UK Industry Fast Facts

IBISWorld presents a collection of fast facts for the different sectors of the UK economy.

Agriculture, Forestry & Fishing

• The AHDB reported that consumer trust in farming reached a six-year high in 2024, driven by rising consumer interest in farming and food production and origin.
• In the Autumn Budget 2024, the government introduced a £1 million limit on the inheritance tax relief for farms from April 2026, after that there would be a 50% relief, at an effective rate of 20%. The National Farmers’ Union (NFU) of England and Wales has labelled the Budget as “a blow to British farmers and could lead to food price rises.” Farmers have warned these measures could result in farmers selling up and taking part in protests.
• Following the budget announcements, the ADHB has stated that the “average farm holding value of £2.2 million would incur £240,000 inheritance tax from April 2026”, meanwhile farming confidence has plunged to the lowest level since 2010.
• According to data from the Energy and Climate Intelligence Unit (ECIU), harvests in England are down by between 75% and 33%, depending on the region, marking the second worst harvest on record. Fears about next years’ harvest are also swelling.
• The National Farmers’ Union stated that the plan to make farming net zero by 2040 is unlikely to be achieved due to a lack of investment in climate-friendly farming measures by the previous government. Farming is currently responsible for around 12% of the UK’s total greenhouse gas emissions.
• A report commissioned by the RSPB, National Trust and The Wildlife Trusts discovered that the current investment in agriculture falls short of the amount needed to tackle the climate crisis. An annual investment of £5.9 billion would support the long-term viability of UK farming.
• The National Farmers’ Union (NFU) has claimed that farmers can prevent river pollution is they receive the necessary funding in the next farming budget. According to Rivers Trust, only 14% of UK rivers are in good ecological health.
• The government has launched a £1.6 million fund to help farmers manage water resources more efficiently and protect against the impact of drought. Projects could include multi-farm reservoirs, treated waste-water recycling systems, water trading and sharing schemes.

Mining

• The Office for National Statistics states that output in the mining and quarrying sector fell by 4% in August 2024. This was mainly due to a 4.2% drop in extraction of crude petroleum and natural gas. Mining and quarrying fell 1.7% in the three months to August 2024 compared with the prior quarter.

• In the Autumn Budget 2024, the government confirmed the hike in the Energy Profits Levy (windfall tax) from 35% to 38%, removing the 29% investment allowance and extending the tax until the end of March 2030.

• Apache, a US oil firm, has announced it will exit its North Sea operations by the end of 2029 due to the hike in the windfall tax.

• Escalating tensions in the Middle East have threatened to hike oil prices above $80 per barrel. However, weak economic data from China is putting downward pressure on prices, with prices around the $78 per barrel mark in mid-October 2024.

• World Bank Commodities Price Data released in October 2024 shows that the monthly average prices for coal and crude oil fell in September 2024. Metals and minerals monthly average prices have been mixed, with aluminium, copper, lead and zinc prices rising while iron ore, nickel and tin prices falling over the month. At the same time, heightened economic uncertainty has raised the prices of precious metals (gold, platinum and silver).

• UK’s Sizewell C nuclear project has been hit by further delays amid dragging talks on investment. This has prompted the government to set up a £5.5 billion subsidy scheme to support the construction of the power station.

• According to BDO’s UK Oil and Gas Annual Report 2024, the UK oil and gas industry contributed US$13.2 billion to the UK economy in 2023. While oil production and consumption are strong, the industry is investing in AI, carbon capture and renewable energy. However, according to the report, the majority of the largest UK-based oil and gas companies recorded a drop in revenue.

