UK Industry Fast Facts

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

Agriculture, Forestry & Fishing

• British farmers have warned that a surge of Australian steak imports is undercutting domestic beef production in the UK. The National Farmers’ Union and National Beef Association told the Financial Times in August 2025 that high-value Australian cuts are flooding the UK beef market, putting local producers at a disadvantage. Data from the Australian Department of Agriculture, Fisheries and Forestry shows that Australia exported 6,503 tonnes of beef to the UK in the first five months of 2025, already surpassing the total for all of 2024. This pressure is squeezing domestic producers and sparking a crisis of confidence within the industry, with growing calls to review the current government policy that gives Australia access to a duty-free quota of 35,000 tonnes under the 2023 agreement.

• UK dairy exports have surged in the first half of 2025, owing to strong demand from Europe. Data from the AHDB shows that UK dairy exports hit £1.1 billion in the year to June 2025, representing a 20% climb on the same period last year. AHDB data also shows that total UK export volume for Q2 2025 rose by 9.8% year-on-year, driven by exports of cheese, milk and cream, powders and whey and whey products. Changing consumer tastes and trends like growing protein intake have played a key role, with exports of powders and whey and whey products expanding 31.1% year-on-year.

• Over 50 dairy farms across the UK have been appointed to join the newly launched UK Dairy Carbon network. Led by the Agri-Food and Biosciences Institute and funded by DEFRA, the project brings together top research institutions and industry organisations to work with farms to reduce emissions while improving farming efficiency. Work is underway to collect the carbon footprints of each participating farm, which will guide efforts to cut greenhouse gases throughout the three-year project.

• Calls are growing for urgent action after British farming is on track for one of its deadliest years in a decade. Data from the Health and Safety Executive show that the number of farm-related deaths in the UK has risen to 17 since 1 April 2025. Industry bodies are calling for immediate improvements in safety attitudes and greater focus on training, regulation and cultural change after the tragedies.

• The EU has warned the UK it must meet its commitment to check goods entering Northern Ireland before talks can begin on an agrifood trade deal. The agreement, expected by 2027, aims to establish a veterinary or sanitary and phytosanitary agreement to boost agrifood trade between the partners. Any proposed deal aims to reduce costs and paperwork for farmers exporting meat, dairy, eggs and plants to the EU, where UK agrifood exports have fallen since Brexit. Delays risk prolonging uncertainty and keeping trade barriers in place for producers across Great Britain, supplying Northern Ireland and EU markets.

• The UK is grappling with steep food price rises, partly driven by agricultural pressures. ONS data shows the annual rate of food and non-alcoholic drink inflation reached 5.1% in the year to August 2025, up 38% compared with January 2021. An article in the Financial Times from October reports that meat and dairy producers are “sounding the alarm” over rising labour costs and weak production, which are limiting their ability to expand, tightening supply and driving prices higher. Among the hardest hit were beef, which rose 25% year-over-year in August and butter, up 19%.

• Sentiment towards British farming is on the up as “Buy British” narratives take hold. The 2025 AHDB and YouGov survey reveals that 71% of consumers hold a positive view of British agriculture, up from 67% in 2024 and the highest level since the survey began in 2019. 58% of consumers say they are likely to seek out British food over imported alternatives, offering a welcome boost for a sector that has struggled with rising input costs, volatile commodity prices and competition from cheaper imports.

• Extreme weather delivers a poor harvest, with farmers blaming heavy rainfall followed by prolonged dry spells for damaging yields. Provisional government data released in October show England’s 2025 barley harvest down 14% year on year, while spring barley output fell 23%.

• A report published by McCain Foods in its inaugural Farmdex release in November highlighted the difficulties facing UK farmers. The survey found that 35% of farmers reported making no profit or only breaking even in the year to July, while just 14% said they achieved profits above 10%. Farmers pointed to continued post-Brexit pressures, including reduced subsidy support and challenging weather conditions, as key factors squeezing margins. Farmers blamed a mix of post-Brexit pressures, including shrinking subsidy support and tough weather conditions, for putting margins under strain.

• Research carried out by advocacy group Sustain and reported by The Guardian found that intensive livestock “megafarms” are continuing to progress through planning without disclosing their full emissions. This is despite a 2024 Supreme Court ruling requiring all major developments to account for significant direct and indirect greenhouse-gas outputs. Of the 35 planning applications submitted since the ruling, none provided emissions data for the farms themselves, highlighting a major gap in environmental scrutiny.

Mining

• The Office for National Statistics reports that the mining and quarrying sector output dropped by 3.4% in September 2025. Output from the sector dipped by 1.5% in the three months to September 2025.
• World Bank Commodities Price Data released in November 2025 shows that quarterly average Brent crude oil and WTI crude oil prices have been steadily falling since Q3 2024. Prices have eased further in October 2025 amid oversupply.
• World Bank Commodities Price Data released in November 2025 shows that, in October 2025, metals and minerals, apart from nickel, posted a climb. Most metals, except nickel, recorded higher quarterly average prices in Q3 2025 against Q2 2025, while only lead and nickel were at higher prices in Q3 2024 compared to Q3 2025. Precious metal prices, especially gold, have climbed and remained high by historical averages in October 2025, with gold continuing to climb to record levels, amid heightened global economic uncertainty, escalating geopolitical conflict tensions and US tariff concerns.
• On 22 November 2025, the government launched the UK’s new Critical Minerals Strategy, which sets out a target to produce 10% of the UK’s mineral needs domestically and 20% through recycling by 2035. It also targets at least 50,000 tonnes of lithium to be produced in the UK by 2035. The strategy is backed up by up to £50 million in new funding, aiming to reduce the UK’s overreliance on foreign imports of critical minerals. The government aims to ensure no more than 60% of the UK’s supply of any one critical mineral is imported from any one country by 2035. The strategy has been welcomed by Cornish Lithium’s chief executive, Jamie Airnes, who states it will create UK jobs and boost manufacturing.
• UK Oil and Gas plc is increasingly shifting focus from petroleum exploration to hydrogen storage, as it advances hydrogen storage facility projects in South Dorset and East Yorkshire.
• The Financial Times reports that UK Chancellor Rachel Reeves could move to scrap the windfall tax on the UK oil and gas industry in the Autumn Budget, ending the energy profit levy in March 2029 instead of in March 2030, as long as oil and gas companies commit to new investment and jobs in the North Sea.
• In early November 2025, in an interview with Sky News, US Ambassador Warren Stephens urged the UK to hike drilling in the North Sea to boost the economy.
• ExxonMobil is to close its Fife Ethylene Plant in February 2026 due to challenging market conditions, including high supply costs and plant inefficiency, and the UK’s challenging policy environment. The planned closure of the chemicals plant will result in 200 job cuts.

