August saw the UK's economy rebound, but the official statistics organisation has stated that the "broader picture" shows a "slowing" economy in previous months.

The economy expanded by 0.2% in March following two months in which growth was not achieved. This was mostly due to a recovery in the construction industry and a good month for manufacturers, retailers, and accountants.

However, as compared to the first half of the year, economic growth is less robust, according to the Office of National Statistics (ONS).

As the government gets ready for the Budget at the end of October, these newest numbers are released.

The government has acknowledged that some taxes would increase in the "painful" budget, as warned by Prime Minister Sir Keir Starmer.

With the government promising not to add to the burden on "working people" and ruling out raising VAT, national insurance, or income tax, there is rising conjecture regarding what tax increases Chancellor Rachel Reeves may propose.

The government's first significant chance to outline its goals for taxes and spending will be in the Budget, which will be held against a backdrop of rising interest rates, inflation that has just now stabilised, and increased debt as a result of the epidemic.

In an effort to stimulate the economy, Reeves plans to alter borrowing regulations to allow for the additional billions of pounds to be spent on large-scale projects; nevertheless, this action will not stop her from proposing more tax increases.

The government's main goal, according to the chancellor, is expanding the UK economy "so we can fix the NHS, rebuild Britain, and make working people better off," she stated on Friday.

The gross domestic product, or GDP, is tracked monthly by the ONS, although trends over a three-month period are given greater consideration. In comparison to the preceding three months, growth between June and August was just 0.2% due to worse performance earlier in the summer.

The UK saw two consecutive three-month spells of economic contraction at the close of the previous year, coinciding with a brief recession. During the first part of 2024, growth resumed.

(Sources: bbc.co.uk)