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UK economy flatlines in July in grim news for Rachel Reeves

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UK economy saw zero growth in July

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Economy grinds to a halt ahead of Budget

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UK economic growth FLATLINES in hammer blow to Labour's core manifesto pledge

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UK economy flatlined in July after sharp contraction in manufacturing

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Britain's 'stuck' economy flatlined in July with zero growth

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Budget to address economy thats not working well enough for working people

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Rachel Reeves route to recovery

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Abolish monthly UK GDP

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Why official UK data are less reliable and what this means

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Will the UK achieve an average annual GDP growth rate of 2.5% over the current parliamentary term?

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Office for Budget Responsibility

"Today's #GDP growth figures are still a long way from @Keir_Starmer's target of 2.5% and it is far from clear that we are heading in the right direction."

"Labour are promising to be the fastest-growing country in the G7. And our growth forecast is 2% or less every single year of this parliament? Yeah, good luck with that."

"The economy is expected to grow by just over 1 per cent this year, rising to 2 per cent in 2025."

Research shows that "deep alignment with the EU on goods and services will deliver 2.2% economic growth to the UK."

"Closer ties with the EU could deliver growth of up to 2.2%. Clawing back up to half the damage caused by Brexit."

Will the UK Economy Grow By 2% GDP In a Year Under Labour?

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"The way things are going, just a year in — I genuinely think he will leave. I think he will be forced out."

"Starmer might have to go in months."

"I don't think he will survive a year [as prime minister]."

"Of course [he will be prime minister till 2029]."

How Long Will Keir Starmer Be UK's Prime Minister?

The U.K. economy recorded zero growth in July 2025, down from 0.4% growth in June 2025, according to the Office for National Statistics (ONS).

The U.K. economy recorded zero growth in July 2025, down from 0.4% growth in June 2025, according to the Office for National Statistics (ONS).

GDP increased by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from 0.3% growth in the three months to June 2025.

GDP increased by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from 0.3% growth in the three months to June 2025.

The services sector, which represents 81% of the U.K. economy and 83% of employment, grew by 0.1% in July 2025, with the transportation and storage subsector growing by 1.4% compared to a 0.7% decline in the information and communication subsector.

The services sector, which represents 81% of the U.K. economy and 83% of employment, grew by 0.1% in July 2025, with the transportation and storage subsector growing by 1.4% compared to a 0.7% decline in the information and communication subsector.

Construction output increased by 0.6% between April and July, including a 1.0% increase in new work; while the production sector fell by 1.3% in the same period, including a 1.1% in manufacturing.

Construction output increased by 0.6% between April and July, including a 1.0% increase in new work; while the production sector fell by 1.3% in the same period, including a 1.1% in manufacturing.

Following the news, the pound fell against the dollar in morning trading. Commenting on the data, a Treasury spokesperson stated that "we know there’s more to do to boost growth because whilst our economy isn’t broken, it does feel stuck."

Following the news, the pound fell against the dollar in morning trading. Commenting on the data, a Treasury spokesperson stated that "we know there’s more to do to boost growth because whilst our economy isn’t broken, it does feel stuck."

This comes alongside latest inflation data showing the consumer price index (CPI)<a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2025/uk-inflation-hits-month-high-at-in-july"> sat at 3.8% in the 12 months to July</a>. The government have announced that the next budget will take place on Nov. 29.

This comes alongside latest inflation data showing the consumer price index (CPI) sat at 3.8% in the 12 months to July. The government have announced that the next budget will take place on Nov. 29.

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This comes alongside latest inflation data showing the consumer price index (CPI) sat at 3.8% in the 12 months to July. The government have announced that the next budget will take place on Nov. 29.

ONS #

The economic stagnation reflects years of chronic underinvestment that has left Britain's economy fundamentally stuck. While the economy achieved the fastest growth in the G7 during the first half of 2025, the current slowdown demonstrates the deep structural problems inherited from previous governments. The government's plan for change aims to reverse this underinvestment through transformative policies.

The economic stagnation reflects years of chronic underinvestment that has left Britain's economy fundamentally stuck. While the economy achieved the fastest growth in the G7 during the first half of 2025, the current slowdown demonstrates the deep structural problems inherited from previous governments. The government's plan for change aims to reverse this underinvestment through transformative policies.

Labour's tax-raising agenda is crushing business confidence and stalling economic growth just months after taking power. The £25 billion employer national insurance hike has created a hostile environment for investment and hiring, with manufacturing suffering its worst decline in a year. Business leaders warn against further tax raids on corporate coffers ahead of the November budget.

Labour's tax-raising agenda is crushing business confidence and stalling economic growth just months after taking power. The £25 billion employer national insurance hike has created a hostile environment for investment and hiring, with manufacturing suffering its worst decline in a year. Business leaders warn against further tax raids on corporate coffers ahead of the November budget.

UK Economy Flatlines in July as Manufacturing Slumps

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Money

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United Kingdom

Despite July's data, Britain remains the fastest-growing G7 economy in 2025. Critics focus on headlines but miss the bigger picture: rising real wages, falling mortgage rates, and landmark trade deals with key partners. The doom-mongers want you to believe the economy is failing, but the evidence suggests otherwise. Recovery takes time, and Britain is on the right track.

Despite July's data, Britain remains the fastest-growing G7 economy in 2025. Critics focus on headlines but miss the bigger picture: rising real wages, falling mortgage rates, and landmark trade deals with key partners. The doom-mongers want you to believe the economy is failing, but the evidence suggests otherwise. Recovery takes time, and Britain is on the right track.

Tris Osborne

Labour's core manifesto promise to "kickstart economic growth" lies in tatters. Zero growth exposes failed strategy, with national insurance hikes crushing business confidence while inflation surges. The Chancellor's spin can't hide reality: anti-business policies have stalled Britain's recovery as November's budget threatens even more devastating tax rises.

Labour's core manifesto promise to "kickstart economic growth" lies in tatters. Zero growth exposes failed strategy, with national insurance hikes crushing business confidence while inflation surges. The Chancellor's spin can't hide reality: anti-business policies have stalled Britain's recovery as November's budget threatens even more devastating tax rises.

Andrew Neil

Monthly GDP figures are pointless. Every month brings breathless headlines about growth or contraction, yet these numbers are routinely revised beyond recognition months later. The average revision since 2022 exceeds the typical monthly movement itself, making initial readings meaningless. Politicians spin whatever narrative suits them while journalists amplify every decimal point.

Monthly GDP figures are pointless. Every month brings breathless headlines about growth or contraction, yet these numbers are routinely revised beyond recognition months later. The average revision since 2022 exceeds the typical monthly movement itself, making initial readings meaningless. Politicians spin whatever narrative suits them while journalists amplify every decimal point.

There is a 16% chance that the U.K. will achieve an average GDP growth rate of 2.5% over the current parliamentary term, according to the Metaculus prediction community.

There is a 16% chance that the U.K. will achieve an average GDP growth rate of 2.5% over the current parliamentary term, according to the Metaculus prediction community.

UK Economy Fails to Grow in July

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UK Economy Fails to Grow in July

UK Economy Fails to Grow in July

UK Economy FlatlinesFails to Grow in July as Manufacturing Slumps

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UK Economy Fails to Grow in July

UK Economy FlatlinesFails to Grow in July as Manufacturing Slumps

The Spin

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The Controversies

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Colvile

Responsibility

Commission

Smith

Rowley

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Streeting

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