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Commercial Awareness Compass
Rising rates, tighter budgets: navigating 2025’s wage and tax hikes
Emma Lilley
Published Mon, 30 Jun
From April 2025, the UK government raised both the National Minimum Wage (NMW) and employer National Insurance Contributions (NICs). While the headlines celebrated improved pay for workers, employers across the country quietly reached for their calculators. But the story doesn’t stop at payroll departments. Behind the scenes, lawyers are guiding clients through contract reviews, redundancy decisions, regulatory risks, and the growing appeal of automation. As businesses themselves, law firms are also grappling with rising internal costs.
It might seem like a straightforward win for workers (just more money, right?). But beneath the surface lies a legal and commercial puzzle. Which sectors will feel the biggest squeeze? How might cost-cutting measures land businesses in legal hot water? And could this accelerate automation within workplaces?
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