Manufacturing

• The UK manufacturing sector faces several headwinds heading into the fourth quarter of 2024. UK Manufacturing PMI in October 2024 was 49.9, down from 51.5 in September. This is the first time the PMI has fallen below the neutral mark of 50.0 since April. This drop marks reduced intakes of new work, owing to a lack of market optimism, slower economic growth, stretched supply chains and concerns about the impacts of possible announcements in the UK Budget.
• On 15 November 2025, the Prime Minister pledged £975 million across five years to drive growth and jobs across the UK aerospace industry. Following the news, UK-based aerospace corporation Babcock has joined the UK manufacturers’ trade association, Made in Britain, while BAE systems is set to create 50 new high-skilled jobs in Sheffield as part of a £50 million investment programme.
• EV manufacturers and sales face pressure under the government’s “electric vehicle” mandate which dictates a percentage of cars sold must be EV. Punitive fines of £15,000 per car will be imposed on companies that fall short of those targets. EVs made up 18% new car sales in the UK in the first 10 months of 2024, below the 22% target. UK transport secretary Louise Haigh has insisted the government will not relax its electric vehicle target but urged ministers to maintain flexibility.
• According to the ONS, monthly production output was estimated to have decreased by 0.5% in September 2024; this follows a decrease of 0.7% in July 2024 and an increase of 0.5% in August 2024 (both unrevised). The drop came thanks to a fall in eight out of 13 subsectors – with the largest downward contribution coming from basic metals and metal products (down 2.3%).

Utilities

• From 1 November 2024, the energy profit levy will rise from 35% to 38% – bringing the headline tax rate to 78% – to ensure oil and gas companies contribute more to make the UK a clean energy superpower. The levy will apply until 31 March 2030.
• The energy price cap is set to rise in January 2025, placing several vulnerable households with further hardship. Ofgem is due to announce the new price cap for January on 22 November 2024.
• The UK is one step closer to supporting the UK’s clean energy transition and boosting energy security. A £2 billion subsea and underground cable has been approved for Eastern Green Link (EGL1), which will carry 2GW of wind generated power from Torness, East Lothian, Scotland, to County Durham. The project is expected to save £870 million annually by cutting compensation paid to wind generators when grid capacity is insufficient.
• According to analysis from ElectraLink, a total of 317,000 consumers switching suppliers in September, representing an 8% rise compared to August’s figures and a 42% increase compared to September 2023.

Construction

• According to the latest PMI data by S&P and CIPS, the headline construction PMI for October decreased to 54.3, down from 57.2 in September. The fall was largely driven by the sharp fall in housing activity, which likely reflects uncertainty in the market, with buyers pausing on sales prior to the Autumn Budget. Civil engineering and commercial activity also continued on a downward trajectory.
• Despite a £5 billion pledge in the Autumn budget to support national housing targets, businesses are still awaiting clarity on major infrastructure projects and the outcome of the National Planning Policy Framework and the government’s housing strategy.
• Data from the Department for Business and Trade showed that material price inflation fell by 0.7% in September 2024 compared to the same month in 2023. Despite this, new housing registered a 0.3% increase, Repair and Maintenance was up by 0.2% and Other New Work decreased by 1.8% in the 12 months to September 2024. Flexible pipes and fittings saw the largest annual increase at 17.6%.

Wholesale Trade

• According to the Office for National Statistics, output in the wholesale and retail trade and repair of motor vehicles and motorcycles sector fell by 0.3% in August 2024. This decline was driven by a 1.6% drop in wholesale trade, except for motor vehicles and motorcycles and a 1.2% fall in wholesale and retail trade and repair of motor vehicles and motorcycles.
• Confex and Fairway have merged to create a new wholesale buying group, The Wholesale Group. It is called the Wholesale Group. It will launch in January 2025 and will aim to support independent wholesalers. According to The Grocer, the group will represent 12% of UK wholesale, with a joint annual turnover of about £4.5 billion and about 350,000 customers.
• DBC Group has become a member of the Sugro UK group, which consists of over 90 independent wholesalers.
• Love British Food has called on wholesalers to promote domestic produce by launching ‘Buy British’ categories in a bid to boost demand.
• New figures show that trade with the EU has suffered severely due to Brexit, with Aston University estimating that annual exports and imports are 17% and 23%, respectively, below where they would have been if Brexit didn’t materialise.
• The government has again delayed the final stage of the post-Brexit border rollout for goods entering the UK from the EU by three months to the end of January 2025. Trade representatives have said this move hits business confidence, as reported by the Financial Times.

