Close Menu
WTX News
    Facebook X (Twitter) Instagram
    Trending
    • Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes
    • TV fans applaud ‘year’s funniest show’ with perfect 100% Rotten Tomatoes score
    • Lithuanian FM tells Euronews EU must bolster eastern flank now
    • Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction
    • All to know about the F1 cost cap
    Facebook X (Twitter) Instagram YouTube
    WTX News
    • Live News
      • US News
      • EU News
      • UK News
      • Politics
      • COVID-19
      • Business
      • Tech zone
    • World news
      • Middle East News
        • UAE News
        • Palestine News
      • Europe
        • Italian News
        • Spanish News
      • Africa news
      • South America
      • North America
      • Asia
    • News Briefings
      • UK News Briefing
      • World News Briefing
      • Live Business News
    • Sports
      • Football News
      • Tennis
      • Women’s Football
    • MY World
      • Climate Change
      • In Review
      • Expose
      • Special Reports
        • Conscience Convoy
        • Rohingya Report
    • Entertainment
      • Insta Talk
      • Royal Family
      • Gaming News
      • TV Shows
      • Streaming
    • Lifestyle
      • Fitness
      • Fashion
      • Cooking recipes
      • Luxury
      • Money Saving Expert
    • Travel
      • Culture
      • Holidays
    • Sign Up
      • Log In
    WTX News
    • Live News
    • World news
    • News Briefings
    • Sports
    • MY World
    • Entertainment
    • Lifestyle
    • Travel
    • Sign Up
    Home - Business - UK economy returns to growth in August after two stagnant months
    Business Updated:October 11, 2024

    UK economy returns to growth in August after two stagnant months

    By David Pike3 Mins Read
    Facebook Twitter LinkedIn Email Telegram WhatsApp
    UK economy returns to growth in August after two stagnant months

    UK economy returns to growth in August after two stagnant months

    The UK economy grew in August after two months of being flat, the latest official figures show.

    Gross domestic product (GDP) has recorded a 0.2 per cent growth in August, an increase on no growth in June and July, figures from the Office for National Statistics (ONS) said.

    While growth was already forecast in economic predictions, it will come as a boost for new Chancellor Rachel Reeves ahead of the autumn budget at the end of October.

    But ONS warned that the “broader picture” still reflects one of “slowing growth” compared to the first half of this year.

    ONS director of economic statistics Liz McKeown said: “All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months, compared to the first half of the year.

    “In August, accountancy, retail and many manufacturers had strong months while construction also recovered from July’s contraction. These were partially offset by falls in wholesaling and oil extraction.”

    Prime minister Keir Starmer previously warned in August of a “very painful Budget” ahead as Labour pushed the line that things were “worse than we ever imagined”, and Reeves has since been weighing up how to finance Labour’s financial commitments.

    But Paul Johnson, director of the Institute for Fiscal Studies (IFS), previously said Labour were aware of the financial challenges in the run-up to the election but “refused to confront them in its manifesto and pre-election statements”.

    The government will need to raise £25 billion in extra taxes in order to meet Labour’s spending commitments, the IFS warned when Labour took power.

    Labour’s election promise to not raise income tax, VAT or national insurance employee contributions has left Reeves looking for more creative methods to fill the “black hole”.

    Reeves could raise capital gains tax to 39 per cent and the second home rate to 24 per cent, it has emerged, while Starmer has refused to rule out an increase on employer contributions to national insurance.

    The chancellor is reportedly also considering an adjustment to the fiscal rules to allow her to borrow billions for infrastructure investment, unlocking up to £57 billion.

    Before the election, Labour pledged to follow two fiscal rules: that costs are met by revenues such as tax, and that debt must be falling as a share of the economy by the fifth year of the economic forecast.

    According to Johnson, fiscal rule changes could risk “spooking the markets”, adding: “I don’t think you are going to pull the wool over anybody’s eyes by redefining debt.”

    If adopted, the fiscal rule changes will be announced within the autumn budget on October 30.

    https://www.independent.co.uk/news/uk/home-news/economy-growth-stagnant-gdp-ons-b2627636.html

    featured London news News that will impact your life The Independent UK economy UK featured UK politics
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram WhatsApp
    Previous ArticleFriday’s news briefing – October budget pain, England loses to Greece, Princess Kate returns to royal duties
    Next Article Labour’s support slides under 30% as angry older voters turn from Starmer to Farage and the Tories – poll
    David Pike

    David Pike is an experienced news journalist with over 20 years experience as a UK News editor for WTX News and other news publications.

    Related Posts

    Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes
    UK News

    Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction
    Climate Change

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction
    UK News

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction

    Army soldiers fled key Sudanese city leaving 200,000 civilians trapped
    UK News

    Army soldiers fled key Sudanese city leaving 200,000 civilians trapped

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Advertisment
    News Headlines
    Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes

    Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction

    Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction

    Save 70% on VIP subscription
    News Briefings - the way to a better life
    News Briefings - the way to a better life
    Advert by Sponsors
    More from WTX News
    The latest gaming news - with game reviews and tips and tricks. updated 24 hours a day.
    The latest gaming news
    Hot off the press!
    • Israel says one of its soldiers killed in Gaza as Netanyahu orders ‘powerful’ strikes October 29, 2025
    • TV fans applaud ‘year’s funniest show’ with perfect 100% Rotten Tomatoes score October 29, 2025
    • Lithuanian FM tells Euronews EU must bolster eastern flank now October 29, 2025
    • Hurricane Melissa live: Jamaica declared disaster area after ‘storm of the century’ hits as video shows destruction October 29, 2025
    • All to know about the F1 cost cap October 29, 2025
    WTX News latest breaking news sports and travel
    Latest News and analysis - Deciphering through the BS with exclusive News Briefings
    Facebook X (Twitter) TikTok Instagram

    News

    • World News
    • UK News
    • US News
    • EU News
    • Business
    • Opinions
    • News Briefing
    • Live News

    Company

    • About WTX News
    • Register
    • Advertising
    • Work with us
    • Contact
    • Community
    • GDPR Policy
    • Privacy

    Services

    • Fitness for free
    • Insta Talk
    • How to guides
    • Climate Change
    • In Review
    • Expose
    • NEWS SUMMARY
    • Money Saving Expert

    News delivered to your inbox

    Copyright WTX News 2025

    • Privacy Policy
    • Terms

    Type above and press Enter to search. Press Esc to cancel.