UK economy growth in Q2

Chancellor Reeves faces pressure as growth slows and the autumn Budget looms.

UK economic growth slows to 0.3 percent in second quarter

Britain's GDP rose 0.3 percent in the April to June quarter, according to the latest data. On a per-person basis, GDP grew 0.2 percent as population growth outpaced output. The services sector held up, but consumers pulled back with cautious spending and the retail sector weakened, limiting the quarter’s momentum.

Chancellor Rachel Reeves has made growing the economy a priority and will study the latest numbers as she prepares the autumn Budget. Officials say the figures reflect a resilient service sector but also point to headwinds from consumer caution and higher taxes, underscoring the challenge of turning a slow pace of growth into a reliable rise in living standards.

The numbers show a familiar pattern: gradual expansion with uneven strength across sectors. Services can carry momentum, but weak retail demand suggests households remain cautious about spending and inflationary pressures linger. That mix means policy will have to keep balancing growth with fiscal discipline rather than offering quick fixes.

Politically, the data arrive at a delicate moment. Reeves must translate a modest uptick into a credible plan that reassures voters, markets, and investors. The autumn Budget will be watched closely for concrete steps to lift productivity and demand, not just headlines about the pace of growth.

Highlights

The outcome will hinge on whether the next Budget can convert momentum into lasting gains.