4 March 2025
Inflation jumps to three per cent in January
The Consumer Prices Index (CPI) reported a three per cent increase in the rate of inflation for the 12 months ending in January 2025, according to the Office for National Statistics. This figure exceeded economists' predictions and presents challenges for small business owners, many of whom are already facing pressure on their profit margins. The rise in inflation was primarily driven by increased prices for transportation and food and drink.
The Low Pay Commission Regional Visits
The Low Pay Commission (LPC) is conducting regional visits in 2025 to gather first-hand evidence on the impact of the National Minimum Wage from individuals and employers. As an independent body that advises the Government, the LPC seeks to understand local economic conditions, employment outlook, and the effects of rising minimum wage on both employers and workers.
They invite participants to share their insights on the local economy, wage trends, and the future of the minimum wage. The evidence collected will inform the LPC's recommendations for minimum wage rates, with all information treated confidentially and anonymised where necessary.
Last year, the National Hair & Beauty Federation contributed to the LPC's report, advocating for any wage increases to happen gradually and be coupled with support for businesses hiring apprentices. For more information and to get involved in the regional visits please, contact rosina.robson@nhbf.co.uk. Visits in Dundee and London are coming up in March/April.
The list of locations for the Low Pay Commission’s regional visits programme in 2025.
Campaigning for you – Briefing with No.10 Downing Street
NHBF attended the second in a series of online briefings hosted by the No.10 partnerships team this week. This time it was with Peter Kyle MP, the Secretary of State for Science, Innovation and Technology on the theme of AI (Artificial Intelligence).
The government’s work on AI focuses on three key themes i) interacting directly with the economy to drive growth; ii) bringing tech into government to boost productivity and iii) transforming the relationship between the citizens and government. A digital centre of government will sit in DSIT and link with No.10. The aim is to create a Silicon Valley in the UK increasing capability through building data centres, private partnerships, creating jobs and leading globally.
There were several questions asked including about AI and the creative industries where a consultation process is going on at the moment. Take up of AI amongst small businesses is low (ie. opportunities attached to marketing and building a client base) and UK businesses are not as competitive internationally in this space. The Chief Scientific Officer is carrying out a review of this and will report shortly.
Further toughts on AI from the NHBF team here: