John Healey issued a statement in response to the latest data.
Andy Burnham (Image: Getty)
The UK economy grew by 0.4% between April and June, according to the Office for National Statistics (ONS). This is down from 0.6% in the first quarter. While the figures from the second quarter of the year are in line with City economists’ expectations, they mark a slowdown.
The slower growth is likely linked to the war in Iran, with the disruption created by the conflict to the global economy beginning to take its toll. Despite the lower figure reported, the ONS’s director of economics statistics Liz McKeown said the economy “remained relatively robust” after a “strong start” to 2026.
The ONS said services output expanded by 0.5% across the second quarter, and construction by 0.3%.
Industrial production, including manufacturing and energy, was flat, the latest ONS figures show.
In response to the latest economic growth data, Chancellor of the Exchequer John Healey said: “I know people are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses.
“This is an active, hands-on government, putting British interests first – giving breathing space to those feeling the strain, making our country more resilient and bringing hope back.
“We’ve seen the fastest growth in the G7 this year, but we now need to double down and drive growth in every postcode.”
This comes as the new Chancellor is gearing up for his first budget on October 28.
The latest available monthly figure for the economy from June showed a growth higher than expected, with the GDP expanding 0.3% rather than the 0% forecast.
Sunny weather and the World Cup were deemed key to this boost.