. It marks the 15th consecutive year the wholesaler has been ranked top in the independent survey.

• As part of its plan to double in size over the next five years, Bidcorp UK’s fresh food division Bidfresh has acquired the Hodgson Fish and Sailbrand brands, reports The Caterer.

Retail Trade

• Retailers warn that more tax rises risk fuelling inflation and gutting jobs on the high street. The BRC reports retailers are in full alarm mode – around 85% of chief financial directors say last year’s tax hits (higher employer National Insurance and minimum wage) forced them to raise prices, and 65% expect further hikes over the next. With food inflation already at 4%, the BRC predicts it could hit 6% by Christmas. Retailers are freezing hiring (42%) and slashing in-store staff (38%), reflecting job losses of nearly 100,000 in Q1 2025 versus a year earlier. Business rates, the packaging tax, NI hikes – 88% of finance chiefs list these as top.

• Inflation is creeping back into the cost of a typical family food shop. In the first week of July, shop price inflation hit 0.7% year-on-year, up from 0.4% in June, with food inflation at 4% (fresh produce steady at 3.2%; cupboard goods jumped 5.1%) while non-food remains in mild deflation at – 1%. Helen Dickinson (BRC CEO) warns that wholesalers’ global supply issues are driving price rises. Retailers are absorbing costs where they can, but past budget taxes (like NI and living wage rises) have already added £7 billion in industry burden. More tax hikes could push food inflation to as high as 6% by year‑end and further squeeze household budgets.

• Shoplifting in England and Wales has jumped 20% in the year to March 2025, reaching a two‑decade high of 530,643 offences, according to ONS figures. The BRC warns that this retail theft crisis is "spiralling out of control" – it’s costing the industry over £2.2 billion annually and fuelling over 2,000 incidents of violence or abuse against staff every day. Nearly one in four shoppers (24%) report witnessing theft, and aggression by thieves is increasingly bold – pack parents, organised gangs and threats with weapons are now commonplace. Retailers are shelling out on tougher security, while pricing pressure rises as these losses hit customer receipts. The risk is more expensive shopping, fewer staff on the shop floor and a bleak outlook for the high street.

• Shein has just been fined €1 million (£870,000) by Italy’s competition watchdog, AGCM, for publishing misleading and “omissive” green claims on its Italian site – especially within its #SHEINTHEKNOW, evoluSHEIN by design and Social Responsibility sections. The authority slammed Shein’s claims about recyclability and long-term environmental pledges (e.g. emissions cut targets) as vague, exaggerated and contradicted by rising emissions data.

Transportation & Warehousing

• 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%.

• According to the latest official data from the Office of Rail and Road, rail fares across Great Britain have increased by 5.1% in 2025. This rise significantly outpaces the RPI, which increased by 3.2% between March 2024 and March 2025. Notably, cheaper advance fares have surged at nearly twice the rate of inflation.

• On 22 July 2025, the Aviation Minister announced that £63 million would be distributed among 17 UK companies to boost the production of sustainable aviation fuel. This initiative aims to support 1,400 jobs and strengthen the UK's position as a global leader in the green aviation sector.

• Chancellor Rachel Reeves has announced a significant investment in transport infrastructure, focusing on the Midlands, the North and the West Country, in anticipation of the government's upcoming spending review. This ambitious plan includes a £2.5 billion investment to expand Greater Manchester's tram network, extending it to Stockport and adding new stops in Bury, Manchester and Oldham. The West Midlands will receive £2.4 billion to enhance tram services, extending them from Birmingham city centre to the newly developed sports quarters. Additionally, £2.1 billion will be allocated to initiate construction of the West Yorkshire Mass Transit programme, aimed to begin by 2028.

• On 5 August 2025, the electrification of the Church Fenton to York rail line was completed as part of the £11 billion government-funded Transpennine Route Upgrade. This milestone brings thousands of passengers closer to benefiting from faster, more frequent and more reliable train services across the North. The enhanced rail line will reduce travel times, cutting the journey between York and Manchester by 10 minutes and reducing the trip between Manchester and Leeds from 50 minutes to 42 minutes, with up to six fast services per hour.

