Demand for IT professionals rises despite UK labour market concerns. Over half of UK businesses plan to expand their IT teams, highlighting digital skills’ importance as unemployment rises. Cybersecurity roles face critical shortages, stressing the need for skilled professionals.
Business confidence rose slightly at the end of 2025. Lloyds Banking Group’s survey indicated a modest increase in business confidence after the Autumn Budget, despite earlier concerns over potential tax hikes. Optimism reached a four-month high.
AI has become accessible to small businesses almost overnight. Yet as Kelly Salter, Commercial Director at names.co.uk (part of team.blue), explains, many still struggle with skills gaps, confidence, and trust. Bridging this divide requires practical guidance and mindset change — helping small businesses see AI as a partner, not a threat.
HMRC is intensifying its scrutiny of fast growing UK companies. Francesca Titus, barrister and white-collar crime partner at McGuireWoods, warns that expanding enforcement powers, AI-led investigations, and new criminal offences are raising the stakes. For scale-ups, proactive compliance is now essential — before HMRC comes knocking.
Leonardo warns of potential UK helicopter factory closure. The Italian defence group may shut its Yeovil site if it fails to secure a £1 billion Ministry of Defence contract, jeopardising the future of Britain’s last remaining helicopter manufacturing facility.
Google has committed an additional $1 billion to its UK data centre arm. The £775 million injection, filed with Companies House, strengthens its Waltham Cross operations — the company’s first wholly owned UK data centre. The investment underscores Google’s £5 billion UK growth pledge and ongoing expansion of AI infrastructure.
Artificial intelligence has moved from potential to practice in recruitment. Two-thirds of UK recruitment companies are now using or testing AI tools, according to APSCo UK, with automation saving up to 17 hours a week and redefining how recruiters deliver value.
Royal Assent has been granted to the Employment Rights Act 2025. The new law introduces phased reforms to dismissal, union access, and family-friendly rights, with several provisions effective immediately. The CIPD has urged employers to begin preparing now for implementation over the next two years.
Only one in ten UK employees prioritise the office party. New research from Moonpig for Business finds that most employees would prefer time off or thoughtful gifts over festive celebrations, with one in five admitting that workplace gift swaps often lead to awkward or inappropriate moments.
Consumer confidence rose to −17 in December, matching August’s peak. The latest GfK data shows small but broad-based gains in household sentiment, with every measure improving as inflation continues to ease. But the overall reading remains negative, reflecting a cautious outlook into early 2026.