Britain's Economy: Slow Growth Amid New Tax Policies

Britain's GDP rose by 0.1% in November, falling short of expectations. With new tax policies from finance minister Rachel Reeves, the mood among businesses remains cautious. The Bank of England plans potential rate cuts, while the government targets GDP growth as challenges from domestic and global fronts persist.

Britain's economy showed signs of modest recovery in November as the GDP rose by 0.1%, beating the trend of consecutive declines seen in the preceding months. This improvement in economic output, however, lagged behind economists' predictions for a 0.2% rise.

Finance minister Rachel Reeves announced significant tax increases for businesses in her late October budget. She remains focused on accelerating economic growth and will meet with regulators to discuss strategies for boosting the economy. Despite her efforts, a cautious sentiment has pervaded the business landscape, with many companies cautious about spending and investment heading into 2025, according to Ben Jones from the Confederation of British Industry.

The mood around the economy remains subdued, impacted by the recent budget tax hikes and global uncertainties. Nonetheless, there is hope for an economic rebound with anticipated government spending increases in 2025, offering prospects for a brighter outlook than what late 2024 data might suggest.

(With inputs from agencies.)