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Public sector net borrowing hit £20.5 billion last month, far exceeding forecasts as inflation-driven debt interest payments surged. The shortfall marks the highest April deficit since records began in 1993, intensifying pressure on Chancellor Rachel Reeves to curb spending.
Bank of England Governor Andrew Bailey has condemned the government’s proposal to cap food prices, calling it unsustainable and a distortion of the economy. The backlash from retailers forced Chancellor Rachel Reeves to abandon the plan just days after it was floated.
Annual consumer price growth dipped to 2.8% in April, falling from March’s 3.3% but remaining stubbornly above the Bank of England’s 2% goal. Core inflation, excluding volatile food and energy, held at 3.9%, defying policymakers’ expectations of a sharper decline.
Consumer prices rose just 2.8% in July, the sharpest monthly drop in two years, as energy bills tumbled. But energy and food economists predict a rebound as the Iran conflict keeps global oil markets volatile.
The International Monetary Fund has raised its 2024 UK growth forecast to 0.7% but warns the conflict in Iran could derail recovery. Domestic political instability remains a key risk factor.
Britain’s gross domestic product expanded by 0.6% in the first quarter, confounding analysts who predicted stagnation. The surge lifts annual growth to 1.8%, the fastest pace since 2022, and pushes inflation-adjusted wages up 2.3% year-on-year. Chancellor Rachel Reeves hailed the rebound as proof that tough reforms are paying off, but warned of persistent risks from global instability.
The UK economy expanded by 0.8% in Q1 2026, outpacing forecasts and marking the sharpest rise in four years. Analysts cite falling energy costs and increased business investment as key drivers. Households are feeling the pinch, however, with real wages still lagging behind pre-pandemic levels.
Gross domestic product rose 0.3% in March, beating forecasts and easing recession fears. Manufacturing rebounded sharply while services cooled, signaling uneven recovery across sectors. Analysts warn global tensions still threaten momentum into Q2.
A spike in global oil prices following recent Iranian strikes has triggered an unexpected surge in UK mortgage rates, economists warn. The Bank of England now faces a delicate balancing act between inflation control and economic stability.
The widening US-Israeli campaign against Iran has sent petrol prices surging and mortgage rates climbing, with analysts warning of a prolonged squeeze on household budgets starting this month. A leaked Treasury risk assessment reveals fresh vulnerabilities in the UK's energy and housing markets.
The Bank of England is set to maintain interest rates at 5.25% next week as geopolitical tensions from the Iran conflict drive economic uncertainty. Analysts warn of prolonged inflation risks tied to disrupted oil supplies and supply chain shocks.
Homebuyers face an annual £788 hike in typical mortgage payments compared to pre-Iran war levels, new analysis shows. The surge reflects rising interest rates and economic instability linked to regional tensions.