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The National Health Service (NHS) plays a critical role in the provision of bariatric treatments, addressing obesity, a growing public health challenge in the UK.

While life-changing options like gastric bypasses, gastric sleeves, and gastric balloons are available, access to these procedures remains inconsistent. This discrepancy stems from funding disparities, regional availability, and lengthy waiting times. As the demand for bariatric services rises, ensuring uniform access across the NHS is vital for tackling obesity-related health issues.

The Growing Demand for Bariatric Interventions

Obesity affects one in four adults in the UK, according to NHS statistics. The health implications, ranging from type 2 diabetes and hypertension to cardiovascular disease, place immense strain on healthcare resources. Bariatric procedures have emerged as effective solutions, not only for weight loss but also for limiting comorbid conditions.

However, the Health Service Journal (HSJ) notes that bariatric surgery accounts for less than 1% of eligible patients treated annually under the NHS. While cost is a contributing factor, variations in regional funding priorities and clinical commissioning group (CCG) policies exacerbate the situation. Patients in some areas face greater barriers to access than others, creating a postcode lottery for treatment.

Funding Inequities: The Core Issue

Regional inequalities in funding are among the most significant challenges. CCGs, responsible for allocating NHS budgets, vary in their criteria for approving bariatric procedures for financial support. Some regions require a longer history of failed weight-loss attempts or stricter BMI thresholds before approving surgery.

This inconsistency leaves many patients with no viable solution. Those unable to secure treatment through the NHS often seek private alternatives, adding a financial strain to obesity-related health issues.

Addressing these discrepancies will require a unified approach to funding, supported by national guidelines that establish standard eligibility criteria and equitable resource allocation across all regions.

Standardizing Eligibility Criteria

Eligibility for bariatric procedures under the NHS generally follows National Institute for Health and Care Excellence (NICE) guidelines, which recommend interventions for patients with a BMI of over 40 or over 35 with comorbidities. However, local interpretations of these guidelines often lead to more inconsistencies.

A patient in one CCG may qualify based on their BMI and health conditions, while another in a different region might be denied. Establishing a centralized system for assessing eligibility could eliminate such disparities, ensuring patients receive treatment based on clinical need rather than geographic location.

Moreover, educating primary care providers about referral pathways for bariatric procedures is essential. Many patients report delays in receiving referrals due to insufficient knowledge among GPs about available options and criteria.

Improving Service Delivery Across the Board

One of the key solutions lies in expanding the availability of multidisciplinary teams (MDTs) within bariatric services. Effective MDTs, which include dietitians, psychologists, and surgeons, are essential in providing comprehensive care before and after surgery. Such follow-up guarantees the best treatment for each patient, more adapted and more efficient, saving money and useless procedures. However, not all NHS trusts have the resources to establish fully operational MDTs, which leads back to the funding system of the NHS.

Investing in more bariatric units and ensuring they are evenly distributed across the UK can ease pressure on existing facilities and reduce waiting times. Additionally, integrating digital tools, such as telemedicine consultations and online pre-surgery support programs, can improve access, particularly in rural areas. These methods have been widely promoted since the Covid crisis, but their use could still be widely extended.

The Role of Alternative Treatments

Bariatric surgery, such as gastric bypass or sleeve gastrectomy, is effective but not always accessible. Alternative treatments are increasingly vital to support patients who don’t qualify for surgery or seek less invasive options.

Non-surgical gastric balloons have emerged in recent years as an effective option for patients who cannot or don’t want to undergo bariatric surgery. The balloon is temporarily placed in the stomach endoscopically to create a feeling of fullness and favor weight loss. This approach requires a reduced recovery time and can help patients adopt healthier habits. Another alternative is medically supervised weight management, combining tailored diets, exercise plans, and weight-loss medications to address obesity without surgery.

Other emerging solutions like endoscopic sleeve gastroplasty (ESG) also offer minimally invasive procedures that reduce stomach size without major surgery, providing significant results with fewer risks as well.

For those comparing options, understanding differences is key. You’ll find online several websites comparing gastric balloons and gastric sleeves or other procedures, though only your doctor will be able to identify the best procedure for your case.

