The strength of the economy affects things like pay rises and how much tax the government can raise to pay for services.

Britain's economy grew more strongly than expected in early 2025, giving a boost to the government and finance minister Rachel Reeves, who nevertheless faces a stiffer test ahead due to her tax hike on businesses and Donald Trump's trade wars.

The British economy grew at its fastest rate in a year during the first quarter of 2025, in a welcome boost to the Labour government, which has made lifting the country’s growth its number one priority.