UK economy grows by 0.2%, ONS figures show
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.”
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Sky’s business correspondent Paul Kelso discusses the figures
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%.
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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.
A trove of newly released Epstein files include emails that appear to involve Andrew Mountbatten-Windsor, while another suggests Donald Trump travelled on the billionaire’s private jet “many more times than previously has been reported”.
The US Department of Justice released at least 11,000 more files on Tuesday.
It went on to claim that some of them “contain untrue and sensationalist claims” about President Trump.
Here are some of the latest news lines from this release of Epstein files. Being named in these papers does not suggest wrongdoing.
Who is ‘The Invisible Man’?
Among the documents released is an email sent to Ghislaine Maxwell that speaks about “the girls” being “completely shattered” at a Royal Family summer camp at Balmoral.
It is dated 16 August 2001 and sent by a person referred to as “The Invisible Man”, who signed off the message as “A” – and is believed to be Andrew.
Sky News has come to that conclusion from reviewing the email address used, which is assigned to the Duke of York in Epstein’s contacts book and the chain of correspondence.
In the correspondence, “The Invisible Man” asks Maxwell: “How’s LA? Have you found me some new inappropriate friends?”
Andrew Mountbatten-Windsor has previously denied any allegations against him.
The Peru trip
Another email appears to show Maxwell arranging “two-legged sight seeing” for “The Invisible Man” during a trip to Peru.
She appears to forward to “The Invisible Man” part of a conversation between herself and another person.
The email says: “I just gave Andrew your telephone no. He is interested in seeing the Nazca lines. He can ride but it is not his favorite sport ie pass on the horses.”
“Some sight seeing some 2 legged sight seeing (read intelligent pretty fun and from good families) and he will be very happy. I know I can rely on you to show him a wonderful time and will only introduce him to friends that you can trust,” Maxwell said.
The context of the email is unclear and there is no suggestion of any wrongdoing.
Trump on Epstein’s jet?
The latest bunch of files also includes an email from an unidentified prosecutor dated 7 January, 2020, in which President Trump is mentioned.
The email accuses him of travelling on Epstein’s private jet “many more times than previously has been reported”.
It adds that President Trump “is listed as a passenger on at least eight flights between 1993 and 1996, including at least four flights on which Maxwell was also present”.
The email’s sender and receiver have been redacted. However, at the bottom of the email it says assistant US attorney, Southern District of New York. The name has also been redacted.
President Trump has denied any wrongdoing in relation to his relationship with Epstein, and being on any of Epstein’s flights does not indicate any wrongdoing.
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Limousine driver report about Trump
One of the documents in the release shows a report made to the FBI that was recorded on 27 October 2020.
It includes an unverified claim by a limousine driver that he overheard the US president discussing “abusing some girl” in 1995.
The driver also mentions Trump said “Jeffrey” while on the phone during a journey to Dallas Fort Worth Airport in Texas.
A significant part of the statement, along with the driver’s identity, has been redacted.
The US justice department has said that some of the documents in the latest Epstein files release “contain untrue and sensationalist claims made against President Trump that were submitted to the FBI right before the 2020 election”.
“To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already,” it said.
Postcard mentions ‘our president’
Also among the documents is a postcard that claims to have been sent by Jeffrey Epstein, but has been refuted by the justice department.
In it, the sender tells the recipient: “Our president also shares our love of young, nubile girls.”
It’s not clear who “our president” refers to and the context of the postcard is also unclear.
The US justice department initially said it was “looking into the validity” of the postcard but later said on X that the “FBI has confirmed” the postcard is “FAKE”.
It cited reasons including a claim that the writing does not appear to match Epstein’s and another that the letter was postmarked three days after his death.
Row over unreleased documents
It is believed that many files relating to Epstein are yet to be made public.
There has been anger at the justice department’s slow release of the files, with politicians threatening to launch legal action against Attorney General Pam Bondi.
The deadline for the release of all the documents has passed.
“The DOJ needs to quit protecting the rich, powerful, and politically connected,” Republican congressman Thomas Massie said.
The prime minister has acknowledged Britons’ cost-of-living struggles in his Christmas message – and vowed that helping with the issue is his “priority”.