By embracing these alternatives, the NHS can broaden access to treatment, ease surgical backlogs, and offer more personalized care for patients, making bariatric services more consistent across the UK.

Training and Retaining Bariatric Specialists

A robust bariatric service hinges on having sufficient healthcare professionals trained in obesity management and bariatric surgery. However, recruitment and retention challenges in the NHS have impacted the availability of specialists. Surgeons, anesthetists, and support staff require specific training to handle the complexities of these procedures, yet workforce shortages often lead to delays and cancellations.

By increasing investment in training programs and offering competitive incentives, the NHS can address the staffing gap. Initiatives such as mentorship schemes for junior doctors interested in bariatric surgery could also ensure a steady pipeline of skilled professionals.

Tackling Waiting Times

Lengthy waiting times for bariatric procedures remain a significant barrier. According to recent reports, some patients wait over two years for surgery, far exceeding the NHS constitution’s 18-week target. This delay not only affects physical health but also takes a toll on mental well-being.

Streamlining patient pathways and adopting innovative scheduling systems can significantly reduce waiting times. For instance, the introduction of centralized booking platforms, coupled with real-time data monitoring, could help optimize surgical schedules and minimize backlogs.

A Holistic Approach to Obesity

Finally, consistency in bariatric services requires the NHS to adopt a more holistic approach to obesity management. This means addressing the root causes of obesity through education, prevention, and early intervention. Public health campaigns promoting healthier lifestyles, combined with access to nutritionists and exercise programs, can reduce the overall demand for bariatric treatments over time.

Moreover, expanding partnerships with private providers to offer subsidized procedures could alleviate some of the strain on NHS services.

Ensuring a consistent bariatric service across the NHS is no small task. It requires tackling funding disparities, standardizing eligibility criteria, and investing in infrastructure and workforce development. By addressing these challenges, the NHS can provide equitable access to life-changing treatments for patients nationwide.

With obesity rates continuing to climb, the stakes have never been higher. Delivering a uniform bariatric service isn’t just about weight loss, it’s about saving lives and reducing the long-term burden on healthcare resources.

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How the NHS Can Offer a Consistent Bariatric Service

SMEs across the UK are preparing for significant financial challenges in 2025, with new research indicating an expected average revenue loss of £138,000 per business.

According to a study conducted by freelancer platform Fiverr, a quarter of businesses anticipate losses exceeding £100,000 due to the financial pressures stemming from Labour’s Autumn Budget.

Despite a modest interest rate cut by the Bank of England, Labour’s proposed £40 billion tax hike—half of which will directly impact businesses—has intensified concerns among SMEs as they look ahead to the coming year. Key issues troubling business leaders include inflation and rising costs (50%), economic instability within the UK (45%), and the broader implications of Labour’s tax policies (37%).

Revenue Challenges and Workforce Reductions

The recent Budget announcement has sparked widespread apprehension among UK businesses, with over half (54%) citing the current political climate as a primary driver of operational instability. An overwhelming 83% believe that proposed changes to Labour’s budget policies and the increase in the national minimum wage will negatively affect their revenue.

Alarmingly, 76% of business leaders foresee Labour’s tax policies adversely impacting workers’ pay, while 60% are considering headcount reductions and hiring freezes over the next year. These anticipated workforce adjustments reflect the mounting financial strain on SMEs amid the new fiscal measures.

Mixed Feelings on Workplace Trends

Despite these challenges, some optimism persists among business leaders. The data reveals that 62% believe Labour’s focus on improving workers’ rights could have a positive effect on employee mental health, offering a glimmer of hope in an otherwise turbulent outlook.

UK businesses are also open to adopting new workplace trends. Half of the surveyed leaders expressed willingness to trial a four-day work week, though 24% doubt its success under Labour’s governance. Additionally, 61% support a return-to-office (RTO) model of at least three days per week, citing improved productivity (61%), enhanced collaboration (40%), and better professional development opportunities (38%) as key benefits.

