Business news live: UK economic growth continues to slow as firms demand ‘no more taxes’ in Budget

Political response: Labour blame Tories for economic slowdown
You’ll be unsurprised to hear the initial political responses to the latest figures.
The government say it’s the result of what came before; the Tories say it’s all down to poor decision making in the here and now.
Isn’t it amazing how it’s never anything to do with anything anybody has ever done within their own collectives?!
A Treasury spokesperson said: “We know there’s more to do to boost growth, because, whilst our economy isn’t broken, it does feel stuck.
“That’s the result of years of underinvestment, which we’re determined to reverse through our Plan for Change. We’re making progress: growth this year was the fastest in the G7; since the election, interest rates have been cut five times, and real wages have risen faster than they did under the last government.
“There’s more to do to build an economy that works for, and rewards, working people.”
Karl Matchett12 September 2025 08:22
Latest economic data: No growth in July, 0.2% in 3 months
Right let’s attack everything in order on the UK economy front then.
First up, today’s ONS data, nice and clear:
- No growth in July at all
- Manufacturing pulled back 1.3% in July
- 0.2% growth overall in the three months May-July
- Services and construction grew most across that three-month period
Liz McKeown, ONS director of economic statistics, said: “Within services, health, computer programming and office support services all performed well, while the falls in production were driven by broad based weakness across manufacturing industries.
“Falls in production were driven by broad-based weakness across manufacturing industries.”
Read the full detail below – we’ll bring you all the reaction as we go here in the live blog.
Karl Matchett12 September 2025 08:14