Growing pains?

2025 was a bumper year for growth – in political and economic upheaval rather than GDP. Local elections accelerated Britain’s move from a two to five party system, while economists were treated to three major fiscal events and a full year of speculation surrounding them. The Government will hope the upheaval is dialled down in 2026, while its opponents will aim for the opposite. And what Britain really needs is a return to stronger economic growth to deliver rising living standards.

How might households be affected by rising unemployment, weakening wage growth, falling inflation and further interest rate cuts? Are there any green shoots in the UK economy, and could this affect public perceptions of where Britain is heading? How might this affect how politics plays out in 2026?