After a succession of shocks – from the 2008 financial crisis, to Brexit and the Covid pandemic – the UK's national debt has risen to the highest level as a share of GDP since the 1960s.
The UK's fiscal and balance of payments position may be far from a picture of health but speculation that it may be forced to turn to the IMF for a bailout is far-fetched. The risks are greater for France, but it is not on the brink of a bailout either – and any assistance would come from the EU, not from Washington.
What are the warning signs for the UK recession in 2025?
Economic uncertainty is on the horizon, with experts raising concerns about a potential UK recession in 2025. Warning signs like persistently high interest rates, stagnant growth, and global supply chain pressures have left many SMEs wondering how best to prepare.
In 2022/23, 47% of UK adult (28.3 million people) experienced financial insecurity. This was sharply up from 29% or 16.7 million in 2014/15. 9% (5.2 million) faced combined financial, housing and health insecurity, up from 6% (3.4 million) in 2014/15.
Millions of people across the UK are struggling to cover their essential household costs nowadays. The 'cost of living crisis' means we're all paying a lot more for energy and food, and things like rent and fuel. Some people are cutting back on how much they spend on food, or eating less, so they can pay for heating.
After a succession of shocks – from the 2008 financial crisis, to Brexit and the Covid pandemic – the UK's national debt has risen to the highest level as a share of GDP since the 1960s. The return of high inflation and the end of rock-bottom interest rates has made servicing those debts more expensive.
And the effects of the cost of living crisis are still with us, with the prevalence of food insecurity in January 2025 still twice as high as it was in 2021.
“The decline in living standards over recent years has been stark – 7.5 million more people are living in households with inadequate incomes in 2022-23 than were in 2008-09.
There were approximately 634,000 unemployed people aged between 16 and 24 in the United Kingdom in the second quarter of 2025, the most of any age group. During this provided time period, the youngest age group has consistently had the highest number of unemployed people.
The global peace index measures various factors on a scale of one to five, with lower scores implying more peace, and a higher score more violence. In the most recent year, the UK was ranked the 30th most peaceful country in the world according to this index, down from 32nd in the previous year.
The odds that the economy will slip into a recession are nearly 50-50, and the time of greatest vulnerability will run from late 2025 to early 2026, according to Moody's Analytics chief economist Mark Zandi.
Who was responsible for the 2008 financial crisis?
There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others. Two proximate causes were the rise in subprime lending and the increase in housing speculation.
After its Executive Board approves a loan, the IMF monitors how members implement the policy actions underpinning it. A country's return to economic and financial health ensures that IMF funds are repaid so that they can be made available to other member countries.
At the beginning of the 20th century the national debt stood at around 30 percent of GDP. However, during World War I the British government was forced to borrow heavily in order to finance the war effort. The national debt increased from £650 million in 1914 to £7.7 billion in 1919.
White is the largest, high-level ethnic group for Universal Credit claimants. 76.4% of those claiming Universal Credit in June 2025 were from the white ethnic group. The Asian/Asian British ethnicity group is the second largest with 10.3% of claimants in June 2025.
What percentage of Somalis in the UK are on benefits?
The report also claims that migrants born in Somalia have the highest housing benefit claimant rate at over 45%, yet over 62% of those surveyed live in the capital.
At the time of writing, the UK's inflation rate is at a 40-year high, which has left plenty of the country's population feeling the pinch. The cost of living UK crisis represents a drop in disposable income for households due to rising energy and fuel costs, as well as supermarket prices.
What city in the UK has the highest quality of life?
Manchester is and always has been a great place for living life to the full – that's part of the reason it was voted the Most Liveable City in the UK (The Economist, 2019) and the 3rd Best City in the World (TimeOut, 2021).
Living in the UK is appealing if you appreciate a multicultural environment with access to quality healthcare and education. The UK is particularly attractive for those considering studying abroad or looking for diverse visa options. However, it's essential to be comfortable with the cost of living and the climate.
Although the economy grew more than expected in the first quarter of 2025, analysts had warned that the disruption and uncertainty caused by the US trade tariffs, which began in April, could limit growth in the later part of the year.
High land prices mean higher rents and higher wage demands, both of which push up costs for retailers. Then they have to charge more for their goods and services. VAT, at 17.5 percent, is much higher than the sales taxes in the US. High fuel duties don't help either, since most goods have to be transported.
The 2025 Emergency Watchlist highlights a deepening divide between countries and communities advancing toward the Sustainable Development Goals (SDGs) and those left behind. The global system built for preventing and addressing humanitarian crises is failing those in greatest need.
