Latest news with #EmployerNationalInsurance
Yahoo
a day ago
- Business
- Yahoo
SME Construction data casts doubt on UK ability to hit 1.5 million homes
The number of struggling construction firms has risen further despite heavy pressure on the sector to deliver hundreds of thousands of new homes. The number of firms in critical distress – a measure of firms nearing bankruptcy – rose 15.8 per cent in the second quarter of 2025, according to Begbies Traynor, while the number of construction firms in critical and significant financial distress topped charts in the first quarter, at 6,830 and 97,603 firms respectively. 'SMEs are grappling with a range of cost pressures, including strict environmental regulations and burdensome taxes on employers. These cost pressures are making it increasingly harder – not easier – to build,' Steven Mulholland, CEO of the Construction Plant-hire Association (CPA), said. The industry was the slowest growing sector of the UK economy in the first quarter of 2025, and total construction output stagnated in this period – ending three consecutive quarters of growth as activity across real estate softened. 'Employer National Insurance hikes have already hit jobs and investment. Now, looming changes to Business Property Relief risk being the final blow – threatening 200,000 jobs and £15 billion to the economy, and punishing the very firms Britain needs to deliver growth, infrastructure and homes,' Mulholland added. 'Without urgent reform, we won't just miss housing targets – we'll lose the wider supply chain capable of building the vital infrastructure Britain needs,' he said. Construction firms in 'a difficult position' Kelly Boorman, National Head of Construction at RSM UK, has warned that the combination of high financial distress in the industry and the government's housing push puts the sector in a tough place. The government has pledged billions to support housebuilders, something which has been largely helped by the industry, but Boorman warned business could fall into an 'overtrading trap'. 'There's the risk [they]… take on more work than their supply chains and operational capacity can support,' Boorman said. 'Mandatory housing targets and expectations to commit to large infrastructure projects could result in businesses being unable to meet demand, despite the government's commitment to investment, training and pipeline visibility,' she added. Experts have warned that there are still significant planning and delivery challenges that developers are facing alongside cost pressures, including skills shortages – despite recent investments – wage inflation, raw materials shortages and inflation.
Business News Wales
11-07-2025
- Business
- Business News Wales
Retailers 'Need Support to Deliver Investment into Welsh Stores'
The Welsh Retail Consortium is calling for more support for the sector as footfall figures fell in June. The organisation said that rises in the National Living Wage and Employer National Insurance had contributed to a 'hammering' for the retail sector, adding that retailers needed support to deliver investment into stores. It said it wanted to see a positive outcome to business rates reform in Wales to avoid an even higher tax burden for retail. According to WRC-Sensormatic data, Welsh footfall decreased by 3.3% in June (YoY), down from -0.4% in May. Shopping centre footfall decreased by 5.1% in June (YoY), up from -5.4% in May. Retail park footfall decreased by 0.7% in June (YoY), down from 1.2% in May. In June, footfall in Cardiff decreased by 4.0% (YoY), down from -2.1% in May. Sara Jones, Head of the Welsh Retail Consortium, said: 'June footfall figures failed to ignite a summer shopping renaissance, with numbers down across all retail destinations. Shopping centres across Wales were hit particularly badly by the decline in footfall, with a notable fall of 5.1%. 'With July seeing Wales' women's football team in action in the Euros, and with big name concerts and events across the capital and Welsh cities and towns, retailers will be hoping that last month's figures will be buoyed up by a return to our high streets. 'Whilst retailers are working hard to deliver vibrant, engaging shopping experiences that attract customers and boost footfall, they can't sail a solo recovery to help boost the Welsh economy. Given the hammering the industry has taken over recent months, with increased business rates and hikes to Employer National Insurance and the National Living Wage, the Welsh Government should consider what more can be done to boost the sector and support retailers to deliver investment back into Welsh stores. All eyes are now on the plans for Welsh business rates reform and ensuring this doesn't further dampen retailer confidence and lead to a higher tax burden over the next 12 months.' Andy Sumpter, Retail Consultant EMEA for Sensormatic Solutions, said: 'June delivered heatwaves, storms, and what could be the hottest June on record – but even the sunshine wasn't enough to spark a retail revival. Total UK footfall was down -1.8% year-on-year, a gentler drop than the -2.3% seen in June 2024, but still a decline on last year's decline. Wales saw a steeper decline of -3.3%, reflecting the broader regional challenges. UK High Streets fell -3.0%, while Retail Parks and Shopping Centres dipped -1.1% and -1.6% respectively. 'One year on from the General Election, with footfall still in the red, it appears that consumer confidence has yet to find its feet. That said, the rate of decline at a UK level is easing, and with summer now in full swing, retailers have an opportunity to turn seasonal footfall into sustained momentum – especially those who can deliver value, experience, and convenience in equal measure.'
