Household savings in Britain are declining under the pressure of tax increases
Slow down during the third quarter of this year, with a decline in are under pressure from
Data from the United Kingdom Office of National Statistics showed that the gross domestic product grew by (0.1%) only, which reflects a clear slowdown in the pace of growth compared to the second quarter of the year.
British Economy
The office added that the saving rate decreased by (0.7%) to reach (9.5%), which is its lowest level in more than a year, as a result of the decline in real household income due to inflation and tax increases that exceeded the income growth rate.
And household consumption rose. by (0.3%) compared to the second quarter of this year, recording the fastest quarterly increase during the year.
British Finance Minister Rachel Reeves had raised taxes in her first budget for the year 2024, targeting some forms of income, while the largest part of the burden fell on business owners.
Group of Seven Economies
Britain recorded the largest growth among the economies of the Group of Seven major advanced countries in the first half of 2025, similar to Japan, except The growth rate has slowed sharply since then.
This is due to ambiguity about possible tax increases in Reeves’ second budget, which she announced on November 26.
The Bank of England announced last week its expectation of no growth in the gross domestic product in the last quarter of this year.
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