UK growth slows to 0.3%

Chancellor Reeves faces pressure as growth slows, narrowing the window for policy to lift the economy before the next election.

UK economic growth slows to 0.3% between April and June

Today’s figures show the economy grew 0.3% in the April to June period, a slower pace that signals fragile momentum as Chancellor Rachel Reeves pushes a growth agenda.

The release marks the end of Reeves’ first year in charge and sets the stage for the autumn Budget, where officials will weigh tax and spending choices to reflect the challenge of boosting growth. Reeves argues that reforms to planning rules and investment in skills are key to breaking a cycle of low growth, but critics warn that benefits may take time to appear before the next election.

These numbers expose a policy puzzle. Gains from planning reform and skills programs are not yet visible, yet voters expect faster results. The risk is political fatigue and a politics of delay that could sap support for tough choices.

The bigger question is whether Reeves can align growth friendly reforms with a credible fiscal plan. If the Budget leans on higher taxes or stalled spending, growth momentum could stall and markets could push back against the timetable.

Highlights

The coming months will test whether rhetoric translates into measurable gains.