In its analysis of the UK’s autumn budget, Teneo argues that the government steadied near-term conditions without addressing the deeper pressures still weighing on the economy. The firm says policymakers relied heavily on delayed
At the same time, measures such as reversing benefit cuts and removing the two-child limit account for a significant share of new spending. As the report states, “The Budget may steady the ship and ease market pressures in the short term, but without a long-term growth plan the UK remains exposed.”
Teneo also highlights a disconnect between improving household finances and weak consumer demand. While real wages have risen and inflation has eased, spending has remained subdued amid uncertainty and high borrowing costs.
The report points to broader structural constraints, including weak productivity, elevated government debt, and limited fiscal flexibility, while noting that deeper reforms such as tax simplification and planning changes remain largely unaddressed. In Teneo’s view, the result is an economy entering 2026 on somewhat firmer footing, but still without a clear path to sustained long-term growth.