Tag: UK Economy
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UK Consumers Reluctant to Spend as 2026 Approaches, KPMG Survey Finds
Overview: Cautious Confidence Amid Economic Uncertainty A new KPMG survey paints a nuanced picture of UK households as they edge closer to 2026. While personal finances feel nearly as secure as at the start of the year, a substantial portion of consumers are choosing to tighten their belts and delay discretionary purchases. The findings highlight…
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Britain Faces Record-Low G7 Investment Amid Starmer’s Growth Ambitions
Overview: Britain records the smallest G7 investment share this year The United Kingdom has attracted the lowest level of investment among the G7 nations this year, a setback for Labour leader Sir Keir Starmer as he markets his plan to boost growth. Investment by the government and private sector, measured as a share of GDP,…
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UK Consumers Stay Cautious About Spending Ahead of 2026, Says KPMG Survey
UK Consumers Maintain Spending Caution as 2026 Approaches UK households are edging toward 2026 with a cautious approach to spending, even as their sense of financial security remains broadly steady compared with the start of the year. A recent KPMG survey highlights a complex landscape: personal finances look resilient on the surface, yet many consumers…
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Can Britain Break Free from the ‘Moron Premium’ in Fiscal Policy?
Introduction: The question of a ‘moron premium’ in UK policy Britain entered the 2020s with a familiar narrative: inflation under control, interest rates hovering, and a political leadership battleground over fiscal credibility. The term “moron premium” has been used, often pejoratively, to describe the extra skepticism markets and voters assign to policy decisions that appear…
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Will Britain ever shake its ‘moron premium’? A closer look at policy, inflation, and growth
Introduction: the phrase and the finance landscape The idea of a country bearing a “moron premium” — a metaphorical cost attached to political missteps, policy confusion, or poor economic signals — has resurfaced in debates about the UK economy. As Rachel Reeves closes 2025 with encouraging data on inflation and gilt yields, the question becomes…
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Reeves’s Job-Tax Drive Triggers Biggest G7 Hiring Slump Yet
Overview: A Plan with Broad Hiring Effects The UK is facing what many analysts are calling the most significant hiring slowdown among the G7 nations in recent memory. Central to the debate is a set of policy moves championed by UK Chancellor Rachel Reeves, including a new approach to payroll taxes and inflation-driven wage policy.…
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Boxing Day sales hit as UK shoppers pause for tax rises
Boxing Day sales face a chill as tax rises dampen consumer confidence British shoppers are expected to shun the Boxing Day sales this year as the political backdrop of higher taxes weighs on household budgets. Barclays has forecast a notable decline in festive spending, with overall sales during the period slipping to about £3.6 billion—roughly…
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Shoppers Shun Boxing Day: Tax Rises Dampen Festive Spending
Boxing Day sales forecast under pressure as tax rises bite British shoppers are expected to pause before the Boxing Day sales this year, as a combination of tax rises and fading consumer confidence weighs on discretionary spending. Analysts at Barclays have projected a fall in festive-season spending, bringing the total for the holiday sales period…
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Why I’m Not Cheering the Pre-Christmas Rate Cut
Why the timing matters The prospect of a pre-Christmas rate cut from the Bank of England’s Monetary Policy Committee is being pitched as a modest nudge for households and businesses. Yet the most pressing argument against it is simple: inflation remains the dominant foe. With consumer prices still stubbornly high in many sectors, a premature…
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Labour economy: Rate cuts won’t save UK growth
Introduction: rate cuts are not a magic wand The prospect of another rate cut this week, followed by a potential easing early next year, is generating breathlessness in financial markets and some optimism among policymakers. Yet the bigger question remains: will lower borrowing costs, on their own, spark a genuine revival in the economy or…