Andy Burnham has been given some good news (Image: Getty)
Britain’s economy has grown at its fastest pace in two years fuelled by growth in the service sector according to new data. Numbers released by the Office for National Statistics (ONS) show economic growth increased to 0.7% in the period of July to September.
It will be seen as welcome news by Andy Burnham and his new Chancellor John Healey, having outpaced growth in the previous two periods. Between January to March the UK economy grew 0.6% and the second quarter of last year it was 0.5%.
Growth in the UK has been slow for nearly two decades since the financial crisis of 2008. Further trouble came in the form of the Covid pandemic and then price spikes caused by Russia’s illegal invasion of Ukraine.
Mr Burnham welcomed the news saying: “Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future.
“Our job now is to keep focused on what matters to people: bringing down bills, creating good jobs, helping high streets thrive and backing businesses to grow.
“There is more to do, but we have a clear direction.
“Giving people breathing space now while making the long-term changes needed to deliver good growth in every part of Britain.”
Chancellor John Healey said in response to the latest UK growth data: “The Middle East conflict has hit growth worldwide, yet Britain is showing standout resilience.
“Our UK economy is growing at the fastest rate in almost 10 years, outside the pandemic.
“We are backing UK investment, innovation and fast growth firms. I want to bring back confidence in Britain.”
British families have continued to feel the squeeze on prices since the start of the Iran war which has sent energy and fuel prices rising.
Andy Burnham Gets Some Good News as UK Economy Grows Fastest in 2 Years
Andy Burnham has received a welcome boost after new official figures revealed that Britain’s economy grew by 0.7 per cent between July and September 2026, marking its strongest quarterly performance since early 2024.
The figures, published by the Office for National Statistics (ONS) on November 12, show that economic growth accelerated from 0.5 per cent in the previous quarter. Annual growth also reached 1.9 per cent, offering some encouragement to the government amid continuing economic uncertainty.
The improvement represents positive news for Burnham and Chancellor John Healey, who have faced pressure to demonstrate that Labour’s economic policies are delivering results.
One of the biggest contributors to the growth was the services sector, which expanded by 0.9 per cent during the third quarter. Computer programming, consultancy and technology-related businesses performed particularly well, with increasing investment in artificial intelligence and cloud computing helping to drive economic activity.
According to ONS chief economist Grant Fitzner, growth was almost entirely driven by strong performance across the services industry. Computer programming recorded its fastest expansion in three years, reflecting the increasing importance of artificial intelligence in Britain’s economy.
Manufacturing also contributed to the positive figures, particularly through production of computers and electronic equipment. However, the picture was not entirely encouraging, as the construction sector contracted by 0.7 per cent during the same period.
Burnham welcomed the figures, describing them as encouraging news for the country.
He said that despite international events pushing up costs at home, Britain’s economy was continuing to grow and creating hope for the future. He also emphasised the government’s priorities of reducing household bills, creating quality jobs, supporting businesses and revitalising high streets.
Chancellor John Healey also welcomed the results, arguing that Britain’s economy had demonstrated resilience despite international economic pressures and higher energy prices.
The figures are particularly significant because Britain has faced several challenges during 2026. Rising energy costs, international instability and inflation have created difficulties for businesses and households. Higher borrowing costs have also affected investment decisions and consumer confidence.
However, the latest economic performance suggests that certain parts of the economy are proving more resilient than previously expected.
The growth of artificial intelligence is particularly noteworthy. Businesses are increasingly investing in digital technology to improve productivity, automate processes and develop new services. This has created additional demand for computer programming, consultancy and technology-related activities.
Nevertheless, economists have warned that the benefits of this expansion may not be equally distributed. Larger technology companies and businesses investing heavily in AI are contributing significantly to growth, while many smaller companies continue to face financial pressures.
There are also concerns about whether households will immediately feel the benefits. Stronger GDP figures do not automatically mean that families have more money available to spend. Inflation, energy bills, housing expenses and wage growth remain important factors affecting living standards.
Construction is another area requiring attention. Its contraction of 0.7 per cent highlights continuing difficulties in a sector essential to housebuilding, infrastructure development and employment. A prolonged slowdown could create additional problems for the government’s housing and investment ambitions.
Furthermore, some economists believe that economic growth could weaken in the coming months if energy prices remain elevated and consumer confidence deteriorates.
The latest figures therefore provide encouragement but do not eliminate the challenges facing the government.
For Burnham, the priority will be turning economic growth into tangible improvements for ordinary people. Businesses need greater confidence to invest, workers need secure employment and households want to see real progress in their disposable incomes.
Ultimately, the expansion of 0.7 per cent represents an important improvement in Britain’s economic performance. The contribution of technology, services and manufacturing demonstrates that opportunities exist despite the difficult international environment.
However, the real measure of success will be whether this growth can be sustained and translated into better living standards across the country. Burnham may welcome the latest figures, but the government still faces considerable pressure to ensure that economic progress benefits businesses, workers and families alike.