UK Industry Fast Facts

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

Agriculture, Forestry & Fishing

• In the Autumn Budget 2024, the government introduced a £1 million limit on the inheritance tax relief for farms from April 2026, after that there would be a 50% relief, at an effective rate of 20%. The National Farmers’ Union (NFU) of England and Wales has labelled the Budget as “a blow to British farmers and could lead to food price rises.” Farmers have warned these measures could result in farmers selling up and taking part in protests.

• Following the recent budget announcements, the ADHB warned that from April 2026, the average farm, valued at £2.2 million, would face an inheritance tax of £240,000. This has led to a significant drop in farming confidence, reaching its lowest point since 2010. In response, two protest rallies have already been held in central London, organised by the NFU, Save British Farming and Kent Fairness for Farmers.

• The recent changes to inheritance tax have sparked concerns about their impact on investment in green farming technologies. The president of the Young Farmers’ Clubs of Ulster, Richard Beattie, described the new tax as "the biggest dis-incentivisation for on-farm investment" amid the urgent need to tackle environmental challenges. He urged the UK government to reconsider the bill.

• Labour also announced an accelerated reduction in the Rural Payments Agency’s delinked payments, which support production on many farms. The government plans to cut base payments by at least 76% in 2025, which will harm farmers' livelihoods and negatively impact output.

• Latest DEFRA data indicates that the UK is facing its third worst arable harvest since 1984, raising concerns about food security. In 2024, UK oilseed rape production fell by 32%, while UK wheat harvests dropped by 20%. Fears about 2025’s harvest are also swelling.  

• The AHDB's Early Bird Survey indicates a predicted drop in winter crops for the 2025 harvest. Wheat, winter barley and oilseed rape areas are all set to contract nationwide, with oilseed rape expected to decrease by 17%, the lowest level in 42 years.

• According to Rivers Trust, only 14% of UK rivers are in good ecological health. The NFU has claimed that farmers can prevent river pollution if they receive the necessary funding.

• DEFRA reports that farming contributes about 12% of the UK's total greenhouse gas emissions. The NFU warns that achieving net-zero farming by 2040 is unlikely without increased investment in climate-friendly measures. The current government has kept the 2025-26 climate-friendly farming budget at £2.4 billion, unchanged from the previous level.

• On 4 December, the UK reached a landmark agreement with the EU and Norway, securing nearly 300,000 tonnes of fishing opportunities in the North Sea for 2025. This deal grants UK quotas valued at up to £310 million for species like cod, haddock and herring, promoting sustainable marine stock management.

Mining

• The Office for National Statistics reports that the mining and quarrying sector experienced a 3.1% decline in output in October 2024, contributing to a broader decrease in monthly production output. In the three months to October, the sector's output dropped by 2%, compared to maintaining a stable level over the three months to September 2024.

• World Bank Commodities Price Data released in December 2024 shows that the monthly average prices for coal and crude oil fell in November 2024 after a slight hike in October 2024. Metals and minerals monthly average prices have followed suit, with aluminium, copper, lead, iron ore and zinc prices falling. Precious metals (gold, platinum and silver) have also recorded a dip in prices.

• According to BDO’s UK Oil and Gas Annual Report 2024, the UK oil and gas industry contributed US$13.2 billion to the UK economy in 2023. While oil production and consumption are strong, the industry is investing in AI, carbon capture and renewable energy. However, according to the report, the majority of the largest UK-based oil and gas companies recorded a drop in revenue.

• On 16 December 2024, the latest phase of a £900,000 project aimed at reducing metal mine pollution in Upper Teesdale was completed. Funded by the WAMM programme in partnership with the Environment Agency and the Mining Remediation Authority, this initiative established over three hectares of vegetation to prevent heavy metals from contaminating rivers from abandoned mine sites.

• US President-elect Donald Trump has criticised the UK government’s energy policy of moving away from oil and gas production in the North Sea.

• According to the Financial Times, the government has committed to compensating developers of the £8 billion carbon capture project in the Northeast of England, including BP and Equinor, if planning permission is blocked amid an ongoing legal challenge by an environmental campaigner.

