UK economy grows by 0.2%, ONS figures show

Published

2 years ago

August 11, 2023

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The UK economy grew slightly in the three months to June, according to official estimates.

Gross domestic product (GDP) increased by 0.2% in the second quarter of the year, the Office for National Statistics (ONS) said. In June alone it rose by 0.5%.

It comes after a rate of 0.1% was recorded in the first quarter, the lowest amount possible to still be classed as growth.

Experts said the economy had bounced back in June following a dip the previous month, when an extra bank holiday was held to celebrate the King’s coronation.

Darren Morgan, the ONS’s director of economic statistics, said: “Manufacturing saw a particularly strong month with both cars and the often-erratic pharmaceutical industry seeing particularly buoyant growth.

“Services also had a strong month with publishing and car sales and legal services all doing well, though this was partially offset by falls in health, which was hit by further strike action.”

He added: “Construction also grew strongly, as did pubs and restaurants, with both aided by the hot weather.”

However four days of strikes by junior doctors weighed on GDP in June.

The Bank of England has forecast that the UK will likely avoid recession in 2023 but suggested the economy will effectively flatline for the next few years.

It recently hiked interest rates for the 14th time in a row to 5.25% as it attempts to bring down inflation.

The rate of inflation fell by a bigger-than-expected drop in June but still remains high at 7.9%.

Chancellor Jeremy Hunt told Sky News last week that the UK, along with Europe, the US, Canada and Japan, were “all in a low growth trap that we need to get out of”.

He added: “What you’ll see from me in the autumn statement is a plan that shows how we break out of that low growth trap and make ourselves into one of the most entrepreneurial economies in the world.”

‘Strong foundations’

The new data puts the UK on a good course to avoid recession this year, which is defined as two quarters in a row when GDP shrinks.

However, there are still concerns about the longer-term outlook for the economy. A report by thinktank the National Institute of Economic and Social Research warned earlier this week there was a “60% risk” of a recession in 2024.

It said the UK was also set to experience five years of “lost” economic growth, while “elevated housing, energy and food costs” would likely continue into next year.

Commenting on the latest figures, Mr Hunt said: “The actions we’re taking to fight inflation are starting to take effect, which means we’re laying the strong foundations needed to grow the economy.

“The Bank of England are now forecasting that we will avoid recession, and if we stick to our plan to help people into work and boost business investment, the IMF have said over the longer-term we will grow faster than Germany, France and Italy.”

‘Economy isn’t working’

Labour’s Shadow Chancellor Rachel Reeves said the figures showed that “growth in the economy is still on the floor”.

She added: “13 years of economic mismanagement under the Conservatives has left Britain worse off and trapped in a low growth, high tax cycle.”

The Joseph Rowntree Foundation also said the modest GDP growth “means little to the 7.3 million low-income families who right now are going without essentials like heating, eating and adequate clothing.”

The charity’s chief economist Alfie Stirling added: “For too many people, and too many places, the economy simply isn’t working.”

TUC general secretary Paul Nowak said: “The chancellor is asleep at the wheel while our economy is going nowhere.

“Stagnant growth puts jobs at risk and holds down pay and conditions for those who remain in work.”

ONS publishes data every month on GDP, which aims to measure the sum total of everything produced in the economy.

However, the indicator has faced criticism for failing to include some parts of the economy, such as the contribution of unpaid carers.

UK

Starmer to announce formal recognition of Palestine as a state

Published

6 hours ago

September 21, 2025

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Starmer to announce formal recognition of Palestine as a state

The UK will formally recognise Palestine as a state, it is understood.

Sir Keir Starmer is expected to make the announcement on Sunday after he said in July that the government would make the move unless Israel met certain conditions.

The prime minister had called on Benjamin Netanyahu’s government to take substantive steps to end the “appalling situation in Gaza“, agree to a ceasefire, commit to a long-term sustainable peace, allow the UN to restart the supply of aid, and not annex the West Bank.

