William Schomberg

British finance minister John Healey will need ​to find £36 billion ($47.6 billion) in tax hikes or welfare cuts in his first budget just to offset ‌the inflation hit to public services and meet a defence spending pledge, a think tank said.

British finance minister John Healey is expected to raise taxes in his first budget to restore some of his fiscal room for manoeuvre which ​has been eroded by the global surge in borrowing costs caused by the ‌Iran war.

British firms expect to raise their prices slightly ​less quickly in the coming ‌12 months, a survey published by the Bank of England on Friday ​showed.

British consumers unexpectedly increased their shopping in August, although they cut fuel ‌purchases after prices jumped following the resumption of the Iran war, official figures showed on Friday.

Britain's economy is set to grow a bit faster than previously expected in 2026 after withstanding the initial ​impact of the Iran war but firms remain ‌wary about investment, the British Chambers of Commerce said on Tuesday.

Public inflation expectations in Britain rose in August, changing ​course after falling in recent ‌months, a survey from U.S. bank Citi and pollsters YouGov showed on Tuesday.

Over a third of British employers have reduced the number of entry-level jobs open to younger workers over the past year due in ​part to increased use of artificial intelligence and other forms of ‌automation, a survey showed on Wednesday.

British Prime Minister Andy Burnham called on Saturday for ‌reflection following the death of a Black academic accused of plagiarism in a case that has prompted criticism of the University of Cambridge and the media.

British hiring fell in the first six months of 2026 with job postings for graduates at their ​lowest since 2020, according to a survey from recruitment ‌platform Indeed published on Monday that also showed demand for AI skills hit a record high.

British businesses turned more confident about the economic outlook earlier this month, reflecting a ​brief fall in energy prices after a ceasefire ‌in the Iran war, a survey by Lloyds showed on Friday.