The British Chambers of Commerce warn that geopolitical tensions could hit UK growth as 280,000 businesses closed in 2024, highlighting ongoing economic risks.
Following a Supreme Court ruling, the US has reimposed a 10% global tariff on imports, overriding previous tariffs deemed illegal. President Trump announced plans to raise tariffs to 15%, but legal and diplomatic uncertainties remain, impacting international trade and US relations.
The US has maintained a 10% tariff on Chinese goods for 150 days, with plans to increase to 15%. The move follows a Supreme Court ruling that invalidated previous tariffs, creating ongoing uncertainty for businesses and supply chains. Companies are considering legal actions and strategic adjustments amid fluctuating trade policies.
Recent forecasts from the UK’s Office for Budget Responsibility (OBR) and the British Chambers of Commerce (BCC) indicate slower economic growth and rising unemployment for 2026. The outlook is now more uncertain due to escalating Middle East conflicts and policy impacts, with inflation expected to fall but remain volatile.
The UK government announced a £1 billion scheme to create 200,000 jobs for young people over three years. The plan includes incentives for employers, expanded apprenticeships, and a widened Jobs Guarantee scheme, aiming to address rising youth unemployment and NEET figures, with a focus on those on benefits and long-term unemployed.
UK inflation remained at 3% in February, with recent data showing a stable picture. However, experts warn that the conflict in the Middle East, which escalated at the end of February, will likely cause inflation to rise sharply in the coming months due to higher energy prices. The latest figures do not yet reflect this impact.