The UK economy stalled in July, official data showed, and Chancellor Rachel Reeves was criticised for failing to comment as business groups and opposition politicians warned that tax rises and other pressures have left growth sluggish.
The Office for National Statistics reported that monthly output was flat in July, and that over a three-month period GDP rose just 0.2 percent. A Treasury spokesman acknowledged that the economy "does feel stuck," while Treasury sources said the Chancellor would not be commenting on the latest figures.
The lack of public comment from Ms. Reeves prompted an attack from the opposition. Shadow Chancellor Sir Mel Stride said, "It's no wonder the Chancellor has gone into hiding while the economy crumbles on her watch," repeating criticism that the Government "cannot tax its way to growth." Labour ministers have in recent months defended measures aimed at rebalancing the public finances.
Business leaders echoed concerns over the economic outlook. C.S. Venkatakrishnan, chief executive of Barclays, urged the Government to focus on cutting spending rather than raising taxes, saying: "We need to curb expenditure at the government level." Ben Jones, lead economist at the Confederation of British Industry, said the economy was "stuck in the shade," while Anna Leach, chief economist at the Institute of Directors, warned that plans for growth had been hit by sharp rises in employment costs and fears of further tax increases.
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Market indicators have reflected rising concern about public finances. Analysts noted that UK government borrowing costs have reached 27-year highs on global bond markets in recent weeks, and commentators have pointed to inflation that is higher than in other major advanced economies in the Group of Seven.
The Government's change in tone on commentary came amid turmoil at Downing Street: recent departures of senior figures and reports that Prime Minister Keir Starmer has reshaped his economic team have fed speculation about internal dynamics. Ms. Reeves had previously been more forthcoming on economic data, including welcoming a 0.4 percent rise in GDP in June as "a strong start to the year." Treasury sources said the Chancellor would not be speaking about the July numbers.
Economists said the combination of weak near-term growth, elevated inflation and higher borrowing costs presents a challenging backdrop for fiscal policymaking ahead of the autumn Budget. Some business groups and bank chiefs urged a shift toward controlling public spending to alleviate pressure on markets and households, while opposition figures called for more immediate political accountability.
The ONS figures are the latest in a series of mixed indicators for the UK economy in 2025. Official data and private-sector surveys over the spring and summer showed pockets of activity in services and construction, but persistent downside risks from cost pressures and financial-market reactions to borrowing needs have constrained the overall recovery.
A Treasury spokesperson reiterated that ministers would set out full fiscal plans at the Budget and declined to add further comment on the ONS release. Labour officials have said fiscal policy will balance the need to support public services with a long-term plan for sustainable growth.