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

Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less
Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

The IT service firm said its revenue would either stay flat or grow by up to three per cent

Getty Images

Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

INDIAN tech giant Infosys forecast muted annual revenue growth last Thursday (17) in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to three per cent in the fiscal year through March 2026 on a constant currency basis. The sales forecast was lower than the 4.2 per cent constantcurrency revenue growth Infosys recorded in the previous financial year.

Keep ReadingShow less
UK retailers

For many retailers, this has meant closing stores, cutting jobs, and focusing on more profitable business segments

Getty

6 UK retailers facing major store closures in 2025

In 2025, several UK retailers are experiencing major store closures as they struggle to navigate financial pressures, rising operational costs, and changing consumer behaviours. These closures reflect the ongoing challenges faced by traditional brick-and-mortar stores in an increasingly digital world. While some closures are part of larger restructuring efforts, others have been driven by financial instability or market shifts that have forced retailers to rethink their business strategies. Let’s take a closer look at six major UK retailers affected by these trends.

1. Morrisons

Morrisons, one of the UK's largest supermarket chains, is undergoing a significant restructuring in 2025. The company has announced the closure of several in-store services, including 52 cafés, 18 Market Kitchens, 17 convenience stores, and various other departments. This move is part of a larger strategy to streamline operations and address rising costs. Morrisons’ parent company, CD&R, has been focusing on reducing overheads and refocusing on core services.

Keep ReadingShow less
Starmer Trump

The UK is seeking an agreement with the US to remove Trump’s 10 per cent general tariff on goods and the 25 per cent tariff on steel and cars.

Getty Images

Industry warns Starmer: Strike deal with US or face factory job losses

FACTORY owners could begin laying off workers within months unless prime minister Keir Starmer secures a trade agreement with US president Donald Trump, MPs have been told.

Make UK, an industry lobby group, told the business and trade select committee that tariffs on British exports were reducing demand for UK-manufactured goods.

Keep ReadingShow less