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UK Edition
27th August 2025
 
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THE HOT STORY

UK adults are concerned about the impact of AI on jobs

Half (51%) of adults in the UK worry that artificial intelligence will take or alter their job, according to a poll of 2,600 respondents for the Trades Union Congress (TUC). Workers aged between 25 and 34 are particularly concerned about the technology, with nearly two-thirds (62%) of this demographic reporting such worries. The TUC wants the government to involve workers and trade unions as the technology is rolled out across workplaces to protect jobs, and provide training to those whose roles are replaced. TUC assistant general secretary Kate Bell said: “AI could have transformative potential, and if developed properly, workers can benefit from the productivity gains this technology may bring . . . The alternative is bleak. Left unmanaged and in the wrong hands, the AI revolution could entrench rampant inequality as jobs are degraded or displaced, and shareholders get richer.”
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TECHNOLOGY

UK conciliation body looks to AI to help settle workplace disputes

Chatbots could be called in to help settle disputes between workers and their employers, as UK state-funded conciliation body Acas seeks ways to meet rising demand for its services.

Whitehall hands out AI contracts worth £573m in efficiency push

The value of UK government contracts for artificial intelligence-related projects this year (£573m) has already surpassed the total amount awarded for the whole of 2024 (£468m), according to new figures.
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LEGAL

New employment bill to cost firms £80m

Labour's proposed Employment Rights Bill will impose an additional £80m annual cost on businesses, according to employment lawyers. The legislation, deemed "the most expensive and complex" in a generation, includes protections against unfair dismissal and a ban on zero-hours contracts. TWM Solicitors estimate the total cost to firms could reach £5bn annually. Anthony Wilcox, an employment law specialist at TWM, said: "Employers are rightly very concerned both by the cost of this legislation and the amount of new red tape it will smother them with." Businesses fear the bill may hinder hiring and overwhelm employment tribunals.

Drivers take Royal Mail to court

Legal action has been initiated against Royal Mail eCourier by 15 former drivers who claim they were unlawfully denied workers' rights by being classified as self-employed. The drivers, represented by Leigh Day, argue they should be recognised as workers due to the control eCourier exerts over their work, including route direction and job penalties. Leigh Day partner Liana Wood said: "Our clients believe that eCourier is wrongly classifying its drivers as self-employed in order to avoid paying them fairly." The case follows similar successful claims against other companies including Uber and Addison Lee.

Businesses brace for fraud crackdown

British businesses must prepare for significant changes as the Serious Fraud Office (SFO) gains new powers under the Economic Crime and Corporate Transparency Act (ECCT) starting 1 September. Companies with over 250 employees or a turnover exceeding £36m may face criminal liability for fraud committed by employees or agents. With fraud accounting for 40% of all crime in England and Wales, businesses are urged to implement robust anti-fraud measures to mitigate risks.
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HIRING

Retail sector faces youth job crisis

Thousands of young people may face unemployment due to a hiring freeze in the retail sector. Estimates suggest over 40,000 entry-level jobs could vanish in the next three years as major retailers including Marks & Spencer and Tesco brace for a tax increase. The Retail Jobs Alliance warns of a "danger that opportunities for young people could be lost." Nearly 1m individuals aged 16 to 24 are currently not in employment, education, or training, a figure that has risen by 200,000 since the pandemic.
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WORKFORCE

Bodycare faces collapse, jobs at risk

Bodycare, a health and beauty retailer employing about 1,500 people, is at risk of collapse as it seeks a rescue deal. The company, founded in 1970, may enter administration next week unless a buyer is found. Interpath, the advisory firm working with Bodycare, is exploring options for the business. Bodycare recently secured a £7m debt facility to gain short-term relief. Tony Brown, a retail veteran, leads the company, which has struggled financially since the pandemic.
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STRATEGY

Grant Thornton cuts bulk of UK secretaries

Grant Thornton UK has outsourced nearly all of its secretarial roles to India amid cost-cutting measures following the decision to sell a majority stake to private equity group Cinven.
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ECONOMY

Rising egg prices push UK food inflation to 18-month high

British shop prices rose this month by the most since March last year, with the cost of staples such as eggs and butter stoking food inflation. The British Retail Consortium said that prices in August have risen by 0.9% from 12 months earlier, driven by a 4.2% jump in food prices. Retailers have warned that food inflation will hit 6% by the end of the year as they raise prices to help manage a £26bn hike in payroll taxes and 6.7% increase in the minimum wage which took effect in April. 
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INTERNATIONAL

Stellantis extends furlough scheme at Italian plant

Stellantis and labour unions have agreed a scheme which allows the carmaker to place the more than 1,800 workers at its Termoli plant in southern Italy on reduced hours amid weakening demand. The plant's workers can now be placed on furlough for up to 80% of their total contractual hours in a period which will run for 12 months from September 1. The deal replaces a previous scheme, which expired this month but affected only around 900 workers.

Thailand hires 10,000 Sri Lankan workers

Thailand's cabinet has approved the hiring of 10,000 Sri Lankan workers to address a local labour shortage caused by the return of Cambodian workers amid an ongoing border conflict. Labour Minister Pongkawin Jungrungruangkit said that over 30,000 Sri Lankans have registered for jobs, with plans to also allow workers from Nepal, Bangladesh, Indonesia, and the Philippines to apply. The conflict has displaced over 300,000 people and led to the departure of about 400,000 Cambodians from Thailand. Before the conflict, Cambodians made up 12% of Thailand's foreign workforce.
 
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