Sir Keir Starmer also urged members of the public to “each do our bit” and “reach out” to friends, relatives and neighbours during the festive period.
His message comes at the end of a difficult year for his government, with economic growth stuttering and Chancellor Rachel Reeves facing criticism over tax rises in the budget.
In a message recorded inside 10 Downing Street, Sir Keir said: “I know many across Britain are still struggling with the cost of living. Helping with that is my priority.
“But at this time of the year, which celebrates love and abundance, loss or hardship can feel even more acute.
“So call around to a neighbour. Check in on a friend or a relative who you haven’t heard from for a while. Reach out. It can make a huge difference.
“That is what Christmas is about.”
Sir Keir Starmer delivers his Christmas message from inside Downing Street. Pic: Downing Street
The prime minister thanked NHS workers along with members of the military and the emergency services who will be on duty on Christmas Day.
“Just as so many put their feet up, some truly special people will be pulling on their uniforms and heading out to work,” he said.
“Our NHS staff emergency services and the brave men and women of our armed forces, all playing their part, doing their bit to care for the nation and to keep us safe.
“Many volunteers will be out there as well. Serving food. Reaching out to help those lonely or in need.
“So on behalf of the whole country, I want to say a big thank you.
“As a nation, we should raise a glass to you this Christmas. But more than that, we should each do our bit as well.”
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Conservative leader Kemi Badenoch used her Christmas message to talk about “Christian values” and thanked “everyone who has supported me during my first year as leader of the opposition”.
“It’s been the biggest challenge of my life,” she said. “But it’s also been a wonderful year. I can’t wait to get back to work next year to create a better United Kingdom.”
Liberal Democrat leader Sir Ed Davey spoke about the Christmas tree in London’s Trafalgar Square – an annual gift from Norway to thank the UK for its support during the Second World War – in his message.
While saying the tree may “look a little underwhelming” on first glance, the Liberal Democrat leader said it was a reminder of “friendship and loyalty”.
He added: “It makes me think about people standing together in tough times – whether against the Nazis in the 1940s, or right now in Ukraine.
“And yeah, it might not be perfect, but this tree in Trafalgar Square makes me think about families and friends looking out for one another right here at home.
“I can’t think of a better symbol of the Christmas spirit of generosity, love and hope. Of light in the darkness.”
UK
Details of King Charles’s Christmas message revealed – as he chooses to deliver it away from palace
A photograph has been released by Buckingham Palace showing the King delivering his Christmas message again outside of traditional palace walls.
This year the annual address was filmed in the Lady Chapel inside Westminster Abbey, the second time the monarch has recorded it away from a royal residence.
The palace has revealed the abbey was chosen for the setting this year to reflect a major theme of the message, pilgrimage.
The Lady Chapel in Westminster Abbey, central London. Pic: PA
The full details of what he says are always kept secret until it is broadcast at 3pm on Christmas Day. The message is always seen as a deeply personal one from the monarch, as a rare speech delivered by the King without advice from, or consultation with, the government.
Westminster Abbey was seen as a perfect location to reflect the theme of pilgrimage with pilgrims visiting every year to remember the legacy of Edward the Confessor, whose shrine lies at the heart of the abbey. Around the walls of the Lady Chapel are 95 statues of saints dating from the building of the chapel in the 16th century.
Pic: PA
The abbey, as the site of the King’s own coronation and that of every monarch since 1066, also has royal significance. The Henry VII Lady Chapel is the burial place of 15 Kings and Queens including Elizabeth I, Mary I and Mary Queen of Scots. Below the central aisle is the Hanoverian vault where George II and members of his family are buried. The Stuart vault is in the south aisle where Charles II, William III and Mary II, and Queen Anne lie buried.
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It is understood the King takes a particular interest in where the message is filmed each year, favouring different locations outside of royal palaces over the past two years.
In the photograph, taken during filming, you can also see brightly lit Christmas trees used for another royal event in December. They were still inside the abbey following the filming of the Princess of Wales’s Together at Christmas carol service, which will be broadcast on Christmas Eve.
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