#profit-margins

#profit-margins

UK businesses cut jobs at the fastest pace in four years over the summer, according to a Bank of England survey highlighting the impact from tax rises on employers. The monthly snapshot from a survey of chief financial officers at British businesses of all sizes showed firms reduced employment by an annual rate of 0.5% in the three months to August, the fastest since 2021.

Just over half (53%) of leaders say revenue increased year-on-year over the second quarter-nearly double the 28% who say it dropped. However, increases are largely the result of higher menu prices and new openings, and the CGA RSM Hospitality Business Tracker has indicated broadly flat spending on a like-for-like basis in the first half of 2025. Meanwhile, higher costs-including higher minimum pay levels and National Insurance contributions from April, as well as sustained inflation in food and drink-have hurt the margins of many operators.

Businesses face challenges in maintaining profit margins amidst fluctuating tariffs and trade negotiations, prompting the need for effective budgeting and sourcing strategies for the future.

The introduction of algorithmic price discrimination has resulted in significantly higher fares for riders while also reducing the overall compensation for drivers on billions of trips.