• The government has announced plans to simplify the installation process for EV charging points by eliminating the need for drivers to submit planning applications. This change is expected to save EV drivers up to £1,100 annually and reduce barriers to increasing the number of EVs on UK roads. In addition, in July, the government unveiled a £63 million funding package aimed at enhancing electric vehicle infrastructure. This initiative will support at-home charging solutions for households without driveways, facilitate the transition of NHS vehicle fleets to save millions for the health service in England and install thousands of charge points at business depots across the UK.

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

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

• RAC research has revealed that more than half of the UK's airports have introduced or increased their drop-off fees in the past year. Among the airports raising their fees by £1 are Belfast City, Birmingham, Bristol, Edinburgh, Gatwick, Heathrow, Liverpool John Lennon, Newcastle and Southampton. Leeds Bradford and Glasgow both raised their charges by 50p. Cardiff, which previously didn’t charge any fee, has introduced a £3 fee, while Luton now charges £5.

• According to the Financial Times, Heathrow Airport has requested approval from the Civil Aviation Authority for a 17% increase in landing charges. This hike is intended to fund a £10 billion investment programme that aims to boost the airport's annual capacity to 92 million passengers. Heathrow claims that the average landing charge over the next five years would rise to approximately £33.26 per passenger, compared to the current average of £28.46 per passenger.

Accommodation & Food Services

• ONS data reports that output in accommodation and food service activities climbed by 0.01 percentage points in May 2025. Accommodation activities output climbed by 2.4% in May 2025, the largest positive contribution to consumer-facing services output.
• Figures from the ONS released in July 2025 show that the sector lost 84,000 jobs since October 2024, with UKHospitality warning this figure could reach 200,000 by the end of March 2026.
• The latest Hospitality Market Monitor from CGA by NIQ and AlixPartners reveals that, on average, two licensed venues have closed each day in H1 2025. This is largely due to the hike in employment costs since April 2025. Venue numbers remain 14.2% below pre-COVID levels recorded in March 2020, with 16,000 fewer licensed premises over the five-year period.
• According to recent data from OpenTable, restaurants are adapting to signs of changing consumer preferences, with individuals making earlier dinner reservations amid a health-conscious push for going to bed earlier. Customers in the capital made 11% more restaurant reservations at 6pm and 10% more at 5pm, in the first half of 2025 compared to 2024. Restaurants are providing discounts and changing staff hours to manage the trend, as reported by the Financial Times.
• Scottish craft beer company BrewDog has announced it is closing 10 bars across the UK, including its flagship Aberdeen pub, as a result of economic and operational challenges like higher costs and increased regulation.
• Fast-food chain Five Guys is set to expand its restaurant portfolio in the UK following a refinancing move that will secure it £185 million. The funding will also help expansion in other markets, including France, Germany and Spain.
• US fast-food chicken chain Slim Chickens has announced plans to open up eight new spots in the UK.
• Significant financial losses have forced Papa John’s to close 74 UK sites for good over its past financial year.
• Australian restaurant chain Zambrero, which already has grown to about 13 restaurants in the UK, plans to reach 100 sites across the country by 2030, after launching its UK franchise recruitment programme.
• UK budget hotel chain Travelodge has acquired four former Ibis hotels as part of its UK expansion strategy. The chain aims to continue expanding in the UK as well as in Spain in the coming years.

Information

• ONS data reports that output in the information and communication subsector climbed by 2% in May 2025, the largest positive contributor to services growth in the month. Five of the six industries in this subsector grew in May 2025, with the largest contribution coming from an increase of 3% in the computer programming, consultancy and related activities.
• Openreach reported 450 abuse and assault cases in 2024-25, up 8% on 2023-24 and a staggering 40% higher than 2022-23, raising employee safety concerns. This number could be even higher, as some staff may not have reported some incidents.
• Ofcom has warned that traditional public-service TV in the UK is endangered as audiences move to online content. The regulator has suggested that “as a priority, public service broadcasters should work urgently with YouTube, to ensure that PSM content is prominent and easy to find on the platforms”. It states that YouTube is watched by 43% of children aged 4-17 on a weekly basis and is the world’s most popular video site.
• In a further sign of growing challenges in the UK traditional broadcaster scene, at the end of July 2025, Ofcom reported that popular video streaming service YouTube now ranks as the second most-watched TV service in the UK across all age groups, only behind the BBC. Younger consumers in particular access YouTube over any other TV services.
• In July 2025, EE announced that its 5G standalone network rollout will reach half of the UK population by the end of August 2025, up from 40% coverage in March 2025.
• A study by software company Vitrifi has found that just 3% of fibre broadband operators have automated their service provisioning and activation. This lack of automation is hindering growth in the fibre industry.
• On 31 July 2025, the Competition and Markets Authority published its final decision on the cloud services market investigation, stating that “competition is not working well” and making recommendations to address these failings. Microsoft and Amazon Web Services are the two largest providers, each having up to 40% share, with Google coming third but having a much smaller share of the market. Higher competition would allow for more competitive prices for consumers, alongside improvements in quality and innovation.
• Many UK consumers are now turning to virtual private network (VPN) services, which help disguise their online location, to evade the new age checks enforced in the UK that prevent them from accessing harmful content. Proton VPN became the top free app in the UK at the end of July 2025.

Finance & Insurance

• A new report highlights that Chancellor Rachel Reeves faces a looming £41 billion tax shortfall in the upcoming autumn Budget, raising the prospect of broad tax rises and fiscal tightening across the economy, including the insurance sector. Financial services may feel squeezed as insurers and brokers confront higher insurance premium taxes, stronger regulatory capital demands, and upward pressure on operating costs. Households could also cut back on discretionary products like pensions or specialist policies. The sector is bracing for tighter margins and increased premiums, while governments and regulators may accelerate efforts to shore up fiscal stability through industry levies.

• Aon has launched its Accelerate Programme, a targeted risk and insurance advisory service for UK technology start‑ups and scale‑ups – especially those operating in AI and automation – recognising that intellectual property is often their most valuable asset. The initiative goes beyond standard insurance cover, offering proactive risk management support via Aon’s global network of over 1,500 risk professionals, addressing exposures from IP infringement to cyber threats, according to Insurance Business America. The Accelerate Programme reflects an industry shift where insurers provide advisory-led solutions, catering to intangible-asset-heavy businesses. It encourages financial institutions and underwriters to adapt coverage for intangible risk, while positioning insurance brokers as strategic partners to foster sustainable growth in the UK’s innovation ecosystem.

• The Household Debt: Economic Indicators briefing (published 18 July 2025) reports that household debt as a share of disposable income has steadily declined from 156.4% in Q3 2008 to 117.2% in Q1 2025. However, financial strain remains – the average Standard Variable Mortgage Rate reached 6.98% in June 2025 and two-year fixed rates averaged 4.32%, both still far above pre-2022 levels. Individual insolvencies in England & Wales rose to 30,494 in Q2 2025, up 3.2% year-on-year. Insurers must adjust risk models and reserves for higher personal financial distress, while banks may face more non‑performing loans and coverage expense claims. Meanwhile, Elevated mortgage rates squeeze household budgets and increase default risk, pressuring lenders and mortgage insurers.

• Chancellor Rachel Reeves unveiled the “Leeds Reforms” and the Financial Services Growth & Competitiveness Strategy on 15 July – described as the most wide‑ranging reforms in over a decade. The package includes a financial Ombudsman rewrite: limiting claims to 10 years and reverting to arbitration, reducing quasi‑regulator burden; streamlined Senior Managers & Certification Regime and faster approvals; implementing Basel 3.1 fully by 2030, with delayed market‑risk modelling till 2028; a new captive insurance regime, insurance‑linked securities reforms, supporting complex and specialty insurers and easing mortgage rules could aid 36,000 first‑time buyers yearly, banks to guide savers into stocks. These changes aim to reduce red tape, bolster competitiveness in wholesale and retail markets, drive FinTech innovation and position the UK as a global financial hub, particularly for insurance and asset management.

• On 7 July 2025, UK Finance’s second annual M&A Conference convened banks, advisers, regulators (FCA, CMA, Takeover Panel), insurers, lawyers and investors to assess the M&A outlook. Despite global macro‑economic and geopolitical turbulence, delegates welcomed a rebound in UK deal volumes. Key drivers include robust private capital, improved small‑cap valuations and policy measures designed to enhance UK competitiveness. For the financial and insurance sectors specifically, this signals increased activity in specialist transactions, captive insurance structuring and insurance-linked securities – areas highlighted elsewhere as poised for regulatory reform. A more permissive deal environment, albeit with nuanced scrutiny, was a central theme, underscoring greater deal execution confidence.