However, leaders also recognize potential downsides to mandating office attendance. Half believe that enforcing RTO policies could harm employee retention, and 26% fear it may create friction and lower workplace morale. Nearly a quarter are concerned about the impact on employees’ work-life balance and the possibility of increased operational costs associated with the shift.

Focus on AI and Tech Roles in Hiring Plans

Despite economic pressures, over half (55%) of UK businesses plan to expand their workforce in 2025, while 33% intend to maintain current staff levels. Hiring priorities indicate a surge in digital innovation, with nearly half (48%) focusing on IT and tech roles, and 24% targeting positions specific to artificial intelligence (AI).

Fiverr’s 2024 UK Future Workforce Index reveals that businesses are willing to offer an average of 45% higher wages to candidates with AI expertise, with over 80% of leaders prepared to pay a premium for these skills. In contrast, demand for creative and design roles remains subdued, with only 19% of businesses planning hires in this area.

Advancements in AI are influencing hiring decisions, with 43% of businesses citing this as a reason to scale back recruitment. Regulatory changes (34%) and budget constraints driven by the ongoing cost of living crisis (33%) are also significant factors.

Freelancers Key to Bridging Skills Gaps

Freelancers are emerging as critical contributors to the workforce, with 55% of businesses already integrating freelancers into their teams. Nearly a third (32%) are leveraging freelance expertise in AI. Looking ahead, half of UK business leaders view freelancers as essential to achieving their goals in 2025, and 45% plan to increase their reliance on freelancers in the coming year.

Hila Harel, Director of International Growth at Fiverr, commented: “As the UK navigates upcoming challenges, it’s encouraging to see business leaders increasingly turning to freelancers to help tackle economic instability and evolving workplace trends. With the four-day work week and return-to-office policies gaining momentum, it’s clear that workplace flexibility is a top priority. As 2025 approaches, we look forward to seeing freelancers play a greater role in supporting businesses—not just in weathering uncertainty, but also in driving growth and innovation amid ongoing challenges.”

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UK SMEs brace for average revenue loss of £138,000 in 2025 amid Labour’s budget measures

Socium, an all-in-one HR management platform based in French-speaking Africa, has secured a $5 million funding round to expand its services and become the go-to HR solution for mid-sized companies in the region.

This funding follows a previous $1.1 million round in August 2022, highlighting the company’s rapid growth despite a broader slowdown in African tech funding.

The latest investment was led by Breega through its Africa Seed fund, with participation from international investors including Partech, Chui Ventures, Orange Digital Ventures, Sonatel, Outlierz Ventures, Super Capital, and DNA. Prominent African business angels such as Mossadeck Bally (founder of the Azalaï group), Hassan Bourgi (founder of Djamo), and Babacar Seck (founder of Askya Investment Partners) also contributed to the round, underscoring growing support for local startups.

Simplifying HR Management in Francophone Africa

Co-founded in 2021 by École Polytechnique alumni Samba Lo and Serigne Seye, Socium addresses the critical need for digital HR solutions in Francophone Africa, where over 90% of mid-sized companies lack an HR management system. This gap often results in time-consuming manual processes and increased operational, legal, and financial risks.

Initially launched with a recruitment module, Socium has expanded its offerings to provide a comprehensive HR management platform. The platform now includes recruitment, talent administration, performance management, and payroll processing, tailored specifically for the unique needs of African companies.

“The solution’s adoption across more than 15 African countries speaks to its commitment to meet the needs of local businesses by optimizing HR operations,” said Ben Marrel, co-founder and CEO of Breega. “We are thrilled to continue supporting Socium and its outstanding founders, Samba and Serigne, in their mission to become the leading HR solution for medium-sized companies in Francophone Africa.”

A Growing Market and Future Plans

The potential market for HR software in Francophone Africa is estimated at €8.5 billion, targeting companies with more than 50 employees. This market is expected to grow at a rate of 10-12% per year until 2030. Socium is already supporting over 100 clients across more than 10 industries and 15 countries, including high-profile names like Auchan, Orange, EY, L’Archer Capital, and Djamo.

