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LONDON (AP) — Britain's economy slowed down during the second
quarter of the year in the face of higher taxes on businesses
and global tariff uncertainties, but growth came in higher than
anticipated, official figures showed Thursday.
The Office for National Statistics said output expanded by 0.3%
during the second quarter from the previous three-month period,
largely as a result of a strong performance in June.
Though that was lower than the 0.7% increase in the first
quarter of the year, it was ahead of market expectations of only
a 0.1% rise.
The bigger than expected increase will be welcome news to the
Labour government, which has made improving growth its number
one priority since it returned to power in July 2024.
Higher growth will also bolster public finances as it leads to
higher tax revenues. If growth continues to beat expectations in
coming months, Treasury chief Rachel Reeves will be under less
pressure to deliver another big tax-raising budget this fall.
Reeves said Thursday's figures were “positive” but added that
there is “more to do” to drive growth in the economy.
The British economy, the sixth-largest in the world, has
underperformed its long-run average since the global financial
crisis of 2008-9. Critics say Reeves is partly responsible for
much of the gloomy economic news since Labour returned to power
after 14 years, because she was overly downbeat when taking on
her role and has increased taxes, particularly on businesses.
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