The UK economy grew at a faster rate than expected in the second quarter, official figures show, despite pressure on households and businesses from tax increased and Donald Trump’s global trade war.
Figures from the Office for National Statistics showed growth in gross domestic product (GDP) slowed to 0.3% in the three months to the end of June, down from a rate of 0.7% in the first quarter.
Although beating City forecasts for 0.1% growth, the latest snapshot underscores the challenge for the chancellor, Rachel Reeves, as she considers options for boosting the economy and raising revenues at her autumn budget.
The figures were released as monthly figures showed the economy returned to growth in June, expanding by 0.4%, surpassing predictions for 0.1% growth in a recovery from two months of negative output in April and May.
Reeves has pledged to use her autumn budget to prioritise fixing Britain’s dismal productivity track record, using an exclusive article in the Guardian on Wednesday to downplay speculation over tax rises.
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