Retail Trade

• The British Retail Consortium (BRC) data shows total retail sales increased by 0.6% year on year in October, against a growth of 2.6% in October 2023. Food was the strongest performing category up 2.9% year on year over the three months through October 2024, while non-food sales dipped 0.1% over the same period. October’s lacklustre performance was in part driven by school’s half term falling a week later this year and rising energy bills forcing consumers to rein in spending. Fashion sales took the biggest hit as the mild weather delayed winter purchases. Health and beauty sales remained buoyant, with beauty advent calendars flying off the shelves.
• Sustainability initiatives are gaining traction. In November 2024, M&S doubled the store footprint of its Beauty Takeback Scheme to an additional 60 stores, bringing the total to 100, in a bid to make the scheme more accessible to customers across the UK.
• Retailers are on a cost cutting path as the Chancellor introduced increases to employers’ national insurance contributions (from 13.8% to 15%), and the national minimum wage from April 2025 – estimated to cost an additional £2.3 billion. Marks & Spencer CEO Stuart Machin has said he’d rather maintain prices rather than pass increases onto consumers. In contrast, Sainsbury’s warned they group won’t have the capacity to absorb the rises.
• Online giant Temu is under fire from the European Commission for aggressive sales tactics including an addictive design, game like rewards and weak systems to mitigate against these risks. At the same time, online women’s clothing retailer Boohoo has come under fire for bringing back a supplier it had previously cut ties with following modern slavery allegations, while fashion brand Shein is targeting an early 2025 London IPO.
• In October 2024, UK Ministers introduced the Employment Rights Bill, broadening workers’ rights and helping to ensure some stability. Key proposals include introducing rights from Day 1, including paternity leave, protection from unfair dismissal, establish bereavement leave and addressing the potentially exploitative nature of zero-hour contracts.

Transportation & Warehousing

• Overcrowding at Euston station, particularly when trains are cancelled, is putting people in danger, according to London TravelWatch, an independent watchdog. The station was designed for approximately 20 million passengers a year but currently serves upward of 40 million.
• The Autumn Budget 2024 has included some measures that have affected the transport sector. Chancellor Reeves has decided to extend the freeze on fuel duty for another year and maintain the previous government's 5p cut. The £2 cap on single bus fares in England is set to rise to £3 from January 2025. Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars is set to double in their first year. The budget for pothole repairs will also rise by £500 next year.
• The government has also committed to deliver the Transpennine rail upgrade between York and Manchester alongside funding for the tunnelling work related to the HS2 line to London Euston.
• The Air Passenger Duty to go up in 2026-27, by £2 for short-haul economy flights and £12 for long-haul ones, while rates for private jets are set to go up by 50%.
• Ryanair has warned that it may be forced to cut the number of its UK flights by 10% due to the tax hikes on air travel in the Autumn Budget. At the same time, private jet executives claim that the rise in private jet flight taxes will likely not put off wealthy passengers.
• Network Rail has revised its redevelopment plans for Liverpool Street station. Initially, Network Rail had proposed a £1.5 billion redevelopment of the UK’s busiest station.
• Sunak’s decision to downgrade HS2 has led to over £2 billion in costs, including a £1.1 billion write off during phase two (Birmingham to Manchester link) until it was scrapped in 2023. HS2 also disclosed a £1 billion accounting fee related to the downgraded line.
• Budget airline easyJet enjoyed an 8% in passenger numbers over the three months through June 2024, driving revenue growth of 11%. The average fare over the quarter was £73, roughly the same as 2023.
• Transport for London has warned that it’s facing a £250 million shortfall in funding after securing just half of the £500 million grant it had requested to keep the network running in 2024-25. The funding will be used for new trains on the Tube’s Piccadilly Line, which are being constructed in East Yorkshire.

