2. NDAs – New Restrictions from 1 October 2025
Changes under the Victims and Prisoners Act 2024 clarify that NDAs cannot prevent victims from reporting crimes or seeking confidential advice and support. Employers must now update settlement and confidentiality clauses to reflect these additional rights.

3. Harassment and Employer Liability
The EAT in AB v Grafters Ltd confirmed that harassment can occur “in the course of employment” even outside the workplace if there’s a sufficient link to work (e.g. a lift home). HR teams should ensure policies and training cover any interactions connected to work, not just those on-site or in working hours.

4. Recruitment and ‘Team Fit’
In Kalina v Digitas LBI Ltd, an unsuccessful candidate claimed discrimination after not being chosen because the interviewer “vibed” better with another applicant. The tribunal dismissed the claim, confirming that considering “team fit” is not automatically discriminatory — provided it’s applied fairly and without bias.

5. Probationary Periods – Common Pitfalls
Probationary periods must be clearly defined in contracts and properly managed. Employers should act before the period expires and cannot use probation to delay statutory rights. Including wording that probation continues until confirmed in writing can prevent disputes.

6. Redundancy and Alternative Employment
Employers must explore all possible alternative roles — not just similar ones — during redundancy processes. Failure to do so can render a dismissal unfair. An unreasonable refusal by an employee of suitable alternative employment may forfeit redundancy pay.

7. Whistleblowing and Misconduct
In Argence-Lafon v Ark Syndicate Management, the EAT confirmed that whistleblower protection doesn’t shield employees from legitimate performance or conduct action. Once an allegation has been fully investigated, continued disruptive behaviour can justify dismissal.

8. Spyware and Employee Monitoring
The case of Lanuszka v Accountancy MK Services warns employers against relying solely on remote-monitoring data to discipline staff. A fair investigation must accompany any action, and clear rules on personal use of company equipment should be communicated.

9. Restructuring vs Redundancy
Employers should distinguish between genuine redundancies and dismissals for “some other substantial reason” (SOSR). Mislabelling can risk unpaid redundancy claims. Even if roles remain, a reduced need for work may still amount to redundancy (Packman v Fauchon).

10. The Manchester Derby ‘Own Goal’
An Etihad Stadium bar worker was dismissed after wearing a Manchester United shirt while serving City fans. Although seemingly harsh, the decision was likely justified due to reputational risk and potential customer backlash, especially if the worker was agency staff with no ongoing employment rights.

Find out more: The law firm for life – mfg Solicitors

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Following the discussion, guests enjoyed a guided tour of the College’s outstanding teaching facilities, including the impressive TV studios, state-of-the-art car maintenance workshops, and areas dedicated to building and construction disciplines. The visit concluded with delicious cakes and refreshments prepared by the College’s talented catering students. The session was both engaging and inspiring, highlighting the strong partnership between education, business, and government in supporting the region’s future prosperity.

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“Sticky inflation has been in danger of becoming a uniquely British disease as the UK continues to stand out from the rest of the G7.

“Today’s CPI rate of 3.8%, coming in lower than expected, could provide some reassurance that we are at the peak, as expected by the BCC and Bank of England. However, the picture is mixed. Core inflation has slowed, but the reintroduced producer price data show factory gate prices rising by 3.4%, hinting that cost pressures remain in the pipeline, particularly for food and manufacturing.

“Our latest survey data shows that concern about inflation has been rising again and is now the second biggest issue for firms after taxation. But the two are closely linked: for the past year, businesses have told us that the rise in employer National Insurance Contributions has fed directly into price pressures and weakened investment. Labour costs continue to be the main cost pressure, cited by 72% of businesses.

“Higher energy bills are also a concern, cited by 50% of firms, with the rise in the energy price cap at the start of October indicative of the sustained pressure. Without action to help firms bring down costs, there is a risk of a repeat of a 2022-style energy shock.

“The upcoming Budget will be pivotal. Further tax rises could exacerbate a climate of low growth and rising costs. Unlocking growth through increased investment in infrastructure, AI adoption, and a bold push to increase exports, is the only long-term solution.”

More information on the ONS data can be found here.

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“UK trade is heading along two distinct paths. There is a steady rise in services, which already account for more than half of UK exports, but trade in goods remains in flux. Manufacturers are still adjusting to the new realities of global trade policy and uncertainty around further tariffs remains high.

“Trade in goods with the US has plunged since higher tariffs were introduced. The full impact of the US de minimis exemption removal is yet to be fully reflected in the data and is weighing heavily on UK traders. In many sectors, trade in goods with the EU and other non-EU countries also stayed flat during August.

“Growth remains fragile and more needs to be done to leverage new and upgraded trading terms with the US, the EU and Indo-Pacific regions to boost our export performance.

“Our Budget submission calls upon government to implement customs reforms and trade accelerators to make goods trade simpler, cheaper and faster with key UK markets. This data suggest that should be even more of a priority for policymakers.”

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“These new investments must drive the partnership between government and business to a new level, as we work together to power up our regions.

“To boost economic growth, we have to leverage the skills, talent and innovation of every town, city and place.  A thriving network of businesses across England, Scotland, Wales and Northern Ireland, will ensure we can all prosper and hit our goal of becoming the fastest growing economy in the G7.

“At its heart, growth must be driven by local communities and the firms within them.

“Business has always understood this. Creating strong regions with powerful links between them creates more opportunities for everyone.

