Shoppers used Union flag umbrellas on Oxford Street in London amid rainy weather on May 6, 2024, as Britain’s economy showed slow growth. The Office for National Statistics reported a mere 0.1% growth for the third quarter, below economists’ expectations of 0.2%. September saw a month-on-month contraction of 0.1%, driven largely by a decline in manufacturing, particularly due to a cyber attack on Jaguar Land Rover.
As the UK government prepares for its autumn budget on November 26, concerns mount over potential tax increases that could dampen consumer spending. Chancellor of the Exchequer Rachel Reeves emphasized the need for fair decisions to stimulate the economy while addressing challenges like childcare waitlists and national debt.
Experts indicate that the budget and tax changes will heavily influence economic activity, with some predicting a potential interest rate cut by the Bank of England at its December meeting, which could provide an economic boost before Christmas. Despite challenges, growth remains close to the UK’s potential rate of 0.3%, but fiscal uncertainty looms.
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