Business, the economy and the pound in your pocket – what to expect from 2025

UK business goes into the new year in a surly mood. New Chancellor Rachel Reeves’s hike in employer’s National Insurance contributions (NICs) in her autumn budget will raise the cost of employing people and that is likely to have an impact on both hiring and investment. For individual sectors, there are specific challenges: the car industry, for example, is still grappling with the threat of penalties where electric vehicles are too low a proportion of their overall sales. Consumer-facing businesses are also under considerable pressure, not only from the rise in employer’s NICs but also the forthcoming rise in the…