Business news live: UK economy grew 0.3% in second quarter but production in damaging decline

The latest UK economy data was confirmed on Tuesday, after the Office for National Statistics (ONS) said earlier this month there was zero growth in gross domestic product (GDP) month on month in July, against 0.4 per cent growth in June. Today’s confirmation means GDP grew by 0.3 per cent in the second quarter of the year - April to June - and saw a significant slowdown from the first quarter of 2025, partly as people brought forward some activity like house purchases to beat the stamp duty rise.

Rachel Reeves is expected to announce further tax rises in her Budget though the full nature of them is still uncertain, with the chancellor saying Britain continues to encounter “harsh global headwinds” which are preventing further growth.