Manufacturing

• In December 2024, the UK’s Manufacturing sector continued to contract, with the Manufacturing PMI falling to an 11-month low of 47, down from 48 in November. This marks the second consecutive decline in factory output, driven by a sharper drop in new orders. Contributing factors include slumping domestic market sentiment and weaker demand from European clients. The sector also experienced the most significant rise in purchasing prices since January 2023, attributed to supply chain disruptions linked to the ongoing Red Sea crisis.
• Rob Dobson, Director at S&P Global, noted that the tough conditions in the manufacturing sector at the end of 2024 have cast a "winter chill" over the labour market. December 2024 saw the most significant job cuts since February, fuelled by concerns about rising employer National Insurance Contributions and upcoming minimum wage increases in April 2025, prompting many manufacturers to consider restructuring.
• On 15 November 2025, the Prime Minister pledged £975 million across five years to drive growth and jobs across the UK aerospace industry. Following the news, UK-based aerospace corporation Babcock has joined the UK manufacturers’ trade association, Made in Britain, while BAE Systems is set to create 350 new jobs across the South of England in 2025.
• On 13 December 2024, the EU’s General Product Safety Regulation (GPSR) took effect, replacing the General Product Safety Directive (GPSD). It introduces key updates to boost consumer goods safety in the EU. UK businesses selling to the EU and Northern Ireland will need to meet stricter requirements for risk assessments, documentation and labelling, adding to the complexity of cross-border product safety.
• Electric vehicle manufacturers are feeling the pressure of a government mandate requiring 22% of their sales to be EVs, with fines of £15,000 per car for non-compliance. By the end of 2024, EV sales rose to 19.6%, up from 16.5% in 2023, according to the Society of Motor Manufacturers and Traders. However, sales still fell short of the target and December saw a slow month for retail demand, with only 10% of private consumers opting for electric models.
• Amid the shortfall, Business Secretary Jonathan Reynolds plans to relax the EV sales target, with a consultation being announced at the end of 2024. Concerns are growing that manufacturers like Vauxhall Motors may shut down operations, endangering 1,100 jobs at its van-making factory.
• According to the ONS, monthly production output was estimated to have dropped by 0.6% in October 2024; this follows an increase of 0.5% in August 2024 and a decrease of 0.5% in September 2024. This marks the lowest level since May 2020. Seven out of 13 subsectors contributed to this decline, with basic pharmaceutical products making the largest negative impact.

Utilities

• From 1 November 2024, the energy profit levy will rise from 35% to 38% – bringing the headline tax rate to 78% – to ensure oil and gas companies contribute more to make the UK a clean energy superpower. The levy will apply until 31 March 2030.
• Starting January 2025, the energy price cap will climb by 1.2%, reaching £1,738 annually for a typical household, as announced by Ofgem. This hike intensifies the financial strain on households. Analysts from the energy consultancy, Cornwall Insight, forecast an additional rise of nearly 3% in April 2025.
• The UK is one step closer to supporting the UK’s clean energy transition and boosting energy security. A £2 billion subsea and underground cable has been approved for Eastern Green Link (EGL1), which will carry 2GW of wind generated power from Torness, East Lothian, Scotland, to County Durham. The project is expected to save £870 million annually by cutting compensation paid to wind generators when grid capacity is insufficient.
• EDF Energy announced an extension for four ageing UK nuclear power stations to enhance energy security. Hartlepool and Heysham 1, originally set to close in March 2026, will now operate until March 2027, while Heysham 2 and Torness, planned for closure in 2028, will remain open until 2030. These extensions aim to compensate for delays in the Hinkley Point C power plant, now expected to be operational in 2029, at the earliest.
• Thames Water is seeking High Court approval for a £3 billion emergency loan to manage its debt and prevent renationalisation, ensuring funding until at least October 2025. On 9 December, campaigners protested outside the court, claiming this ‘liquidity extension’ would add £250 annually to customers' bills.
• In December 2024, Ofwat approved a £104 billion investment plan to upgrade the water sector in England and Wales for 2025 to 2030. This plan outlines investment strategies, service commitments and billing structures for water companies.