The Israeli foreign ministry furiously rejected his statement, with Mr Netanyahu claiming that “Starmer rewards Hamas‘s monstrous terrorism and punishes its victims”.

Ilay David, brother of Hamas hostage Evyatar David, who was seen emaciated in a video last month, said giving recognition was “like saying to Hamas: ‘It is OK, you can keep starving the hostages, you can keep using them as human shields.’

“This kind of recognition gives Hamas power to be stubborn in negotiations. That is the last thing we need right now.”

There has been no ceasefire, and the situation in Gaza has deteriorated, with a declaration of a famine in Gaza City and the expansion of Israeli military operations.

Israel has launched a major ground offensive to seize all of Gaza City and destroy Hamas in an operation which has prompted widespread condemnation, with UK Foreign Secretary Yvette Cooper calling it “utterly reckless and appalling”.

Earlier this month, a UN commission of inquiry concluded that Israel has committed genocide against Palestinians in Gaza. Israel said the claim was “distorted and false”.

The UK will join 147 of the 193 members of the UN who recognise Palestine ahead of the UN General Assembly in New York on Monday.

Other nations, including France, Australia and Canada, have said they plan to take the same step at the UN gathering as part of a broad international effort to put pressure on Israel.

During a joint news conference with the prime minister at Chequers on Thursday, Donald Trump said he disagreed with recognition, and US politicians have urged the UK and other allies to reverse their stance.

Sky News understands that Israel is considering options in response to the UK’s decision, but the strength of that reaction is still under consideration.

Family members of some of the 48 hostages still in captivity, after Hamas and other militant groups stormed into Israel on 7 October 2023, have written an open letter to Sir Keir, condemning the move.

“Hamas has already celebrated the UK’s decision as a victory and reneged on a ceasefire deal,” they said.

“We write to you with a simple plea – do not take this step until our loved ones are home and in our arms.”

The UK government is understood to be looking at further sanctions on Hamas, and has demanded the group release all hostages, agree to an immediate ceasefire, accept it will have no role in governing Gaza, and commit to disarmament.

UK

Heathrow among major airports hit by delays after cyber attack

Published

9 hours ago

September 20, 2025

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Heathrow among major airports hit by delays after cyber attack

Heathrow was among a number of major airports across Europe hit by delays after a suspected cyber attack that targeted a service provider for check-in and boarding systems.

The “technical issue” affecting Collins Aerospace, which provides check-in and boarding services for various airlines, resulted in 14 flights being cancelled at Brussels Airport on Saturday, and several more being delayed at London Heathrow, Berlin, and Dublin, among others.

‘Very clever cyber attack’ cancels flights in Europe – latest

Passengers have reported being unable to check in online, instead queuing for hours for staff to deal with them manually at desks and departure gates, only to be told their flights are not taking off.

Helen Steel, 49, left Dorset for Heathrow at 3am to travel home to Oslo, with her cat Thomas – but was “shouted at by staff” who told her she would not be able to fly until Sunday.

Describing the situation as an “absolute nightmare”, she said: “I’ve got an animal here, so I’m very concerned about his welfare.

“I’ve been shouted at twice and I broke down in tears because I was worried about him. None of us have had any information whatsoever. Whenever we ask ground staff, they shout at us.”

Ms Steel says she spent two hours in the queue on the phone to customer service and is now having to find a hotel to stay in overnight.

Sam arrived at Heathrow expecting to drop his girlfriend off for her flight to Rio de Janeiro – but was still at the airport seven hours later.

When they arrived, it was “chaos everywhere”, he told Sky News, with “nobody seeming to know what was going on”.

The couple say they were not told about the cyber attack by airport staff, finding out about it online instead.

After queuing for three hours, they made it to the front, only to be told the plane was not taking off, he adds.

