Fiscal Straitjacket Tightens as Energy, Borrowing and Mortgage Costs Squeeze UK Households

The UK economy is still forecast to grow 1.3 per cent in 2026 and 1.4 per cent in 2027, according to KPMG's latest outlook, offering a glimmer of resilience. Household spending was "supported by warmer weather" earlier in the year, and businesses continued to invest in technology, helping the economy outperform gloomier predictions. While headwinds loom, the underlying growth trajectory suggests the UK is not heading for recession — a crucial distinction for households...