Manufacturing

• The Purchasing Managers’ Index (PMI) rose to 49.7 in October 2025, up from 46.2 the previous month, marking the 13th consecutive month of contraction in manufacturing output in the UK. While still in contraction, this comes as a boost as September marked the sharpest fall in manufacturing output since March, as new orders weakened on the back of softening domestic demand and a slump in overseas sales, weighed down by tariff uncertainty and supply chain disruption. October’s PMI uptick was driven by a rebound in car manufacturing as Jaguar Land Rover resumed production, coupled with falling input costs and smoother supply chains.

• Car manufacturers must meet a government mandate requiring 28% of new sales to be electric vehicles (EVs) by the end of 2025, with fines of up to £12,000 per non-compliant car. According to the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicle (BEV) registrations rose 23.6% year-on-year to October, following a 29.1% rise in the year to September 2025.

• UK cement production has dropped to its lowest level since 1950. The Mineral Products Association (MPA) reports that the UK produced just 7.3 million tonnes of cement in 2024, about half the output seen in 1990. The decline in output comes amid rising costs and changing carbon taxation, which has reduced market competitiveness and seen imports grow. Dr Diana Casey, executive director at the MPA, warns that this trend threatens to derail the government's ambitious housebuilding targets.

• On 29 September 2025, Chancellor Rachel Reeves announced plans to classify shipbuilding as critical national infrastructure. The move follows an August agreement for Norway to procure UK-built Type 26 frigates from BAE Systems in Glasgow, a deal worth £10 billion to the UK economy. The contract is set to deliver a major boost for manufacturing, supporting more than 4,000 jobs and benefitting hundreds of British businesses across the supply chain.

• The UK steel industry faces renewed pressure as the EU moves to halve its quota for tariff-free steel imports and impose 50% tariffs on any volumes above that limit. The move follows concerns that the European market could be flooded with cheaper steel redirected after the US imposed tariffs earlier this year. The EU remains the UK’s most important export market, with data from UK Steel showing that the bloc accounted for 78% of steel exports in 2024, posing fresh challenges for British producers. The blow comes just weeks after a proposed deal to remove US tariffs on UK steel was put on hold indefinitely in September, adding to uncertainty.

• Chinese wind turbine maker Ming Yang Smart Energy announced plans to invest up to US$2 billion (£1.5 billion) in Scotland to produce key components for offshore wind projects, including turbine blades, nacelles and floating platforms. The move, subject to approval from the UK Government, is poised to create up to 1,500 jobs and could be in production by 2028.

• A Make UK report published in October shows manufacturers are investing at their slowest pace since 2017, with spending on plant and machinery averaging 6.8 % of turnover in 2025, down from 8.1 % in 2024. Nearly 40% of companies cited uncertainty over tax incentives and allowances as a key factor holding back capital spending, alongside high borrowing costs and weaker demand.

• Car production slumped to its lowest level since 1952 in September as the industry grappled with the fallout from the Jaguar Land Rover cyber-attack, which halted production for six weeks from 31 August 2025. Data from the SMMT show UK car output fell to 51,100 units, down from 70,000 a year earlier – a dip of 27%. The National Cyber Security Centre estimates the disruption at JLR cost the UK economy around £1.9 billion.

• The Department for Business and Trade has announced support for transitioning the Scunthorpe steelworks from blast-furnace operations to electric-arc furnace technology, marking a major shift in UK steelmaking. The scheme is designed to secure the future of production at the site, which has been under emergency state control since April. Ministers will draw on the £2.5 billion funding package committed in February to help decarbonise the UK steel sector and underpin long-term investment.

Utilities

• The energy price cap set by Ofgem increased by 2% for the period from October to December 2025, reducing the annual cost from £1,849 to £1,720 for a typical household. The rise reflects mounting network charges and inflationary pressures, with households set to feel the pinch this winter as steeper tariffs collide with heavier seasonal energy use.

• UK energy bills are set to edge up 0.2% in January after Ofgem confirmed the new price cap. Households will pay an average of £1,758 a year from January to March, up slightly from the current level of £1,755. The modest rise reflects higher network and system upgrade costs, offsetting the slight fall in wholesale prices.

• In September, Centrica announced plans to step up its commitment to nuclear power as part of a £10 billion initiative to build the UK’s first advanced modular reactors in north-east England, in partnership with US firm X-energy. This agreement is one of several between British and American companies following the launch of the Atlantic Partnership for Advanced Nuclear Energy. Centrica CEO Chris O’Shea told the BBC he expects the nuclear expansion to deliver stable energy prices for UK consumers in the long term.

• In October 2025, the CMA approved plans for Anglian, Northumbrian, Southern, South East and Wessex Water to raise bills by an additional 3%, totalling about £556 million over the next five years – a move that will push up costs for millions of households. This follows an average 24% climb permitted under Ofwat’s December ruling.

• Audits commissioned by Ofgem on behalf of the Department for Energy Security and Net Zero have uncovered “unacceptably poor” work under the UK government’s flagship energy efficiency programme. Since 2022, 98% of external wall insulation installations and 29% of internal wall insulation fitted under the Energy Company Obligation scheme require corrective work, with many homes affected by damp and mould. The findings deal a significant blow to the UK’s energy efficiency agenda, undermining confidence in retrofit schemes and threatening to slow progress toward net-zero goals.

