Whether it’s a ‘productivity puzzle’ or the ‘British disease’, the UK economy has been …

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Whether it’s a ‘productivity puzzle’ or the ‘British disease’, the UK economy has been underperforming for decades

Eoin McLaughlin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

University College Cork provides funding as a member of The Conversation UK.

History does not repeat itself, but it rhymes – and economic history is no exception. In 1964, a Labour government came to power in the UK with a pledge to curb inflation and to deliver growth. The growth plans were short lived. In 2024, in a cost-of-living crisis, Labour again won an election with a promise to “kick-start economic growth”. Only 18 months in, and plans have stalled again.

There are reasons to be cheerful about UK plc in 2026. Here are four | Heather Stewart

Be it better prospects for consumer spending or the tentative signs of rising productivity, the doom and gloom of 2025 could be behind us

Stalling growth, sticky inflation and fragile bond markets, the UK’s economic record in 2025 has hardly been one to inspire cheer. But in the spirit of the festive season, here are a few reasons to hope for a happier new year.

The first is that, barring external forces, 2026 should not involve a repeat of this year’s fiscal drama.

Rachel Reeves more than doubled the margin of error, or headroom, against her fiscal rules at last month’s budget, and that should gift the Treasury a quieter 2026.

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