The UK Prime Minister has urged the public to eat less to cope with soaring prices—do you endorse this approach? What is the current situation on the ground?

Services fell by 0.3%, the main driver behind April’s GDP decline. This drop reflected a sharp 5.6% fall in health and social work—driven largely by significantly reduced testing and tracing activity within the National Health Service (NHS). Production declined by 0.6%, with manufacturing contracting sharply as firms reported being hit by rising input prices and supply-chain shortages. Construction fell by 0.4% year-on-year—reversing a strong gain in March, which itself had been driven by repair and maintenance needs following February’s storms. Samuel Tombs, economist at Pantheon Macroeconomics, said the UK’s Q2 GDP growth will likely undershoot the Bank of England’s forecast of 0.1%. Nevertheless, anticipating accelerating inflation, he expects the Monetary Policy Committee (MPC) to raise interest rates by 25 basis points—to 1.25%—at its meeting this Thursday. Last week, the Paris-based OECD slashed its 2023 UK growth forecast to zero—the lowest among G20 nations except Russia—reflecting the impact of high inflation and rising interest rates. UK supermarkets prepare to remove unhealthy foods from prime display locations UK retailers must stop promoting high-fat, high-sugar, or high-salt products in prominent locations by October. This is considered the biggest change to supermarket retailing since the format was invented. Platinum Jubilee promotions have already been scrapped, and the UK has begun overhauling how it sells £17 billion worth of food annually. By early October, all stores operated by companies employing more than 50 people and occupying over 2,000 square feet will be banned from promoting high-fat, high-sugar, or high-salt products in prominent areas—including store entrances, end-of-aisle displays, and checkout zones. The government’s own impact assessment estimates long-term costs to retailers exceeding £1 billion. Sally Ball, Strategic Insights Director at research firm Kantar, noted that the legislation directly affects roughly £17.5 billion in annual product sales—including ready meals, pizzas, ice cream, milkshakes, baked goods, and confectionery. Roberts, CEO of J Sainsbury, acknowledged: “This is a huge task. We operate 600 supermarkets, and it requires us to reconfigure key sections of every single store.” Publicly, supermarkets are trumpeting the change as an opportunity to showcase fresher, healthier offerings. Behind the scenes, however, concerns loom over its potential impact on sales—especially amid persistently rising food prices. A senior executive at a major supermarket chain said: “We’re all grappling with the same challenge: how to avoid spending heavily on store refits only to see sales decline.” E-commerce is also subject to the new rules, which aim to tackle obesity—and its strain on health services—by reducing sales of unhealthy products. The legislation bans advertising and product placement of such items on key pages of supermarket websites—including homepages, checkout pages, and recommendation pages. For years, retailers and brands have relied on high-visibility zones near store entrances and large end-of-aisle ‘gondola’ displays to run eye-catching promotions for Christmas, Mother’s Day, and Easter.

The UK economy faces an uncertain outlook entering 2026, with weak employment and consumption.

As the UK enters 2026, signs of economic weakness are already apparent—not only has growth momentum failed to strengthen, but it is gradually fading. Recent indicators suggest households and businesses have not rebounded as expected following the announcement of the fiscal budget; instead, they have grown more defensive—raising doubts about whether economic growth can recover swiftly in the coming months. After Chancellor of the Exchequer Rachel Reeves unveiled the Autumn Budget, hopes had risen for a modest economic recovery. Although official GDP data may still show slight growth at the end of last year, higher-frequency indicators paint a starkly different picture—marked by heightened caution, weakening confidence, and mounting pressures in the labour market. Key takeaways: ・ Post-budget data shows the UK’s growth momentum is waning—not rebounding. ・ Consumer spending has weakened sharply, severely impacting retailers during critical holiday periods. ・ Rising layoff signals and low business confidence threaten hopes for robust growth early in 2026. With households turning cautious, spending has stalled. Consumer behaviour appears to have shifted markedly following the budget announcement. Real-time metrics tracking daily spending show weak consumption in December, as households cut back sharply on non-essential purchases. Barclays’ credit card transaction data indicates this was one of the largest year-on-year declines in consumer spending since the pandemic began—highlighting the rapid deterioration in consumer confidence. Retailers felt the impact almost immediately. Holiday-season sales at major chains—including Tesco and J Sainsbury’s—fell short of expectations—a worrying signal given the importance of Christmas trading. Surveys reveal many consumers plan further cuts to discretionary spending, reflecting growing anxieties over taxation, rising prices, and job security.

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