• Britain’s domestic gas supply is set to shrink this winter, expanding reliance on imports. National Gas expects output from UK offshore fields to fall by around 6% this winter compared with last, as production from the North Sea basin continues to sink and environmental limits curb new exploration. Norway is expected to fill much of the shortfall, supplying an estimated 36% of Britain’s total gas over the upcoming period.

• Sewage pollution and water outages have surged despite higher bills. New Ofwat data show total pollution incidents in England rose 27% between 2020 and 2025, despite water companies pledging to cut them by 30% over the same period. The regulator also found interruptions to water supplies increased by 8%, driven by burst mains and failures at treatment works.

• The UK government has announced plans to create 400,000 additional jobs by 2030 for the clean-energy sector. Employment in renewables, including wind, solar and nuclear, is expected to double to 860,000, ramping up demand for 31 priority occupations, including plumbers, electricians and welders.

• A November Financial Times report warned that a single-point failure at Thames Water’s Coppermills plant – which supplies up to four million Londoners – could cut off water for large parts of the capital. It exposes the depth of the company’s operational risks as it battles a near-£20 billion debt load. Thames Water says fixing the deteriorating Coppermills site would require £400 million in upgrades, showing the scale of investment needed to shore up its ageing network.

• In November, Ofgem backed plans to develop a 1,500-mile core hydrogen network, approving £107 million in new funding and lifting its total commitment to £164 million, following an initial £57 million approved in June.

• Ofgem has announced plans to overhaul its energy customer-service standards, including proposals to reshape its regulatory framework. The regulator is considering a shift to outcomes-based regulation, meaning suppliers would be expected to ensure that “every customer interaction leads to a positive result” as part of a wider push to raise service quality and strengthen accountability.

Construction

• The latest S&P Global release shows the UK Construction PMI fell to 44.1 in October, down from 46.2 in September and marking its fastest rate of contraction since May 2020. The index has now been below the 50.0 threshold for 10 consecutive months, its longest continuous decline since the 2008 financial crisis. The drop reflects clients delaying projects amid uncertainty ahead of the November Budget, leading to widespread cutbacks. Housing and civil engineering drove the fall, with housebuilding seeing its fastest rate of contraction in eight months.

• The Atlantic Partnership for Advanced Nuclear Energy, announced in September 2025, is set to spark a flurry of activity in the UK construction sector. A collaboration between Holtec International, EDF Energy and investor Tritax will develop small modular reactors to power advanced data centres at the former Cottam coal-fired station. Holtec values the scheme at £11 billion and says it could create thousands of construction and operations jobs.

• A report published by the Home Builders Federation in September warns the government that housebuilding in London is on the brink of collapse. The report highlights that a lack of buyer support, excessive bureaucracy and significant planning delays are "strangling" attempts to deliver new homes in the capital. This follows data from the Ministry of Housing, Communities & Local Government that shows decided planning applications in England dropped 2% year-on-year from January to March 2025, highlighting ongoing weakness.

• The UK government has signed contracts to kick off the construction of two carbon capture and storage projects – at Heidelberg Materials’ cement works and at Encyclis’ waste-to-energy facility. Construction is expected to start in late 2025 and support around 500 jobs.

• In October 2025, ministers took control of the £10 billion Lower Thames Crossing, removing oversight from National Highways and placing the project directly under the Department for Transport. The move aims to regain control over spiralling costs and timelines, signalling tighter central oversight of major infrastructure delivery.

• Data from the Government’s Insolvency Service show that construction companies in England & Wales accounted for 15% of all insolvencies in August 2025, a 12.7% monthly decline and 11.9% year-on-year. This reflects easing cost pressures and a steadier flow of public and private infrastructure projects, which are helping to sustain demand for construction firms.

• Construction employment has sunk to its lowest level in almost 25 years. ONS data shows the workforce fell by 1.3% in Q3 2025 as the housing downturn, weak commercial activity and higher employment costs pushed firms to scale back. The sector’s workforce is now around 12% smaller than it was in Q3 2019, the last pre-pandemic benchmark.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale trade, except of motor vehicles and motorcycles climbed by 1.7% in September 2025.

• Co-op Wholesale has secured a five-year contract extension to supply all Ascona forecourts across the UK. This is an extension to an agreement that began in 2020, with the wholesalers to supply all 62 forecourts with grocery products, including Co-op's own-label items. In October 2025, The Grocer reported that Co-op Wholesale has further expanded its presence in the forecourt market by signing a multi-year agreement with Tankerford to become its primary supply partner for its 11 forecourt convenience stores.

• SOS Wholesale, one of the UK’s largest discount wholesalers, filed for administration in September 2025 amid severe cost pressures and shifting consumer spending habits. The Grocer reported at the end of October 2025 that the collapsed company owed creditors £10.5 million.

• World-leading cooling technology and HVAC wholesaler, Beijer Ref, has moved to consolidate by uniting its three UK businesses and rebranding its Irish operations (Dean and Wood, RW Refrigeration and HRP in England and DWG Refrigeration Wholesale in Ireland) to achieve efficiencies.

• According to The Grocer, the Wholesale Group is trading ahead of expectations and is closing in on the £5 billion turnover target, representing 14% of the wholesale market.

• An exemption of wholesale depots from the proposed higher band of business rates from 2026 will hike costs for wholesalers, with 80% stating they would be forced to raise food prices in response.

• Citing industry experts, The Grocer reports that AI tools could help wholesalers cut order processing time in half, enhancing efficiency.

• Italian dairy conglomerate Granarolo, which has a UK subsidiary in the wholesale of dairy, has strengthened its UK market position following the acquisition of West Horsley Dairy, a wholesaler of dairy products to caterers, schools, restaurants and other independent clients in the south of England.

• The Grocer reports that Boutinot, a Manchester-based wine wholesaler, has secured a £5.5 million funding package from HSBC UK, allowing it to expand vineyard operations in South Africa, New Zealand and the UK.

