UK economic growth slows to 0.3%

14 Aug 2025

The UK economy grew by 0.3% between April and June, according to the latest data from the Office for National Statistics (ONS).

Growth in the last quarter was driven by increases of 0.4% in services and 1.2% in construction, while the production sector fell by 0.3%, says the ONS.

Other factors are that some activity was brought forward to February and March ahead of changes to stamp duty in April and announced US tariff changes.

Stuart Morrison, Research Manager at the British Chambers of Commerce said: 'Better than expected data for both Q2 and the month of June are welcome – but the numbers mask the underlying pain being felt by businesses across the UK.

'Without thriving firms the economy will continue to struggle. We saw better than expected growth at the start of the year, largely because of stockpiling ahead of US tariffs.

'However, tax burdens at home, alongside uncertain global trading conditions, created a very challenging environment for the UK's SMEs in Q2. The impact of April's national insurance hike is now clear, with our latest survey showing investment and recruitment hit.

'Long-term strategic plans from Government on industry, infrastructure and trade have been widely welcomed by businesses. But with the focus now on delivery, persistent cost pressures mean firms are left with one hand tied behind their back. There must be no more business taxes in the Autumn Budget.'