UK economy grows slower than expected in second quarter
Britain’s economic growth for the second quarter of 2025 was revised downward, signaling ongoing challenges for the government led by Keir Starmer. Official data released on June 5, 2025, shows the economy expanded less than previously thought. The slowdown comes despite efforts by finance minister Rachel Reeves to manage government debt through tax increases. The Bank of England recently responded by cutting its key interest rate.
What we know
- The UK’s GDP growth for April to June 2025 was revised down to 0.2% from the earlier 0.3% estimate.
- Growth in the third quarter remained at 0.1%, a sharp drop from 0.7% in the first quarter of 2025.
- Keir Starmer’s Labour government has struggled to boost the economy since taking office in July 2024.
- Tax hikes introduced by Rachel Reeves have been blamed for weak growth and rising unemployment.
- The Bank of England cut its interest rate to 3.75% last week as inflation eased and economic momentum slowed.