Retail Trade

• The latest figures from the British Retail Consortium (BRC) show UK retail sales rose 3% by value and 1.2% by volume in October. While much of the growth is credited to smaller retailers, the sector is also looking ahead to the upcoming trading season (including Black Friday and Christmas), but is facing headwinds.

• Consumer expectations for the state of the economy fell to -44 in November, from -35 in October, according to the BRC. Meanwhile, the outlook for personal finances worsened to -16 (from -11) and planned spending on retail goods dropped to +8 (from +14) in the same period. The weakening sentiment comes amid speculation over tax rises and inflationary pressures, signalling a potential headwind for retail and high-street spending heading into the Christmas period.

• The BRC’s latest data shows that, despite a fall in overall UK shop price inflation to 3.6% in October, food inflation has risen again to 4.9%, reversing some of the easing seen earlier in the year. This renewed increase in food prices is adding pressure to household budgets at a time when consumer confidence is already weakening, making shoppers more cautious in their spending habits.

• According to the BRC, retailers are working hard to limit price increases by improving efficiency and negotiating lower costs from supply chains, but many are reaching the limits of what they can absorb.

• With the government’s Budget imminent, the BRC is urging ministers to introduce policies that help stabilise costs for retailers and consumers alike. A key ask is meaningful reform of the business-rates system, which the industry argues continues to hamper competitiveness and restrict the ability of retailers to invest in lower prices. By providing targeted support and easing the tax burden, the Government could help retailers maintain pricing discipline while protecting consumers from further inflationary pressures. Overall, the rise in food inflation signals a challenging winter trading period ahead, underscoring the need for supportive economic policy.

• Britain’s major supermarkets have urged Chancellor Rachel Reeves to scrap the proposed business-rates surtax on large retail premises, warning it would worsen inflation and undermine consumer confidence. The British Retail Consortium said retailers have already absorbed more than £7 billion in extra costs this year from higher national insurance contributions and packaging taxes. Applying the surtax to big stores could drive up food prices, squeeze profit margins and hinder investment across the retail sector. Industry leaders argue that easing the tax burden is vital to stabilise prices, safeguard jobs and maintain momentum in the fight against inflation.

• The British Retail Consortium (BRC) welcomed the Keep Britain Working Review carried out by Sir Charlie Mayfield, noting that retailers already invest significantly in supporting employees with ill-health or disabilities and recognise the structural barriers cited in the report. However, the BRC has also urged MPs to support the practical amendments tabled by the House of Lords to the Employment Rights Bill, warning that measures like “day-one rights” and guaranteed hours contracts could hamper hiring and reduce flexibility,  particularly as around half of retail workers are part-time. The BRC emphasises that while it supports fair treatment of employees, the Bill must protect flexible roles and ensure responsible businesses aren’t penalised.

• The British Retail Consortium reports that UK retail footfall fell for a sixth consecutive month, with overall visits down 0.7% year-on-year during the four weeks to 1 November 2025. While high streets managed a modest increase of 0.6%, shopping centres and retail parks continued to decline. The slump reflects weak consumer confidence, the cost-of-living squeeze and anticipation of tax rises ahead of the Budget. For the retail sector, ongoing footfall falls mean pressure on sales, margins and investment, making government support on business rates and cost burdens ever more crucial.

Transportation & Warehousing

• A new pay-as-you-go rail ticketing system that monitors the location of passengers throughout their journey is set to be implemented on a trial basis in England. This initiative is part of a government effort to simplify the complex fare structure of the country's railway network. The pilot will first roll out on routes in the East Midlands, where travellers can check in for their journey using a mobile app that employs satellite technology to track their location. At day's end, passengers will be automatically charged the lowest applicable fare for their travel. If successful, the Department for Transport says this new system will replace traditional paper and mobile tickets that use QR codes, boosting efficiency in rail travel.

• Transport for London is preparing to release detailed proposals to strengthen the regulation of London’s pedicabs. The plans, following an initial consultation held in June, include regulated fares, enhanced criminal record checks and annual vehicle inspections.

• Coastal communities across the UK are set to benefit from over £1.1 billion in investment for the maritime sector. Announced on the first day of London International Shipping Week on 15 September 2025, the funding includes £700 million in private investment and £448 million in public funding. This investment will support the research and development of new clean maritime technologies and fuels to help reduce carbon emissions from shipping.

• The UK’s Rail Minister has warned of growing driver shortages across train operators, urging companies to step up recruitment to avoid disruption. Of the 27,000 licensed train drivers in Britain (excluding Northern Ireland), the Aslef union estimates that around 22% of passenger drivers are due to retire within the next five years, raising the risk of widespread service shortages and increased pressure on operators to train new staff.

• Pakistan International Airlines has resumed weekly flights to the UK after a five-year ban, following regulatory clearance from the UK Civil Aviation Authority. The first flight, from Manchester to Islamabad, took place on 25 October, marking the airline’s return after services were suspended in 2020 amid a scandal over fake pilot licences in Pakistan.

• The Department for Transport has announced plans to extend contactless tap-in/tap-out payments to all London airports from December 2025. The upgrade is backed by around £18.7 million in government funding and will cover up to 50 stations across the South East, simplifying rail journeys for millions of passengers.

• TfL has confirmed an update to the London Congestion Charge, which will rise from £15 to £18 from January 2026. As part of the overhaul, electric vehicles will lose their full exemption. Electric cars will qualify for a 25% discount, while electric vans, HGVs and quadricycles will receive a 50% discount when registered for Auto Pay.

