UK business sees summer lift while borrowing eases ahead of Budget

Mace | 23rd August 2025 | Politics

MANCHESTER, ENGLAND - JULY 03: An aerial view of the Etihad Stadium, the home of Manchester City Football Club, and the Ancoats and Islington neighbourhoods in the background where property company Manchester Life have assets on July 03, 2025 in Manchester, England. Sheikh Mansour bin Zayed Al Nahyan (Sheikh Mansour) is an Emirati politician, businessman and member of the Abu Dhabi royal family who has made considerable investments in Manchester, beginning with his purchase of Manchester City FC in 2008. In 2014, Sheikh Mansour's Abu Dhabi United Group (ADUG) went into partnership with Manchester City Council to create Manchester Life, in which the council leases him publicly-owned land for development with capital provided by ADUG. Manchester Life has built 1,500 homes across seven new developments and two historic mill conversions in areas near Manchester City FC's Etihad Stadium. Sheikh Mansour, who is the brother of the crown prince of Abu Dhabi, currently serves as vice president and deputy prime minister of the United Arab Emirates. (Photo by Christopher Furlong/Getty Images)

UK business activity reached a one-year high in August powered by a strong services rebound while July borrowing came in at a three-year low of £1.1 billion.

A clear sign of economic rebound emerges today as the S&P Global index places UK business activity at a twelve‑month high in August driven by renewed strength in the services sector while public borrowing in July falls significantly below forecasts providing fiscal encouragement for the chancellor with monthly borrowing at just £1.1 billion rather than the projected £2.1 billion. The purchasing managers’ composite index rises to fifty three reflecting a fourth successive month of expansion in private sector output this performance closely aligns with predictions from S&P Global and is viewed as progress in recent weaker economic conditions. Public borrowing in July clocks in at its lowest in three years at £1.1 billion aiding the chancellor ahead of expected autumn fiscal planning while cumulative borrowing remains elevated with year to date figures at £60 billion and public debt nearing ninety six percent of GDP. GDP growth appears sluggish with quarter two growth at 0.3 perce...

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