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UK Edition
3rd November 2025
 
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THE HOT STORY

Mayfield report to address economic inactivity

Sir Charlie Mayfield, the former head of John Lewis, is set to release a report this week calling for urgent action to tackle a surge in the number of people who are not working due to sickness or disability. His report, Keep Britain Working, highlights an increase in economic inactivity due to sickness, particularly among young people citing mental health issues. Since the pandemic, 800,000 individuals have left the workforce due to health problems, with 2m more people saying they have health conditions that limit their ability to work - an increase of more than 30%. Sir Charlie, who will emphasise the negative impact of inactivity on both individuals and the economy, is set to outline a number of recommendations designed to address the issue.
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HIRING

City bosses warn on pay as minimum wage closes in on graduate salaries

City executives warn that the minimum wage is closing in on graduate starting salaries at professional services firms, raising concern about the impact on hiring for accountancy, law and finance.

Reed warns of jobs drought

James Reed, CEO of recruitment firm Reed Employment, has voiced concern over the UK employment market, saying: "It’s a jobs drought - more of a desert actually." His comments come with unemployment having risen to 4.7%, marking a four year high, and Office for National Statistics data showing that there have been 39 consecutive periods of declining vacancies. Mr Reed attributes the situation to increased National Insurance costs and the proposed Employment Rights Bill, which he believes will deter hiring. He notes a significant drop in graduate vacancies, projecting only 50,000 this year and noting that this marks a 9% year-on-year decline.
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TECHNOLOGY

KPMG to assess staff AI use

KPMG is to evaluate how employees use AI tools during annual performance reviews. Niale Cleobury, KPMG's global AI workforce lead, said the firm is already monitoring AI usage through tools like Microsoft's Copilot. Starting in 2026, staff will be assessed on their achievement of AI objectives. “We all have a responsibility to be bringing AI to all of our work," Cleobury said.
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HEALTH & WELLBEING

UK ‘to lose 600,000 workers to illness without better health support at work'

The Royal Society of Public Health (RSPH) warns that 600,000 people may exit the UK workforce due to long-term health conditions over the next decade. By 2035, over 3.3m adults could be economically inactive, costing the UK £36bn annually. RSPH's chief executive, William Roberts, said: "We need a fundamental shift in how we see the role of employers in keeping people healthy."

EIS to ballot members over 'excessive' workload

The EIS teaching union has moved to formally ballot its members on industrial action over the Scottish Government's failure to deliver on its commitment to tackle "excessive" teacher workloads, a pledge which formed part of the SNP's manifesto at the last Scottish Parliament election. That manifesto, the union notes, included "two significant measures that would finally begin to tackle teacher workload - the recruitment of 3,500 additional teachers and classroom assistants, and the reduction of teachers' maximum class contact time from 22.5 hours per week to 21 hours per week."
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LEGAL

Tories demand OBR assess Labour's bill impact

Senior Tories are urging the Office for Budget Responsibility (OBR) to evaluate the economic impact of Labour's Employment Rights Bill. Sir Mel Stride and Andrew Griffith have expressed concerns in a letter to OBR chairman Richard Hughes highlighting potential costs of up to £5bn annually for businesses. They warned that failing to assess these costs could undermine the fiscal forecast. "It would be helpful to understand the OBR's approach to this legislation," they said.
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CORPORATE GOVERNANCE

Government scraps shareholder revolt list

The government has discontinued a public list tracking companies facing significant shareholder revolts, a move critics warn is detrimental to corporate governance. Business Minister Blair McDougall has told the Investment Association, a trade body that represents fund managers, to drop a register of quoted firms where at least a fifth of investors had rebelled "to remove duplication" as part of a series of "pro-growth" measures designed to cut red tape for businesses. Catherine Howarth from ShareAction said: "This is another small but significant nail in the coffin of our reputation for high standards of corporate governance." She added that the decision was "disappointing from a government displaying a concerning pattern of disregard for shareholder rights."
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INTERNATIONAL

AI researchers burn out in race to keep pace

Top AI researchers across firms including Anthropic, Google, Meta, and Microsoft are working up to 100 hours weekly to keep pace with rapid breakthroughs. Josh Batson of Anthropic likened the work to "speedrunning 20 years of scientific progress in two years," calling it the most compelling scientific challenge today. Google DeepMind’s Madhavi Sewak described a relentless cycle: “Everyone is working all the time, it’s extremely intense.” Despite earning massive salaries, many lack time for their personal lives. Work culture includes grueling “0-0-2” schedules, near-constant in-office presence, and company support systems for around-the-clock development.

Thai labour protection bill advances in parliament

Thailand's draft Labour Protection Bill has successfully passed the committee stage and will proceed to the next parliamentary session. Charas Khumkhainam, a Chonburi MP from the People's Party, noted that the committee met eight times to refine the proposal. Key amendments include reducing weekly working hours from 48 to 40, increasing minimum rest days from one to at least two, and granting employees 10 annual leave days after 180 days of continuous work. Sia Jampathong, another MP, said the law aims to enhance workers' quality of life and urged support for its passage through further readings.

Malta cuts taxes for parents

Malta's Finance Minister Clyde Caruana has announced tax cuts for parents with two or more children in a bid to address the country's low fertility rate. In his 2026 budget speech, Caruana described the fertility rate of 1.06 as Malta's "biggest challenge." From 2026, parents will not pay income tax on the first €18,500 of their income, increasing to €30,000 by 2028. Almost a third of Malta's population is made up of foreign workers and their families. 

Israel to offer tax breaks to new immigrants

Israel is to offer tax breaks to new immigrants in a bid to boost the local economy. Officials say the incentives could generate as much as NIS 900 million ($276m) annually through new businesses, increased employment and indirect tax revenue.
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OTHER

Government keeping 'close eye' on private equity-owned nurseries

Education secretary Bridget Phillipson has told the i that the government is keeping a "close eye" on large nursery chains, and has floated the possibility of regulatory action to tackle "excessive profiteering" in the sector. Nurseries backed by private equity firms have doubled their share of the market since 2018, growing from around 40,000 places to almost 90,000 in 2024, representing 8% of the sector. Phillipson pointed to similar concerns in the provision of services for children with special educational needs and disabilities (SEND), saying: "I hope that won't be necessary to take on such powers in other areas. But of course, I wouldn't rule it out if we continue to see the expansion of private equity in a way that doesn't serve the interests of children."
 
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