UK government borrowing dropped to £12.6bn in March, a four-year low, as debt interest payments tumbled. But economists warn the Middle East conflict could wipe out Rachel Reeves’s fiscal headroom. Read more: UK borrowing slips to four-year low but Middle East tensions threaten Reeves’s fiscal plan
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UK unemployment unexpectedly drops to 4.9% in the quarter to February, but vacancies sink to a five-year low and payrolled jobs fall as SMEs feel the squeeze from the £25bn NI hike and the Iran war energy shock. Read more: Unemployment dip flatters to deceive as SME hiring freezes amid Iran shock
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UK SME lending climbed to £17.5bn in 2025 as smaller firms drive AI adoption, though experts warn funding still falls short of what’s needed for long-term growth. Read more: SME lending rises to £17.5bn as small businesses drive AI-led growth across the UK
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