UK economy flatlines in July as critics accuse Chancellor Rachel Reeves of 'going into hiding'

Official data showed the UK economy flatlined in July, triggering criticism of Chancellor Rachel Reeves for not publicly addressing the figures and raising fresh concerns about the government's fiscal plans ahead of a November Budget.

The Office for National Statistics reported zero growth in July and a 0.2 percent rise in output over the three months to July. A Treasury spokesman said the economy "does feel stuck," while Treasury sources told media Ms. Reeves would not be commenting on the latest figures.

Opposition figures and some business commentators said the Chancellor's public silence amounted to "going into hiding." Shadow Chancellor Sir Mel Stride said it was "no wonder the Chancellor has gone into hiding while the economy crumbles on her watch." The criticism followed Ms. Reeves's more public commentary last month after the ONS reported 0.4 percent growth in June, which she described at the time as "a strong start to the year." Treasury officials declined to expand on why she was not commenting on the July figures.

The July data add to pressure on ministers as the government prepares for what many expect to be a demanding autumn fiscal package. Ms. Reeves implemented around £40 billion of tax increases in her first Budget in October 2024, and commentators and fiscal analysts have suggested the chancellor may need to find between £20 billion and £50 billion more to address the public finances in November.

Market indicators have reflected these concerns. Notes accompanying commentary on the figures pointed to borrowing costs for the UK rising to multi-decade highs on global bond markets in recent weeks, levels described in some reports as the highest in 27 years for the government. Inflation in the UK remains elevated by international standards and has been cited by officials and analysts as a complicating factor for both monetary and fiscal policy.

Business leaders urged a shift in policy focus. C.S. Venkatakrishnan, chief executive of Barclays, said the government should "curb expenditure at the government level" rather than seek further tax rises to balance the books. Ben Jones, lead economist at the CBI business lobby group, said the economy was "stuck in the shade," and Anna Leach, chief economist at the Institute of Directors, said growth plans had been hit by rising employment costs and concerns about further tax increases to plug gaps in public finances.

Political commentators have also pointed to broader turmoil within Downing Street. Media reports noted the departures of senior figures, including Angela Rayner and Peter Mandelson, and there were accounts that Sir Keir Starmer had appointed advisers to his own economic team, a move some said had diminished Ms. Reeves's public profile on economic matters. Government officials declined to comment on internal personnel arrangements.

The ONS release and subsequent reactions set the scene for a closely watched autumn for economic policy in Britain. With official figures showing stalled growth for July and modest expansion over the quarter, the government faces competing demands from markets, business groups and opposition parties on how to restore growth and stabilise public finances ahead of the November Budget.