Azernews.Az

By Alimat Aliyeva

Living standards in the United Kingdom are expected to decline over the next decade, according to an annual economic ranking report published by the Centre for Economic and Business Research (CEBR), Azernews reports.

The report warns that GDP per capita — a key measure of living standards — could fall below that of Malta by 2035. Economists attribute this outlook to a combination of persistently high inflation, weak economic growth, and repeated tax increases, which they say have significantly eroded the UK’s economic momentum.

CEBR’s assessment suggests that current government policies risk turning the UK into an economy increasingly reliant on past achievements rather than future growth. The report argues that fiscal measures introduced by Chancellor of the Exchequer Rachel Reeves are constraining economic expansion. It also cautions that one of Prime Minister Keir Starmer’s central pledges — to improve living standards — is unlikely to be fulfilled under current conditions.

According to the Centre’s forecasts, the UK will record the second-weakest GDP per capita growth among G7 countries over the next five years. In this period, Britain is expected to lag behind the United States, France, Canada, Germany, and even Italy.

The report also highlights Malta’s growing appeal to British entrepreneurs. Despite its small population of around half a million, the Mediterranean nation has attracted increasing business interest thanks to its low-tax regime and business-friendly environment, factors that have contributed to its strong economic performance.

Economists warn that without meaningful structural reforms and policies aimed at boosting productivity, innovation, and long-term investment, the UK’s position in the global economy could continue to weaken. Some analysts note that the coming decade may prove decisive in determining whether Britain can reverse this trend — or fall further behind its international peers.