Connect with us

News

Private Sector Businesses Decline by 56,000 as Self-Employment Rates Drop

Published

on

The total number of private sector businesses in the UK fell by 56,000 to 5.5 million in the year leading up to 2024, marking a significant decline of 500,000 from the peak of six million at the start of 2020. This downturn has been largely attributed to a sharp exodus of self-employed individuals and one-person companies, particularly consultants, whose numbers have dropped by 11% over the past five years.

Several factors have contributed to this decline, including delays in government support for the self-employed during the initial COVID-19 lockdown, the increasing prevalence of remote and flexible working, and a stricter enforcement of the IR35 tax rules by HM Revenue & Customs, which has affected consultants.

Despite the overall contraction, the number of businesses with employees has actually seen growth between 2020 and 2024. Large businesses, especially those employing over 250 individuals, have recorded the fastest growth rates during this period.

Tina McKenzie, policy chair at the Federation of Small Businesses, expressed concern over the “disappointing” figures. She emphasized the need for renewed focus on promoting economic growth and fostering an entrepreneurial culture. “There are now well over half a million missing small business owners,” McKenzie stated. “That’s half a million wealth creation units missing, which means local jobs and local enterprise are also missing.”

The British Chambers of Commerce echoed these sentiments, highlighting the ongoing challenges that businesses continue to face. Jonny Haseldine, policy manager, noted that the upcoming Budget presents a crucial opportunity for the government to address key issues, such as business rates reform, capital allowances, and the skills crisis.

The decline of the small business sector is particularly striking given the rapid growth of self-employment and one-person consultancies between 2010 and 2020. During that decade, self-employment accounted for 80% of the increase in the total business population, which surged from 4.5 million to six million.

Recent data also indicates a trend toward incorporation, with more small business owners opting to operate as companies rather than sole traders or partnerships. While the number of sole traders increased by 323,000 over the past decade, the number of incorporated companies grew by 793,000. Conversely, partnerships experienced a decline of 100,000 during the same period.

In response to these troubling trends, a government spokesperson acknowledged the challenging environment faced by businesses in recent years but reaffirmed the government’s commitment to enhancing the overall business climate, particularly for small enterprises.

News

Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

Published

on

By

In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

Continue Reading

News

Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

Published

on

By

The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

Continue Reading

News

UK Government Reports Lower-Than-Expected Budget Surplus in January

Published

on

By

The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

Continue Reading

Trending