Construction

• The latest S&P Global report reveals that the UK Construction PMI rose to 55.2 in November 2024, up from 54.3 in October. This growth was fuelled by a surge in commercial work, thanks to stronger customer demand and new tender opportunities. House building lagged behind other sectors due to elevated borrowing costs and waning consumer confidence, which are tied to economic uncertainties stemming from the Autumn Budget.
• On 12 December 2024, the updated National Planning Policy Framework (NPPF) was released to tackle the housing crisis. It sets a clear target of building 370,000 homes annually and reinstates mandatory goals for local authorities. The Green Belt has also been revised to include a "grey belt," encouraging development on low-grade greenbelt land.
• On 13 December 2024, the City of London Corporation approved plans for a 74-storey office tower, 1 Undershaft, expected to be built by 2030. Matching the height of the Shard, this project is poised to draw investors to London’s real estate market.
• The CMA is trailing an AI-powered tool to detect collusion in construction bids for public sector contracts, aiming to protect government budgets by identifying data anomalies and bid-rigging.
• On 3 January 2025, the construction firm Mace secured the £92.5 million main construction contract to build the new European Centre for Medium-Range Weather Forecasts (ECWMF) headquarters on the University of Reading Campus.
• Data from the Department for Business and Trade showed that material price inflation fell by 0.8% in October 2024 compared to the same month in 2023. Despite this, material prices for New Housing registered a 0.5% increase, Repair and Maintenance was down by 0.1% and Other New Work decreased by 1.7% in the 12 months to October 2024. Flexible pipes and fittings saw the largest annual increase at 17.2%.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale and retail trade; repair of motor vehicles fell by 0.3% in October 2024. This decline contributed negatively to the overall output of the service sector in October. In the three months to October 2024, wholesale and retail trade; repair of motor vehicles and motorcycle output remained flat.
• Confex and Fairway have merged to create a new wholesale buying group, The Wholesale Group. The group will launch in January 2025 and aim to support independent wholesalers. According to The Grocer, the group will represent 12% of UK wholesale, with a joint annual turnover of about £4.5 billion, 253 members and about 350,000 customers.
• DBC Group has become a member of the Sugro UK group, which consists of over 90 independent wholesalers.
• Love British Food has called on wholesalers to promote domestic produce by launching ‘Buy British’ categories in a bid to boost demand.
• New figures show that trade with the EU has suffered severely due to Brexit, with Aston University estimating that annual exports and imports are 17% and 23%, respectively, below where they would have been if Brexit didn’t materialise.
• The government has again delayed the final stage of the post-Brexit border rollout for goods entering the UK from the EU by three months to the end of January 2025. Trade representatives have said this move hits business confidence, as reported by the Financial Times.
• The Federation of Wholesale Distributors has coordinated a letter to the Prime Minister, signed by its member wholesalers. The letter highlights budget concerns about the National Living Wage increase and the rise in employer National Insurance, which together will add an additional estimated £141 million per year in costs to an already struggling sector.

Retail Trade

• BRC data shows for 2024 overall, UK Total Retail sales increased by 0.7% from 2023. Food growth was 3.3% and the Non-Food decline was 1.5% for the year.  The much anticipated ‘golden quarter’ for retail failed to give 2024 the send-off retailers were hoping for as reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level compared to past years. Food sales increased by 1.7% year on year in December, against a growth of 6.3% in December 2023. Non-Food sales increased by 4.4% year on year in December, against a decline of 2.1% in December 2023 thanks to Black Friday falling into part of the Christmas shopping season. Personal electronics like computing and mobile phones, and beauty products, particularly saw sizeable jumps in sales both in-store and online, with the likes of AI-enabled tech and beauty advent calendars boosting festive takings.

• Retailers anticipated a spending squeeze as consumer confidence remains glum. According to BRC-Opinium data, consumer expectations over the next three months of their personal financial situation remained at -3 in December, the same as in November while state of the economy worsened to -27 in December, down from -19 in November. The public’s spending intentions dropped 6 points, with expectations of spending in nearly every retail category falling.

• According to new research by the Retail Technology Show, Millennials now make more purchases than Gen Z across social media platforms, including TikTok, Instagram and Facebook at 21 purchases over the past year vs 14. As shoppers’ seemingly insatiable appetite for content-led commerce continues to grow, this has given rise to a new cohort of ‘TikTok made me buy it’ consumers, an increasingly valuable shopper segment that retailers want to tap into.

• Headline inflation rose to 2.6%, pointing to price rises in early 2025. November’s figures were driven primarily by increased inflation rates of fuel and clothing and footwear. There was some welcome news for those shopping around early for Christmas presents, as furniture and household equipment remained in deflation, albeit not quite as low as in October.

