UK cost pressures stay in focus as pay rises collide with closures

The UK raised its National Living Wage and National Minimum Wage from April, lifting pay for an estimated 2.7 million workers. The move should support household incomes, but it also adds to labour costs for employers already dealing with weak demand and high overheads.

That strain is visible in retail. Topps Tiles said it will close 23 stores, with eight already shut and the rest due to close over the next six months.

Tensions are also rising in the property sector. Estate agents have accused Rightmove of excessive fees in a class action, highlighting growing resistance to platform pricing as housing activity remains uneven.

On household support, Chancellor Rachel Reeves said any future help with energy bills would likely be linked to income. The government has not set out the final eligibility rules, but the direction suggests a more targeted approach than broad-based subsidies.

Markets received some relief when oil briefly fell below $100 after comments from US President Donald Trump on the Iran conflict, helping European equities open higher. Even so, reports of deep job cuts at Oracle underlined that companies are still moving to protect margins in a slower-growth environment.