UK economy returned to growth in August

Prime Minister Sir Keir Starmer has warned the Budget will be “painful”, with the government admitting some taxes will rise.

Liz McKeown, director of economic statistics at the ONS, said accounting, bookkeeping and auditing businesses had helped to boost the economy alongside retail and manufacturers.

She added construction also bounced back from July’s downturn, with new infrastructure projects starting up, but added: “The broader picture is one of slowing growth in recent months, compared to the first half of the year.”

The Chancellor, Rachel Reeves, who is set to deliver her first Budget on 30 October, said she welcomed the return to growth.

“Growing the economy is the number one priority of this government so we can fix the NHS, rebuild Britain, and make working people better off,” she said.