Fashion United
01-07-2025
- Business
- Fashion United
UK: Non-food remains in deflation as prices rise elsewhere
Over the period June 1 to 7, shop prices returned to inflation as costs imposed by last autumn's Budget began to kick in. Overall inflation rose to 0.4 percent year-on-year in June, against a decline of -0.1 percent in May. This also came above the three-month average of 0.1 percent, according to the British Retail Consortium (BRC). Food inflation drove the increase, rising 3.7 percent YoY. This contrasted non-food prices, which remained in deflation at -1.2 percent, reflecting a marginal increase on May's -1.5 percent. The figure came above the three-month average of -1.4 percent. In a statement, Helen Dickinson, chief executive of the BRC, said non-food goods 'remained in deflation as retailers cut prices across product categories, especially DIY and gardening, so customers could make the most of the sunshine.' Dickinson added: 'Retailers have warned of higher prices for consumers since last year's Autumn Budget and the huge rises to Employer National Insurance costs and the National Living Wage. 'We predicted a significant rise in food inflation by the end of this year, and this has been accelerated by geopolitical tensions and impacts of climate change. To limit further rises, the government must find ways to alleviate the cost pressures bearing down on retailers. The upcoming business rates reform offers such an opportunity, and the government must ensure no shop pays more as a result of the changes.'
Fibre2Fashion
21-06-2025
- Business
- Fibre2Fashion
Cyber security, operational, financial risks priority for UK retailers
Cyber and data security is cited as the biggest risk across the UK retail sector at present, followed by operational and financial risks, according to a study by Barclays Corporate Banking and Retail Economics. 'Cyberattacks have been top of the agenda for retail boardrooms across the UK in recent weeks, and our research shows that just one in four retailers feel "highly prepared" to detect, respond to, and recover from a major cyber incident,' Richard Lim, chief executive of Retail Economics, said in a post on microblogging platform X. 'Against the backdrop of tariff uncertainty, geopolitical instability and pressure on profitability, this year's report also shows that risks have become more widespread,' he wrote. Cyber and data security is cited as the biggest risk across the UK retail sector, followed by operational and financial risks, a study by Barclays Corporate Banking and Retail Economics found. Fifty-eight per cent of respondents placed cyber resilience among their top three concerns, while 11 per cent admitted they are unprepared for cyberattacks. Cost control has become a sharper strategic focus. Fifty-eight per cent of respondents placed cyber resilience among their top three concerns. Resilience to cyber threats requires proactive investment, from infrastructure upgrades and supply chain security to regular stress-testing and board-level ownership of response protocols, he noted. Eleven per cent of surveyed retailers admitted they remain unprepared for cyberattacks, exposing serious vulnerabilities at a time when digital infrastructure is critical to operations, trust and continuity. Sixty-four per cent of retailers have increased their focus on cybersecurity over the past 12 months—from upgrading systems and stress-testing response plans to embedding security across supply chains, Lim wrote. 'The number of principal risks disclosed by the UK's top 30 listed retailers has risen to 278, with 40 new or escalating risks in the past year alone. Of these, cyber-related risks account for a high quarter (25 per cent) of this increase,' he mentioned. Financial pressure remains a close top concern for 2025-26 as well, with 55 per cent of respondents placing financial strength among their top three concerns. Financial resilience has emerged as the most commonly selected first-choice priority (23 per cent) as retailers manage a fresh wave of cost increases. UK retailers are set to face a £6.5-billion rise in operating costs in 2025, driven by increases to the National Living Wage, Employer National Insurance contributions, business rates, utilities and property costs. Over the past decade, average pre-tax profit margins have almost halved—from 10.4 per cent in 2014 to just 5.7 per cent in 2024. Despite a decade of inflation, this translates into a fall of over £7.3 billion in pre-tax profits across the sector from £32.7 billion to £25.4 billion. 