Charities and community groups have seen a rise in demand for second-hand school uniform.

Barnardo’s in Frome has put out an appeal for donated uniform, due to the high demand they are seeing, and parents in Somerset have set up Facebook groups to help.

The Community Hub in Chard has started a pre-loved school uniform shop which operates on the basis of paying what you can afford to help parents who may not be able to afford it.

Tessa Goodridge-Reynolds, from the Chard Community Hub, said: “It’s pay-as-you-can so there’s no pressure to donate at all. We just want to remove that pressure. It’s a really expensive time for parents.”

Ms Goodridge-Reynolds helped to set up the uniform shop in 2022, led by the need from the community.

“They found it difficult to get hold of uniform cheaply,” she said.

“Part of it is sustainability, too. Isn’t it great if we can swap and share and get as much use out of clothes as possible?

“Today, more than 1,300 items have gone out to families. It’s a busy time of year, everyone getting ready for school this week.”

Nikki Allen, a mum from Somerset, set up the South Somerset School Uniform Exchange group on Facebook.

“It was a few years ago when my son was still in school. I was looking for bits of uniform that I didn’t really want to buy new,” Ms Allen said.

“There’s posts every day, whether it’s school uniform or coats. People are really pleased to get something for less money because of course budgets are tight still.”

Barnardo’s in Frome said they have also seen a surge in demand for uniform.

They have been recycling uniform for the last four years but demand is now is at its highest ever, with parents queuing up to get uniform and PE kits for their children.

Hannah Smith, the store manager, said: “There’s been a lot more demand, I’ve had messages, phone calls asking for uniform.

“It’s definitely the cost of living, people just can’t afford it new anymore and they’re struggling.

“Just for a general Frome college uniform you’re looking at £100, just for one set.”

UK government long-term borrowing costs have eased after reaching their highest level since 1998 earlier in the week.

The interest rate on 30-year government bonds, known as the yield, slipped to 5.57%, dropping from a high of 5.75% on Wednesday. Analysts said a fall in US borrowing costs had a knock-on impact on UK bonds.

Although bond yields have been rising globally recently, there have also been market concerns about UK government finances.

However, Bank of England governor Andrew Bailey said on Wednesday that it was “important not to focus too much” on longer-term bond yields.

He told the Treasury Committee that interest rates had been rising “across the developed world”.

The UK was not alone in seeing borrowing costs rise earlier in the week, with yields on 30-year German, French and Dutch bonds climbing to their highest since 2011.

In the US, 30-year Treasury bond yields rose to their highest in more than a month.

Factors such as geopolitical tensions, US President Donald Trump’s trade policies and high levels of government borrowing have been behind the increases.

Mr Bailey told the Treasury Committee that the 30-year yield on UK bonds was “quite a high number but it is not what is being used for funding at all at the moment actually”.

Governments borrow money from investors by selling bonds – which is a loan the government promises to pay back at the end of an agreed time.

The yield on 30-year UK government bonds – which are known as gilts – has been rising for a number of months.

The US bond market, which is seen as underpinning the global financial system, has also seen pressure due to concerns about high debt, the impact of Trump’s tariffs on inflation, and worries about the independence of the Federal Reserve after Trump’s order to fire one of its governors.

After rising to nearly 5% for the first time since mid-July on Wednesday, US 30-year bond yields slipped back to about 4.88% after data showed job openings fell in July.

This reinforced expectations of an interest rate cut by the US central bank, the Federal Reserve, later this month.

In the UK, although the Bank of England has been cutting rates, Mr Bailey said that “there is now considerably more doubt about exactly when and how quickly” rates will be cut further, reiterating his comments after August’s rate cut.

Paul Dales, chief UK economist at Capital Economics, said that the fall in yields on long-term UK government bonds was partly due to interest rates on US bonds slipping in reaction to economic data.

“This is a timely reminder that worries over the UK’s fiscal future is not the only, and often not the most important, driver of UK 30-year yields,” he said.

The integration of artificial intelligence (AI) into business operations has reached a pivotal inflection point. By 2025, 72% of companies globally have embedded AI into at least one aspect of their workflows, with the global AI market valued at $184 billion and projected to grow to $826.7 billion by 2030. This surge in adoption is driven by a dual imperative: to unlock productivity gains and to future-proof workforce resilience in an era of rapid technological change. For investors, the challenge lies in identifying AI-driven companies that balance operational efficiency with sustainable employment practices, ensuring long-term value creation.

