UK economy is near flatlining as housing indicators turn red ahead of Healey's Budget

From the Newshound archive · first published 24 September 2026.

Britain's economy is grinding toward stagnation, with consumer confidence stumbling and a triple whammy of grim figures landing just days before John Healey delivers his Budget. Inflation has climbed to 3.1 per cent on the back of fuel price hikes, and the Bank of England's Monetary Policy Committee came within three votes of raising the base rate above 3.75 per cent. Property expert Jonathan Rolande warns a base rate rise now looks all but inevitable, with lenders already pricing higher rates into new mortgages.

Six MPC members voted to hold rates, but three pushed for a rise to 4 per cent — and the Bank warned inflation will climb further as energy costs bite.

Buyers, sellers and landlords can absorb bad news but are struggling with uncertainty over whether Healey will hike Stamp Duty or introduce a Mansion Tax.

Consumer confidence has stumbled at the worst possible moment, heaping pressure on Healey to use the Budget to provide clear reassurance.