Domestically, it hasn’t been the most cheerful period on the economic front. The government spent the run-up to the Budget warning that tough decisions lay ahead. Confidence (unsurprisingly) wobbled – and then £40bn of tax increases were introduced. Even inflation, which had been falling for most of 2024, has ticked up above the 2 per cent target again. As a result of the Budget, interest rates are (again) expected to stay higher for longer next year.
Given all of these developments, you might be surprised to hear that things are looking pretty benign for the UK economy in 2025.