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UK Economy News, Analysis & Data: Inflation, Interest Rates, GDP & Housing

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The UK Economy section brings together up-to-date UK analysis on inflation (Consumer Price Inflation and producer prices), interest rates and the Bank of England’s base rate, GDP and productivity, employment, wages and unemployment, trade and business investment, housing and mortgages, taxes and allowances, the Autumn Budget and Spending Review, public borrowing and debt, and the cost-of-living from energy to food.

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The Cost of Living in the UK in 2025 – What You’ll Pay for Rent, Bills, and Groceries

From London’s soaring rents to the quiet affordability of Cardiff and Belfast, discover how much it really costs to live across the UK in 2025. Our in-depth guide breaks down rent, transport, food, schooling, and salaries—region by region and city by city—for international expats planning their next move.

BoE Rates 2025: Held in June, Cut in August—What the New Path Means

The Bank of England’s Monetary Policy Committee (MPC) went into the summer balancing two imperatives: cementing the disinflation trend and avoiding an unnecessarily tight stance as activity indicators softened.

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UK Public Finances in 2025: Why the Fiscal Spotlight Won’t Dim

The fiscal story of 2025 is a study in careful rationing rather than grand gestures. With the Spending Review on 11 June setting multi-year envelopes for departments, ministers now have a clearer map of where money should flow—and where it will be harder to find.

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Policy Reversals in 2025: Welfare, Winter Fuel and the Real Fiscal Impact

The politics of a policy reversal—often called a government “U-turn,” meaning a clear change of direction from an earlier decision—is usually noisy; the economics is quieter and more consequential. In 2025, ministers rowed back on elements of planned welfare restraint while softening earlier decisions on winter-fuel support.

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UK Spending Review 2025 Explained: What Changed, Who Gains, Who Faces Pressure

The 2025 Spending Review sets departmental budgets through the end of the parliament with real spending growth overall, yet it leaves difficult trade-offs—particularly for unprotected areas—made more complex by fresh national security pledges and a stubbornly uneven economy.

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UK Defence Spending: The Path to 2.6% of GDP by 2027 and 5% by 2035

The UK is committing to a step-change in national security. The headline is simple enough to repeat and hard enough to deliver: lift defence spending to roughly 2.6% of gross domestic product by 2027 and build towards five per cent by 2035.

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Core Defence at 3.5% of GDP by 2035: Trade-offs, Costs and How to Deliver

The UK aims to lift core defence to 3.5% of GDP by 2035. What counts as “core”, how much it could cost, the trade-offs across government, and how to deliver value.