UK economy

UK business confidence weakens as doubts grow over wider economy

US President Trump had threatened to impose tariffs on Britain and other European countries over Greenland

Official consumer price inflation data for December - which covers a wider range of goods and services - rose to 3.4 per cent from 3.2 per cent.

UK shop prices rise at fastest pace in nearly two years

Food prices rose 3.9 per cent higher in January, compared to a year ago

The capital saw the third-fastest increase of UK towns and cities, trailing only behind Brighton and Worthing on the south coast.

London’s living standards rise twice as quickly as rest of UK

The country households have suffered dismal living standards growth in the past decade

Against December a year before, retail sales volumes were 2.5% higher, marking the strongest such reading since April.

Surprise UK retail sales rise adds to signs of pickup in economy

Market research firm GfK says that consumer confidence is at its highest level since August 2024

Britain's Chancellor of the Exchequer Rachel Reeves raised taxes in November by another £26 billion to reassure jittery bond markets – more than doubling the margin for error against her fiscal rules.

UK deficit falls more than expected as tax revenues jump

The deficit was £7.1 billion less than a year earlier

London Bridge, London. Unemployment in the UK, based on the ONS Labour Force Survey, held at a near five-year high of 5.1% in the three months to November. 

UK firms cut jobs at fastest pace in five years, wages cool

Payrolls have fallen by 220,000 since Chancellor Reeves ramped up employment costs in her first Budget in October 2024

The British government said it planned to speed up and simplify anti-trust probes, “working closely with the CMA (competition regulator) while preserving its independence”.

UK plans overhaul of its antitrust regime to drive growth

[LONDON] Britain aims to refine its competition regime, pledging to make it “faster, more predictable and more proportionate”, launching a formal consultation in what could be a major overhaul of one ...

Higher energy prices, interest rates and wage costs are making survival more difficult for zombies.

UK productivity surge signals economic turnaround: study

A long-promised pickup has eluded Britain for much of the period since the financial crisis

Workers outside the headquarters of the Bank of England in London. The central bank is expected to cut rates to around 3.25 per cent this year.
OUTLOOK 2026

UK economy expected to grow 1.4% in 2026 despite weaker unemployment

The euro zone’s GDP is forecast to slow just slightly to 1.2% this year and inch upwards to 1.4% in 2027, said analysts

Investors continued to almost fully price in two quarter-point interest rate cuts by the Bank of England in 2026.

Sterling set for rise as UK economy bounces back in November

After two consecutive weekly declines, it is on track for a 0.3% weekly increase