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Evening Standard

Politics

Holly Williams

UK growth to slow and business investment to contract amid tax hikes – report

United Kingdom the EY Item Club EY Matt Swannell

Britain’s economic growth will slow sharply in 2026, according to a report (Rui Vieira/PA) - (PA Wire)

Britain’s economic growth will slow sharply in 2026 as tax hikes and spending cuts are expected to continue having an impact, according to a report.

The latest quarterly economic forecast from the EY Item Club sees gross domestic product (GDP) pulling back to 0.9% in 2026.

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