• Major UK lenders, including Barclays, have launched a pricing war, with two-year fixed mortgages averaging 4.68% and five-year fixes at 4.97%, per Uswitch data. Barclays led the charge with a two-year fix at 3.75% and five-year deals dipping below 4% – with specific products like a 3.83% two-year fix (60% LTV, £999 fee) and 3.99% for five-year fixes. The surge in sub‑4% offers marks the first time major lenders have re-entered that bracket recently. This aggressive pricing aims to secure market share ahead of anticipated Bank of England rate cuts. For the UK financial and insurance sectors, this means boosted mortgage lending volumes, higher demand for mortgage-backed financial products and greater activity in protection insurance markets, like mortgage life and income cover. As competition intensifies, banks and insurers will look to capitalise on increased origination while carefully managing risk and margin compression.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 2.4% in July 2025 compared with July 2024. Prices climbed by 0.6% month on month and the average house price stood at £272,664. Nationwide reports that housing affordability has improved, with the house price to earnings ratio at its lowest level in over a decade.

• Property portal Rightmove reveals that property asking prices dropped in July 2025, recording the steepest rate of decline for the summer season for over 20 years, with sellers competing for buyers.

• Rightmove has called on the government to raise the property tax thresholds amid the strong climb in property prices in recent years, in an effort to boost affordability.

• The Royal Institution of Chartered Surveyors states that rental listings on the UK market fell for the 11th consecutive month in June 2025. The squeeze in the number of homes to let is expected to push up rents in the coming months.

• A survey by the British Chambers of Commerce has found that 48% of businesses expect staff to spend all working days at their place of work in the year ahead, signalling a trend of companies wanting staff back at their workplace full time.

• Research from CBRE published at the end of July 2025 reveals that the average London flex office agreement is 22 months, a record high since it began tracking the data in 2020. This points to a more positive outlook for the office segment.

• As reported by the Financial Times, the chief executive of one of the largest London landlords, British Land, has warned that investor confidence would suffer amid the government’s planned ban on “upward-only rent reviews” for commercial property leases in England and Wales, part of the English devolution and community empowerment bill published in July 2025. The bill would allow companies renting commercial property to negotiate cheaper deals.

• According to CBRE data from July 2025, capital values for UK commercial real estate hiked by 0.2% in June 2025, while rental values inched upward by 0.1%, with total returns at 0.6%. The retail sector recorded the highest month-on-month returns for June, at 0.8%, while industrial and office total returns were at 0.6% and 0.5%, respectively. Overall, capital and rental values climbed by 1.4% and 1.6%, respectively, during the first half of 2025, with total returns at 4.2%.

• According to Savills, regional office investment volumes in the first half of 2025 were 4% below the level for the same period in 2024. However, pointing towards growing optimism, over £600 million was placed under offer in Q2 2025. Potential Bank rate cuts in the second half of the year are expected to stimulate further investment in 2025.

• The Financial Times reports that global payment provider Visa is close to relocating its European HQ from Paddington to London’s Canary Wharf, taking over the 170,000 square feet office space formerly occupied by Moody’s, which is moving its operations from the financial district to the City of London. This is in contrast to recent departures from the financial district, with CoStar Group data stating the vacancy rate in Canary Wharf stood at close to 18% in Q2 2025, higher than the 11% average for London.

