UK government debt 2025

27 Nov UK government debt 2025

Russia’s invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024. The UK inflation rate was 3.6 percent in October 2025, down from 3.8 percent in the previous two months, which was the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in non gamstop casinos October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years.

Debt not expected to start falling until 2029/30

As of the most recent month, prices were rising fastest in the education sector, at 7.5percent, with prices increasing at the slowest rate in the clothing and footwear sector. One of the main consequences of high inflation and low wage growth throughout 2022 and 2023 was an increase in industrial action in the UK. In December 2022, for example, there were approximately 830,000 working days lost due to labor disputes.

The UK economy – statistics & facts

In the three months to September 2025, average weekly earnings in the United Kingdom grew by 4.6 percent. In the same month, the inflation rate for the Consumer Price Index was 3.6 percent, indicating that wages were rising faster than prices that month. In 2024, the annual inflation rate for the United Kingdom was 2.5 percent, with the average rate for 2025 predicted to rise to 3.5 percent, revised upwards from an earlier prediction. The UK has only recently recovered from a period of elevated inflation, which saw the CPI rate reach 9.1 percent in 2022, and 7.3 percent in 2023. Despite an uptick in inflation in 2025, the inflation rate is expected to fall to 2.5 percent in 2026, and two percent between 2027 and 2029.

Foreign nationals

• Russia’s invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia.
• Another way of measuring inflation is to strip out the volatility of energy and food prices and look at the underlying core inflation rate.
• This month also experienced the highest monthly rainfall in the UK since before 2014, with England, Wales, and Scotland suffering widespread flooding.
• Although inflation fell to more usual levels by 2024, prices in the UK had already increased by over 20 percent relative to the start of the crisis.

Inflation nevertheless remains elevated, fueled not only by high food inflation, but also by underlying core inflation. As of February 2025, the overall CPI inflation rate was 2.8 percent, although an uptick in inflation is expected later in the year, with a rate of 3.7 percent forecast for the third quarter of the year. Another way of measuring inflation is to strip out the volatility of energy and food prices and look at the underlying core inflation rate.

While the retail price index is still a popular method of calculating inflation, the consumer price index (CPI) is the current main measurement of inflation in the UK. In 2024, the average salary for full-time workers in the UK was 37,430 British pounds a year, up from 34,963 in the previous year. In London, the average annual salary was far higher than the rest of the country, at 47,455 pounds per year, compared with just 32,960 in North East England. There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023.