Britain’s economy flatlined in July, official data showed Friday, compounding a turbulent week for Prime Minister Keir Starmer’s Labour government.
Gross domestic product (GDP) showed no growth after expanding 0.4% in June, according to the Office for National Statistics. The flat reading, though in line with expectations, underlined the government’s struggle to revive momentum ahead of its annual budget in late November.
The Labour administration has faced fresh political turmoil, with Deputy Prime Minister Angela Rayner resigning over unpaid property tax and Starmer dismissing UK ambassador to Washington Peter Mandelson after renewed scrutiny of his ties to convicted sex offender Jeffrey Epstein.
“We know there’s more to do to boost growth, because whilst our economy isn’t broken, it does feel stuck,” a Treasury spokesperson acknowledged.
Data showed a 1.3% fall in production offset gains in services and construction. “The stagnation in real GDP in July shows that the economy is still struggling to gain decent momentum in the face of the drag from previous hikes in taxes and possible further tax rises to come,” said Paul Dales, chief UK economist at Capital Economics.
