Delivered in partnership with Christian Spence, economist and founder of Economic Analytics, this latest edition of APSCo's Inside the Economy provides an expert analysis of the UK economy following the Autumn Budget and what businesses can expect in 2027.
Growth remains resilient The UK economy has performed more strongly than expected during 2026, supported by resilient consumer spending and stronger underlying growth. However, economic growth is expected to moderate during 2027 as businesses and households face ongoing uncertainty.
Autumn Budget provides short-term support The Government has announced measures designed to support households and businesses, including continued help with energy costs and business rates. However, longer-term fiscal pressures remain a challenge for the UK economy.
Interest rates expected to remain elevated Continued uncertainty around inflation and energy prices means interest rates are likely to remain at relatively high levels. While further increases may be limited, a return to the low-rate environment of previous years appears unlikely.
What this means for UK recruitment Recruitment demand is expected to remain subdued as economic growth slows. However, employers are likely to continue facing skills and talent shortages in parts of the labour market, despite softer hiring activity.
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