Britons feel tax hike - As economy slows. GDP expanded by just 0.1%
British households saved less in the July-September period this year as they felt the hit from higher taxes, but still increased their spending, according to official data which confirmed a slowdown in the economy overall.
Gross domestic product grew by just 0.1%, the Office for National Statistics said, in line with its initial estimate. Growth in the April-June period was revised down to 0.2% from a previous estimate of 0.3%.
The ONS said the saving ratio fell by 0.7 percentage points to 9.5%, the lowest in more than a year, as households' real disposable incomes were hit by tax increases, which outpaced income growth, and by inflation.
But household consumption rose 0.3% from the second quarter, when it showed no growth. It was the fastest quarterly increase in a year.
Finance Minister Rachel Reeves increased taxes in her first budget in 2024, including some forms of property income, although the bulk of the burden fell on employers rather than individuals.
Britain grew by more than any other advanced economy among the Group of Seven major economies in the first half of 2025, along with Japan, but has since slowed sharply, partly due to months of uncertainty about potential tax increases in Reeves' second budget, which she announced on November 26.
Last week, the Bank of England said it expected zero GDP growth in the October-December period, but thought the underlying pace of economic growth was around 0.2% per quarter.
However, overall data confirmed the slowdown of the economy after its strong start in 2025.
State Police, plan of measures for the end-of-year holidays - Increased checks and patrols throughout the country
The State Police has taken increased security measures throughout the country, with the aim of guaranteeing public order and safety during the year-end......
Impact of tariffs on Germany - Auto exports hit hard
German car exports to the United States fell by almost 14% in the first 9 months of 2025, making it the hardest-hit branch of German industry in President......
China "targets" the EU again - imposes temporary tariffs on dairy products
China will impose temporary tariffs of 21.9% to 42.7% on certain dairy products imported from the European Union starting December 23, following an......
335 billion lek debt matures in 2026 - 12-month bills and bonds carry the main weight of repayments during the year
During 2026, the Albanian government faces a significant volume of maturing domestic debt. According to official data, total debt payments maturing during......
North Macedonia, smoking causes 4,000 deaths each year - About 40% of the population are active consumers, only 5% quit
Macedonia loses about 4,000 lives each year as a result of smoking or its products. The number of active smokers in the country is 40.4 percent of the......
Who benefits from the EU decision on vehicles? - Easing measures for internal combustion cars harms the European market
German automakers have welcomed the European Commission's decision to postpone the ban on internal combustion engines until 2035. But the change gives......
Vorë-Hani i Hotit Railway, towards construction - EBRD moves to the second phase of the tender for the 368 million euro project
The European Bank for Reconstruction and Development has moved to the second phase of the tender for the construction of the Vora - Hani i Hotit railway......
SPAK's request to the Assembly - Rama: We will not review it, the issue will be in the Constitutional Court on January 22
In the podcast "Flasim", Prime Minister Rama spoke about SPAK's request to the Parliament. Considering the request to suspend a member of the government......
