#uk-economy

#uk-economy

The UK is on course to overtake Japan and become the world's fifth-largest economy by the end of the next decade, according to new long-term projections from Centre for Economics and Business Research (CEBR). In its latest global outlook, the think tank forecasts that Britain's gross domestic product will rise from just under $4 trillion in 2025 to around $6.8 trillion by 2040, lifting the country back into the global

Rachel Reeves has confirmed that she will deliver an early spring statement on 3 March, as the Treasury moves to restore confidence after a year in which prolonged tax speculation was blamed by businesses for weakening the UK economy. In announcing the date, the Treasury said the chancellor had formally asked the Office for Budget Responsibility to prepare updated forecasts for the economy and the public finances.

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Fears over the strength of the UK economy appear to have kept shoppers away from high streets on Black Friday, adding to growing evidence that consumer caution will weigh heavily on growth into 2026. Footfall across all shopping destinations fell by 2% on Friday and was 7.2% lower than the equivalent days last year, according to data from monitoring firm MRI Software. Only locations close to central London offices bucked the trend, seeing a slight lift as workers browsed stores during breaks

PA Media Global banking giant JP Morgan Chase has announced plans to build a new tower in Canary Wharf, claiming it will boost the UK's economy by 10bn. The firm said at three million square feet (280,000 sq m), the building would have double the space of Britain's current tallest building, the Shard. It will hold about 12,000 of its staff and be its most significant presence in Europe, the Middle East and Africa (EMEA).

The UK economy is expected to grow at a slower rate than previously expected from next year, the government's official forecaster has said. The Office for Budget Responsibility (OBR), which maps out how the economy is set to perform based on the government's tax and spending policies, increased its growth expectations for this year, but downgraded its forecast for the following four.

BDO's Output Index rose to 97.49 in October, up from 96.25 in September. This marks its largest monthly improvement since December 2024, when the UK economy grew off the back of strong consumer-facing sectors, including leisure activities such as pubs and bars, likely boosted by last year's festive period. Both the services and manufacturing sectors contributed to October's rise, with easing cost pressures such as lower-than-expected inflation, which in turn increased domestic demand driving improvement in services output.

"When someone says they are a B Corp, or even going through the process, I understand they really mean it," she said. "It's not easy, and the framework gives businesses structure and purpose. If you measure your business purely on profit, you are missing the point."

Michael O'Leary, the chief executive of the budget airline, hit out at Rachel Reeves, accusing the chancellor of failing to deliver on her programme of economic growth. The UK economy under the current leadership is doomed, he said. The UK badly needs growth, but the way to deliver growth is through selective tax cuts you are not going to grow the UK economy by taxing wealth or by taxing air travel.

"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.

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.