Accommodation & Food Services

• The ONS states that output in the food and beverage service activities fell by 0.02 percentage points in August 2024, but was up 0.03 percentage points in the three months to August 2024.
• The Autumn Budget 2024 brought bad news for the hospitality sector, with hospitality businesses warning that the measures will result in severe job cuts and the collapse of many businesses. The government raised employers’ NI contributions from 13.8% on salaries above £9,100 to 15% on salaries above £5,000 from April 2025. Meanwhile, the minimum wage for those over 21 will reach £12.21 in April 2025, a 6.7% hike from the current rate. UKHospitality analysis states these increases will mean that it will cost hospitality businesses an extra £2,500 to employ a full-time staff member and covering the full extra costs would require a 6% hike in prices. Alcohol taxes will rise in line with the retail price index, though the tax on draught drinks will be cut by 1.7%, saving consumers just a penny off a pint in the pub.
• Pub chain JD Wetherspoon faces a £60 million hike in taxes and business costs from the measures laid out in the Autumn Budget. It warns that hospitality businesses will be forced to increase prices.
• Deutsche Bank forecasts that the Budget measures will result in UK bakery Greggs seeing costs hike by £97 million over the next two years.
• According to the GfK consumer confidence index, consumer confidence has fallen to the lowest level since December 2023 due to fears and uncertainty ahead of the Autumn Budget.
• A survey commissioned by catering group Compass has found that only 24% of UK workers want alcohol at work-related social events, highlighting the drop in alcohol consumption by younger generations. More and more employees are preferring game-based events.
• Following a strong backlash from the hospitality industry, the government is moving to block the ban on outdoor smoking at hospitality venues like nightclubs, pubs and bars.
• US fast food chain Velvet Taco plans to open its first restaurant in the UK, to be located in London, in 2025. This follows on from other US fast food chains entering the market and expanding their presence. For example, Chick-fil-A plans to open a number of restaurants across the UK, with the first branch to open in the first quarter of next year.
• The Caterers reports that the Best Western hotel chain is set to triple its UK premium and luxury hotel footprint. 

Information

• According to the Office for National Statistics, output in the information and communication sector hiked by 0.8% in July 2024. The sub-sector grew by 0.9% in the three months to August 2024, the second-largest positive contributor to the services sector.
• UK telecoms giant BT Group has said that measures from the Budget will result in around a £100 million hike in costs, mainly due to the increase in the rate of employer national insurance contributions.
• UK’s national broadcaster, BBC, is planning to cut 155 jobs from its news operations as part of its £700 million cost-cutting strategy. It hopes the move will save £24 million, as reported by the Financial Times.
• From 1 October 2024, Ofcom has begun enforcing new roaming rules that require mobile network operators to provide better protection from potential charges to consumers who travel abroad.
• Virgin Media O2 has sold a £186 million (about 8%) stake in its mobile masts business, Cornerstone, to infrastructure investment firm Equitix. The company retains 25% holding in Cornerstone, which is the UK’s largest mobile towers business.
• The Competition and Markets Authority has provided some optimism for Vodafone’s £16.5 billion merger with Three UK “if the companies committed to delivering on the £11 billion plans to upgrade the merged company’s UK network, including the rollout of 5G”, as reported by The Financial Times. The competition watchdog will give its final decision on whether the merger can proceed by 7 December 2024.