With the new funding, Socium plans to strengthen its operations in key markets such as Senegal, Côte d’Ivoire, and Cameroon, while accelerating growth into the Democratic Republic of Congo (DRC) and Morocco. The company will also enhance its platform with advanced AI features, such as payroll discrepancy detection, and integrate with public services to automate tax and regulatory filings.

“This investment in Socium reflects our commitment to sustainable development and innovation in Africa,” commented business angel and founder of Azalaï Hotels, Mossadeck Bally. “By supporting this innovative HR solution, we are helping to transform the future of work, nurture local talent, and boost the competitiveness of African companies.”

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Socium raises $5M to become leading HR solution in Francophone Africa

Gary Lineker, the former England footballer turned broadcaster, has strategically placed his television production company, Goalhanger Films, into voluntary liquidation ahead of upcoming capital gains tax rises.

Co-owned with former ITV controller Tony Pastor, the company reported net assets exceeding £440,000 in its last published accounts.

The decision comes as the UK government announced in the recent Budget that capital gains tax rates will increase from 10% to 14% starting in April, with a further rise to 18% in 2025. By liquidating the company now, Lineker and Pastor can benefit from the current lower tax rate on distributions from the company’s assets.

Tony Pastor confirmed that Goalhanger Films is being “mothballed,” allowing the duo to focus on their rapidly growing venture, Goalhanger Podcasts. The podcast platform hosts popular series such as The Rest Is History and The Rest Is Football, and reported net assets close to £591,000 earlier this year.

Lineker’s move aligns with the practice of Members’ Voluntary Liquidation (MVL), a process that enables solvent companies to wind up operations in a tax-efficient manner. An MVL allows business owners with significant retained earnings to treat distributed funds as capital gains rather than income, potentially resulting in substantial tax savings under the Business Asset Disposal Relief framework.

Originally launched in 2014, Goalhanger Films produced high-profile sports documentaries featuring stars like Mohamed Salah and Serena Williams. However, the shift towards the more successful podcast division reflects Lineker’s adaptation to changing market dynamics.

Despite stepping down from hosting Match of the Day after a 26-year tenure, Lineker remains a prominent figure at the BBC, with contracts to present coverage of the FA Cup and the 2026 World Cup.

Lessons for Business Owners

Lineker’s financial move offers insights for entrepreneurs and company directors:

Act Early: Anticipating tax changes and making timely decisions can maximize financial benefits.
Consider MVL: For solvent businesses planning to close, an MVL can be an effective tool to unlock value efficiently.
Adapt to Growth: Shifting focus to more successful ventures ensures resources are allocated to areas with the greatest potential.

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Gary Lineker liquidates Goalhanger Films ahead of capital gains tax increase

British pension savers are poised to gain from Donald Trump’s election victory, as the former US president’s pro-business stance boosts stock markets, particularly in the United States.

Andrew Evans, group chief executive of Smart Pension, a leading UK retirement business, highlighted the positive impact of rising US markets on UK pensions with investments in American assets.

Evans said, “American markets have been incredibly bullish since Trump’s victory, benefiting UK pension savers with funds tied to US assets, whether they realise it or not.”

Smart Pension, which manages retirement savings for 1.4 million people, has 52% of its main fund invested in the US. Following Trump’s election, the S&P 500 surged by 5% to a record high of 6,001.35 points. Although it has since dipped slightly to 5,863.69 points, the index remains 2.6% higher than its pre-election level and up 12.8% since August. Similarly, the Nasdaq Composite Index hit record highs and is still up 2.6% compared to November 4.

Despite concerns over Trump’s trade policies, which some economists warn could disrupt global markets and fuel inflation, investors remain optimistic about his corporate tax cut promises and pro-growth agenda. Evans noted, “Trump’s policies promoting American growth and company assets will benefit global pension funds.”

Rachel Reeves pushes for UK pension reform

Meanwhile, in the UK, Chancellor Rachel Reeves has proposed a significant overhaul of workplace pensions, aiming to pool smaller pots into “megafunds” worth £80 billion. These larger funds are expected to have the capacity to invest in a broader range of assets, driving growth and returns for savers.

