Brake pressed the development to Britain In July, marking a sluggish authority for the third quarter, as consumers and businesses face difficulties due to tax and duties.
Britain’s economy increased more than 1% in the first half of the year, allowing Prime Minister Kir Starmer to claim that the Labor Party achieved faster growth among the seven largest industrial economies, as it had promised.
The gross domestic product (GDP) remained unchanged during the month, slowing down the 0.4% increase in June, according to data released today (12.9.2025) by the National Statistical Service. These figures were in line with the average forecasts of economists involved in Bloomberg’s survey. Moderate increases in the sectors of services and constructions were offset by the decline in manufacturing.
These elements are a real test for the labor government, which is based on strong growth numbers to tackle the difficult fiscal situation and fulfill its promise of improving the standard of living.
However, companies are under pressure from payroll tax increases and minimum wages in force in April, while consumers are preparing for more tax increases in the budget of November 26, to fill a new gap of many billions of pounds in the Financial Plans.
Bank of England officials believe that the underlying image is sluggish and are still worried about weakening the labor market. Private economists are expecting a more moderate growth rate in the second half, although Britain is expected to grow faster than major European countries.