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Uk Growth Revised Down In Second Quarter, Dealing Blow To Labour Government
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UK GROWTH REVISED DOWN IN SECOND QUARTER, DEALING BLOW TO LABOUR GOVERNMENT

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Britain’s economy grew more slowly than earlier estimated in the second quarter of 2025, according to revised data released on Monday by the Office for National Statistics, adding to pressure on Prime Minister Keir Starmer’s Labour government.

 

The ONS said gross domestic product expanded by 0.2 per cent between April and June, down from the initial estimate of 0.3 per cent. Growth in the third quarter remained unchanged at 0.1 per cent, confirming a clear slowdown from the stronger 0.7 per cent expansion recorded in the first quarter of the year.

 

Economists say the figures show that the UK economy is losing momentum as it heads into 2026. Alex Kerr, a UK economist at Capital Economics, described the outlook as weak, noting that growth remains fragile with little sign of acceleration.

 

Since taking office in July 2024, Starmer has struggled to reignite economic activity amid persistent cost-of-living pressures and subdued business confidence. His chancellor, Rachel Reeves, has faced criticism over tax increases introduced in her first budget, which targeted businesses and were widely blamed for dampening investment and contributing to rising unemployment.

 

In her November budget, Reeves announced further tax hikes aimed at reducing government debt, this time affecting workers directly. While the government has defended the measures as necessary to stabilise public finances, critics argue they are weighing heavily on economic growth.

 

The latest data comes as the Bank of England last week cut its benchmark interest rate to 3.75 per cent after inflation eased faster than expected, a move intended to support the weakening economy. However, analysts warn that monetary easing alone may not be enough to reverse the slowdown without stronger growth-friendly policies.

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