5 important things happening in the UK today

Here are 5 important things happening in the UK today, Tuesday (28 October 2025).

Reeves facing larger-than-expected gap in Budget: The Chancellor is facing a larger-than-expected gap in initial Budget numbers as a result of long-running poor productivity in the UK economy. The downgrade to productivity performance from the government’s official forecaster could lead to a £20 billion gap in the public finances on its own. The Office for Budget Responsibility (OBR) will deliver its final draft forecast, showing the output of the economy per hour worked, to the Treasury on Friday. [BBC]

Reeves’s Wealth Fund is too small to boost the economy: Rachel Reeves’s £28 billion National Wealth Fund is too small to boost the economy, MPs have warned. The Chancellor launched the National Wealth Fund (NWF) in October last year, rebranding the UK Infrastructure Bank and beefing up its resources to “rebuild Britain and make every part of the country better off”. But the Treasury Select Committee (TSC) said in a report published on Tuesday that while it might succeed in supporting individual industries, boosting the whole economy was unlikely to be on the cards. [Telegraph]

Shrinkflation is hitting everyday UK products: Toothpaste, coffee and even heartburn medicine are among the latest products quietly shrinking in size while shoppers pay the same price, piling more pressure on household grocery budgets. Consumer watchdog Which? found a range of new examples of shrinkflation as brands cut back on quantity and quality in an effort to reduce their own costs. [Guardian]

BT Group exploring new mobile brand: BT is understood to be considering options including creating a new brand, or buying an existing mobile virtual network operator, the newspaper said.
The move is said to follow the rising threat posed by new entrants to the UK telecoms market, including Revolut and Monzo. [Financial Times]