Britain’s economic growth in the second quarter has been revised downward, according to updated official figures released on Monday, delivering another blow to the Labour government as it grapples with a slowing economy.
The Office for National Statistics (ONS) said gross domestic product (GDP) expanded by just 0.2 per cent between April and June, down from an earlier estimate of 0.3 per cent. Growth in the third quarter remained unchanged at 0.1 per cent, underscoring a sustained loss of momentum following the stronger 0.7 per cent expansion recorded in the first quarter of the year.
“The economy remains fragile and is heading into 2026 with very little momentum,” said Alex Kerr, a UK economist at Capital Economics.
Prime Minister Keir Starmer has faced mounting challenges in reinvigorating Britain’s sluggish economy since the Labour Party assumed power in July 2024. Economic headwinds have persisted despite policy interventions aimed at stabilising growth.
Chancellor of the Exchequer Rachel Reeves has come under criticism for a series of tax increases introduced in her first budget last year, which raised levies on businesses and were widely blamed for dampening economic activity and contributing to rising unemployment. In her November budget, Reeves unveiled further tax hikes—this time affecting workers—as part of efforts to rein in government debt.
Amid weakening growth and easing price pressures, the Bank of England last week cut its benchmark interest rate to 3.75 per cent after inflation slowed more quickly than expected.
The revised data highlights the difficult economic landscape facing the UK as it enters the new year, with policymakers under pressure to restore confidence and stimulate growth.
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