• Tough retail conditions, the move online and automation have resulted in the shedding of jobs across the retail sector. According to the latest job figures by the ONS, there were 2.81 million jobs in retail in September 2024, 225,000 fewer than five years prior.

• Having come under scrutiny for soaring debt levels, Asda has secured a further £155 million through a private loan to pay off looming debts, which is due for repayment 2031. In November 2024, the supermarket named former CEO Allan Leighton as its executive chairman, succeeding Lord Stuart Rose, in a bid to turnaround its poor financial performance.

Transportation & Warehousing

• From January 2025, the cap on most single bus fares in England will increase from £2 to £3 and will remain in effect until the end of the year. This change is part of an investment exceeding £1 billion in the bus sector, as announced in the Autumn Budget 2024.
• 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%.
• The Secretary of State for Transport has launched the JetZero Taskforce to tackle aviation emissions. Its focus includes promoting sustainable aviation fuels, advancing zero-emission flights and enhancing aviation systems for greater efficiency.
• HS2's latest report reveals that the estimated cost to construct the London to Birmingham line could surpass £80 billion at current prices, reflecting a 15% increase within a year due to rising expenses.
• On 17 December 2024, the government confirmed that the new HS2 station at Euston will have only six platforms. Rail commentators express concern that this limited capacity may be insufficient if HS2 is extended north of Birmingham.
• Following Labour’s pledge to nationalise the railway network, the government plans to take South Western Railway into public ownership. In May 2025, the contract held by FirstGroup and MTR will transfer to the DfT’s Operator of Last Resort.
• Amid renationalisation efforts, FirstGroup plc is diversifying its income by expanding bus and open-access rail routes. At the end of 2024, the company announced a £90 million acquisition of the French public transport operator RATP's London bus operations, securing contracts for 90 routes.
• On 6 January 2025, the Office of Rail and Road, the regulatory authority, directed HS1 Ltd to reduce the fees that train operators, including Eurostar, pay for using the line connecting London to the Channel Tunnel by 3.8%.

Accommodation & Food Services

• ONS data reports that output in accommodation and food service activities dipped by 1.2% in October 2024, negatively contributing to the overall output in the services sector in October. Food and beverage service activities were the largest contributor to the decrease in output of consumer-facing services, with output falling by 2% in October.
• The higher employment costs amid the new Budget measures are forcing some smaller UK pub and hostel operators to rethink operations, including closing sites, halting expansion or redirecting investments away from the UK. For example, Wells & Co has cancelled a planned acquisition in the UK and put a hiring freeze in place, shifting their focus to expansion in France. The company’s chief executive Peter Wells has said that the Budget will add £700,000 to their expenses, reducing profit by 20%, as reported by The Financial Times.
• A resurgence in office parties and family gatherings over the Christmas period has boosted pubs and bars bookings. Young’s reported a 30% hike in festive bookings, while Mitchells & Butlers bookings were 9% higher than the previous year.
• According to the Campaign for Real Ale, about 1,200 pubs are likely to close in 2025 (vs 1,000 in 2023 and about 800 in 2022) amid the high operating costs the establishments face, as reported by he Financial Times.
• As reported by the ONS, the Consumer Price Index (CPI) rose by 2.6% in the year to November 2024, up from 2.3% in October. Kate Nicholls, CEO of UKHospitality, expressed concern that rising inflation will “inevitability make day-to-fay life harder for businesses and consumers” in the hospitality sector.
• A December 2024 report by The Caterer highlights that hospitality company insolvencies have reached a two-year low. Government data indicates that in October 2024, there were 253 insolvencies in the accommodation and food services sector, marking a 24% decrease from the 332 insolvencies in October 2023.
• The UK Tourism Minister has announced a new ambition for the UK to welcome 50 million international visitors per year by 2030. This is part of the government’s plan to remain one of the most visited globally and help drive economic growth. The tourism industry is worth £74 billion to the economy and represents 4% of GVA.

