01-12-2025 11:01 via retailgazette.co.uk

Data: UK growth to slow as unemployment rises, KPMG warns

The UK economy is set to lose momentum next year, with unemployment expected to rise, according to new analysis published in the wake of the Autumn Budget.
Forecasts from KPMG suggest GDP growth will slow to 1% in 2026, down from 1.4% this year, as household budgets face continued pressure and businesses recalibrate hiring plans.
The outlook follows chancellor Rachel Reeves’ decision to freeze income tax thresholds for another three years, a move designed to raise an additional £28m
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