Evans welcomed the initiative, which aligns with Smart Pension’s mission to transform retirement savings. The company currently allocates 6% of its master fund to private markets and plans to increase this investment.

However, Evans called for further government incentives to stimulate domestic growth, particularly in light of the Chancellor’s £41.5 billion in tax hikes outlined in the Budget. “Promoting growth while imposing significant tax increases is a challenging balance. Additional structural measures are needed to support investment in the UK,” he said.

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British pension savers set to benefit from Trump’s pro-business policies

Several countries, including Italy, Abu Dhabi, and Cyprus, are actively seeking to attract wealthy individuals from the UK following the government’s decision to abolish the non-domiciled (non-dom) tax status.

Events are being held across London to encourage the UK’s estimated 67,000 non-doms—UK residents whose permanent home is outside the country—to relocate in the wake of Labour’s election victory and subsequent Budget.

Next month, a Cyprus government agency will co-host an event at the London Stock Exchange aimed at persuading high-net-worth individuals to move. Similarly, the Abu Dhabi Investment Office recently hosted an event at London’s Jumeirah hotel to entice affluent Britons. Italian law firm Chiomenti sponsored a Henley & Partners event titled “Non-Doms: ‘Should I Stay or Should I Go?’” to discuss relocation options.

Nick Candy, a British property developer who attended the Abu Dhabi event, expressed concerns about a potential exodus of talent. “We’re going to have the largest brain drain of talent that this country has ever seen. And they won’t come running back,” he told Bloomberg.

Financial advisers report a surge in wealthy clients preparing to leave the UK after Labour confirmed plans to abolish the non-dom regime, which offers significant tax benefits for expatriates. David Lesperance, an international tax adviser, noted he is “very busy” assisting non-doms considering relocation. Tim Stovold, a partner at accountancy firm Moore Kingston Smith, said more people are exploring options in countries like Spain and Portugal, which offer attractive tax regimes.

Currently, non-doms residing in the UK are not required to pay local taxes on overseas earnings for up to 15 years. The government plans to abolish this regime next April, replacing it with a time-limited grace period.

The special tax status has been a point of contention, as it predominantly benefits wealthy foreigners. Supporters argue that it keeps affluent individuals in the UK, contributing to the economy through their spending.

Prominent figures are already taking action. David Sullivan, chairman of West Ham United, blamed the crackdown on non-doms for his decision to sell his London mansion at a loss. Charlie Mullins, founder of Pimlico Plumbers, has also put his £12 million London penthouse up for sale to avoid increased taxation, stating he is ready to have “no assets in the UK whatsoever.”

According to the London School of Economics, one in five bankers were reported to be non-doms in 2022, and four in ten individuals earning £5 million or more in 2018 had claimed non-dom status at some point.

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Italy, Abu Dhabi, and Cyprus Court Britain’s Wealthy Amid Non-Dom Tax Changes

A recent study by venture capital firm Index Ventures, which surveyed 600 European tech start-ups, reveals that the majority do not believe the adoption of artificial intelligence (AI) tools will lead to job losses.

Half of the companies surveyed view investment in AI as an opportunity to hire more staff, while an additional 29% expect to maintain their current workforce levels.

While some start-ups acknowledge that certain roles in software development, marketing, and customer service may be reduced, they anticipate increased recruitment in software engineering and in developing new products and services. Hannah Seal, a partner at Index Ventures, noted that this optimistic outlook aligns with her experience working with high-growth companies. She explained that AI tools enhance employee productivity rather than replace roles. For instance, using AI assistants like GitHub’s Copilot can make engineers twice as efficient, allowing companies to reallocate resources to build more and better products without cutting staff.

The study also found that most employees are proactively teaching themselves to use AI tools, dedicating an average of four hours per week to learn new technologies. Only 29% have received employer-initiated training. Employees skilled in AI-related areas are already earning, on average, 10% more than their peers, indicating the value placed on these competencies.

