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UK economy GROWS in August in boost for Rachel Reeves with Britain ‘finding its feet’

Britain’s economy grew in the three months to August, following a zero growth month for July, the Office for National Statistics (ONS) has said.

This will come as a relief to Labour, as growth was central to their core manifesto pledges, an improvement on the economic data for July.

Figures saw a slight increase following growth of 0.1 per cent compared to the figures in July.

Labour pledged to “kickstart economic growth” in one of the first of the party’s five key pledges ahead of the 2024 General Election.

The UK economy avoided continuing its stall in August 2025. The reported zero month-on-month growth in GDP fir July was improved upon and returned to an upward trend, with the last signs of growth coming in June, where the economy grew at a rate of 0.4 per cent.

Kevin Brown, savings specialist at Scottish Friendly, reacted to the news by saying: “Today’s GDP figures suggest the UK economy may be finding its feet again after a difficult period.

“Growth, however modest, is a welcome sign that confidence could be slowly returning across sectors.

He said that business are “investing, and employment remains resilient”, which he believes should help to “sustain momentum into the next quarter.”

Mr Brown said: “For many UK households though, the recovery still feels fragile, as rising living costs and higher borrowing rates continue to squeeze disposable incomes.

“Families need to see growth translate into lower inflation and greater financial stability before they can feel the benefits in their day-to-day lives.”

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