Month: December 2024

UK employers cut their recruitment efforts sharply in November, with job vacancies falling at their fastest rate since the onset of the pandemic.
Fresh data from KPMG and the Recruitment and Employment Confederation (REC) reveal that demand for staff declined “at a sharp and accelerated pace,” pointing to a deepening malaise in the labour market and denting hopes for a near-term economic uplift.
November marked the 13th consecutive month of easing vacancy numbers, with permanent roles particularly affected. “Businesses are having to weigh up the prospect of increasing employee costs following the Budget, which has led to an accelerated slowdown in hiring activity across the board,” said Jon Holt, group chief executive at KPMG.
Parallel findings from accountancy firm BDO underline the extent of the problem. Its monthly sentiment indicator registered the lowest level of business confidence since January last year. This gloom, coinciding with a period when companies typically enjoy a pre-Christmas boost in sales, suggests that the UK economy may have contracted again in November.
New burdens on employers were introduced in October’s Budget by Chancellor Rachel Reeves, including higher business taxes, an increase in employers’ National Insurance contributions, and a higher minimum wage. While Labour, led by Prime Minister Keir Starmer, has staked its credibility on expanding the economy and raising living standards, the tax hikes appear to have dampened investment appetites and weakened the appetite to hire across the industrial and service sectors.
BDO’s output index, a key measure of economic momentum, recorded its lowest reading since October last year. “December marks the end of a tough couple of years for businesses and the drop in business confidence this month is not a surprise given the significant challenges they continue to face,” said a BDO spokesperson.
As hiring slows and the pool of available candidates grows, the KPMG/REC report suggests that wage growth may begin to soften. Though pay pressures remained largely unchanged in November, they are hovering near their weakest levels in almost four years.
Retailers in particular, who face a combined £5 billion in extra costs from tax and wage changes next year, have warned that further cuts to staffing levels may be on the horizon. The British Retail Consortium estimates that next April’s higher National Insurance contribution and a substantial increase in the minimum wage will pile unprecedented pressure on a sector already grappling with cautious consumers.
Neil Carberry, chief executive of the REC, remains hopeful that today’s turbulence may give way to stability. “The resilience of temporary recruitment offers some hope. Firms are likely to rest more on temps while they manage the current uncertainty,” he said.
Indeed, the near-term outlook may brighten as the Bank of England signals further interest rate cuts through 2025 and the government ramps up investment initiatives. “The prospect of further rate cuts through next year, alongside the government’s investment plans, both point to improved growth in the near term,” Holt added. “This should give businesses greater confidence, which may help stabilise the labour market.”
Read more:
UK job vacancies fall at fastest pace since pandemic as business mood darkens

Chancellor Rachel Reeves is set to call for a “reset” in Britain’s economic relationship with the European Union, arguing that closer ties would help break down barriers to trade and enhance both sides’ growth prospects.
In the first address by a British chancellor to the Eurogroup since Brexit, Reeves will say that while the UK is not seeking to re-join the trade bloc, forging a “mature, business-like relationship” is in the shared interest of both Britain and the EU.
Acknowledging that recent years have been fraught, Reeves will tell European finance ministers in Brussels: “Division and chaos defined the last government’s approach to Europe. It will not define ours.” Although Labour has pledged to respect the UK’s decision to leave the single market and customs union, the chancellor’s appeal points towards easing paperwork burdens, reducing export barriers, and seeking a veterinary agreement to facilitate smoother food and farm trade.
The push comes as Britain’s exporters struggle with red tape in the wake of Brexit, and as global trade risks intensify following President-elect Donald Trump’s threats of tariffs as high as 20 per cent on imported goods. The British Chambers of Commerce echoed Reeves’s sentiment, warning that, to grow, the UK “must export more” but that firms are “struggling under huge regulatory and paperwork burdens.”
Yet any further alignment with EU standards may face political pushback, with the Conservatives criticising Reeves for focusing on Europe rather than prioritising a transatlantic trade deal with the incoming US administration. Meanwhile, the EU may seek concessions of its own, such as improved opportunities for young Europeans to live and work in Britain—an arrangement Labour leader Sir Keir Starmer has previously ruled out.
Reeves’s intervention aligns with recent comments from Andrew Bailey, Governor of the Bank of England, who said Britain should seize “opportunities to rebuild relations” with the EU, and from analysts warning that any US shift towards protectionism could pose a serious threat to European exporters. Carsten Brzeski, global head of ING Research, noted that potential US tariffs and deregulation could “cannibalise” Europe’s growth potential, making constructive UK-EU engagement more vital than ever.
By promising to work constructively with the European bloc, Reeves aims to reassure investors and businesses that Britain’s economic future will not be defined by fractious negotiations or entrenched isolation. Instead, she intends to show that cooperation, rather than confrontation, can strengthen Britain’s standing and resilience amid uncertain global trading conditions.
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Reeves calls for ‘reset’ with EU to spur UK growth amid global trade tensions

