Non-compete and related clauses are fairly common in the United Kingdom. According to employers, between 15% and 28% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 14% of workers report being bound by a non-compete clause, with an additional 16% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey.
United Kingdom Economic Snapshot
This snapshot provides a concise summary of the United Kingdom's economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key links
Key findings on non-compete and related clauses for the United Kingdom, July 2026
Non-compete and related clauses are widespread and their use is rising
Economic Outlook: GDP and inflation projections, April 2026
Growth will weaken to 0.9% in 2026, as renewed inflationary pressures squeeze real incomes and exacerbate uncertainty, weighing on private consumption and investment. It will then pick up to 1.1% in 2027, helped by the normalisation of global energy prices and a gradual improvement in trade and financial conditions. Consumer price inflation is set to increase to 3.7% in 2026 before moderating to 2.4% in 2027, while core inflation will continue easing as wage growth moderates, due to rising slack in the labour market. The unemployment rate is projected to reach 5.5% in 2026 before edging down to 5.3% in 2027.
Further easing in monetary policy is expected, with the Bank of England looking through the energy shock in 2026 and moving to a neutral stance in 2027 as underlying price pressures ease. Fiscal policy will remain restrictive, given elevated borrowing costs, high debt interest payments and rising public debt. Continuing to reduce vulnerability to imported energy price inflation is essential, including by better aligning price signals and accelerating investment in electricity networks and system flexibility. Swiftly completing the ongoing planning reform would support infrastructure delivery and enhance growth.
Foundations for Growth and Competitiveness, April 2026
GDP per capita growth in the United Kingdom has been sluggish in recent years, mainly due to weak productivity gains. Capital deepening has been modest, with business investment remaining below pre-Brexit levels, limiting growth in capital per worker. Total factor productivity (TFP) growth has also been subdued. Labour utilisation, especially hours worked per capita, has stagnated amid rising inactivity rates.
Labour mobility and participation need improvement. Although women’s labour participation is above the OECD average, it still lags significantly behind men’s, and it frequently concerns part-time employment. Enhancing skills and human capital, especially to support school-to-work transitions, is crucial. Additionally, the tax system could be made more efficient by reducing unnecessary complexities.
Economic Survey of the United Kingdom, September 2024
Economic growth is resuming, but challenges remain. Gradual fiscal consolidation is required over the short term to support the return of inflation to target and rebuild fiscal space, following substantial support during the pandemic and the energy crisis. Growing spending needs due to ageing and investment necessary to support the green transition call for tax reforms to strengthen revenues. Supply-side reforms are needed to sustain growth, including by providing businesses with certainty regarding taxation and land use planning to boost investment, and by strengthening work incentives to reduce economic inactivity. The United Kingdom is a front runner in the progress to reach net zero by 2050, but more effort is needed to accelerate emission reductions in residential housing, including a clear long-term strategy, pricing signals, regulatory timelines, and financial support to stimulate the market for decarbonised heating solutions.
SPECIAL FEATURES: BOOSTING LABOUR SUPPLY; ENHANCING BUSINESS INVESTMENT TO LIFT PRODUCTIVITY; GREENING THE RESIDENTIAL HOUSING SECTOR