Information

• ONS data reports that output in the information and communication subsector climbed by 0.9% in October 2024, the largest positive contribution in the services sector during the month.
• Data from research company Opensignal has found that the UK scored the worst of any G7 country for mobile reliability in 2024. The Financial Times states that, according to experts, low investment and planning permission delays for telecoms towers have contributed to the lack of reliability.
• After 18 months of debate, the Competition and Markets Authority approved Vodafone’s £16.5 billion merger with Three UK with the UK committed to delivering £11 billion to upgrade the merged company’s UK 5G network. The new network will reach 99% of the population and benefit over 50 million customers.
• In December 2024, The Competition Appeal Tribunal ruled in favour of BT for allegedly overcharging customers for fixed telephone lines. The telecoms giant escaped a £1.3 billion fine.
• Virgin Media O2 has sold a £186 million (about 8%) stake in its mobile masts business, Cornerstone, to infrastructure investment firm Equitix. The company retains 25% holding in Cornerstone, which is the UK’s largest mobile towers business.
• The head of the National Cyber Security Centre (NCSC) states that the UK is experiencing a growing gap in its ability to address cyber threats due to the increased scale and intensity of attacks driven by AI and readily available technologies. According to the NCSC “severe” attacks on UK companies have tripled over the past 12 months.
• Ofcom has published its final codes of practice for firms dealing with illegal online content, though still pending parliamentary approval. The Online Safety Act will take effect in March 2025 and social media platforms that fail to comply and assess whether users are exposed to illegal material could be fined up to 10% of their global turnover.
• Project Kuiper, Amazon’s satellite operation, is to go ahead with its plans to launch a broadband service in the UK, with Ofcom still considering whether to approve the company to provide this service. The satellite constellation is to be deployed in early 2025, with plans to roll out the broadband service later in the same year.
• Research by Enders Analysis has found that altnets recorded collective losses of about £1.3 billion in 2023 and this figure likely worsened in 2024 amid rising interest costs.

Finance & Insurance

• Data from the Bank of England shows British consumer lending grew at the weakest pace at 6.6% in November 2024 since mid-2022. The data shows households remain cautious with borrowing and savings. Britain's economy stagnated in the three months to September and the BoE estimated in December 2024 that it was continuing to flatline in the fourth quarter.
• Net mortgage approvals dropped by 2,400 to 65,700 in November 2024, data from the Bank of England shows – a figure well below the 68,500 expected from Reuters’ economists. However, mortgage providers prove optimistic as the temporary first-time buyer stamp duty holiday comes to an end in March and from April, first-time buyers will start paying the levy for properties worth £300,000 or more, instead of £425,000 currently.
• The Payments System Regulator (PSR) is proposing to introduce a price cap to protect UK businesses on cross border interchange fees. Cross border interchange fees are currently set by card schemes and paid by UK merchants when accepting payments from EEA customers. A PSR report finds unjustified increases in these fees since the UK left the EU are harming businesses at a cost of £200 million per year.
• Card payments grow in popularity, but cash remains king. A 2024 Payments Survey by the British Retail Consortium (BRC) shows an uptick in the use of cash for the second year in a row to 19.9% of transactions in 2023 (from 18.8% in 2022). Debit cards remained far and away the most common method of payment, increasing to 62% of transactions (66.7% by spending). Taken together with credit cards, card payments accounted for over 75% of transactions and 85% of spending.
• To attract more businesses, the UK government is considering a series of reforms to captive insurance. Captive insurance is a form of self-insurance and is one of the fastest growing segments in the global market. The consultation document outlines potential changes, including lower capital requirements, reduced application fees, a faster authorisation process and reduced ongoing reporting requirements for captive insurers.  
• Buy-Now-Pay-Later (BNPL) platforms are booming, with US Affirm entering the UK market in November 2024. New legislation – like safeguards against unaffordable borrowing and credit card-style protection – is set to come into play in 2026 to protect consumers. FCA research found 14 million customers had used BNPL in 2023, and frequent users were four times more likely to have a missed payment than those who had not used the loans.

Real Estate and Rental and Leasing

• According to Nationwide, annual house price growth increased by 4.7% in December 2024 compared with December 2023. Prices increased 0.7% month on month and the average house price was £269,426. Prices remained below the all-time high from summer 2022.

• The housing market has been bolstered by buyers rushing to complete deals before the increase in stamp duty kicks in April 2025. According to Zoopla, the number of agreed UK property transactions surged by nearly a third at the end of 2024 compared with the same time in 2023.

• Residential sales are likely to continue into positive territory over the start of 2025 as buyers seek to benefit from stamp duty breaks that are due to expire in April 2025. Attention must also be paid to older homeowners to incentivise downsizing and families motivated to move by strong competition for school catchment areas following the introduction of VAT for private schools and the accompanying higher fees.