Professional, Scientific & Technical Services

• ONS data reports that output in professional, scientific and technical services increased by 0.8% in May 2025, the second-largest positive contribution in the services sector. This was largely driven by a 6.1% hike in legal activities output in May 2025, with conveyancing solicitors seeing demand affected by changes to the Stamp Duty Land Tax, where buyers rushed to get property purchases over the line sooner.
• The Financial Reporting Council (FRC) has launched a formal investigation of Deloitte’s audits of Glencore plc for the period 2013-2020.
• According to the FRC’s Annual Review of Audit Quality 2025, 86% of the 104 audits inspected required no more than limited improvements, a marked increase from the 74% in 2023-24 and a step forward in terms of audit quality. However, the regulator has called out BDO for its poor performance, despite recent improvements in audit quality.
• According to ICAEW’s latest Mid-Tier Evolution survey of 36 UK mid-tier accountancy firms, 25% of respondents have secured private equity investment, with 25% of firms expressing a likelihood of pursuing private equity investment in the next three years, up from 12% in 2024. The main factors for considering private equity investment as attractive are investing in technology, investing in infrastructure and achieving operational efficiencies. However, the survey also highlighted skills shortages as a growing concern for the firms. Meanwhile, 42% of respondents rank genAI as one of their top three macro trends impacting the profession, with firms stating improved operational efficiency as the greatest benefit of investing in tech. Additionally, while 36% of firms already offer ESG services, 44% of firms plan to start offering such services within the next three years, marking this service line’s growing importance.
• The merger and acquisition trend in the accounting market has continued. In August 2025, Menzies merged with Beever and Struthers to form a national accountancy and business advisory firm. It has over 1,000 staff and a combined fee income of £110 million, as reported by AccountancyAge. Meanwhile, Moore Kingston Smith has acquired CBW Recovery, boosting its presence in restructuring and insolvency services, particularly in the non-profit sector. Similarly, Cooper Parry has recorded its 16th acquisition in two years by acquiring mid-market debt advisory firm Fellwood Advisory.
• In response to the surge in the AI audit sector and growing reliability concerns, the British Standards Institution has published the first international standard, BS ISO/IEC 42006:2025, aimed at boosting trust and transparency. The standard assesses those conducting AI audits rather than the actual AI systems.
• A May 2025 survey by law firm Kingsley Napley reaffirms UK accountancy firms’ growing appetite for external funding, with just 54% of senior leaders from 22 of the UK’s top 50 accountancy firms stating they had no current or future interest in private equity investment. Meanwhile, 27% of respondents had already accepted this type of investment, while 19% would consider doing so in the future.
• A July 2025 report on sustainability and ESG in the top 50 UK law firms by Saffery states that 48 out of the 50 firms have set climate-related goals, though just nine have committed to carbon reduction by 2030 or net zero by 2050. However, the report also highlights that 34% of all firms still don’t publish an annual Responsible Business report and just 14% have conducted a sustainability materiality assessment.
• Highlighting the significant competition to attract and retain talent in the legal sector, some mid-tier UK law firms have been offering a significant boost to junior lawyer pay as they attempt to keep up and compete against larger rivals. The Financial Times reports that Magic Circle firms offered 20% pay increases to junior lawyers last year in an effort to overcome competition from US firms’ London offices. A 2025 study by OneAdvanced found that 32% of law firms placed talent attraction and retention as a core business priority for the next year.

Education

• Since January 2025, the UK has applied a 20% VAT to private school fees – a move that’s stirring controversy and altering the private education landscape. While the government expects £1.6-1.8 billion annually to fund state education and hire thousands of teachers, independent schools have seen dramatic fallout: over 50 closures and enrolment down by more than 11,000 pupils (≈2%) in a year – far exceeding initial forecasts. Primary schools have been hit harder than secondaries and SEND families face particular hardship. Private primary schools saw enrolment drop 3.5%, while secondary schools fell 1.7% from January 2024 to January 2025, according to data published by the Independent Schools Council.
• UK universities have dramatically increased their undergraduate offers ahead of the new intake as they grapple with a deep funding crisis. This year, over 2 million offers were made – 74,000 more than last year – reflecting a desperate attempt to boost student numbers amid financial strain. Despite tuition fees remaining frozen at £9,250 since 2012, inflation has eroded their real value to just £6,500 in today’s terms. Meanwhile, the actual cost of delivering courses has soared to approximately £11,000 to £12,500 at top institutions.
• UK universities are facing a serious blow after the US, under Trump, pulled funding from more than 20 research projects at Russell Group institutions. At least nine projects have received formal ‘stop notices’, with a further 14 projects suspended because their US collaborators lost funding. Five universities – Durham, Leeds, Liverpool, Nottingham and Southampton – were hit directly, with grants cancelled or paused. One such project at Liverpool, focused on improving chicken farming for child nutrition in Ethiopia, was “significantly disrupted” after US Aid funds were defunded. This sudden halt in international funding is more than a financial headache – it’s disrupting critical research, undermining UK higher education’s global standing and impacting teaching, collaborations and student opportunities.
• Since January 2025, the UK has applied a 20% VAT to private school fees – a move that’s stirring controversy and altering the private education landscape. Private primary schools saw enrolment drop 3.5%, while secondary schools fell 1.7% from January 2024 to January 2025, according to data published by the Independent Schools Council.

