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’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.

The Bank of England is expected to cut interest rates on Thursday, likely lowering them from 4.5% to 4.25%. This would be the fourth rate cut since last year’s peak of 5.25%, and the second in 2025, as the Bank aims to stimulate borrowing and ease financial pressure on households and businesses.

The owner of Space NK has initiated a formal sale process, with teasers circulated to prospective bidders amid concerns over the UK Economy.

Economists say Chancellor Rachel Reeves may have to raise taxes in the October Budget.

The UK Economy grew by 0.5% in February, outperforming analyst forecasts of a 0.1% rise, driven by strong manufacturing and service sectors.

Cliff Notes – Spring statement 2025 key takeaways The Office for Budget Responsibility has halved the UK’s growth forecast for 2025 from 2% to 1%,…

Chancellor Rachel Reeves says the 2025 growth estimate for the UK has been halved to 1% from 2% by the government’s official forecaster, the Office for Budget Responsibility (OBR)

Government borrowing surged to £132.2bn last month, significantly exceeding forecasts and representing a £15bn increase from the previous year.

The OECD has downgraded global economic growth forecasts, attributing the slowdown to US President Trump’s tariffs on imports, with the UK expected to grow only 1.4% this year, down from 1.7%.

The Treasury plans to announce substantial spending cuts to realign public finances ahead of the Spring Statement. Escalating borrowing costs attributed to global economic conditions…

Friday’s front pages report on the Bank of England’s bleak forecast for the UK economy sparked widespread concern, with growth now expected to be just 0.75% this year.

Rachel Reeves is under fire with some of the papers speculating on her future in the role of chancellor and the fears of stagflation – a combination of stagnant growth and rising inflation—are dominating the narrative.

While the interest rate cut to 4.5% offers some relief, the overall economic outlook remains challenging. The papers say the government faces tough choices including potential tax hikes or spending cuts, to stabilise the economy.

Elsewhere, there’s some showbiz news dominating tabloids, including reviews of the new BBC TV series Amandaland, an exclusive interview with the former girlfriend of Liam Payne and coverage of recent allegations made against a TV star.

The back pages are dominated by Liverpool’s 4-0 win over Spurs to book their place in the Carabao Cup final at Wembley.

Rachel Reeves has been dealt a further blow in her bid to fulfil Labour’s primary mission of reigniting economic growth, as a downgraded forecast overshadowed…

UK interest rates live: Bank of England set to cut interest rates in boost for mortgage holders The UK’s base interest rate is expected to…

Billionaire Sir Leonard Blavatnik injects £630m to prop up Netflix-rival DAZN as losses mount Billionaire Sir Leonard Blavatnik has injected a further $827m (£630m) into…

UK economy: Consumers catch ‘January blues’ as confidence slumps Consumer confidence in the health of the UK economy slumped in January, pointing to further headwinds in…

Rachel Reeves’ tax hikes pose ‘major threat’ to UK labour market resilience The government’s tax hikes pose a “major threat” to the health of the…

UK economy: Interest rate cut a ‘certainty’ in February after weak data A February interest rate cut is a “certainty” after new data suggests that…

“GDP growth slowed markedly in the summer when the new government began warning of tax hikes,” said Rob Wood, chief UK economist at Pantheon Macroeconomics.

For the first time in three months, the UK economy grew, recording a slight expansion of 0.1% in November, according to official figures. This follows two consecutive months of economic contraction.

It comes as a leading think tank urged the prime minister to boost trade defences to deter against economic threats from Donald Trump Ed Davey…

Warning food prices could soar by 20% as pressure mounts on Reeves over flailing economy Rachel Reeves has been hit by a triple whammy of…

Pound sterling continues to sink as UK economy ‘clearly on very shaky ground’ Pound sterling has continued to sell off this morning, and UK government…

UK companies cut jobs at fastest rate in nearly 4 years The private sector cut jobs at the fastest rate for nearly 4 years in…

The United Kingdom became the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, as of Sunday.