Browsing: UK Economy

Thursday’s headlines see coverage of the government’s plans to ease the pressure on prisons across England and Wales, as a report says prisons will run out of space by November. The government has announced a series of measures which include early release for some offenders as part of the plans to tackle the overcrowding. The government also announced they will build three new prisons – but despite the dire state of the prison system, the plans still might not be enough to tackle the problem.

The UK economy grew unexpectedly in the first three months of 2025 – a major win for the government, especially the chancellor, who’s been under increasing pressure over the state of the economy and the government fiscal plans. The ONS said the growth was driven by the service sector and production. But the joy might be short-lived, the figures mark the period just before the US imposed tariffs.

The UK economy grew by 0.7% in the first quarter of the year, outpacing expectations and marking a stronger start to 2025 than analysts had predicted. The Office for National Statistics (ONS) reported that growth was primarily driven by a resilient services sector, alongside significant gains in industrial production.

The UK’s labour market has continued to show signs of strain, with the number of workers on company payrolls falling during the opening months of 2025. According to the Office for National Statistics (ONS), both employment figures and job vacancies have declined, suggesting ongoing softness in the economy.