No 10 says Donald Trump’s tariffs not responsible for UK economy shrinking March 14, 2025 Donald Trump’s tariffs are not responsible for the UK economy shrinking in January, Downing Street has said, in a position that appears to contradict the Chancellor’s reaction to the latest poor economic figures. According to the latest set of gross domestic product (GDP) figures published by the Office for National Statistics (ONS), the economy shrank [...]
GDP shrinks in January as UK economy prepares for upcoming tax hikes March 14, 2025 The UK economy underperformed expectations in January. According to the latest set of gross domestic product (GDP) figures published by the Office for National Statistics (ONS), the economy shrank by 0.1 per cent in January as output was dragged down by a sharp drop in output in the production sector. Over the three months to [...]
Labour’s growth agenda? Necessary but not sufficient. March 11, 2025 Ministers will be deeply frustrated at the lack of economic growth, though they ought not to be surprised. Their own missteps have been well covered in this newspaper, and week after week new survey data reveals the extent to which government policies have dampened spirits, reduced hiring and spooked confidence. However, while their opening salvo [...]
Reeves eyeing spending cuts as fiscal walls cave in March 10, 2025 Rachel Reeves is expected to take the chop to spending in her upcoming Spring Statement, as the government’s fiscal headroom disappears. The Office for Budget Responsibility (OBR) is set to show a depletion in the Chancellor’s headway, according to BNP Paribas economists. This leaves the government with little options beside further tax hikes or spending [...]
Defence spending to rise to 2.5 per cent by 2027 via aid cuts, Starmer confirms February 25, 2025 Sir Keir Starmer has announced the “biggest sustained increase in defence spending since the end of the Cold War” as he confirmed the UK would spend 2.5 per cent of GDP [gross domestic product] by 2027. The Prime Minister unveiled the policy in a statement to the House of Commons after reports he was set [...]
Higher taxes will force two-thirds of hospitality business to cut jobs February 24, 2025 The hospitality sector will be drastically affected by higher taxes on employees’ wages, a new survey has found. A majority of businesses will reduce employment, while over one in ten have to close at least one site and just under two thirds will cancel investment, according to UKHospitality. The UK’s three core hospitality trade bodies [...]
UK economy hit by slump in exports to EU February 13, 2025 According to the Office for National Statistics (ONS), UK exports fell 2.5 per cent in the fourth quarter, the third consecutive month of decline.
UK economy: Mixed signals for Rachel Reeves as GDP beats expectations February 13, 2025 You can tell it has been a bleak midwinter when quarterly growth figures of 0.1 per cent sets the pulses racing.
GDP grows 0.1 per cent as UK economy skirts recession February 13, 2025 Chancellor Rachel Reeves received a small boost after the economy unexpectedly grew at the end of last year, ensuring the UK does not face an imminent recession. Output expanded 0.1 per cent in the final three months of the year, according to the Office for National Statistics (ONS), after GDP rose 0.4 per cent in [...]
GDP figures to pile further pressure on Reeves as recession risks mount February 10, 2025 New figures set to be released on Thursday are expected to show that the UK economy shrunk 0.1 per cent in the three months to December.