Accommodation & Food Services

• ONS data reports that output in accommodation and food beverage service activities dipped by 0.01 percentage points in September 2025. Food and beverage activities dropped by 0.5% in September 2025, the second-largest negative contributor in consumer-facing services. In the three months to September 2025, output in accommodation and food service activities fell by 0.4%, with accommodation alone dropping by 1.1%.
• The Financial Times reports that UK steakhouses are cutting portion sizes and hiking prices amid a rising cost of beef that weighs on profit, driven by cattle shortages and strong consumer demand.
• Data from the ONS reveals that wage growth in the accommodation and food services sector was below the average across all sectors, climbing by just 3.9% in April 2025 compared with April 2024. This comes as hospitality businesses were preparing for tax hikes in April 2025, with many cutting headcount and reducing workers’ hours.
• The CGA RSM Hospitality Business Tracker reveals that Britain’s leading managed restaurant, pub and bar groups extended a run of flat trading with like-for-like sales growth of just 0.1% in October 2025. Like-for-like sales in managed pubs were 1.9% higher from October 2024, while managed restaurants’ sales were down by 1.4% year-on-year and sales in managed bars dipped 5.9% in the same period. Pubs have outperformed restaurants and hospitality as a whole every month of 2025.
• Fast food chain Yolk has fallen into administration after accumulating about £1.7 million in debt. The chain, which opened its doors in 2014, has been forced a number of sites in London after it underwent a company voluntary arrangement.
• The 2025 European Hotel Industry and Investment Survey by Deloitte has ranked London as the most attractive European city for hotel investment in the year ahead, topping the rankings for the third consecutive year. In the regional UK market, Edinburgh was placed as the most attractive for hotel investment for a fifth consecutive year, ahead of Cambridge, Oxford and Manchester. Additionally, nearly half of all executives surveyed also expected revenue per available room to climb between 1% and 3% across the UK. In terms of challenges facing the industry, workforce (83%), geopolitical tension (78%) and managing profitability (69%) were the biggest risks for the year ahead. 74% of those surveyed also anticipated the level of competition for hotel acquisitions to intensify in 2026 as hotels remain the most attractive hospitality asset class.
• According to RSM Hotels Tracker, based on data by Hotstats, UK hotel occupancy rate climbed from 82.8% to 85% in September year-on-year, with the rate reaching 87.2% in the capital. Average daily rates also climbed, driving an increase in gross operating profit, from 41% to 41.8% over the year.

Information

• ONS data reports that output in the information and communication subsector expanded by 0.8% in September 2025. The growth during the month was mainly driven by motion picture, video and TV programme production, sound recording and music publishing activities, which grew by 5.4%.
• BT’s Openreach warns that it could scrap its UK fibre target of 30 million by 2030 amid a dispute with Ofcom regarding the price curbs it has placed on the broadband provider.
• EE has announced that its 5G SA network reach now covers 44 million people, equivalent to 66% of the population. The initial target laid out by the company was to reach 41 million people by spring 2026, equivalent of 60% of the UK population.
• Virgin Media O2 is eyeing up an acquisition of Netomnia, the fourth-largest broadband network operator in the UK, in what The Financial Times states would be a “landmark deal to consolidate the UK telecoms market”. Netomnia’s fibre optic network reaches 2.8 million homes and boasts over 400,000 customers.
• The large mobile network operators, including EE, Vodafone and Virgin Media O2, are stepping up efforts to tackle scam calls using AI technology that can identify and block suspicious calls and texts, preventing scams before they occur.
• The Financial Times reports that UK broadband provider, Gigaclear, has launched a sale process amid a £1 billion debt pile. The provider serves about half a million homes, with about 160,000 customers.
• Large UK banks, including NatWest and Lloyds, have slowed new lending to the UK altnet sector, with many fibre broadband providers facing severe debt while battling high interest rates and low customer uptake.
• According to UK Finance, the number of fraud cases surpassed two million, surging by 17% in H1 2025 compared with the same period in the prior year. The amount of money stolen stood at £629 million, 3% higher.
• The Financial Times reveals that the government is looking to enable regulators the powers to fine companies for failing to comply with cyber security rules, including a fine of up to 4% of their annual turnover of £17 million, whichever is larger.

Finance & Insurance

• Household debt as a share of disposable income has been falling: it peaked at 155.8% in Q3 2008, declined to around 135% by early 2016 and by Q2 2025 stood at 117.1% according to a report by the House of Commons. Mortgage interest rates have eased somewhat, with the average UK standard variable rate (SVR) at 6.78% in October 2025 (down 0.90 percentage points year-on-year) and the average two-year fixed rate was 4.22% (down 0.18 percentage points year-on-year). In terms of personal insolvencies in England & Wales, there were 30,494 in Q2 2025, up 3.2% on the year. The reduction in household debt relative to income improves resilience for banks and lenders, lowering overall credit-risk exposure.

• For mortgage providers, the easing of interest rates suggests some relief, but with SVRs still fairly high, vigilance remains on payment stress. The uptick in insolvencies signals emerging distress, which matters for insurers offering credit and liability cover and for banks’ provisions. Lower indebtedness also means potential for increased consumer spending or refinancing activity, an opportunity for financial services firms to expand non-interest income via remortgages or insurance products.

• UK insurance-distribution M&A began Q4 2025 strongly, with 10 transactions in October, marking the fourth month this year to reach double-digit deal volumes, though the year-to-date total of 85 deals remains well below the 150+ recorded in 2023 and 2024, according to Insurance Business UK. Activity has shifted toward smaller acquisitions, with over two-thirds of 2025 deals valued under £5 million, while major consolidators like Ardonagh Group and Brown & Brown (Europe) have slowed their pace. This trend signals continued consolidation but with greater caution amid tougher macro-economic conditions.

• For the wider UK finance and insurance sector, smaller, lower-risk deals suggest constrained availability of large financing opportunities, more selective capital deployment from private equity and an increased operational focus on integrating smaller brokers to drive efficiencies and maintain profitability in a slower-growth, higher-cost environment.

• More than half (57%) of UK adults now use mobile wallets, according to UK Finance’s Payments Markets Report 2024. Debit, credit and charge cards (physical and mobile) accounted for 64% of all UK transactions, while cash payments fell below 10% for the first time. Meanwhile, real-time transfers via the Faster Payments Service rose by some 14% as mobile banking usage hit 75%. For UK banks, the shift underlines the urgency of upgrading digital infrastructure, managing cyber and fraud risks associated with wallet and instant payments and rethinking offerings, especially as more traditional cash-reliant segments shrink and regulatory focus on newer models like “buy now, pay later” tightens.