The Productivity Revolution: AI as a Catalyst for Growth

AI’s impact on productivity is undeniable. According to McKinsey, AI-driven corporate use cases could generate $4.4 trillion in added value by 2030. Sectors like healthcare, finance, and manufacturing are leading the charge. For example, AI-powered diagnostics in healthcare have reduced drug development cycles by 50%, while financial institutions are leveraging AI for real-time fraud detection, cutting losses by up to 30%. In manufacturing, predictive maintenance and generative design tools are boosting operational efficiency by 12% compared to traditional methods.

IBM, a pioneer in AI integration, exemplifies this trend. Its Watson Health division has streamlined clinical workflows, while AI-driven cybersecurity solutions have enhanced client retention. IBM’s stock has appreciated by 22% over the past three years, reflecting investor confidence in its AI-centric strategy.

Job Resilience: The Human-AI Symbiosis

Contrary to fears of mass job displacement, AI adoption in 2025 is reshaping roles rather than eliminating them. A McKinsey report reveals that 94% of employees use AI for over 30% of their daily tasks, far exceeding leadership expectations. This “augmentation” model—where AI handles repetitive tasks while humans focus on creativity and decision-making—is fostering workforce stability. For instance, in retail, AI chatbots now manage 95% of customer interactions, but human staff remain critical for complex problem-solving and customer relationship management.

The healthcare sector further illustrates this balance. While AI assists in diagnostics and administrative tasks, demand for skilled professionals like data scientists and AI ethicists has surged. By 2028, 60% of companies are expected to require basic AI skills, signaling a shift toward reskilling rather than replacement.

Investment Opportunities: Sectors Leading the AI Charge

Investors should prioritize industries where AI adoption aligns with both productivity gains and job resilience:

1. Healthcare: AI is revolutionizing drug discovery, diagnostics, and personalized care. Companies like Tempus and PathAI are leveraging AI to improve clinical outcomes while creating new roles in data analysis and AI governance.
2. Financial Services: Firms adopting AI for risk management and robo-advisory services are outperforming peers. Mezzi, an AI-driven wealth management platform, has seen a 40% increase in user adoption since 2024.
3. Manufacturing: Industry 4.0 solutions, including collaborative robots (cobots) and predictive maintenance, are boosting efficiency. Siemens and General Electric are investing heavily in AI-driven automation, with Siemens’ stock up 18% year-to-date.
4. Retail: AI-powered personalization and inventory optimization are driving growth. Shopify’s AI-driven analytics tools have contributed to a 35% increase in small business client retention.

Risks and Considerations: Navigating the AI Landscape

While the opportunities are vast, challenges persist. A 50% skills gap in AI expertise and regulatory complexities in data privacy remain barriers. For example, the EU’s AI Act, set to take effect in 2026, could increase compliance costs for companies in sensitive sectors like healthcare. Investors should favor firms with robust upskilling programs and transparent AI governance frameworks.

Strategic Investment Advice

1. Focus on Sector Leaders: Prioritize companies with proven AI integration, such as IBM, Shopify, and Siemens, which demonstrate both operational efficiency and workforce adaptability.
2. Monitor Reskilling Initiatives: Companies investing in employee training (e.g., Google’s AI certification programs) are better positioned to sustain growth.
3. Diversify Across Sectors: A balanced portfolio across healthcare, finance, and manufacturing can mitigate sector-specific risks while capitalizing on AI-driven growth.

Conclusion: The Future of Work and Investment

AI adoption in 2025 is not a zero-sum game. By enhancing productivity and redefining job roles, AI-driven companies are creating a more resilient and dynamic workforce. For investors, the key is to identify firms that leverage AI as a strategic enabler rather than a cost-cutting tool. As the AI market continues to expand, those who align with this vision will reap the rewards of innovation and stability in equal measure.

Tesla’s recent pivot to AI-driven manufacturing and autonomous vehicle development underscores the potential of AI to drive both operational efficiency and long-term value. With its stock up 50% in 2025, Tesla exemplifies the rewards of strategic AI integration.

In the evolving landscape of AI adoption, the companies that thrive will be those that harmonize technology with human potential—offering a compelling opportunity for forward-thinking investors.