The deepening car finance crisis could deliver a major blow to Britain’s economic prospects, according to the head of the country’s largest retail bank.
Charlie Nunn, chief executive of Lloyds Bank, warned that uncertainty caused by recent court rulings was undermining investor confidence and risking a multi-billion-pound claims storm reminiscent of the PPI scandal.
Mr Nunn’s concerns follow a landmark Court of Appeal ruling which deemed hidden commissions paid to car salesmen by banks as illegal. The judgment, handed down last month, has effectively overturned a longstanding industry practice and appears to contradict guidance previously issued by the Financial Conduct Authority (FCA). The court’s decision that sales staff have a “fiduciary duty” to secure the best deal for consumers has raised the prospect that similar claims could spread beyond car finance into other areas of consumer lending.
Speaking at an event hosted by the Financial Times, Mr Nunn said: “Investors are looking at this and saying this principle of the courts coming up with decisions independently from the regulation … is bleeding across the whole economy.” He suggested that the uncertainty stemming from the ruling, combined with regulatory indecision, was making it harder for foreign and domestic investors alike to commit funds to UK financial services and the economy more broadly.
The fallout is expected to be costly. Industry observers have likened the situation to the payment protection insurance (PPI) scandal, which inflicted tens of billions of pounds in redress on UK lenders. Preliminary estimates suggest that motor finance compensation could top £16 billion, with some claims management firms warning of as much as £40 billion in potential payouts.
The crisis is already starting to bite. Lloyds, which entered the market through its Black Horse subsidiary, took a £450 million provision earlier this year in anticipation of compensation claims. Close Brothers, another major motor lender, has seen its market value collapse from £1.5 billion to just £325 million since the issue intensified, as lenders pull back and assess the legal risks.
The timing of the Court of Appeal’s judgment complicates an ongoing FCA investigation into mis-selling within the motor finance industry. While the Financial Ombudsman Service broke ranks with the FCA last year to support consumer claims, the regulator’s own inquiry and any subsequent compensation scheme are not expected to conclude before mid-2025. In the meantime, many companies remain in limbo, wary of lending to potential car buyers until the legal landscape becomes clearer.
About 85 per cent of new cars and 65 per cent of second-hand vehicles in the UK are purchased using finance arrangements, making the issue a critical one for the automotive and banking sectors alike. Should consumer credit costs rise or product availability falter, the consequences could ripple across dealerships, lenders, and manufacturers, hindering the post-pandemic recovery of Britain’s automotive market and wider economy.
Mr Nunn stressed that only coordinated action could restore the faith of the global investment community. “Financial services, regulators, and the Government are going to need to come together to provide that certainty for consumers, for the car industry, and actually for investability in the UK economy,” he said.
As lenders weigh up the implications and seek a path forward, the stakes could not be higher. With Britain striving to attract capital and reaffirm its place in global markets, the outcome of the car finance crisis may well serve as an indicator of the country’s long-term regulatory stability and economic resilience.
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Car finance crisis set to cost billions and dent investor confidence, warns Lloyds boss

More than 80% of UK small businesses are planning growth-focused initiatives for 2025, reflecting increased optimism as enterprises report a two-year high in growth projections, according to a Novuna Business Finance study.
Key areas of focus include boosting new business sales (43%) and reducing fixed costs (24%). Diversifying business models and developing new products or services are also top priorities for one in five firms. However, recent National Insurance changes appear to have tempered hiring ambitions, with only 7% of SMEs prioritising senior hires and 9% planning to recruit young talent.
Regionally, London leads the charge, with 94% of businesses prioritising growth, followed by the West Midlands and North East at 83% each. Sectors such as media (92%) and manufacturing (90%) are the most likely to focus on growth initiatives, highlighting strong momentum in these industries.
The findings come as 35% of small businesses nationally reported growth in the past three months, the highest figure in two years. Despite concerns surrounding the Autumn Budget, many SMEs are ending 2024 on a strong note.
Joanna Morris, Head of Insight at Novuna Business Finance, said: “The percentage of enterprises predicting growth has been at a two-year peak since July. A significant proportion are already prioritising growth projects for the year ahead. We are committed to helping businesses realise their potential and build on the resurgent confidence seen this year.”
Financial prudence remains a key theme, with businesses aiming to tackle fixed costs and build financial reserves as part of their strategy to ensure resilience in a dynamic economic environment.
The study highlights the determination of UK small businesses to drive forward, positioning themselves for sustained success in 2025 and beyond.
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UK SMEs focus on growth initiatives for 2025 amid optimistic outlook

