Latest news with #ConfederationofBritishIndustry
CNBC
7 days ago
- Business
- CNBC
CCTV Script 13/05/25
On Monday local time, the UK government released a new immigration white paper, marking a comprehensive reform of its immigration system. The new policies tighten several visa application requirements, with significant impacts on skilled worker visas, social care visas, and student visas. Let's take a closer look: First, for skilled worker visas, the minimum educational requirement has been raised to a university degree. In addition, applicants wishing to bring family members to the UK must meet a higher salary threshold, and accompanying family members must demonstrate basic English proficiency. The white paper also proposes ending the visa route for overseas recruitment in the social care sector. At the same time, policies for international student visas have also been tightened. While international students will still be allowed to stay in the UK to seek employment after graduation, the Graduate visa duration will be shortened from the current two years to 18 months. The government is also considering imposing a 6% levy on universities' income from international tuition fees. Finally, the white paper stipulates that the minimum residency requirement for applying for permanent settlement in the UK will increase from five years to ten years. In recent years, net migration to the UK has remained high. With the surge in immigrant numbers, public service resources have become strained, triggering discontent among many British citizens. Shortly after Keir Starmer took office last year, large-scale anti-immigration protests erupted across the country. This helps explain why the Starmer government is now emphasizing the need to regain control over the UK's borders. Keir Starmer "As this white paper sets out, every area of the immigration system, work, family and study will be tightened up so we have more control. CUT TO enforcement tougher than ever, because fair rules must be followed." According to UK government estimates, the reforms could reduce annual immigration numbers by nearly 100,000, with skilled worker entries potentially dropping by as much as 50%. The latest immigration reforms have sparked strong opposition from the UK's business, care, and education sectors. According to the , the CEO of the Confederation of British Industry (CBI) pointed out that domestic training alone cannot solve the labor shortage. The current immigration policies make it hard for UK businesses to access key skilled workers, which affects investment, limits growth, and may even jeopardize existing jobs. The CEO of Care England, a social care industry organization, criticized the government for failing to increase investment in the sector or address the staffing crisis — and instead cutting off one of the few existing talent pipelines. Lastly, the CEO of Universities UK warned that the reforms could further strain higher education institutions. Not only might they hit university finances, but they could also reduce the UK's attractiveness to international students.
Fibre2Fashion
28-05-2025
- Business
- Fibre2Fashion
Retail sales decline in May as UK firms brace for tougher quarter: CBI
Retail sentiment in the UK declined at its steepest rate in five years this May, with a growing number of firms anticipating a worsening business outlook in the next quarter, according to the Confederation of British Industry (CBI). Year-on-year (YoY) retail sales fell in May (weighted balance of -27 per cent from -8 per cent in April). Sales are expected to decline at a faster rate next month (-37 per cent). However, online sales fared better, with volumes rising in the year to May, following six consecutive months of falling or flat sales, CBI said in its latest report. Retail sentiment in the UK dropped sharply in May, marking the steepest decline in five years. YoY retail sales fell, with online sales showing improvement. Retailers plan to cut investment and headcount, with employment expected to decline further in June. Inflation in retail prices rose, and businesses anticipate higher price increases next month. Retail sales in May were termed 'poor' for the time of year, though the assessment was less negative than in April (19 per cent compared to -31 per cent previously). Sales in June are expected to continue falling short of seasonal norms, with a projected balance of -21 per cent. Against a backdrop of subdued demand, retailers plan to reduce investment and headcount. Retailers are expecting to significantly scale back capital expenditure in the next 12 months compared to the last 12 months. The report stated that this cautious outlook shows only modest improvement on February's reading, which marked its weakest point since the onset of COVID-19 in 2020. The total employment fell in May compared to a year ago, with the pace of decline expected to accelerate in June. The sentiment amongst retailers plummeted in May at the sharpest rate in five years, with a net balance of firms expecting their business situation to worsen over the coming quarter (-29 per cent from -19 per cent in February). Retailers expect to scale back investment plans in the next 12 months (compared to the previous 12) to a significant extent (-47 per cent from -56 per cent in February). Employment in retail declined at a broadly steady rate in the year to May, compared to the previous quarter (-15 per cent from -13 per cent in February). Headcount is expected to fall at a quicker pace next month (-20 per cent). Retail selling price inflation picked up in the year to May but remained below the long-run average for the fifth consecutive quarterly survey (+35 per cent from +25 per cent in February; long-run average +41 per cent). Retailers anticipate selling prices to increase at an accelerated rate next month (+57 per cent). Total distribution sales volumes (including retail, wholesale, and motor trades) declined in the year to May at the joint-fastest rate since January 2021 (-43 per cent from -26 per cent in April). Businesses anticipate another strong decline in sales for June, although at a slower pace (-38 per cent). 'This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better,' said Ben Jones, lead economist at CBI . 'Firms are also feeling the impact of higher NICs and the National Living Wage increase. Our quarterly survey suggests that retailers are cutting back on hiring, scaling back investment and expect to increase selling prices at the fastest pace for over a year.' 