Finance & Insurance

• To attract more businesses, the UK government is considering a series of reforms to captive insurance. Captive insurance is a form of self-insurance and is one of the fastest growing segments in the global market. The consultation document outlines potential changes, including lower capital requirements, reduced application fees, a faster authorisation process and reduced ongoing reporting requirements for captive insurers.  
• Buy-Now-Pay-Later (BNPL) platforms are booming, with US Affirm entering the UK market in November 2024. New legislation – like safeguards against unaffordable borrowing and credit card-style protection – is set to come into play in 2026 to protect consumers. FCA research found 14 million customers had used BNPL in 2023, and frequent users were four times more likely to have a missed payment than those who had not used the loans.
• Mortgage rates rise despite rate cuts as inflation hovers above the Bank of England’s 2% target. Moneyfacts reported that the average new five-year deal was priced at 5.23% on the week commencing 18 November 2024, a rise from 5.14% the week prior.
• The Financial Conduct Authority encourages the use of AI to bring down premiums. However, it has warned that in areas like health coverage, personalisation may lower costs for some consumers, but also increase costs or push out potential consumers who are unhealthier or don’t have access to technology.

Real Estate and Rental and Leasing

• According to major bank Nationwide, annual house price growth increased by 2.4% in October 2024 compared with October 2023. Prices inched upward by 0.1% month on month, with the average house price at £265,738. Growth slowed amid uncertainty ahead of the Autumn Budget. Despite mortgage rates remaining historically high, the number of mortgage approvals is nearing pre-pandemic levels.
• The Chancellor announced a hike in the levy on second homes and buy-to-lets from 3% to 5%. The National Residential Landlords Association states that the supply of rental homes will suffer as a result, while Rightmove estimates the measure results in an additional £7,000 stamp duty cost for a landlord purchasing an average home.
• According to data from the ONS, average rent in London is consuming between one and two-thirds of tenants’ incomes, far higher than other regions.
• Property site Zoopla states that the total value of homes in the sales pipeline is set to surge by 30% to £113 billion in 2024.
•  According to Savills, the UK is showing a resurgence in the office market, accounting for 29% of total European office deals in the first half of 2024. It is performing better than its European counterparts like France and Germany.
• Canadian asset manager Brookfield has put London’s Citypoint tower up for sale, seeking £500 million for the building. It is the largest office building placed on the market in the capital this year.
• BNP Paribas Real Estate estimates that the UK real estate market has the potential to be worth an additional £470 billion by 2029 if the UK can address the current supply shortfalls.
• Border to Coast Pensions Partnership, one of the UK’s largest pension pools, has launched a £1.2 billion UK real estate fund, with the aim to expand the fund to over £3 billion in the next five years.

Professional, Scientific & Technical Services

• The Office for National Statistics reports that the professional, scientific and technical activities sector grew by 1.6% in August 2024. Growth was mainly driven by increases of 4.3% in the accounting, bookkeeping and auditing activities; tax consultancy industry, 1.7% in legal activities and 2.8% in scientific research and development. Professional, scientific and technical activities was the largest positive contributor to the rise in services output in the three months to August 2024, growing by 0.8%.
• Big Four firm EY has recorded a sharp slowdown in sales growth, resulting in a 5% drop in payouts for its UK partners. Revenue decline has been driven by a slowdown in its consulting and strategy and transactions business units amid a challenging economic climate.
• PwC is restructuring its UK operations with plans to launch a standalone tech and AI unit, affecting 2,700 employees. This unit will focus on innovation, AI engineering, cloud and data, as reported by the Financial Times. It will also make changes to parts of its consulting, risk, deals and tax segments.
• The Royal Institute of British Architects has said that the Elizabeth Line has won the 2024 Stirling Prize for the country’s best new building project. It was delivered by a consortium of Maynard, Equation and AtkinsRéalis, as reported by the Financial Times.
• Data from the Advertising Association and WARC forecasts a record £10.5 billion ad spending in the UK during the Christmas season. Last year, ad spending during the period reached £9.7 billion. Spending on search engine advertising and online display ads is forecast to climb strongly by 9% and 15.8%, respectively. Meanwhile, TV advertising spend is falling, with a 5% drop forecast, as advertisers focus on online channels.
• The Advertising Standards Authority has banned Eurostar’s £39 ticket adverts for the second time, claiming there was no evidence enough seats were available for purchase at this price and it misleads consumers.
• According to the Institute of Practitioners in Advertising, marketing budgets failed to expand in the third quarter of 2024, for the first time since the pandemic. This was due to heightened uncertainty among businesses in anticipation of the Autumn Budget.
• The Financial Times reports that the UK government will introduce legislation to safeguard against AI risks in 2025.

