UK Economic outlook: December 2025

The latest KPMG UK economic outlook examines the potential impact of US tariffs and the implications for the public finances.

Highlights UK GDP growth momentum is expected to slow in 2026, as a weakening labour market is set to keep consumer spending sluggish. The UK Chancellor avoided significant tax increases on businesses, resulting in a more positive near-term outlook for investment. Private sector investment is expected to be driven by investment in green energy and data centres, while public sector investment momentum should also strengthen as infrastructure spending ramps up. The recent improvement in bu...

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Authors: Yael Selfin

Published Date: 09 December 2025