'With the Spending Review on the horizon, the government has an opportunity to kickstart growth and incentivise investment, whether by reforming business rates, simplifying skills investment through the Apprenticeship Levy reform or expanding the Made Smarter Programme, further enabling digital adoption,' added Jones. The report revealed a deepening slowdown across the UK retail and distribution sectors in May. Retail orders placed with suppliers fell sharply, with a net balance of -41 per cent, down from -24 per cent in April, and are expected to continue declining at a similar pace in June (-42 per cent). Stock levels relative to expected demand dropped below the long-run average, easing to +12 per cent in May and projected to fall further to 9 per cent next month. The online retail sales volumes showed a strong recovery, rising by +37 per cent after six months of stagnation or decline, although growth is expected to moderate in June (+17 per cent). Meanwhile, wholesale sales volumes saw their steepest fall since June 2020 at -48 per cent, which is expected to remain weak in June. Fibre2Fashion News Desk (SG)
Yahoo
27-05-2025
- Business
- Yahoo
UK retailers expect tough quarter as sentiment drops to five-year low
UK retailer sentiment experienced its most significant drop in five years in May 2025, as a greater number of businesses anticipate worsening conditions in the upcoming fiscal quarter. Findings from the Confederation of British Industry's (CBI) recent quarterly Distributive Trades Survey reveal that comparative retail sales volumes decreased during the month, with projections pointing to a still more rapid decline in June. In contrast, online sales saw an improvement over the same period, breaking a six-month trend of either decreasing or stagnant sales figures. Faced with weak demand, retailers are preparing to cut back on both investment and their workforce. Plans indicate a considerable reduction in capital spending over the coming year to May 2026 compared to the preceding 12 months. This conservative stance reflects only a slight recovery from February's sentiment, which was at its lowest since the emergence of Covid-19 in 2020. Employment within the retail sector dropped in May 2025 year-on-year, with expectations for this downward trend to pick up pace come June. Retail sales declined at a weighted balance of 27% year-on-year, worsening from April's 8% drop. Retail sales are anticipated to drop even more steeply in June - at a projected 37%. Assessing sales for the current time of year, retailers rated May's performance as 'poor', albeit less so than in April (19% compared to April -31%). Expectations for June suggest that sales will continue to trail behind typical seasonal levels at -21%. Online sales presented a contrasting picture, with an increase in volumes increasing 37% over the past year following a half-year period of stagnant or declining figures. Retailers predict online sales will rise again in June 2025 but at a more modest pace (+17%). During the month, retail selling price inflation continued to rise, but stayed beneath the long-term average for the fifth consecutive survey. Retailers anticipate that next month will bring an increased rate of price inflation at 57%. Data from the survey also revealed that orders placed with suppliers by retailers fell more sharply in May at 41%, and retailers expect to maintain this reduced level of ordering into June (-42%). CBI lead economist Ben Jones stated: 'This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better. 'Firms are also feeling the impact of higher NICs [National Insurance contributions] and the National Living Wage increase. Our quarterly survey suggests that retailers are cutting back on hiring, scaling back investment and expect to increase selling prices at the fastest pace for over a year.' Latest data from the British Retail Consortium (BRC) – NielsenIQ shop price index revealed that overall shop price deflation in the UK remained steady at 0.1% year-on-year in May 2025, maintaining the same rate as in April and exceeding the three-month average deflation rate of -0.2%. "UK retailers expect tough quarter as sentiment drops to five-year low" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
27-05-2025
- Business
- Fashion Network
UK retail sentiment plummets in May and sales fell more sharply, CBI says
Confidence among British retailers fell at the sharpest pace in five years and a decline in sales volumes gathered pace as stores expect conditions to worsen, a Confederation of British Industry survey showed on Tuesday. The CBI's quarterly gauge of business sentiment plunged in May with a net balance of firms expecting their business situation to worsen over the coming three months at -29% in May from -19% in February. It was the lowest reading since May 2020. Its monthly gauge of how retail sales compared with a year earlier fell to -27 this month - the lowest since March - from -8 in April, which had been its highest since October. A measure of expected sales for June fell to -37, the lowest since February 2024. "This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better," Ben Jones, lead economist at the CBI, said. Official data last week showed British retail sales jumped by much more than expected in April. The CBI's quarterly survey also suggested that retailers were cutting back on hiring, scaling back investment and expected to increase their selling prices at the fastest pace in more than a year.
Fashion Network
27-05-2025
- Business
- Fashion Network
UK retail sentiment plummets in May and sales fell more sharply, CBI says
Confidence among British retailers fell at the sharpest pace in five years and a decline in sales volumes gathered pace as stores expect conditions to worsen, a Confederation of British Industry survey showed on Tuesday. The CBI's quarterly gauge of business sentiment plunged in May with a net balance of firms expecting their business situation to worsen over the coming three months at -29% in May from -19% in February. It was the lowest reading since May 2020. Its monthly gauge of how retail sales compared with a year earlier fell to -27 this month - the lowest since March - from -8 in April, which had been its highest since October. A measure of expected sales for June fell to -37, the lowest since February 2024. "This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better," Ben Jones, lead economist at the CBI, said. Official data last week showed British retail sales jumped by much more than expected in April. The CBI's quarterly survey also suggested that retailers were cutting back on hiring, scaling back investment and expected to increase their selling prices at the fastest pace in more than a year.
