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UK Edition
31st October 2025
 
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THE HOT STORY

Unions attack DfE pay review proposals

The Department for Education has published its pay recommendations to the School Teachers' Review Body (STRB). The DfE has proposed that teachers' pay should rise by a total of 6.5% across 2026/27, 2027/28, and 2028/29, and says the "proposed awards would maintain the competitiveness of teacher pay and provide a real terms improvement over the parliament." NEU general secretary Daniel Kebede said the government is "failing to deliver on its promises," and warned that the recommendation "will do nothing to address the continued crisis in retention." NAHT general secretary Paul Whiteman said the proposed increase "would be a real-terms pay cut for teachers and leaders if inflation and average earnings across the wider economy rise as predicted," while NASUWT general secretary Matt Wrack said the proposals "are only likely to exacerbate the current recruitment and retention crisis in teaching."
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TRAINING & DEVELOPMENT

New report to help UK businesses fill £400bn AI skills gap

A new report from Skills England, ‘AI skills for the UK workforce’, identifies a significant skills gap in AI that hampers UK businesses. The report introduces three tools developed by Dr Nisreen Ameen from Royal Holloway, University of London, to aid AI adoption and enhance workforce readiness and productivity. Jacqui Smith, Minister for Skills, said: "AI has the power to transform our economy – but only if people have the right skills to utilise it effectively." The tools aim to 
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WORKFORCE

Foreign student levy will cost jobs and force cuts

The Confederation of British Industry (CBI) and Universities UK have issued a fresh warning to the government over plans to introduce a 6% levy on foreign students, arguing that the policy would represent a "straightforward tax on income" for higher education institutions that would lead to cuts to jobs, research, and high-cost courses such as medicine and engineering. Universities UK chief executive Vivienne Stern and CBI chief economist Louise Hellem said the levy "will more than outweigh income from inflation-linked tuition fees in many cases," and would also be likely to eat into support for poorer students.

Ofgem to cancel £500m energy debt

Ofgem plans to cancel up to £500m in energy bill debt, potentially aiding 195,000 customers. The initiative is part of a broader strategy to manage the record £4.4bn debt in the energy sector. Ofgem estimates that between £1.1bn and £1.7bn of this debt is unlikely to be paid. Eligible customers will be automatically identified by suppliers. The debt cancellation will cost bill payers an estimated extra £5 annually from 2027.
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WORKPLACE

Appraisals 'a tedious chore' for managers

In the Times, Harry Wallop describes performance reviews as "a tedious chore that we’d prefer not to engage with and they are an exercise even more painful and time-consuming for managers than for the workers themselves." He highlights that there has been a shift towards continual feedback rather than annual reviews, noting that a number of big firms, including Deloitte, "favour regular check-ins with bosses."  Wallop says that for such a system to work, "managers need to put in the effort and the time."
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DIVERSITY, EQUITY & INCLUSION

UK businesses rethink DEI policies

More than half of UK businesses are altering their ethical policies due to the Trump administration's criticism of the so-called "woke" agenda. A study by Freeths, involving 250 general counsels and chief legal officers from major firms, reveals that 28% have made significant changes to diversity, equity, and inclusion (DEI) initiatives. The report highlights a trend where profit motives often overshadow ethical considerations in business decisions.
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STRATEGY

New CEO hits out at WPP's 'unacceptable' performance

Cindy Rose, the new chief executive of advertising network WPP, has initiated a strategic review that is designed to simplify operations amid declining revenues and an "unacceptable" recent performance. Rose said the firm had not "gone far enough or fast enough in adapting to the evolving needs of our clients."
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INTERNATIONAL

GM lays off 1,700 workers amid slower EV demand

General Motors is laying off approximately 1,700 workers across its manufacturing sites in Michigan and Ohio due to a decline in electric vehicle demand. The Detroit News reported that the layoffs include around 1,200 jobs at an all-electric plant in Detroit and 550 workers at the Ultium Cells battery plant in Ohio. GM said: “In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity.” The company also announced temporary layoffs for 850 workers in Ohio and 700 in Tennessee, with plans to upgrade facilities during the pause. The layoffs come after the expiration of federal tax credits for EVs, which had previously incentivised buyers.

Puma cuts 900 jobs, eyes 2027 growth

German athletic apparel and footwear corporation Puma plans to cut 900 more white-collar jobs globally by 2025, expanding its cost-reduction program under new CEO Arthur Hoeld. The company aims for a brand reset in 2024, a transition year in 2026, and growth starting 2027. Q3 sales dropped 15% to €1.96bn, and the group reported a net loss of €62.3m, reversing a €127.8m profit a year ago. Puma maintained its 2025 guidance, expecting low double-digit sales decline and operating losses, while aiming to become a global Top 3 sports brand.

Women on the rise in Hong Kong finance

Regulatory changes and an evolving corporate culture have significantly increased the number of women in senior roles within Hong Kong's financial sector. A report by the Women Chief Executive Network, KPMG, and the Women's Foundation revealed that women now hold 45% of senior leadership positions, up from 34% in 2018. Additionally, 37% of board members are women, a rise from 21%. The report highlighted that supportive environments and the presence of female role models are crucial for such progress. Ivy Cheung of KPMG noted that stereotypes about women's leadership capabilities are being challenged as more women succeed in these roles.

New Zealand central bank has cut nearly 20% of staff since March

New Zealand's central bank has said it has cut nearly 20% of staff since March. The central bank had previously announced it was to undergo a substantive restructuring after the government said its budget would be reduced by 25% in the 2025-26 financial year.
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OTHER

Minister rejects call to allow term-time holidays

Schools minister Georgia Gould has said the government will not allow pupils to miss 10 days of school without good reason. Gould was responding to a petition calling for the removal of fines for 10-day absences. She said the UK is still facing an "absence epidemic," and added that the government is "committed to tackling this problem because as we [have] heard from many, absence is one of the biggest barriers to opportunity, damaging learning, health and wellbeing, future earnings and employment and each day of lost learning can do serious harm."

 
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