Healthcare & Social Assistance

• The NHS is coping with escalating staffing losses as roughly one in seven British‐trained doctors now practise abroad, the Financial Times reports, driven by pay stagnation and poor working conditions. Nurses overwhelmingly rejected a 3.6% pay offer, raising the threat of more strikes amid high vacancy rates and reliance on corridor care. In response, the government unveiled a 10‑year NHS reform plan, aiming to shift care into communities, accelerate digitisation via the NHS app and emphasise prevention – though funding clarity remains elusive. Social care is equally strained: only 86 new care‑home beds were built in 2024 despite growing elderly demand and reform has been delayed until 2028, deepening pressure on NHS resources.

• Over the last decade, nearly 100,000 adults in England who would have previously qualified for state‑funded social care have been denied support due to prolonged council budget cuts, according to analysis by the Institute for Government. While disability rates have remained steady or increased, the proportion of adults receiving long‑term care has fallen sharply – from 2.3 % in 2003-04 to just 1.4 % in 2025-26. Vulnerable individuals lose vital support, forcing unpaid carers (typically working‑class women) to pick up the slack, while delays cascade into escalating health needs and strain NHS resources. The social‑care crisis now stands as a major obstacle to both individual well-being and wider public health resilience.

• Remote GP consultations in England hit a post-pandemic high in June 2025, with 33.3% of all appointments conducted by phone or online, up from 28.3% in June 2023. Online consultations have surged from 1.5% to 8% over two years, while in-person visits have fallen. The Royal College of GPs (RCGP) says remote care offers valued convenience and is safe in most cases, but warns that outdated IT risks undermining service quality. Chair Professor RCGP Kamila Hawthorne is urging at least £2 billion in funding for robust, modern systems to ensure safe and effective remote consultations.

• The British Medical Association notes patients in England’s most deprived areas are waiting longer for NHS treatment than those in better‑off regions: 3.1% in the worst‑off areas have waited over a year, compared with 2.7% in the least deprived. In the East of England, that figure reaches 4.9%, while in London it’s 2.4%. Ethnic minority groups are also hit hard: 58.2% of Asian and British Asian patients are seen within 18 weeks, versus 60.3% of white British. Women and 19‑64‑year‑olds feature disproportionately on waiting lists and face longer delays. These disparities intensify pressures on both healthcare and social care systems, straining A&E, outpatient capacity and community services.

• The government plans to introduce new legislation next year to regulate NHS managers, aiming to prevent those who silence whistleblowers from taking senior roles. The move is part of a broader effort to foster a culture of transparency and learning within the NHS. Matthew Taylor, CEO of the NHS Confederation, stressed that any regulatory system must be fair and independent. This framework could mark a major shift in accountability and leadership standards across UK healthcare.

• The government has announced a £75 million funding boost to help upgrade over 170 hospices across the UK. The improvements will include family rooms, solar panels, and community lounges – enhancing both patient comfort and environmental sustainability. The funding will be distributed by Hospice UK, with hospices carrying out the work first and then invoicing the charity. Care Minister Stephen Kinnock said the government is committed to supporting hospices in their vital role. This investment is set to strengthen end-of-life care and community support, easing pressure on wider health and social care services.

Arts, Entertainment & Recreation

• The UK government has secured a landmark label‑led deal to boost earnings for legacy artists, songwriters and session musicians, with major labels – Universal, Sony and Warner UK – endorsing a new framework released on 22 July 2025. Key measures include contract renegotiation for legacy artists whose agreements predate streaming; digitisation support for back catalogues; per‑diem payments for songwriters (£75/day); and session musician fee uplifts of 40% for pop and 15% for classical. These reforms are expected to channel tens of millions of pounds into the creative sector by 2030, improving financial fairness for creators and catalysing sustainable growth across UK music culture and recreation.

• The UK is undergoing a significant debate on gambling regulation, driven by the ongoing implementation of the 2023 Gambling White Paper. Since early 2025, measures such as statutory stake‑limits on online slots, frictionless financial vulnerability checks, mandatory deposit limits and enhanced marketing opt‑ins have been rolled out. A forthcoming enforcement framework now ties penalties directly to operator revenue for transparency and deterrence. Simultaneously, a growing group of Labour backbench MPs and the APPG on gambling harm are pushing for wholesale reform – including a new Gambling Act, advertising bans and shifting regulatory oversight to the Department of Health to treat gambling as a public health issue. Industry and racing bodies warn higher unified taxes could severely damage horseracing’s economic contributions (£4 billion a year and 85,000 jobs) and push users into the unregulated black market.

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