UK economy: GDP, jobs, taxes, the Budget and debt
How the UK economy connects households, businesses, government and investors. GDP, jobs and pay influence taxes and spending; borrowing and gilt markets connect those choices to future costs.
Explains real versus nominal output, labour-market denominators, income tax and National Insurance, VAT, corporation tax and local taxes, Budget choices, deficits, debt and gilt financing. Current figures are dated to 5 October 2026. The 28 October Budget is a future event at this evidence date.
Illustrative calculations are labelled and do not describe a particular household or company. This video provides economic education, not personal tax or investment advice. Sources and photograph credits accompany the package.
Educational documentary. Not financial or investment advice.
In these topics
Tags
Chapters
- One economy, four players
- GDP: output rather than wellbeing
- How shocks change the picture
- In work, unemployed or inactive
- Wages, productivity and prices
- Taxes on earnings and purchases
- Business and local taxes
- What the Budget changes
- Deficit is a flow; debt is a stock
- How gilts finance government
- What limits room to spend
Sources and credits
Photo credits (Wikimedia Commons)
- Camden High Street, London — 29 June 2008; dated archive background: Soupspoon, Public domain - https://commons.wikimedia.org/wiki/File%3ACamden_High_Street_June_2008.jpg
- Sheringham town centre, Norfolk — 24 January 2008; dated UK high-street archive: Stavros1 at English Wikipedia, Public domain - https://commons.wikimedia.org/wiki/File%3ASheringham_24th_Jan_2008_%281%29.JPG
- City of London: Lloyd’s, Willis Building and 30 St Mary Axe — 26 June 2008; dated archive background: Syced, CC0 - https://commons.wikimedia.org/wiki/File%3AJune_2008_London_3.jpg
- Closed London shop during COVID-19 lockdown — 31 March 2020: citytransportinfo, CC0 - https://commons.wikimedia.org/wiki/File%3ALockdown-Closure-P1630492_%2850007743288%29.jpg
- 24–28 Dale Street, Manchester, England — 16 April 2026; illustrative commercial street background: Mmberney, CC0 - https://commons.wikimedia.org/wiki/File%3A24-28_Dale_Street%2C_Manchester%2C_April_2026.jpg
- Cumberland Bar and adjoining pavement, Edinburgh, Scotland — 30 July 2026; illustrative street background: GanzKnusper, CC0 - https://commons.wikimedia.org/wiki/File%3ACumberland_Bar_%28side_view%29%2C_pub_in_Edinburgh%2C_July_2026.jpg
- Palace of Westminster, London — 17 May 2026: Aethonatic, CC0 - https://commons.wikimedia.org/wiki/File%3APalace_of_Westminster_-_17_May_2026.jpg
Primary sources
- S1: ONS. GDP quarterly national accounts, UK: April to June 2026. 30 September 2026. https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/quarterlynationalaccounts/apriltojune2026.
- S2: ONS. GDP monthly estimate, UK: July 2026. 11 September 2026. https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/july2026.
- S3: ONS. Labour market overview, UK: September 2026. 15 September 2026. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/september2026.
- S4: ONS. Consumer price inflation, UK: August 2026. 16 September 2026. https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/august2026.
- S5: ONS. Public sector finances, UK: August 2026. 22 September 2026. https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/august2026.
- S6: HM Treasury. Budget 2025, sections 5.2 and 5.3. 26 November 2025. https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html.
- S7: HM Treasury. Chancellor letter to TSC: Budget 2026 date. 31 July 2026. https://www.gov.uk/government/publications/chancellor-letter-to-the-treasury-select-committee-tsc-budget-2026-date.
- S8: HMRC. Income Tax rates and Personal Allowances. 2026/27; checked 5 October 2026. https://www.gov.uk/income-tax-rates.
- S9: HMRC. National Insurance: how much you pay. 2026/27; checked 5 October 2026. https://www.gov.uk/national-insurance/how-much-you-pay.
- S10: HMRC. Rates and thresholds for employers 2026 to 2027. 2026/27; checked 5 October 2026. https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027.
- S11: HMRC. VAT rates. checked 5 October 2026; standard rate since 4 January 2011. https://www.gov.uk/vat-rates.
- S12: HMRC. Corporation Tax rates and allowances. 2026; checked 5 October 2026. https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax/rates-and-allowances-corporation-tax.
- S13: GOV.UK. How Council Tax works. checked 5 October 2026. https://www.gov.uk/council-tax.
- S14: UK Debt Management Office. About gilts. undated guidance; checked 5 October 2026. https://dmo.gov.uk/responsibilities/gilt-market/about-gilts/.
- S15: HM Treasury / DMO. Debt management report 2026-27. March 2026. https://www.dmo.gov.uk/media/0uuiqi10/drmr2627.pdf.
- S16: Bank of England. Bank of England announces gilt market operation. 28 September 2022. https://www.bankofengland.co.uk/news/2022/september/bank-of-england-announces-gilt-market-operation.
- S17: ONS. Coronavirus and the impact on output: December 2020. 12 February 2021. https://www.ons.gov.uk/economy/grossdomesticproductgdp/articles/coronavirusandtheimpactonoutputintheukeconomy/december2020.
- S18: OBR. Economic and fiscal outlook, March 2026. 3 March 2026. https://www.gov.uk/government/publications/march-2026-economic-and-fiscal-outlook.
- S19: ONS, What is GDP and how do we calculate it?. undated guidance; checked 5 October 2026. https://www.ons.gov.uk/aboutus/usingpublicdatatoproducestatistics/learningaboutdata/learnmoreaboutwhoweareandwhatwedo/whatisgdpandhowdowecalculateit.
- S20: ONS, Employment in the UK: September 2026. 15 September 2026. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/september2026.
- S21: DWP, Universal Credit claimants statistics on the two child limit policy, April 2026. July 2026 release; checked 5 October 2026. https://www.gov.uk/government/statistics/universal-credit-claimants-statistics-on-the-two-child-limit-policy-april-2026/universal-credit-claimants-statistics-on-the-two-child-limit-policy-april-2026.
- S22: ONS, Average weekly earnings in Great Britain: September 2026. 15 September 2026. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/september2026.
- S23: HMRC, Rates and allowances: National Insurance contributions. 2026/27 table; checked 5 October 2026. https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions.
- S24: HMRC, Corporation Tax rates, expenses and reliefs. current guidance; checked 5 October 2026. https://www.gov.uk/corporation-tax-rates.
- S25: HMRC, Claim capital allowances. current guidance; checked 5 October 2026. https://www.gov.uk/capital-allowances.
- S26: HMRC, Income Tax in Scotland. 2026/27 table; checked 5 October 2026. https://www.gov.uk/scottish-income-tax.
- S27: nidirect, How rate bills are calculated. undated current guidance; checked 5 October 2026. https://www.nidirect.gov.uk/articles/how-rate-bills-are-calculated.
- S28: Bank of England, Financial Stability Report, December 2022. 13 December 2022; checked 5 October 2026. https://www.bankofengland.co.uk/financial-stability-report/2022/december-2022.
Not regulated financial advice.