• New research reveals that social-media-driven “fear of missing out” (FOMO) is now a major contributor to rising credit card debt in the UK. According to Updraft, 46% of UK adults say they overspent this summer after being influenced by travel and lifestyle posts on platforms like Instagram and TikTok, with the average Brit adding around £1,641 to their credit card debt, up 21 % year-on-year. The phenomenon is especially acute in September, as off-peak holiday bookings rose 20%, indicating people are borrowing to fund experiences they feel pressured into. This trend signals heightened consumer vulnerability – rising unsecured debt may increase default risk and push lenders to tighten credit criteria, adjust risk modelling and enhance financial-wellness services to address impulsive borrowing driven by social pressures.

• Lenders in the UK mortgage market are offering deals with interest rates dipping below 4% for borrowers with sizeable deposits (around 40% of the property's value). This follows funding conditions easing and expectations of further cuts by the Bank of England (BoE), even as the current BoE base rate remains elevated, putting pressure on borrowers on variable or tracker products. This means tighter margins for lenders competing for new business, heightened refinancing risk among homeowners when fixed-rate deals expire and increased scrutiny on underwriting standards  – especially for borrowers with smaller deposits or in regions where affordability remains stretched.

• UK house prices have hit a new record average of £299,862, up 0.6% in October and 1.9% year-on-year, according to the Halifax House Price Index. While demand has held up, affordability remains stretched as the average fixed mortgage rates sit around 4% and many buyers are using smaller deposits or extending loan terms. Regionally, Northern Ireland led with an 8% annual rise, while London and the South East saw small declines (-0.3% and -0.1%, respectively). The backdrop means strong home-equity values support secured lending, but stressed affordability and uneven regional dynamics raise risk-and-return challenges, particularly in underwriting and servicing new mortgage book growth.

• According to money.co.uk’s analysis of government cyber breach data, 48% of small finance and insurance firms in the UK reported a cyber breach in the past year, placing the sector as the third most-targeted for cyberattacks. These attacks carry major cost implications, with the annual bill for small businesses in finance and insurance estimated to reach £921 million. For the UK banking, finance and insurance sector, this trend raises significant concerns, not only around the direct financial losses and reputational damage, but also regulatory exposure, rising cyber-insurance premiums and the need for more robust risk-management frameworks and supplier-chain oversight. Larger firms will be watching closely, as contagion via smaller partners can escalate systemic vulnerabilities.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 2.4% in October 2025 compared with October 2024. Prices climbed by 0.3% month on month and the average house price stood at £272,226. Nationwide reports that the housing market shows resilience despite a backdrop of subdued consumer confidence and signs of a weakening labour market. It forecasts that housing affordability could improve if its expectations of income growth outpacing house price growth continue.

• Data from the ONS reveals that London house prices have dropped to their lowest levels in nearly two years amid ongoing affordability pressures. London’s average house prices have dipped by 1.8% in the year to September 2025, compared to a 2.6% increase across the country.

• Halifax reports that UK house prices climbed in October 2025 at the fastest rate since the start of the year, despite uncertainty caused by the upcoming Autumn Budget.

• The Royal Institution of Chartered Surveyors reveals that UK home sale listings dropped at the fastest pace in two years in September 2025 amid heightened uncertainty over the upcoming Autumn Budget in November, with individuals expecting further tax hikes.

• The Financial Times reports that planned government reforms aimed at speeding up house sales and curbing failed transactions will see homebuyers getting upfront transparency about problems with properties on the market and the option of binding contracts.

• According to forecasts from Savills, UK house prices could surge by 22.2% over the next five years, though lingering inflation, higher interest rates and a weaker labour market could constrain price growth.

• Based on data from Cushman & Wakefield, the Financial Times reports that New Bond Street in London has become the world’s most expensive location for retailers, with strong demand outpacing availability.

• Investec’s Future Living survey, which gauges sentiment among 50 global institutional investors with over £300 billion of assets under management, has found that investor confidence in the UK commercial real estate market has taken a hit, with 76% of respondents citing political uncertainty as a driver of a weaker market.

• According to CBRE data from September 2025, capital values for UK commercial real estate hiked by 0.1% in August 2025, while rental values inched upward by 0.2%, with total returns at 0.6%. The retail and the industrial sectors recorded month-on-month total returns for August of 0.6% each, while office total returns were at 0.4%. In the three months to August 2025, total returns stood at 1.9%.

• Savill’s Central London Office Market Watch Q3 2025 reveals that leasing activity slowed in Q3, reaching 1.9 million square foot (sq ft) across 167 transactions. This is down 30% on Q2 2025 and down 28% on the long-term average for Q3. The lower volume of activity was driven by a lack of larger transactions. The overall year-to-date take-up stood at 6.8 million sq ft, 2% below the same period in 2024 and 8% below the long-term average, though this is also impacted by the shift to hybrid working models. The leading sector driving leasing activity was Insurance and Finance (with take-up of 27%), followed by Tech and Media (18%).

• In October 2025, Savills reported that it forecasts the combined volumes for the office and industrial sectors in 2025 will exceed 2024 levels. At the end of September 2025, industrial and office sector transactions reached around £7 billion and £6.2 billion, respectively. Savills reports that there are many deals at an advanced stage to be completed in Q4 2025, which may take the total above the £10.8 billion and £9.9 billion, respectively, for the 2024 full year. The prime average yield stood at 5.75% in September 2025, for the seventh month since February 2025.

• The Financial Times reports that the property division of QuadReal, one of Canadia’s largest pension fund managers, has committed to lending over £2.5 billion to develop digital infrastructure and address the housing shortage in the UK.

• According to a report from Bayes Business School, new commercial real estate lending in H1 2025 was 33% higher than in H1 2024, reaching £22.3 billion.