“Her flight was at 8.40am and it was held back until 10.15am. At 10.10am they sent everyone away and told them to contact the airline. But there are no representatives for any airlines whatsoever. It’s been a bit of a farce.

“Nobody knew where they were going – and they were sending people left, right, and centre.

“She’s going tomorrow now, but we’ve got to find a hotel, and no one is here to give us any hotel vouchers. They just give you a piece of paper and say ‘you’ve got to pay for it yourself’.”

‘Insane queues’ and ‘skeleton staff’

Passenger Tereza Pultarova waited around 10 hours at Heathrow after she arrived at 4.30am for her flight to Cape Town via Amsterdam.

“We were kind of stranded here because KLM wasn’t able to issue us boarding passes digitally, and requested us to collect them at the check-in desk,” she said.

“And then they told us that there is some sort of global issue with the system they’re using for check-in and boarding, and they have to do everything manually. So then they were checking in people at the rate of, like, one person per 10 minutes.

“I’m not exaggerating. It was just insane, the queue wasn’t moving. And then suddenly they said, ‘Oh, the flight will be departing, we’re closing the gate’.

Maria Casey was due to fly to Thailand with Etihad Airways – but had to wait three hours to drop off her luggage at Heathrow, with staff taking between five and 10 minutes to deal with each passenger.

“The queues are terrible,” she told Sky News. “It was an absolute skeleton staff. Out of six of the desks there were probably two people”.

A Heathrow spokesperson advised people to arrive no more than three hours early for a flight and apologised for any inconvenience.

It is understood British Airways at Terminal 5 remains unaffected and is operating as normal.

Collins Aerospace said it is working to resolve the issue as soon as possible.

“We have become aware of a cyber-related disruption to our Muse (Multi-User System Environment) software in select airports, the firm said in a statement.

“The impact is limited to electronic customer check-in and baggage drop and can be mitigated with manual check-in operations. We are actively working to resolve the issue and restore full functionality to our customers as quickly as possible.”

UK

‘Delighted to be free’: Elderly British couple who were detained by Taliban arrive in UK

Published

10 hours ago

September 20, 2025

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'Delighted to be free': Elderly British couple who were detained by Taliban arrive in UK

An elderly British couple who have arrived back in the UK after being detained in a maximum security Taliban prison are “delighted to be free”, their son has told Sky News.

Barbie Reynolds, 76, and her husband Peter, 80, were arrested in February after spending decades in Afghanistan, where they have dual citizenship.

They had been held without charge before being released from detention on Friday and flown to Qatar, where they were reunited with their daughter, before flying back to Heathrow Airport on Saturday.

The couple’s son, Jonathan Reynolds, told Sky News: “They’re just delighted to be free… they’re very excited to see their kids and grandkids and great grandkids, people they’ve just been wanting to catch up with and wondered if they’d ever see them again.”

Jonathan, who spoke to his parents from Wyoming in the US in a FaceTime call with some of his siblings, said: “I’ve seen photographs of them in hospital beds getting checked. I’ve seen them having full English breakfasts. So they’re jumping on that.”

He described some of the conditions his parents had been kept under in a “big maximum security prison with thousands of inmates”.

“My dad described being handcuffed or chained to other criminals. And, one point he had his chest hairs ripped out,” he said.

“He was hit in the head. And, then they were moved, to more of a safe house.”

But Jonathan said his parents retained their British politeness even when calling him from a payphone in the prison yard, with his dad asking: “Is now a good time?”.

“It was totally, ‘Yeah, not too bad. Where’s the queue to get out of here?'”

The UK government advises British nationals not to travel to Afghanistan.

Abdul Qahar Balkhi, a spokesperson at the Taliban government’s foreign ministry, said in a statement posted on X that the couple “violated Afghan law” and were released from prison after a court hearing.

He did not say what law the couple were alleged to have broken.

Sky correspondent Cordelia Lynch was at Kabul Airport as the freed couple arrived and departed.