'It means cost control has become a sharper strategic focus—yet many retailers are balancing defensive measures with forward-looking investment in technology, data, and supply chain resilience,' Lim added. Fifty-seven per cent of respondents placed operational agility among the top three concerns. Trade tensions continue to test supply chains, while artificial intelligence and digital transformation present major opportunities, but only for businesses with the skills and agility to respond, according to the report. Fibre2Fashion News Desk (DS)
Yahoo
17-06-2025
- Business
- Yahoo
UK retailers face escalating threats as cybersecurity readiness falters
Of the 117 senior UK retail executives interviewed for the research, 11% acknowledge their lack of preparedness for cybersecurity threats. Cybersecurity has also been recognised by 58% of retail leaders as one of the top three risks facing their industry in the coming year, signalling increased awareness of the dangers posed by ransomware, data breaches, and system failures. This growing apprehension has led to an increase in investments in cybersecurity among retailers, with 64% enhancing their focus on this area over the past year. Efforts include system upgrades, response plan evaluations, and the integration of security measures throughout supply chains, according to the research. It also noted that the complexity and interconnectivity of risks have also intensified, as evidenced by the top 30 UK-listed retailers disclosing 278 principal risks, including 40 new or escalating concerns within the last year. Cyber-related issues represent 25% of these emerging risks. In April this year, Marks & Spencer suspended online and app orders due to a significant cyberattack and anticipated an operating profit impact of around £300m for the fiscal year 2025/26 before implementing any mitigating strategies. Additionally, The North Face experienced a "small-scale credential stuffing attack," prompting customer notifications. Retail Economics chief executive Richard Lim said: 'Cyber threats are no longer just an IT issue. They cut to the heart of customer trust, brand reputation and operational continuity. It's concerning that so many retailers still lack the confidence and capability to respond effectively. Resilience today isn't just about protection. It's about being ready to act, recover quickly and adapt at speed. 'The most forward-thinking retailers are using cyber risk as a catalyst for broader transformation. They are accelerating investment in digital infrastructure, strengthening internal agility and embedding resilience across their operations. These are the bold decisions, made under pressure, that will shape long-term success.' Financial pressure Beyond cybersecurity, financial challenges loom large for retailers who are bracing for a £6.5bn surge in operating costs in 2025. Factors contributing to this increase include higher National Living Wage rates, Employer National Insurance contributions, business rates, utilities, and property expenses. The study showed that average pre-tax profit margins have dwindled from 10.4% in 2014 to 5.7% in 2024, a loss exceeding £7.3bn in pre-tax profits across the sector. In response to these pressures, retailers are sharpening their focus on cost control while also investing in technology, data analytics, and supply chain fortification. The resilience gap among retailers is becoming more pronounced. While some see themselves as 'ahead of the game' in risk management, a slight increase from 26% to 28%, the proportion lagging behind has risen more significantly from 21% to 25%. A majority of retail leaders (58%) believe the performance disparity between top-performing and underperforming businesses is expanding. Barclays UK Corporate Banking retail and wholesale head Karen Johnson said: 'As operational and financial risks continue to escalate, it's clear that embracing technological advancements and enhancing cybersecurity measures will be key to building resilience for UK retailers." "UK retailers face escalating threats as cybersecurity readiness falters" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