A federal appeals court has upheld a law requiring TikTok’s Chinese parent company, ByteDance, to sell the app to a non-Chinese entity by mid-January or face a ban in the United States.
The decision by the U.S. Court of Appeals for the District of Columbia Circuit marks a significant escalation in the ongoing scrutiny of TikTok, one of the country’s most popular social media platforms with over 170 million users.
The ruling deals a major blow to TikTok, which had sought to overturn the law on the grounds that it unfairly singled out the app and infringed on the First Amendment rights of its American users. ByteDance has maintained that a sale is unfeasible, citing expected opposition from the Chinese government.
President-elect Donald Trump, who has publicly expressed support for TikTok, now faces mounting pressure to intervene. However, his team has yet to outline a clear plan for rescuing the app. A spokesperson recently stated, “He will deliver,” but provided no further details.
The law, enacted in April, gives TikTok until January 19 to comply or face a nationwide ban. Free speech advocates and content creators who rely on the platform for income have voiced concerns over the app’s potential removal, which could disrupt the digital economy and curtail user access to a platform that has become a cultural phenomenon.
TikTok’s next steps are uncertain. Legal experts anticipate the company will appeal to the Supreme Court, though there is no guarantee the justices will take up the case. Meanwhile, the court’s decision adds urgency to ByteDance’s predicament, with no immediate resolution in sight.
The decision intensifies the debate over TikTok’s role in the U.S. market and highlights broader geopolitical tensions surrounding technology and data security.
Read more:
Court upholds law forcing TikTok ban or sale in the United States

Hey there! As someone who lives and breathes tech, I’m super stoked to break down what makes a modern computer truly “modern” in 2024.
Trust me, it’s way more exciting than it might sound at first! Let’s dive into the essential characteristics that separate today’s powerhouses from the dinosaurs of yesteryear. Watch on the website.
The Brain of the Beast: Processing Power
Yo, let’s start with the absolute MVP – the processor, or CPU if you want to sound fancy. These days, you can’t just roll with any old chip and expect to keep up. Modern processors are absolute beasts, rocking multiple cores and threads like it’s nobody’s business. We’re talking 8 cores minimum for a serious setup, and that’s just the beginning!
But what really blows my mind is how these processors adapt on the fly. They’ve got this sick technology called dynamic frequency scaling, where they can crank up the speed when you need the juice and dial it back to save power when you’re just scrolling through TikTok. Plus, modern CPUs have dedicated circuits for AI tasks – because let’s face it, AI is everywhere now, and your computer better be ready for it.
RAM: Because Size (and Speed) Actually Matters
Listen up, because this is crucial – RAM is like your computer’s short-term memory, and in 2024, you need a lot of it. We’re not in the Stone Age anymore where 8GB was considered “plenty.” For a modern computer to handle multiple Chrome tabs (we all know how hungry those are), maybe some Photoshop action, and your favorite game running in the background, you’re looking at 16GB minimum. But real talk? 32GB is where it’s at if you want to future-proof your setup.
But it’s not just about size – speed matters too. DDR5 memory is the new standard, and it’s like comparing a rocket to a bicycle when you look at older RAM types. The bandwidth is insane, and it makes everything feel snappier than your favorite pair of jeans.
Storage Revolution: SSDs or Nothing
If you’re still running mechanical hard drives as your main storage, I hate to break it to you, but you’re living in the past. Modern computers absolutely need SSD storage – preferably NVMe drives that plug directly into your motherboard. We’re talking read speeds that can hit 7000MB/s or more. That means games load in seconds, Windows boots before you can grab your coffee, and file transfers are basically instant.
And here’s the thing – storage isn’t just about speed. Modern SSDs are more reliable, use less power, and make zero noise. Plus, with prices dropping faster than my grades in calculus (just kidding, Mom!), there’s no excuse not to go all-in on solid-state storage.
Graphics: More Than Just Gaming
Even if you’re not a gamer, having decent graphics capabilities is crucial in a modern computer. Why? Because everything is getting more visually demanding. Web browsers use GPU acceleration, video conferencing needs graphics power, and don’t even get me started on creative apps like DaVinci Resolve or Blender.
Modern GPUs aren’t just about pushing pixels – they’re computational powerhouses that help with everything from AI tasks to video encoding. And with technologies like DLSS 3.0 and FSR, they’re getting smarter about delivering amazing visuals without melting your power supply.
Connectivity: The Need for Speed
Let me drop some truth – a modern computer needs to be connected like a social media influencer. We’re talking:

Wi-Fi 6E support for those sweet, sweet high-speed wireless connections
Thunderbolt 4/USB4 ports that can handle everything from external GPUs to 8K displays
At least one USB-C port that can fast-charge your devices
Bluetooth 5.3 for connecting all your wireless gear without the lag

And it’s not just about having the ports – it’s about having them work seamlessly. Modern computers should handle multiple displays, docking stations, and peripherals without breaking a sweat.
Power Management and Efficiency
This might sound boring, but hear me out – modern computers need to be smart about power usage. We’re not just talking about battery life for laptops (though that’s huge). Desktop computers need to be efficient too, because:

Power bills are no joke (especially if you’re mining crypto on the side)
The planet isn’t getting any cooler
High-performance components generate serious heat

Modern systems need advanced power management features, efficient cooling solutions, and the ability to balance performance with power consumption. It’s like having a sports car that can also get decent mileage when you’re just cruising.
Security Features: Because the Internet is Wild
Real talk – the internet is like the Wild West, and your computer needs to be packing heat (metaphorically speaking). Modern computers require hardware-level security features like:

TPM 2.0 for encryption and secure boot
Hardware-based virtualization support
Secure enclaves for handling sensitive data
Built-in malware protection that doesn’t slow everything to a crawl

The Software Side: OS and Updates
A modern computer isn’t just about the hardware – it needs an OS that can keep up. Whether you’re team Windows, macOS, or Linux (respect), your system needs to handle:

Regular security updates without breaking everything
Background tasks without stuttering
Multiple workspaces and virtual desktops
Touch and pen input (because who knows when you’ll need it)
Seamless cloud integration

Future-Proofing: Because Tomorrow is Coming Fast
Last but definitely not least, a modern computer needs to be ready for what’s coming next. That means having:

Expandability options for more storage or RAM
Support for next-gen standards like PCIe 5.0
The ability to handle emerging technologies like AR and VR
Enough power headroom to handle future software demands

Wrapping It Up
Listen, at the end of the day, a modern computer isn’t just a collection of specs – it’s a gateway to getting stuff done, having fun, and staying connected. Whether you’re editing videos, coding the next big app, or just trying to dominate in your favorite game, having a system that checks all these boxes means you’re ready for whatever the digital world throws at you.
The best part? You don’t need to sell a kidney to get most of these features anymore. Technology is advancing faster than ever, and what was premium yesterday is mainstream today. Just make sure you’re thinking about how you’ll actually use your computer and prioritize the features that matter most to you.
Remember, the most modern computer is the one that lets you do what you need to do without getting in your way. It’s about having the power when you need it, the reliability to keep going, and the features to keep you ahead of the curve.
Now if you’ll excuse me, I need to go upgrade my RAM. Again. Because you can never have too much, right?
Read more:
Alexander Ostrovskiy: What Makes a Computer Tick

Chancellor Rachel Reeves’ upcoming visit to China in January for the long-awaited resumption of the UK-China Economic and Financial Dialogue has been hailed as a pivotal opportunity for economic cooperation.
However, leading advisory firm Blick Rothenberg has urged her to adopt a pragmatic approach to secure meaningful outcomes for both nations.
Winnie Cao, Head of the firm’s China desk, described the dialogue’s return after a six-year hiatus as “great news for both China and the UK.” She emphasised that pragmatism in these talks could not only bolster trade relationships but also signal a broader commitment to international cooperation, potentially easing global tensions.
Cao noted the potential for mutual benefit, with China offering the UK affordable electric vehicles and battery storage solutions — vital for achieving the UK’s net-zero ambitions. Conversely, the UK provides Chinese businesses with opportunities to expand into a stable, growth-oriented market amid slowing domestic growth in China.
A closer economic relationship with China, Cao suggested, could support Labour’s growth plans, particularly given China’s role as one of the UK’s top trading partners. She argued that China might prove a more predictable ally than the US under President-elect Donald Trump, whose administration has hinted at leveraging sanctions to drive economic compliance.
Despite the potential for collaboration, caution is expected on both sides. The UK’s National Security Law, which limits foreign investments, reflects concerns over the influence of external investors. Meanwhile, China’s delegation, led by He Lifeng, is likely mindful of how enhanced UK-China ties might be perceived in Washington.
“Both nations need to play to their strengths,” Cao advised. “For the UK, that means leveraging China’s complete supply chain for green technologies, and for China, tapping into the UK’s stable market as its companies look outward for growth.”
With economic pressures mounting globally, Reeves’ ability to strike a balanced and strategic agreement could yield significant benefits for both economies, demonstrating the importance of pragmatic diplomacy in uncertain times.
Read more:
Rachel Reeves urged to approach China talks with pragmatism

