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  1. ByGollie on

    >
    > British living standards ‘to fall behind Malta’
    >
    > UK ‘living off its past glories’ as high inflation and low growth hurt prospects, economists warn
    >
    > Economics Editor Szu Ping Chan
    >
    > 26 December 2025 6:30am GMT
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    > Malta’s low-tax policies and similar culture to the UK are popular with British entrepreneurs
    >
    > Britons will be poorer than people in Malta within a decade as Rachel Reeves’s repeated tax raids condemn the UK to the economic slow lane.
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    > Living standards in Britain are forecast to slip behind that of the Mediterranean archipelago by 2035, according to the Centre for Economics and Business Research (CEBR).
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    > The CEBR’s annual league table of economies also warned that Sir Keir Starmer would fail to meet a flagship pledge to raise living standards this parliament.
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    > While Malta has a population of just over half a million people, its low-tax policies and similar culture to the UK are already proving popular with British entrepreneurs.
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    > The CEBR predicted growth in GDP per capita – a proxy for living standards – would be the second weakest in the G7 over the next five years, trailing the US, France, Canada, Germany and even Italy until the end of the decade.
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    > This suggests the Prime Minister will not even come close to a goal of securing the fastest growth in living standards in the rich club of economies.
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    > Pushpin Singh, at the CEBR, said the UK was confronting a triple challenge of high inflation, high debt and low growth as he warned that countries with lower taxes and regulation were eroding Britain’s competitiveness.
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    > The economics consultancy also said an “inability to shrink state spending” across many European nations, including the UK, was also harming growth.
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    > While the US is expected to cement its status as the world’s biggest economy over the next decade, the CEBR said Donald Trump’s high debt strategy risked “a painful financial market correction” that could also send UK borrowing costs soaring.
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    > Ms Reeves increased taxes by a further £30bn in her November Budget, putting the UK on course for the second weakest growth in living standards in peacetime.
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    > The Chancellor’s war on wealth means growth per person is now set to grow by just under 10pc between now and 2030 to $63,920 (£47,300).
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    > This is much weaker than the US, where GDP per head will rise 17.5pc to $105,086 in today’s money.
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    > It means the UK will look more like Guyana than the US by the end of the decade, with Hong Kong also overtaking Britain by 2035 in terms of GDP per person.
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    > Ms Reeves’s crackdown on wealth and non-doms has already driven an exodus of wealthy people from Britain to places such as Dubai and Milan.
    >
    > The CEBR said GDP per person in the UAE would surpass the UK by the end of the parliament amid a 36pc surge in per capita growth in the Emirati nation to just under $70,000 by 2030.
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    > By 2035, Malta’s GDP per head is also expected to rise to $77,578, surpassing the UK at $75,478.
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    > The island’s wealth will continue to grow even after the EU’s top court ruled its controversial golden passport scheme was illegal.
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    > Brussels took Malta to court in 2022 over the scheme, which grants foreigners the right to live and work in any EU country in return for investing at least €600,000 (£524,000) in assets such as property.
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    > Mr Singh said the outlook for the UK economy was “very much skewed to the downside”, with the economy unable to escape the threat of another tax raid.
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    > “In some ways Britain is still very much living off its past glories,” he said. “If you look at the short-term dynamics, the build-up to the latest Budget handicapped the UK economy for at least the last six months or so, simply because there was a lot of pessimism regarding which additional taxes would come into place.”
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    > Mr Singh warned that the public finances remained fragile, with the UK expected to pay £100bn a year in debt interest by the end of the decade. “There is a very strong likelihood that further tax rises may be on the cards.”
    >

  2. BenButton123 on

    I thought we hadn’t had one of these stories this week. At least it isn’t Poland this time. I look forward to seeing 1000 comments within the next 5 hours. 

  3. BeginningLumpy8388 on

    Oh my…I didn’t knew it was this bad with the UK. I mean, every country has its problems of course, but for the British to steadily lose ground on QoL. That surely must feel like an embarrassment.

  4. EagleMulligans on

    Don’t they have a worse housing crisis than us? I seen Maltas Labour Party were getting slaughtered when I was there in the summer.

  5. Commercial_Badger_37 on

    Is it a surprise? Malta is lovely to be honest.

  6. Is Malta actually a bad place to live? I always thought it was quite decent, but I know very little about the place.

  7. GroceryPlastic7954 on

    A medieval fishing and military port. With surrounding areas of children being born that match the vibrant rainbow of traveling semen.

    Im all for it.

  8. Wahx-il-Baqar on

    Huh?

    We are overcrowded, traffic is mad at all times, construction non-stop and no green spaces, just concrete. Not commenting on housing crisis as my understanding is most of Europe is the same.

    I was just in the UK from what I saw most have better living standards than us. Thank God we have sun and sea, else no one would come here.

  9. East-Profit-3754 on

    The article is total garbage. How I know? It shows Germany with the 2nd highest projected growth. LOL. Germany is in a total free fall and fight for survival right now. What are they smoking?

  10. travelcallcharlie on

    “Britons will be poorer than people in Malta within a decade”

    Lmao so it’s not even true, it’s just a torygraph prediction

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