Seal highlighted that some AI-powered services are addressing labor shortages in specific industries, thereby supporting existing roles. She cited DataSnipper, a Dutch start-up that developed software for auditors, as an example. By automating manual data reconciliation—the aspect of the job that is often considered tedious—AI allows auditors to focus more on client advisory work, making the profession more appealing to graduates and helping to attract new talent to the field.

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AI Tools Enhance Productivity Without Reducing Jobs, Say European Start-Ups

Entrepreneurs and family business owners are voicing strong concerns over recent tax increases announced in the Budget, warning the government not to undermine their passion for growth.

The criticism centers on measures that they believe will significantly impact their businesses, including increased employer National Insurance contributions, changes to inheritance tax on family-owned assets, and reduced capital gains tax reliefs.

Craig Bunting, co-founder of Bear Coffee, which employs 130 people across eight cafés in the Midlands, stated that the Budget measures would have a “massive impact” on his £5.5 million turnover business. He estimates an additional £200,000 per year in costs due to the rise in employer National Insurance contributions from 13.8% to 15% starting next April. The threshold at which employers begin paying this tax will also be lowered from £9,100 to £5,000, affecting more part-time workers.

Bunting expressed frustration, saying, “I don’t want to be taken advantage of just because I am passionate enough to want to create something that has purpose, employing people and creating good jobs.” He emphasized that the unexpected changes, particularly the inclusion of lower-paid and part-time employees in National Insurance contributions, were a “sly change” that could impact customer prices and deter new business ventures.

Farmers have also protested in Westminster against making family farms liable for inheritance tax from April 2026. For decades, agricultural and business property have been exempt to facilitate long-term ownership. Family business owners like Stuart Paver, chairman of York-based shoe retailer Pavers, echoed these concerns. He argued that the imposition of inheritance tax on family firms contradicts the government’s policy of encouraging long-term investment and economic growth.

Paver illustrated the potential financial strain on a family business making £1 million in profit, highlighting how inheritance tax obligations could consume dividends meant for reinvestment and shareholder returns over many years. “It makes it not sensible to hold the shares and pass them on,” he said, suggesting that this could lead to more sales to private equity firms with shorter-term objectives.

Nicky Walker, managing director of Walker’s Shortbread, took a more measured view but acknowledged that the Budget has led to reassessing their three-year investment plan. “While there was noise when the government got in that they wouldn’t increase taxes, you always think it is going to happen. How else does a government raise money?” he remarked.

Walker noted that although the tax rises come after challenging years for businesses, the certainty allows for better planning. However, he admitted that the measures could affect future investments and shareholder dividends, potentially leading to difficult conversations within family-run companies.

The National Living Wage is also set to rise by 6.7% to £12.21 next April, adding to the financial pressures on businesses. Entrepreneurs are urging the government to reconsider these measures, warning that they could stifle growth, discourage investment, and negatively impact employment.

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Business Owners Criticise Tax Hikes, Urge Chancellor Not to Hinder Growth

A growing number of individuals over the age of 50 are embarking on second careers in entirely new fields, redefining traditional career trajectories and contributing significantly to the UK’s workforce.

This shift comes as many Gen Xers and older millennials seek fresh opportunities amidst a rapidly changing job market.

Over the past 30 years, 73% of the nation’s employment growth has been driven by workers aged 50 and above. By 2025, it’s projected that one-third of the UK workforce will be over 50. Despite this, ageism remains a hurdle, with the Organisation for Economic Co-operation and Development (OECD) reporting that only a third of firms would consider hiring someone aged between 50 and 55.

Research from longevity think tank Phoenix Insights reveals that a third of individuals aged 45 to 54 expect to change careers before retirement. Catherine Foot, director at Phoenix Insights, commented: “Second and third careers are becoming increasingly common, with people living longer lives which means the average age of retirement has risen. For those aged 40 and over, changing careers can be transformational—not only helping them to find more fulfilling work that makes the best use of their skills, but also enabling them to build financial resilience for later life.”

