Business news live: UK economy growth slows as leaders demand ‘no more business taxes in Autumn budget’

OK, you’ve got your results, you’ve picked your course and uni and you’ve applied for loans.

Equally important is knowing how to deal with that sudden influx of cash three times a year.

Our money writer Marc Shoffman has the lowdown on how best to learn about managing your money – plus the best student bank accounts with perks on offer.

Time for a switch of tack for a little while, from the economic woes of the older generations to the immediate issues facing the younger ones: what to do now you’ve got your A Level results?

If you’re heading (or your child is!) to university we’ve got a couple of important pieces you should see regarding your money.

For many that will be the first time they are really responsible for significant finances, so information is key.

First up, here’s what you should know if you are looking at getting a student loan to cover fees and expenses while studying.

We don’t yet exactly know where they will be, but you can bet your last pound (if you’ve still got one by then) that we’ll be seeing them in the Budget, says….well, every economist in the country, to be honest.

But there’s still a fine path to tread between now and the end of 2025, to ensure the economy doesn’t get any worse.

“At best, there will be muffled cheers from the Treasury this morning, as UK Q2 GDP numbers surpassed analyst expectations. Our view: less bad; not good,” said Nick Lawson of Julius Baer UK.

“Growth slowed sharply to 0.3% but this is ahead of the consensus expectations of a paltry 0.1%. We had long suspected the UK benefited from a sugar rush of activity in the first three months of the year, as activity reflected frantic efforts to front-run looming tax and tariff changes. Now the rush has passed, we are left with the headache.

“Where does this leave the Chancellor for the autumn? It seems increasingly clear the wider economy will not be pulling magical rabbits out of the hat on her behalf. Runaway growth would solve so many of her problems. It seems clear, too, the Bank will not be browbeaten into cutting rates.

“For the moment, we think material tax rises are inevitable in the Budget.

“Though, both the Bank and the Chancellor remain tiptoeing a very narrow and very perilous path: try to tame inflation or balance the books too aggressively, and today’s anaemic growth figures could yet implode; try to stimulate growth too generously, and rampant inflation and bond yields could scupper both parties’ wafer-thin market authority. We envy neither’s task into the final throes of 2025.”

Labour’s plans to raise public funds through private school fees will be an effective dead end, reports one tax and advisory firm, Blick Rotherberg.

The government have to find billions in raised tax takes or fees, or else by cutting spending.

National Insurance hikes, increased taxes on businesses and private school fees are all avenues chosen so far – but the income from the latter is described as something which is more likely to hit less-well-off families trying to send their children to private schools rather than the very wealthy.

Fiona Fernie, a partner at the firm, said: “Government figures suggested that VAT on private school fees would raise an extra £460m in the 2024/25 financial year, rising to £1.7bn by 2029/30, which is nothing compared to the £50bn that is needed.

“It is likely that the Government’s forecasts of what will be raised from VAT on private school fees has been overblown. Many of the wealthiest chose to pay their children’s private school fees in advance of the VAT implementation deadline. The level of prepaid fees last year in the top 50 private schools was 4.25 times the level in the previous year.

“The less well-off will struggle the most. Many of them already make significant sacrifices to send their children to private school, sometimes because the state schools available to them are inadequate or cannot provide the specialist services required. They may be priced out of private schooling or see the schools they rely on close down.”

An influential think tank is imploring the OBR not to downgrade economic forecasts for the UK to avoid hitting the government with “billions” more to find in the Budget.

The IPPR estimate that changes made by the OBR could range “from negligible to a £44 billion hit to the public finance”, meaning Rachel Reeves would have to find even more through tax raids or spending cuts than she’s already likely to do.

Carsten Jung, associate director for economic policy at IPPR, said:

“Today’s productivity data show that the UK economy still faces challenges. But, all forecasters agree that productivity will rebound — the real question is by how much.”

“There is growing pressure on the OBR to downgrade its productivity growth forecast. Some of the larger numbers floated would have close to austerity-level implications for the UK.

“The OBR should resist making such a change now. Interpreting the UK’s productivity statistics at the moment is like navigating through fog — the uncertainties are vast. There are, in fact, some grounds for optimism about a recovery.

“By holding the line this autumn, the OBR can avoid triggering damaging fiscal tightening and give itself time to act when the outlook becomes clearer.”

Talking about money is still taboo in the UK.

However, one in three adults experiences anxiety about their finances, while one in ten has no savings.

Both are things we need to change.

So, to get the conversation going, on National Financial Awareness Day, we’re offering our top tips on how to become more financially resilient – and where you can seek help if you’re struggling.

Fraud tips to HMRC have risen by more than 10,000 year on year, says James Moore. But with Britain facing a ‘tax payment gap’ of more than £40bn – enough to fund Rachel Reeves’s black hole – are the sneaks and snitches on the side of the angels?

Businesses simply can’t afford more tax burdens – and the latest growth figures show it.

That’s the view of the British Chambers of Commerce, with small firms in particular struggling to cope.

Stuart Morrison, research manager at the BCC, said:

“Better than expected data for both Q2 and the month of June are welcome – but the numbers mask the underlying pain being felt by businesses across the UK.

“Without thriving firms the economy will continue to struggle. We saw better than expected growth at the start of the year, largely because of stockpiling ahead of US tariffs.

“However, tax burdens at home, alongside uncertain global trading conditions, created a very challenging environment for the UK’s SMEs in April-June. The impact of April’s national insurance hike is now clear, with our latest survey showing investment and recruitment hit.

“Long-term strategic plans from Government on industry, infrastructure and trade have been widely welcomed by businesses. But with the focus now on delivery, persistent cost pressures mean firms are left with one hand tied behind their back.

“There must be no more business taxes in the Autumn budget. Our recently published Blueprint for Growth document offers Government practical ways forward, to help businesses invest, recruit and trade.”

We’ll bring you plenty of comment and reaction across the morning on those economic figures – not just about the actual financials and business-related stuff, but what it means for you, your family and your general money state going forward.

For instance – even though we have now had another interest rate cut, inflation remains high and that combination, alongside low UK growth, plays together to be difficult for households in the coming months.

Alice Haine, personal finance analyst at Bestinvest, explains all:

“The UK economy expanded by just 0.3% in the second quarter, a slowdown from the more robust figure of 0.7% recorded in Q1, as rising costs, a cooling labour market and global uncertainty – particularly around US President Trump’s tariff policies and geopolitical tensions in the Middle East – weighed on business and consumer sentiment.

“But a softening labour market, stubbornly high inflation, slowing wage increases and a higher tax burden present a troublesome combination for household budgets.

“While five interest rate cuts since August last year have offered some relief, the latest 25 basis-point reduction to 4% may not be reflected in lower borrowing costs across the board as some lenders remain cautious about future rate cut expectations amid niggling inflationary pressures.

“With food prices continuing to surge, the Bank of England has signalled that interest rates may need to remain elevated for longer as it expects consumer price inflation to peak of 4% in September.”

Growth in the UK economy slowed in the second quarter of this year, a mix of pressures from tariff uncertainty, businesses and individuals coping with tax increases and ongoing inflation struggles.

New official figures from the Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.3 per cent between April and June.

That follows 0.7 per cent growth in the first three months of the year.

However, the April-June figure was stronger than the 0.1 per cent level widely expected by economists, after a stronger uptick in activity in June and revised data for earlier in the quarter.

Chancellor Rachel Reeves said the economic figures were “positive” but added that there is “more to do” to drive growth in the economy.