This is 2025: What happened to our finances and the economy this year

In this end-of-year wrap-up episode of This is Money Podcast, hosts Georgie Frost and Simon Lambert evaluate the UK government's financial efforts throughout the year. They discuss significant issues, including the government's tax decisions, which have displeased various sectors, most notably the pub and farming communities. The lack of substantial economic growth, the impact of rising interest rates, and ongoing inflation issues are central themes. While the property market remains sluggish, the FTSE has performed well, showing growth amidst economic uncertainties.

Simon provides a critical assessment of the government, awarding it a 'D' for its financial performance, emphasizing that while the government came in promising economic growth, its actions have largely fallen short. The discussion revolves around the challenges of balancing fiscal discipline with political realities and the need for the government to listen to the concerns of businesses and workers.

The episode also explores the state of the economy, highlighting falling interest rates and the unpredictable nature of inflation, while detailing the experiences of mortgage holders facing increased payments. Despite these struggles, there are signs of economic resilience, as many consumers are managing their financial pressures better than expected.

Investment landscapes are touched upon, with the FTSE having a strong year, despite worries about AI-driven stock fluctuations. The hosts stress the importance of long-term investing and regular contributions to mitigate the risk of market volatility for new investors. They close with a positive note about first-time buyers entering the housing market, indicating a healthier economic signal.