• Private renters are facing a tough market. ONS statistics show private rents in the UK climbed by 9.1% in November 2024, nearing the record increase of 9.2% from March 2022. Meanwhile, rents in London soared by the fastest pace on record, at 11.6% in November 2024. Strong demand from tenants and a shortage of properties alongside landlords passing on rising costs have contributed to rising rents.

• According to data from Savills, private equity firms and pension funds are flooding the UK rental houses market amid strong demand and a housing affordability crisis, with deals to buy or build rental homes surpassing £1.5 billion by the end of September, as reported by the Financial Times.

• On the commercial side, businesses are re-examining their approach to hybrid working and asking staff to return to the office. The legal sector has driven a significant rise for prime office space and regional cities like Manchester, Birmingham and Leeds are growing, capitalising on lower operational costs and access to skilled talent.

• The Chancellor announced a hike in the levy on second homes and buy-to-lets from 3% to 5%. The National Residential Landlords Association states that the supply of rental homes will suffer as a result, while Rightmove estimates the measure results in an additional £7,000 stamp duty cost for a landlord purchasing an average home.

Professional, Scientific & Technical Services

• ONS data reports that output in professional, scientific and technical services climbed by 0.2% in October 2024, driven by a 1.6% hike in legal activities and a 0.2% rise in human health and social work activities. The subsector was the largest positive contributor to the climb in services output in the three months to October 2024, rising by 1.5%.
• Research by HR software provider Ciphr suggests that most people underestimate how many jobs have gender pay gaps in the UK. According to the ONS, across all occupations, the median gender pay gap is 13.1%. This means that women working in the UK earn £2.39 less per hour, on average, than their male peers. The gap is most prevalent in the professional services industry like Accountancy, banking and finance (29.8%), Insurance and Pensions (29.8%), Marketing, advertising and PR (20.1%) and law (20.1%).
• Highlighting a slowdown in the professional services sector, Big Four accounting firm Deloitte UK has announced plans to cut spending on staff travel and expenses by over 50%, as reported by the Financial Times.
• The legal sector is a cornerstone of the UK economy with IVA rising by 50% climbing from £22.8 billion in 2013 to £34.2 billion in 2022, according to the Law Society of England and Wales. While UK legal service exports soared 14%, to a new high, according to data from financial lobby group TheCityUK.
• According to data from legal recruiter Edwards Gibson, a record number of partner hires in London were recorded in the year to 23 December, at 546 verses just 514 in the previous year. Strong investment from US law firms into the UK market has caused a war for talent.
• BDO has reported a record revenue of over £1 billion, rising by 8.6% on the back of higher investment in digitisation and staff. At the same time, despite adverse economic conditions, operating profit climbed 15% to £227 million. This is in contrast to the Big Four firms which have cut staff and faced weak demand due to the heightened economic uncertainty.
• According to data from Dealogic, dealmaking involving UK companies has outstripped the rest of Europe since the start of 2024, with the value of merger and acquisition (M&A) surging by 57% compared with the same period last year. The value of M&A activity in the UK was over twice that of second-placed Germany.
• Data from the Advertising Association and WARC forecasts a record £10.5 billion ad spending in the UK during the Christmas season. Last year, ad spending during the period reached £9.7 billion. Spending on search engine advertising and online display ads is forecast to climb strongly by 9% and 15.8%, respectively. Meanwhile, TV advertising spend is falling, with a 5% drop forecast, as advertisers focus on online channels.

