There's good news for the chancellor but the road ahead is not without risks for the public finances.

The borrowing rate is expected to hit 3.5% next month and become even cheaper in September.

UK inflation dropped to its lowest level since March 2025, bolstering the case for an interest rate cut when the Bank of England meets next month.

Figure from ONS will be closely watched by Bank of England as it makes interest rates decision * Business live – latest updates Unemployment in the UK has risen to 5.2%, the highest level in nearly five years, official figures have revealed. The Office for National Statistics (ONS) said the rate of unemployment was 5.2% in the three months to the end of December, the highest rate since the quarter to January 2021. This was in line with what economists had been expecting and was up from 5.1% in the three months to November. Continue reading...

Getting a job is even harder than before, as redundancies increase and the number of unemployed people per vacancy is at a new post-pandemic high.

The president ruled out the use of force to take the island from Denmark after meeting with world leaders in Davos

UK government borrowing fell more than expected in December, helping Chancellor of the Exchequer Rachel Reeves in her bid to bring the public finances under control.

Figure comes as investors await Bank of England’s next decision on interest rates

Higher food costs, more tax on cigarettes and costlier air fares all contributed to the increase.

ONS says GDP expanded in news that is unlikely to deter Bank of England from making more interest rate cuts * Business live – latest updates The UK economy grew by a stronger than expected 0.3% in November despite uncertainty around the chancellor Rachel Reeves’s budget, official figures show. Figures from the Office for National Statistics (ONS) on Thursday showed the improvement, up from a 0.1% fall in October. Continue reading...

The UK economy recorded growth of 0.3% in November, according to official figures, showing an improvement for output at a time when households and businesses were anxiously awaiting details of the bud...

The Bank of England cut interest rates on Thursday after a narrow vote by policymakers, but it signalled that the already gradual pace of lowering borrowing costs might slow further.

A supermarket price war helps the headline rate of inflation ease by more than predicted, according to figures from the Office for National Statistics.

Inflation falls more than expected to 3.2% as official figures released – latest

At 5.1%, the rate is up by a full percentage point under Labour following April's tax hike on employment and surge in minimum pay rates.

The Bank of England is expected to cut interest rates by 25 basis points to their lowest level in nearly two years at a crunch decision next Thursday.

The British public's expectations for inflation inched lower in November, according to a Bank of England survey published on Friday.