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Chancellor facing tough choices as economic pressures continue to mount
Western Mail
|September 23, 2025
THE UK Government faces tough tax choices in the years ahead, with mounting public spending pressures versus sluggish economic growth, according to new forecasts.
Economists for KPMG said it had been an unexpectedly strong start to 2025, but the second half was looking more uncertain.
The accountancy giant is forecasting UK gross domestic product (GDP) to rise by 1.2% over 2025 and 1.1% in 2026.
Consumers are expected to remain cautious in relation to spending, while uncertainty about trade policy continues to pose a risk to levels of business investment, according to its latest UK Economic Outlook report.
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