Skip to content
Search

Latest Stories

Economic growth flat in July, posing early test for government

The Office for National Statistics (ONS) reported that Gross Domestic Product (GDP) remained flat in July, following similar stagnation in June.

Economic growth flat in July, posing early test for government

THE ECONOMY showed no growth in July, according to official data released on Wednesday, marking a setback for the newly elected Labour government, which has prioritised economic expansion.

The Office for National Statistics (ONS) reported that Gross Domestic Product (GDP) remained flat in July, following similar stagnation in June. Analysts had expected a slight increase in growth for July, but the data revealed otherwise. Previous figures also indicated that the economy grew at a slower pace in the second quarter compared to the first.


Keir Starmer's Labour government took office at the start of July, ending 14 years of Conservative leadership.

"I am under no illusion about the scale of the challenge we face and I will be honest with the British people that change will not happen overnight," said Chancellor Rachel Reeves in response to the new data.

"Two quarters of positive economic growth does not make up for fourteen years of stagnation," she added. "That is why we are taking the long-term decisions now to fix the foundations of our economy."

Reeves has committed to imposing strict controls on public finances to address what she describes as a £22-billion shortfall inherited from the previous Conservative government. She has also suggested that taxes may be increased in her first budget, due at the end of October, to help close the financial gap.

The government has already announced plans to end fuel benefits for millions of pensioners as part of its cost-saving measures.

However, the government received positive news from Amazon, which announced an £8-billion investment in Britain over the next five years. This investment, through Amazon Web Services, is expected to create thousands of jobs.

"We are taking the long-term decisions now to fix the foundations of our economy, including today's announcement... from Amazon Web Services, that will help rebuild Britain and make every part of the country better off," Reeves said.

Amazon’s investment in data centres across the UK could contribute £14 billion to the country's GDP and support more than 14,000 jobs annually in the supply chain, according to the company.

Danni Hewson, head of financial analysis at AJ Bell, said the government's ability to attract investments like Amazon’s is a positive step. However, she cautioned that with speculation surrounding next month’s budget, further efforts will be needed to encourage more business investments in the UK.

(With inputs from AFP)

More For You

‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less