UK GDP Grows 0.5% Amid Modest 2026 Forecasts
The UK's GDP grew by 0.5% from December 2025 to February 2026, following a revised growth of 0.1% in January, while the services sector also expanded by 0.5% and production increased by 1.2%. Despite this growth, the Office for Budget Responsibility forecasts a modest GDP growth of 1.1% for 2026, with the Treasury's survey indicating an average forecast of 0.6%. In comparison, UK GDP in Q4 2025 was 5.3% above its pre-pandemic level, lagging behind the Eurozone's 6.7% increase.
UK Wage Taxes Rise Above OECD Average in 2025
The OECD reported that taxes on wages in the UK rose by 2.45 percentage points for single workers earning the average wage in 2025, surpassing the OECD average increase of 1.15 percentage points. This rise is attributed to Chancellor Rachel Reeves' increase in employers' national insurance contributions and the continuation of a freeze on income tax bands, resulting in a tax wedge of 32.4% for average earners in the UK. The report highlights concerns over the impact of these tax increases on work incentives and hiring, as vacancy levels have dropped to a five-year low.
UK Lenders Seek to Halt Mass Motor Finance Lawsuits
UK lenders are urging judges to block mass motor finance lawsuits as a consumer group, Consumer Voice, prepares to challenge the Financial Conduct Authority's (FCA) £9.1 billion compensation scheme. The group argues that the scheme, which is set to begin payouts averaging £830 per person this summer, inadequately compensates millions of drivers who were mis-sold car finance agreements, potentially leaving them hundreds of pounds short. The FCA maintains that its scheme is the quickest and fairest way to compensate consumers.
BBC Investigation Exposes Drug Sales in UK Mini-Marts
A BBC investigation has revealed that mini-marts across the UK, particularly in the West Midlands, are being exploited by criminal gangs to sell illegal drugs, including cocaine and cannabis. Undercover researchers filmed transactions at several shops, including Cradley Market, where an employee, identified as Akwa, offered drugs within seconds of being approached. The National Crime Agency and the Chartered Trading Standards Institute have reported that over 70 shops nationwide are linked to drug sales, prompting calls from Labour MP Liam Byrne for urgent government action to combat organized crime.