The appointment of Tom Hayhoe as the UK’s COVID corruption commissioner has been criticised as unlikely to recover significant taxpayer funds, according to leading audit and advisory firm Blick Rothenberg.
Fiona Fernie, a partner at the firm, questioned the value of the role, particularly given the time elapsed since the alleged corruption took place during the pandemic.
“Four years after the events occurred, it’s unclear why Rachel Reeves believes this appointment will achieve more than previous investigations, including the National Audit Office’s 2020 review or the Boardman Review in 2021,” Fernie said.
Hayhoe’s 12-month tenure has also been criticised as insufficient for such a complex inquiry. Fernie warned that those involved in questionable activities during the pandemic have had years to obscure evidence, making recovery efforts even more challenging.
Although Hayhoe is expected to provide recommendations on future government procurement processes during crises, Fernie questioned what additional insights this could offer beyond existing reviews, including the COVID inquiry led by Baroness Heather Hallett and the National Crime Agency’s ongoing investigations into potential PPE-related criminal offences.
The delay in appointing Hayhoe has also come under scrutiny. Despite being a Labour manifesto pledge, it took five months into their government for the appointment to be finalised, with frequent public promises of an imminent announcement.
Fernie expressed support for efforts to investigate fraud and recover public funds but cautioned that the cost of Hayhoe’s role might outweigh the financial recoveries it achieves. “This appointment may easily cost the Exchequer more than it will recover and is unlikely to bring any new information to light,” she said.
The criticism raises broader questions about the effectiveness of retrospective investigations and the balance between accountability and the cost of pursuing historical cases.
Read more:
COVID corruption commissioner unlikely to recover taxpayers’ money

Small businesses in some of Britain’s most disadvantaged areas are poised to benefit from £1 billion in lending, thanks to a government-backed initiative by community-based finance organisations.
The British Business Bank (BBB) has launched a £150 million, two-year scheme to bolster community development finance institutions (CDFIs), which lend to businesses turned down by mainstream banks. The initiative is expected to increase CDFI lending from £102 million a year to £500 million annually by 2029, with Responsible Finance estimating the total impact to reach £1 billion as funds are recycled through loan repayments.
“This is a huge step forward,” said Theodora Hadjimichael, chief executive of Responsible Finance, which represents 50 CDFIs across the UK. “We’ve often been constrained by limited capital, but now we’ve been recognised for the good that we do.”
CDFIs focus on supporting viable businesses that can repay loans but struggle to secure funding elsewhere. Last year, 99% of CDFI borrowers had been rejected by other lenders, yet 89% of loans were repaid in full, demonstrating the model’s effectiveness.
The scheme has also attracted private sector interest, with hopes of raising an additional £100 million annually. Lloyds Bank recently partnered with Big Society Capital to invest £62 million in CDFIs, and JP Morgan Chase has committed £4 million to help community lenders upgrade their systems and improve efficiency.
Gareth Thomas, the small business minister, hailed the initiative: “CDFIs’ local know-how enables them to lend effectively when traditional banks cannot. Access to finance is a key barrier for small businesses, and this is a big step towards addressing that challenge.”
One beneficiary is Hyde Accessible Transport in Manchester, which secured a £125,000 loan from the Business Enterprise Fund, a CDFI, after being declined by mainstream banks. Founder Shaun Delaney used the funds to expand operations, tripling turnover and increasing staff to 228 employees and contractors, most of whom are local.
The programme not only provides financial lifelines to small firms but also strengthens local economies by creating jobs and fostering growth in underserved areas, reinforcing the vital role CDFIs play in Britain’s financial ecosystem.
Read more:
Community lenders unlock £1bn to support small firms rejected by banks