“Modern and efficient infrastructure is also a key part of this equation – transport networks, energy grids, digital connections and other utilities must effectively service businesses wherever they are located.

“That cannot happen without an effective and efficient planning system, that is sufficiently resourced and balanced so that this development is properly nurtured.

“Plans to cut the cost of regulation are also welcome, but firms must be consulted so any initiatives have maximum impact. Now is the time to boost growth, and changes like this can help to unleash the innovation of UK PLC.”

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The Quarterly Economic Survey provides a detailed snapshot of business confidence and economic conditions across the UK, based on responses from 280 organisations across a wide range of sectors. It serves as a vital barometer of local and national sentiment, helping shape policy decisions through the British Chambers of Commerce network.

Key Findings from Q3 2025

The Q3 2025 results reveal continued signs of resilience among UK businesses, with many indicators showing steady or improved performance compared to the previous quarter. Highlights include:

• • UK Sales: Net balance fell to +8%, showing mixed performance.
  • UK Orders: Slight improvement to -1%, suggesting stabilisation.
  • Overseas Trade: Sales held at +3%, orders at 0%, indicating steady but subdued demand.
  • Cashflow: Net balance dropped to +2%, reflecting tighter conditions.
  • Recruitment: 38% of businesses reported that professional/managerial roles were the most
    difficult to recruit for.
  • Investment: 16% of businesses reported an increase in their capital investment plans, down from 19% in Q2.
  • Confidence: 45% expect turnover growth, but only 38% foresee improved profitability.
  • Top Concerns: Tax, inflation, and labour costs continue to pressure margins.

The report also explores the impact of the English Devolution and Community Empowerment Bill, with 75% of businesses seeing potential benefits. However, many called for better representation, transparency, and consistency in local decision-making.

These findings reflect a cautiously optimistic business environment, with firms continuing to adapt to evolving market conditions and planning for long-term growth.

Herefordshire & Worcestershire Chamber of Commerce would like to thank all businesses that took part in this quarter’s survey. Your input is invaluable in helping to represent the views of the local business community and in influencing government policy.

Download the full Q3 2025 Report here:
Click to download your free copy

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“Raising defence investment is not only vital for the UK’s national security in an age of higher geopolitical risk but also to boost growth, jobs, exports and supply chains.

“The new Defence Growth Deals will provide opportunities for businesses to invest in locations across the country in key sectors like munitions, drones, frigates, submarines, and cyber security.

“The UK needs this long-term investment to develop stronger defence supply chains and more efficient procurement plans to meet new global threats. There are many regions of the UK with a strong defence heritage that will be key to this.

“But it is also important that we widen our supply chains across the UK to leverage the skills, innovation and creativity of businesses wherever they are located.

“The Chamber Network will work closely with our defence companies and government to ensure UK defence industries rise to the challenge but also maximise the opportunities in a key sector of our economy and global exports.”

Read more on the Defence Industrial Strategy here.

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“The ongoing impact of business cost pressures, most notably from the national insurance hike, continues to hit the labour market.

“Unemployment remains high and vacancies continue to fall with firms having to make difficult decisions on recruitment. Average earnings, including bonuses, gives a better picture of what businesses are facing, and between May and July that picked up to 4.7%.

“Our latest survey showed labour costs remain the biggest cost pressure for SMEs, cited by 73% of firms. Continued wage growth is also impacting the wider economy. The Bank of England Governor told our annual conference in the summer that it is an important factor behind persistent services inflation.

“Further employment costs are looming for businesses. The £5bn cost associated with the Employment Rights Bill poses a further threat to firms’ investment and recruitment plans. Without further amendment, the legislation will add even more to employers’ costs.

“Firms can’t absorb further cost pressures. That’s why we are clear, there must be no more taxes on business in November’s Budget. The Chancellor must also use her statement to invest in workforce health and skills, two issues currently hampering the business growth we all want to see.”

Read the full ONS data here

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“Businesses will be worried by inflation holding at 3.8% at a time when cost pressures continue to bite, especially on wages. The BCC’s latest economic forecast expects inflation to remain at around this level until the end of the year.

“Firms are clear that April’s rise in national insurance, continued strong wage growth and higher tariffs are all eroding their operating margins. There is also growing concern that sticky inflation will limit the scope for further interest rate cuts.

“Ahead of the Autumn Budget, our message to the Chancellor is clear – there must be no new tax rises on business. Firms cannot provide the economic growth we all need if they continue to be hampered by rising costs.”

More information on the ONS data can be found here.

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The media also relies on these reports to highlight business concerns and challenges, providing a broader perspective on how businesses are managing, or struggling to manage, these issues.

By taking part in this survey, you have a direct impact on government policies. Your data, which remains anonymous, is also given in evidence in the houses of parliament, used by the Bank of England and the HM Treasury as a trusted and proven source of information.

In previous quarters, businesses have emphasised the significant challenges they have faced such as the rising business costs, interest rates, and inflation.

With new challenges, such as, NI Employer Contribution, Increased wages and the continuing on the cost-of-living crisis, now is an important time for businesses concerns to be heard.

The research conducted will be shared with the British Chamber of Commerce, along with 53 UK Chambers, to create a framework from which Herefordshire & Worcestershire Chamber of Commerce can influence local and national partners.

By taking part in this quarter’s survey, you will have the chance to win a fantastic prize of an indulgent Afternoon Tea for Two, in the elegant Garden Room Restaurant, at The Bank House.

Take the survey now – https://www.surveymonkey.com/r/QES3-2025 

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