Education

• Universities are in financial trouble and are having to take drastic actions to avoid going bust including culling courses and issuing voluntary severance schemes. The BBC says Queen’s University Belfast is on track to have a deficit of more than £11 million in the 2024-2025 academic year, with the University of York at £34 million and the University of Sheffield at £50 million.
• From Autumn 2025, university tuition fees in England will rise for current and existing students by £285 to £9,535 a year for those on full-time degrees. Despite increase, the Office for Students (OfS) warns a third of universities will be serious financial difficulty and must take bold and transformative action – like mergers or cost sharing to survive. The regulator had said it expected 40% of universities to be in financial deficit in 2023-24, but the figure increased drastically to 72% by 2025-26 with a £1.6 billion deficit across the sector.
• Private schools are expected to begin paying 20% duty but EU diplomats want international institutions to be exempt, fearing a mass exodus of students, particularly those in diplomatic services who only need placements every 2-3 years.
• UK education secretary, Bridget Phillipson, considers allowing local councils open new schools for the first time in more than a decade in an attempt to foster social mobility and develop institutions pupils will actually attend. Part of Phillipson’s plan includes allocating part of the £6.7 billion capital budget towards more special education units in schools.
• The percentage of disadvantage children in England pursuing further education has fallen for the first time on record. According to the Department for Education, 29% of students eligible for free school meals at 15 had progressed to university by the age of 19 in 2022-23, compared with 29.2% the previous year.

Healthcare & Social Assistance

• Healthcare workers have sounded the alarm over an overstretched A&E department over Winter. A survey by the Royal College of Emergency Medicine (RCEM) showed 83% of emergency doctors said patients were already cared for on trolleys in corridors, while 51% said they’d seen patients forced to wait outside A&E departments in ambulances.
• On 29 November 2024, MPs will vote on a proposed law to give terminally ill patients across England and Wales the right to choose to end their life. The proposal includes several safeguards, including a prognosis of six months to live and verification by two independent doctors at least a week apart.
• Pharmacies across the UK have said they’re willing to pause a number of services including free delivery and extended opening hours, unless the government boosts funding. For pharmacies, this may mean withdrawing from locally commissioned services including addiction support, emergency contraception and smoking cessation.
• The Chancellor has confirmed that the NHS will receive the funding needed to deliver an extra 40,000 elective appointments per week to reduce waiting times in the NHS. This includes an additional £1.8 billion the government has invested in elective activity this year since the July Statement. This will be supported by a significant investment uplift including surgical hubs and scanners, and funding for new radiotherapy machines to improve cancer treatment.
• From 1 January 2025, all medicines sold in the UK will need to be labelled as ‘UK Only’. The British Generic Manufacturers Association (BGMA) warns not all suppliers will have their labelling ready – potentially leading to shortage due to bureaucracy.

Arts, Entertainment & Recreation

• The BBC has commissioned new art and culture programmes as part of its commitment to Art & Culture. New Arts TV programmes unpack contemporary culture, celebrate British creativity and explore landmarks in the global story of art including Renaissance: The Blood and The Beauty, Simon Schama’s History of Us and the return of epic series Civilisations.
• There won’t be a tax hike on gambling after the 2024 Autumn Budget, but filings did state the government would consider how to consolidate the UK’s gambling tax structure in 2025. At present, UK remote gaming duty sits at 21% of profit, when the previous rate of 15% was raised in 2019. General betting duty is 15% of net stake receipts, which is comparable to the gross profits from bookmaking. In addition, pool-betting duty is 15% of pool betting receipts.  

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