#uk-economy

#uk-economy

"But know this is just the start. For too many people, our economy feels stuck," she said. "Working people feel it every day, experts talk about it, and I am going to deal with it."

This 3.5% increase, equating to 191,000 new businesses since last year, is a testament to the resilience and entrepreneurial spirit driving our economy, and it is heartening to see so many individuals taking the initiative to establish their own ventures, but as chancellor Rachel Reeves recently said, the UK's economy "isn't broken, but it does feel stuck". Addressing this issue needs to be a priority for the survival of SMEs within turbulent market conditions.

The UK's post-summer economic rebound has been short-lived, according to the latest Business Trends report from business advisory and accountancy firm BDO LLP. BDO's Output Index declined to 98.53 in September, down from 101.21 in the previous month and falling below the 100-point threshold which represents long-term average growth levels over the past 15 years. After exceeding 100-points in August for the first time in over three years, September's decline signals that UK business momentum has once again stalled.

Rachel Reeves has been dealt a huge blow by the budget watchdog over plans to slash estimates on a key economic indicator for the UK intensifying fears she will need to dramatically hike taxes. On the eve of a difficult Labour Party conference in Liverpool, The Independent can reveal that the chancellor has been told the Office for Budget Responsibility (OBR) will substantially reduce its estimates for productivity in the economy which will lead to even lower economic growth.

The medium- to long-term outlook for the UK economy does not look favourable. To be clear, we do not believe the UK economy is approaching a cliff edge, Next's half-year earnings report said. At best we expect anaemic growth, with progress constrained by four factors: declining job opportunities; new regulation that erodes competitiveness;, government spending commitments that are beyond its means; and a rising tax burden that undermines national productivity.

Microsoft says its new $30bn (22bn) investment in the UK's AI sector its largest outside of the US - should significantly boost Britain's economy in the next few years. Its package forms a major part of a $31billion agreement made between the UK government and various other US tech giants, including Nvidia and Google, to invest in British-based infrastructure to support AI technology, largely in the form of data centres. Microsoft will also now be involved in the creation of a powerful new supercomputer in Loughton, Essex.

Google has unveiled plans to invest an additional £5 billion in the UK over the next two years, in a move it says will help expand the country's artificial intelligence economy, create thousands of jobs and accelerate breakthroughs in science and technology. The announcement coincides with the state visit of US President Donald Trump, during which major technology and energy deals are expected to dominate the agenda. The investment will include significant spending on Google's infrastructure, research and engineering teams, as well as support for Google DeepMind, its London-based AI arm. The company said the expansion would generate 8,250 " new AI-driven jobs " in Britain.

Speaking to TalkTV's Plank Of The Week, Mark Wogan said: "It's interesting how you say [Labour chancellor] Rachel Reeves is killing the housing market - she's killed it already. "You'd think someone would come round, even just out of interest. But no one's come to see it. No one, not one single person. That's how dead the market is."

TikTok's operations in the United Kingdom, Europe, and Latin America more than doubled revenues since 2022, when the company brought in $2.6 billion, according to filings submitted to Companies House, the U.K's corporate registry.

Consumer confidence in the future UK economy has plummeted over the last year, falling by 31 points from an average of minus nine to minus 40 as reported by Which?.

UK workers reported higher levels of workplace anxiety and lower happiness than counterparts in India, the Philippines, and the US, revealing significant disparities in job satisfaction.

British exports to the US have plummeted to their lowest level in three years, dropping 13.5 per cent despite a US-UK trade agreement aimed at mitigating tariff impacts.

Rachel Reeves faces another setback with a significant decline in company hiring plans, recorded at a historic low of 57 percent for the upcoming three months.

UK construction activity fell sharply in July, reflecting the steepest decline since May 2020 due to collapsing housebuilding and broader economic challenges.

The Autonomy Institute thinktank warned that climate-induced price increases for everyday food items could push almost 1 million people into poverty without urgent government intervention.

The world’s most important financial watchdog has warned that Chancellor Rachel Reeves will likely break a key party manifesto pledge by hiking taxes or cutting public services.