UK Economy Gives Reeves Glimmer of Hope Ahead of Autumn Budget

British Chancellor Rachel Reeves has a difficult autumn ahead. To prevent a market backlash against her upcoming budget, she may need to find as much as £50 billion ($67 billion), and most economists believe tax rises are inevitable. But she has one thing going for her: the economy is showing signs of life.

In recent weeks, growth has beaten expectations, earlier estimates of GDP have been revised up, private sector activity expanded at its fastest pace in 12 months, job cuts since Reeves’ damaging payroll tax hike announced last October are petering out and consumer confidence is back at levels seen last Christmas, before US President Donald Trump’s trade wars. In the first half of 2025, the UK was the fastest growing economy in the Group of Seven advanced nations.