It’s a somber end to the year in Britain, dampened by a string of disappointing economic news. Inflation has jumped, the economy has stagnated and consumer confidence surveys are deeply downbeat.
The year started with an unexpectedly strong rebound out of a recession, anticipation of interest rate cuts and the prospects for a new government that vowed to restore sustainable economic growth. Voters put the Labour Party in charge in July, ejecting the Conservative Party from power after 14 years.
But optimism has been difficult to muster lately. Labour’s first budget included larger-than-expected spending and investment plans, offering some stimulus to the economy, but also raised taxes on businesses. And while interest rates are coming down, the pace has been slow.
On Thursday, the Bank of England decided to hold interest rates at 4.75 percent. The announcement came the day after…