Education

• The Learning and Work Institute warns of unequal growth thanks to skills chasm and huge regional disparities in qualifications. The ThinkTank notes the proportion of people with higher education qualifications is twice as high in some parts of the UK than others, varying from two-thirds in London to one-third in Greater Lincolnshire. If trends continue, 71% of Londoners and 65% of adults in Scotland will have a degree by 2035, compared with 29% in Hull and East Yorkshire, and 39% in Norfolk.
• The government has been urged to provide clarity to universities and students by confirming future tuition fee caps increases across England. In November, ministers said the tuition fee cap in England would go up for only the second time since 2012. In 2025-26, the cap will rise from £9,250 to £9,535. Any further inflation-linked increases to the cap will be contingent on universities implementing a “sustained efficiency and reform programme”.
• Since 1 January 2025, private schools are no longer exempt from VAT and have faced a 20% rise in fees. The government estimates the additional tax income will amount to £460 million extra to spend on state schools. A series of independent private schools announced plans to close due to financial challenges, including the introduction of VAT on school fees and rises in the national minimum. The list includes Loughborough Amherst School and Earl Spencer’s prep school, Maidwell Hall.
• Introduced into Parliament in December 2024, The Children’s Wellbeing and Schools Bill introduces a wide variety of measures to help children and families, from school reform and home education to safeguarding. Core focus areas include teacher training and ensuring all schools have qualified teacher status. The Bill sets out that all teachers will be part of the same core pay and conditions framework – whether they work in a maintained school or an academy, while also mandating the curriculum and assessment system undergo review.
• Bridget Phillips, Education Secretary, draws up plans with inflation-linked fee increases for university students. The reforms are expected to last three years and push tuition fees over the £10,000 mark. The Institute of Fiscal Studies estimates the rise could raise an additional £390 million annually. The reforms come after a review of the sector where the Office for Students warned that a £3.4 billion decline in net income across the sector would mean that almost three-quarters of universities would be in deficit in the academic year starting September 2025.
• Three universities face student visa action plans as the Home Office suggests breaches of sponsorship requirements as higher education becomes more reliance on international student revenues.

Healthcare & Social Assistance

• In January 2025, Keir Starmer launched a new partnership between the National Health Service and the private sector in England to tackle the growing waiting list, which stands at 7.5 million. The government also outlined plans to introduce local diagnostic centres offering an extra 450,000 appointments for tests.
• New funding and reforms are set to help the social care sector. Health and Social Care Secretary Wes Streeting will confirm an £86 million boost to the Disabled Facilities Grant for the 2025-26 fiscal year - on top of the £86 million announced for the next financial year at the Budget, taking the annual total to £711 million - to allow 7,800 more disabled and elderly people to make vital improvements to their home, allowing them to live more independent lives and reducing hospitalisations. Care workers will be better supported to take on further duties to deliver health interventions, such as blood pressure checks, meaning people can receive more routine checks and care at home. As part of the long-term plan to overhaul social care, the government will launch an independent commission into adult social care to be chaired by The Baroness Casey of Blackstock DBE CB, to inform the work needed to deliver in January 2025.
• Martha's rule is a proposed UK healthcare policy allowing patients or families to request an urgent second opinion if concerns about care are dismissed. It aims to empower patients and prevent tragedies like Martha Mills' death in 2021, promoting accountability and improving communication within the healthcare system to ensure patient safety.
• The NHS faces more pressure as flu, COVID-19, norovirus and respiratory syncytial virus (RSV) cases creep up. According to the first of this year’s NHS winter situation reports, an average of 1,099 flu patients were in beds in England each day over the last week of November, including 39 in critical care, and 95% of beds already occupied.
• The National Institute for Health and Care Excellence (NICE) final draft guidance on weight loss drug,  Mounjaro, from March 2025 alongside advice on diet and exercise. Mounjaro will only be offered to those with a BMI over 25 and to those with obesity-related problems. Only those patients under the care of specialist weight-management services will be offered it initially – matching the approach taken with a similar weight-loss drug, Wegovy.
• From 1 January 2025, all medicines sold in the UK will need to be labelled as ‘UK Only’. The British Generic Manufacturers Association (BGMA) warns not all suppliers will have their labelling ready – potentially leading to shortage due to bureaucracy.

Arts, Entertainment & Recreation

• The Department for Culture, Media and Sport is set to introduce a statutory levy on gambling companies to help fund addiction treatment. New online gambling limits to be set - £5 per spin limit will apply to all adults aged 25 and over with a £2 per spin limit for 18 to 24-year-olds.
• According to the Entertainment Retailers Association (ERA), UK music sales hit record high as Taylor Swift tops album sellers. ERA data reveals that consumption of music in the UK – based on sales and streams – grew by 9.7% in 2024 to 200.5 million album equivalents. The volume of audio streams grew by 11% to 199.6 billion.
• BBC has commissioned new art and culture programmes as part of its commitment to Art & Culture. New Arts TV programmes unpack contemporary culture, celebrate British creativity and explore landmarks in the global story of art including Renaissance: The Blood and The Beauty, Simon Schama’s History of Us and the return of epic series Civilisations.

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