The upcoming National Older Workers Week highlights the potential economic boost from supporting second and third careers. With over 3.5 million over-50s currently economically inactive, encouraging career changes in this demographic is key to addressing workforce challenges.

OECD studies indicate that midlife career moves are linked to wage growth and a higher likelihood of remaining employed into one’s sixties. Lyndsey Simpson, chief executive of 55/Redefined, a campaign group advocating for age diversity and inclusion, stated: “Second and third careers are becoming a vital part of the working landscape for over-50s, offering a chance to reimagine their professional lives and contribute their wealth of experience. Businesses that embrace age-inclusive policies and reskilling will unlock the potential of this experienced and loyal workforce.”

While transitioning to new careers may require upskilling—particularly in digital competencies—90% of employees aged 55 to 65 believe they possess transferable skills suitable for new roles or industries. Popular choices for second careers include purpose-driven roles in charity work, youth services, and environmental initiatives, where seasoned professionals feel they can make a significant impact.

Tracey Horn, executive director at the Cambridge Judge Business School, emphasized the importance of embracing diverse career paths: “It’s important to recognise the diverse, non-linear paths we can take and the different versions of ourselves we may yet choose to be.”

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Thousands of Over-50s Embrace Second Careers to Pursue New Passions

Royal Mail has warned that it faces an additional £120 million in costs due to the upcoming increase in employer National Insurance contributions announced in the recent Budget.

The heavily loss-making postal service stated that the rise will disproportionately impact its operations because of its large workforce of around 130,000 employees.

The company, which is part of International Distribution Services (IDS), also announced it would be writing down the value of Royal Mail by £134 million to £1.91 billion to reflect the increased tax burden. This comes at a time when retailers and the hospitality industry are already expressing serious concerns about the impact of higher taxes on businesses.

Royal Mail and IDS are currently in a state of uncertainty. The board has agreed to a £3.6 billion takeover by entities controlled by Daniel Křetínský, a Czech energy tycoon with significant stakes in PostNL, Sainsbury’s, and West Ham United Football Club. However, the Labour government has called for a “national interest” review of the takeover. The government has stated it will approve the deal only if Křetínský “maintains a comprehensive universal service” and provides workers with “a stronger voice in the governance and strategic direction of the company.”

For the six months ending in September, Royal Mail reported a loss of £138 million, an improvement from the £383 million loss in the same period the previous year. This was despite an 11% increase in revenues to £3.92 billion, boosted by increased postal activity around the July general election.

The international courier division, General Logistics Systems (GLS), traditionally seen as the stronger part of the group, reported a 4% increase in revenues to £2.43 billion but saw profits decline by 20% to £112 million, citing “macroeconomic pressures” in key markets like Germany and Italy.

The company forecasts that Royal Mail will return to profitability for the full year ending in March, excluding the costs associated with its ongoing redundancy program. However, it cautioned that the “fiscal and regulatory backdrop is adding cost and inflexibility to the business.” Royal Mail reiterated its call for government reforms to the universal service obligation, which currently requires it to deliver letters six days a week across the UK at a uniform price.

In last month’s Budget, Chancellor Rachel Reeves announced plans to raise approximately £20 billion a year by increasing employers’ National Insurance contributions from 13.8% to 15% starting next April. The threshold at which employers begin paying the higher rate will also be lowered from £9,100 to £5,000, bringing more part-time workers into the scope.

Despite the challenges, Martin Seidenberg, chief executive of IDS, assured customers that Royal Mail is prepared for the busy Christmas period. “As we enter our busiest period, we are well prepared to deliver Christmas, with around 4,000 new vehicles being delivered before peak, 16,000 extra people, extended delivery hours until 8pm, and our growing network of parcel lockers and parcel shops,” he said.

Seidenberg emphasized the company’s commitment to controlling what it can but expressed concern over the rising costs. “We are delivering on the changes we can control, but the cost environment is worsening just at the time when we need to invest. As a major employer with around 130,000 permanent employees, the changes to National Insurance will disproportionately impact our business relative to competitors. This makes universal service reform even more urgent,” he added.

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Royal Mail warns of £120 million cost increase due to National Insurance rise