Latest news with #wagecosts
Bloomberg
7 days ago
- Business
- Bloomberg
UK Firms Face 4% Minimum-Wage Rise in 2026, Early Estimates Show
UK businesses are facing another inflation-busting jump in wage costs for their lowest-paid workers next year, the latest blow to labor-intensive sectors that have shed jobs in recent months. The Low Pay Commission said indicative calculations suggest that keeping the minimum wage for workers aged 21 and over at two-thirds of median earnings would require a 4.1% increase to £12.71 ($16.896) from April 2026.
The Sun
28-07-2025
- Business
- The Sun
Fifty thousand businesses on brink of collapse over ‘immense strain' of rising wage costs
FIFTY thousand businesses are on the brink of collapse as rising wage costs put them under 'immense strain', a report reveals. The number in critical financial distress has risen by more than a fifth compared with a year ago. 2 Chancellor Rachel Reeves' increases in National Insurance costs and the minimum wage are seen as key reasons, the Begbies Traynor survey shows. Bars and restaurants at 'critical' financial level were up by 41 per cent. And there was a 39 per cent rise among travel and tourism companies. The total number hit 49,309. Those in 'significant' financial distress increased by ten per cent over the year to 666,876. Shadow Chancellor Mel Stride said: 'Labour's reckless Jobs Tax is pushing thousands of small businesses to the brink. "The lifeblood of local communities are paying the price.' Ric Traynor, of Begbies Traynor, said: 'Small and medium-sized businesses across the UK are being put under immense strain by the recent increases to employer's NI and the national minimum wage.' The British Beer and Pub Association warned 378 pubs would close this year in England, Wales and Scotland. The BBPA's Emma McClarkin said: 'We're calling on government to fulfil promises of business rates reform, mitigate costs and cut beer duty.' 2
Yahoo
17-07-2025
- Business
- Yahoo
Frasers ‘working hard' to offset cost hit as sales improve
High street retail giant Frasers (FRAS.L) said it was working hard to offset soaring wage costs, but had seen 'more encouraging' trading after a challenging end to 2024. The Sports Direct owner reported a 2.8% rise in underlying pre-tax profits to £560.2 million for the year to April 27, despite a 7.4% drop in revenues to £4.9 billion. Second-half profits jumped 8.3% as it recovered from a tough end to 2024 due to weaker consumer confidence in the run up to, and following, the autumn budget. Frasers – majority-owned by retail tycoon Mike Ashley – had cut its profit outlook in December after the tougher trading, but it said conditions had since improved. 'Following an especially weak period after last year's budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said. But shares fell 4% in morning trading on Thursday. The group said it expects to deliver underlying profits of between £550 million and £600 million in 2025-26 as it looks to cut costs to offset a £50 million hike in costs due to the autumn budget move to hike national insurance contributions (NICs) and increase the minimum wage once again. Frasers – which also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss ( – said it would focus on using artificial intelligence (AI) to drive cost savings. 'We are working hard to mitigate those (costs) by taking more costs out, focusing on potential efficiencies through the use of AI, realising further acquisition synergies and sustaining a robust gross margin,' it said. Figures show on a reported basis, pre-tax profits fell 24.3% to £379.4 million from £501 million the previous year, hit by currency movements and a drop in the value of its stake in Hugo Boss. Michael Murray, chief executive of Frasers Group, said: 'I'm pleased with our performance this year, despite the headwinds caused by last year's budget. 'We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities.' Frasers Group ramped up expansion once again over the past year, with new markets and upping stakes in companies such as Hugo Boss ( and AO World (AO.L).
Yahoo
17-07-2025
- Business
- Yahoo
Frasers ‘working hard' to offset cost hit as sales improve
High street retail giant Frasers said it was working hard to offset soaring wage costs, but had seen 'more encouraging' trading after a challenging end to 2024. The Sports Direct owner reported a 2.8% rise in underlying pre-tax profits to £560.2 million for the year to April 27, despite a 7.4% drop in revenues to £4.9 billion. Second-half profits jumped 8.3% as it recovered from a tough end to 2024 due to weaker consumer confidence in the run up to, and following, the autumn budget. Frasers – majority-owned by retail tycoon Mike Ashley – had cut its profit outlook in December after the tougher trading, but it said conditions had since improved. 'Following an especially weak period after last year's budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said. But shares fell 4% in morning trading on Thursday. The group said it expects to deliver underlying profits of between £550 million and £600 million in 2025-26 as it looks to cut costs to offset a £50 million hike in costs due to the autumn budget move to hike national insurance contributions (NICs) and increase the minimum wage once again. Frasers – which also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss – said it would focus on using artificial intelligence (AI) to drive cost savings. 'We are working hard to mitigate those (costs) by taking more costs out, focusing on potential efficiencies through the use of AI, realising further acquisition synergies and sustaining a robust gross margin,' it said. Figures show on a reported basis, pre-tax profits fell 24.3% to £379.4 million from £501 million the previous year, hit by currency movements and a drop in the value of its stake in Hugo Boss. Michael Murray, chief executive of Frasers Group, said: 'I'm pleased with our performance this year, despite the headwinds caused by last year's budget. 'We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities.' Frasers Group ramped up expansion once again over the past year, with new markets and upping stakes in companies such as Hugo Boss and AO World.
The Independent
17-07-2025
- Business
- The Independent
Frasers ‘working hard' to offset cost hit as sales improve
High street retail giant Frasers said it was working hard to offset soaring wage costs, but had seen 'more encouraging' trading after a challenging end to 2024. The Sports Direct owner reported a 2.8% rise in underlying pre-tax profits to £560.2 million for the year to April 27, despite a 7.4% drop in revenues to £4.9 billion. Second-half profits jumped 8.3% as it recovered from a tough end to 2024 due to weaker consumer confidence in the run up to, and following, the autumn budget. Frasers – majority-owned by retail tycoon Mike Ashley – had cut its profit outlook in December after the tougher trading, but it said conditions had since improved. 'Following an especially weak period after last year's budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said. But shares fell 4% in morning trading on Thursday. The group said it expects to deliver underlying profits of between £550 million and £600 million in 2025-26 as it looks to cut costs to offset a £50 million hike in costs due to the autumn budget move to hike national insurance contributions (NICs) and increase the minimum wage once again. Frasers – which also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss – said it would focus on using artificial intelligence (AI) to drive cost savings. 'We are working hard to mitigate those (costs) by taking more costs out, focusing on potential efficiencies through the use of AI, realising further acquisition synergies and sustaining a robust gross margin,' it said. Figures show on a reported basis, pre-tax profits fell 24.3% to £379.4 million from £501 million the previous year, hit by currency movements and a drop in the value of its stake in Hugo Boss. Michael Murray, chief executive of Frasers Group, said: 'I'm pleased with our performance this year, despite the headwinds caused by last year's budget. 'We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities.' Frasers Group ramped up expansion once again over the past year, with new markets and upping stakes in companies such as Hugo Boss and AO World.
