BBC NewsBorrowing was £17.4bn last month, the second highest October figure since monthly records began in 1993.
Finito World
For all the talk of economic recovery, Britain in 2025 feels like it’s stuck in second gear—rolling forward, yes, but with an ominous rattle under the bonnet. The Bank of England has kept interest rates steady, a clear sign that inflation is still lingering longer than anyone would like. Meanwhile, the much-anticipated economic upswing has turned out to be more of a flickering pilot light than a roaring fire. The Office for Budget Responsibility has scaled down its forecasts, and the Bank itself has hinted at the dreaded word: “stagflation.”
This isn’t the kind of economy that inspires confidence, particularly for those navigating the job market. Businesses, already cautious, may hold back on hiring, and wage growth—already struggling to keep pace with living costs—could remain sluggish. For some industries, particularly retail and hospitality, this means another year of belt-tightening, as consumer spending remains tentative. Construction and infrastructure, which had been hoping for a boost from government investment, may find projects delayed or downsized. The tech sector, often a bright spot, might still attract investment, but the focus is likely to be on AI and automation—potentially creating jobs in some areas while quietly eroding them in others.
Rachel Reeves’ economic strategy hinges on stability, investment, and reform. But as recent projections show, stability can sometimes look an awful lot like stagnation. There is an underlying sense that the UK is treading water—neither sinking nor swimming, just bobbing along, waiting for something to change. The challenge now is whether policymakers can turn this period of hesitation into one of opportunity.
The nation’s economic fate isn’t sealed, but there’s no escaping the fact that 2025 feels like a year of hard choices. Growth may come, but slowly. Jobs will be there, but not in abundance. For many, the feeling remains that we are still waiting for a real sense of direction—one that moves beyond managing decline and starts looking toward something bolder. The question is whether we have the ambition, or if we’re simply hoping things will sort themselves out.
