UK business confidence has reached a nine-year high in 2024, according to Lloyds Bank’s latest Business Barometer.
In addition, UK inflation has fallen to its lowest level for more than three years, and below the 2% Central Bank threshold.
However, there is still a difficult budget to come with the likelihood that employer NI contributions will rise.
In the last set of jobs numbers before the Budget, the Office for National Statistics (ONS) said the unemployment rate fell to 4%.
The number of job vacancies decreased again, falling to 841,000 in the July to September period, although the total remains above pre-pandemic levels.
Analysis by the Institute of Student Employers (ISE) shows that graduates entering the workforce this year are starting on lower salaries in real terms compared to those who graduated three years ago.
As part of its initiatives to provide better worker protection the Government is expected to establish the Fair Work Agency to enforce new employment rights. It will protect against unfair dismissal and exploitative contracts, with powers to inspect and penalise rogue employers.
However, small businesses have raised concerns about the rushed implementation of 28 new measures, which include the end of zero-hours contracts and stronger protections for pregnant women.
Clearly, there is a long way to go to restore the damage of the last ten years but, as City AM recently reported: “The Building Back Britain Commission has identified five key areas for reform they say could “revive” UK productivity and boost the economy.”
They include access to healthcare services; educational standards; the quality of digital infrastructure; the availability, affordability, and quality of housing; and access to public transport.