Professional, Scientific & Technical Services

• ONS data reports that output in professional, scientific and technical services fell by 0.9% in September 2025, the largest negative contribution in the services sector. This was driven by a 4.9% decrease in scientific research and development.
• Analysis by the Financial Times states that the number of partner promotions at the Big Four accounting firms dropped to 179 in 2025, from over 200 in 2024 and from a peak of 276 in 2022. This comes as the firms focus on protecting profit amid a slowdown in consulting demand.
• The Accounting in the Age of AI 2025 report by Ravical reveals that 48% of UK accountancy firms plan to invest between £50,000 and £100,000 in AI over the next year as the industry adapts to rapidly advancing technologies and client expectations.
• Consultancy.uk reports that Palantir has chosen PwC as its partner to support the former’s clients with adopting its technology in AI transformations across the UK.
• Magic Circle law firm Clifford Chance has announced plans to cut 10% of its business services staff in London due to a slowdown in demand for some services and greater use of AI.
• A survey of 1,680 lawyers at 110 top UK law firms conducted by legal rankings company Chambers and Partners has found that two in five associates plan to leave their jobs in the next five years amid significant stress and insufficient support from their employers.
• UK law firms and accountancy firms are pushing back against plans for the FCA to supervise them as part of UK anti-money laundering reforms, citing that the move will hike costs and regulatory burden, as reported by the Financial Times.
• 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.
• The IAB UK HY 2025 Digital Adspend Report forecasts UK digital ad spend to reach £45 billion by 2026, with 10% year-on-year climbs in 2025 and 2026. In the first half of 2025, UK digital ad spend totalled £18.7 billion.
• According to The Guardian, WARC estimates that UK gambling firms spent close to £2 billion on advertising and marketing last year, an estimate which has been disputed by the Betting and Gaming Council, which claims ad spend was closer to £1 billion.
• Leading UK broadcaster ITV has warned that it expects a significant drop in advertising revenues in the final quarter of the year as businesses cut spending ahead amid heightened uncertainty caused by the Autumn Budget.
• The government has announced new funding to boost the UK life sciences sector, with the launch of a new life sciences hub located in London, which is expected to attract over £800 million in investment.

Education

• A recent analysis by Universities UK (UUK) reveals that funding per undergraduate in England is now only 64% of what it was in the 2015-16 academic year after inflation. In cash terms, this equates to approximately £6.4 billion less spent on teaching for current students compared with a decade ago.

• Universities face mounting budget pressures which threaten course availability, research capacity and institutional stability. The shift toward heavy reliance on international student fees exposes institutions to risk from policy changes and global demand fluctuations.

• The government has raised the maximum annual tuition fee to £9,535 for 2025-26 and plans further inflation-linked increases, while also proposing a levy on international student fees that could cost universities around £621 million annually, outstripping the roughly £440 million gain from fee rises. For students, this could mean fewer subject choices, larger class sizes or reduced support services.

• The National Curriculum in England is being overhauled for the first time since 2014. Led by the Curriculum and Assessment Review, the updated framework is designed to deliver a clearer, better-organised curriculum with a stronger emphasis on core skills like oracy, reading, writing and mathematics. It also introduces new compulsory elements for younger years, like citizenship in Years one to six and adds digital literacy, sustainability education, expanded GCSE and vocational qualifications.

• The new curriculum will be published in spring 2027 and taught from September 2028. Schools must adapt planning, resources and training to deliver the transformed content and teachers will need support to embed the new structure and ensure equity for pupils, including those with SEND.

• Starting 1 January 2027, the UK will reduce the duration of the Graduate Route visa for most international students from two years to 18 months. Doctoral graduates remain eligible for a three-year stay. The reduction is part of broader immigration reforms aimed at tightening post-study stay and ensuring the route aligns more directly with skilled employment. For universities, the change raises concerns over attractiveness to international students and potential revenue impact. For employers, the shorter timeframe compresses recruitment and training timelines for international graduates.

• The UK government has announced that from the 2026-27 academic year, undergraduate tuition fees in England will rise annually in line with inflation. Fees will continue to be capped and increases will only apply to institutions that meet tougher quality thresholds. The current cap is £9,535 and the reform is designed to give universities a firmer financial footing amid falling income and rising costs. Institutions now face stronger quality-linked constraints, requiring them to justify fee hikes through improvements in teaching and support. The guaranteed fee rise may ease financial stress for many universities, but the conditional nature of increases adds pressure to deliver outcomes. Rising fees will also raise cost concerns for students and could influence affordability and access.

Healthcare & Social Assistance

• Record numbers of overseas-trained doctors are leaving the UK, creating growing risks for NHS workforce capacity. New General Medical Council (GMC) data shows that 4,880 internationally qualified doctors exited the UK in 2024, a 26% increase from 3,869 in 2023. The GMC, NHS leaders and senior clinicians attribute the rise partly to worsening hostility and abuse directed at migrants.

• Danny Mortimer, chief executive of NHS Employers, noted that the NHS is trying to balance opportunities for UK graduates with the needs of overseas-trained staff while shifting more care into community settings. The departure of so many international doctors threaten to deepen staffing shortages across health and social care, increase pressure on remaining clinicians and undermine service delivery in already stretched neighbourhood and community services.

• The HM Treasury and Department of Health & Social Care have announced that the cost for an NHS prescription in England will remain frozen at £9.90 in the next year. This freeze is expected to save patients around £12 million in 2026. Around 89% of prescriptions are already dispensed free (for children, over-60s, pregnant women and those with certain medical conditions).

• In terms of the UK health & social care sector, maintaining this cap helps protect low-income and vulnerable patients from skipping medications due to cost, which could reduce avoidable hospital admissions and help ease pressure on NHS resources. Meanwhile, freezing charges signals that government-cost pressure on the NHS is being balanced against cost-of-living concerns, but also underscores that sustainable funding and workforce planning remain critical to ensure care provision is maintained.

• The government has announced that around £1 billion a year will be saved by cutting bureaucracy in the NHS England and reinforcing its integration with the Department of Health and Social Care – part of a wider efficiency initiative expected to free up £17 billion over three years. These savings are aimed at redirecting funds into frontline patient care –for example, every £1 billion saved is equated to funding an extra 116,000 hip and knee operations. The reform also involves abolishing around 18,000 administrative posts, focusing power at local levels and strengthening neighbourhood health services. For the UK health & social care sector, this signals a strong push to reduce overheads, improve efficiency and prioritise investment in direct care, potentially improving access and outcomes, but dependent on effective implementation and maintaining the quality of administrative support.

• NHS England have consistently missed NHS waiting time targets according to research and analysis conducted by Cancer Research UK. In September 2025, just 73.9% of patients were diagnosed or had cancer ruled out within 28 days of an urgent referral, against a target of 75%. Meanwhile, only 67.9% began their first treatment within 62 days of referral (target 85%). On the 31-day decision-to-treat standard, 91.2% of patients started treatment within the benchmark (target 96%). These persistent shortfalls point to systemic strain – delays in diagnosis and treatment may reduce chances of successful outcomes. One study cited a four week delay in surgery was linked with a 6% to 8% increased risk of death. For the UK’s health and social care sector, this signals escalating pressure on cancer services and the urgent need to address capacity, workforce and process bottlenecks so that early detection and timely treatment are not compromised.

• According to the NHS Confederation, delays at ambulance handovers in the UK’s urgent care system are showing improvement, but major pressure remains due to constraints in social care and capital investment. The report highlights that although ambulance staff are now getting back on the road more quickly, diagnostic waiting lists and hospital discharge delays (especially for patients awaiting social‐care packages) continue to rise. The Confederation emphasises that strengthening social care capacity through better pay and working conditions and a fundamental rethink of NHS capital spending on buildings and digital infrastructure are essential to alleviate these pressures. For the UK health and social care sector, this means that while operational gains are evident, the lack of investment in non‐acute care and infrastructure hampers system resilience and risks escalating backlogs, particularly during peak demand periods.

• The Royal College of Nursing has warned that the future of the profession is at risk as falling student applications highlight a deepening financial crisis. Delivering a petition to the Treasury, the union urged the chancellor to increase support for nursing students in the upcoming Budget. Many trainees, it said, are struggling with debt, food insecurity and reliance on food banks. The RCN is calling for measures, including student loan forgiveness for nurses who stay in the NHS and for all UK governments to review financial aid systems. Without urgent reform, it warns, the pipeline of new nurses could collapse, threatening workforce stability and the delivery of safe, high-quality care across the health and social care sector.

• Councils in England are now relying more on resident payments than NHS funding to underpin adult social care. According to the Department of Health and Social Care’s Adult Social Care Finance Report 2024-25, client contributions rose by 14% to account for 48% of local authority external income, overtaking NHS income. Current expenditure on adult social care reached £29.4 billion, up 9%, with 80% allocated to long-term support services. Weekly residential care costs rose 7% to £1,185.55 and home-care hourly rates now average £23.56. The report warns that councils will need at least an additional £3.4 billion by 2028-29 to keep pace with demand and inflation and existing funding for the upcoming “fair pay agreement” may siphon resources away from other urgent needs.

• Chancellor Rachel Reeves has made tackling England’s NHS waiting list a central priority ahead of the Autumn Budget, highlighting what she described as “record investment” and a reduction of more than 200,000 patients since the general election. However, official data shows waiting lists remain stubbornly high at 7.41 million in August 2025, with pressures continuing to mount across hospitals and community services. The persistent backlog threatens to worsen patient outcomes and expand demand on social care, as delayed treatments often lead to more complex needs. Reeves faces a critical balancing act in allocating funds between the NHS and social care, with workforce shortages and rising costs intensifying the challenge of restoring timely access to care across the system.

• UK health service leaders are warning of longer waiting times and care rationing unless an extra £3 billion is injected into the NHS England budget. The funds are required to cover unplanned costs including staff redundancies, the recent doctors’ strike and rise in drug prices. Without this money, hospitals say they may have to cut weekend and evening surgeries and postpone “lower-clinical‐effectiveness” procedures, threats that jeopardise efforts to decrease the backlog of more than seven million. The pressure highlights a major funding gap in the health and social care sector, with knock-on effects for workforce stability, patient access and the viability of planned reforms.

Arts, Entertainment & Recreation

• MPs on the Treasury Select Committee have urged Chancellor Rachel Reeves to increase taxes on high-risk gambling activities, including online casino games and high-street slot machines, within the UK gambling industry. They argue the sector’s current tax regime fails to reflect the varying levels of harm and warn against industry “scaremongering” over job losses and economic impact. The proposed higher duties could reduce the funds gambling firms currently channel into sport and leisure sponsorship, including in arts, culture and recreation and may shift spending away from these sectors if the industry scales back its partnerships. Cultural organisations reliant on such revenue face potential funding pressure.

• Everlast Gyms has partnered with global fitness race brand Hyrox to open 60 Hyrox Performance Centres across the UK and Ireland by 2028, transforming gyms into experiential training hubs featuring competition-grade equipment and dedicated race-style classes. The move marks a significant evolution in the recreation landscape, blending fitness, entertainment and community engagement. For the wider arts, culture and recreation sector, it highlights a growing shift towards immersive, performance-led experiences that attract diverse audiences and new sponsorship models. As consumers increasingly seek participatory, event-driven activities, this expansion could spur innovation across leisure venues while intensifying competition for public engagement and funding within the broader cultural and recreational ecosystem.

• In September 2025, the Wolfson Foundation and Department for Culture, Media & Sport (DCMS) launched a new round of the “Museums and Galleries Improvement Fund”, offering £4 million in capital funding for regional museums and galleries across England. The scheme, half funded by DCMS and half matched by the Wolfson Foundation, aims to improve accessibility of collections, upgrade exhibition spaces and enhance visitor accessibility, including features like accessible signage and “Changing Places” toilets. This means more venues will be able to remove physical and experiential barriers, potentially increasing audience reach, boosted community engagement and improved equality of access to cultural provision across the regions.

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