Second GIUK Online Meeting of 2025

On Thursday 10th April 2025, some 20 members attended our second GIUK online meeting for members, chaired by our Chief Executive, Phil McClennon, to discuss the current challenges faced by German business in the UK as a result of the increase of the NI contributions for employers, the increase of minimum wage from 1st April and also the upcoming Employment Rights Bill. In addition, with the recent tabling of US tariffs, we also expanded into this parallel topic.

Mohammad Jamei, Director of Economic Policy of the Confederation of British Industry (CBI) gave an overview of the impact across the full range of sectors and scales of their member’s businesses, derived from their recent members survey.

He highlighted how the burden of an additional £23 billion cost impact on UK businesses driven by the past three increases in national living wage coupled with the increase in National Insurance Contributions for employers had led directly to a large number of companies freezing recruitment and even reducing headcount in some cases. Service sector businesses were looking to pass the cost increases on to their customers and delaying investments was noted as a secondary effect across sectors. One particular point noted was how the changes proved to have the most significant impact on lower paid and part time roles in particular, and therefore could undermine the governments stated aims.

He went on to outline how the upcoming Employment Rights Bill could impact UK business, with a number of the topics covered implying increased cost and risk for employer companies. One member highlighted how the changes would reduce the workforce flexibility of the UK as a nation, a feature of the region which encouraged inward investment across a number of sectors. Mohammad went on to detail out some of the elements contained in the draft bill which were deemed unworkable in practice and were in the process of refinement after consultation.

With regards to the recent US tariffs our members and Mohammad formed consensus around how the uncertainty created by the changing picture would constrain investment planning, even beyond the impact on US trade of the tariffs themselves.

Our Executive President, Dr Bernd Atenstaedt, will take these issues up with Government.