The Office for National Statistics (ONS) estimated that UK gross domestic product (GDP) grew by 0.7% in January to March 2025, following growth of 0.1% the previous quarter. For the upcoming period though, increases in national insurance contributions for employers will take effect alongside the tariff uncertainty that poses a threat to economic growth. The annual growth in regular pay from the ONS is at 5.6% in the three months to March 2025. The ONS data also shows that vacancies have continued to fall and the unemployment rate is at 4.5% for this period, above estimates from a year ago and up in the last quarter.
Shifting landscape
There are opportunities for charities to be transformative. As well as reflecting on lessons learned, an innovative mindset and thinking outside the box will be key when focusing on the future.
With artificial intelligence, climate change and geopolitical shifts reconfiguring the global economy, PwC’s Value in Motion report explores the shifts in the economic landscape across different industries. This will lead to new domains that cross traditional sector lines. There will be greater alignment between charitable purposes and certain domains, such as “how we care”, “how we feed” and “how we govern and serve”.
“How we care” is a value-rich domain that is forming and centred on caring. Historically, healthcare organisations operated in distinct fields but global megatrends are rapidly reshaping what people require from healthcare systems. Ageing populations are putting pressure on healthcare services and infrastructure. Science and technology are expanding possibilities to enhance the efficiency and effectiveness of medical practices.
“How we feed” shows how the food system needs to be reconfigured to deliver abundance, resilience and sustainability. Today’s food system is a complex global network; however, it is also a system under pressure. Climate perils threaten crops. The scarcity of water, arable land and other key resources is mounting. Food waste and loss eliminate one-third of what is produced for people to eat. We have already started to see some shifts towards a system that better supports wellbeing and growth.
“How we govern and serve” enables activity in other domains. As different sectors reconfigure, it can be helpful to think of governments and public institutions as enabling the fulfilment of human needs through its own actions and through interactions with different parts of society.
Leaders will need to prepare for a variety of potential futures as the overall economic landscape evolves.
Daniel Chan is partner and charities leader at PwC
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