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

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.

Good morning! Lots to cover today so we’ll get straight into it on the business and money coverage here on The Independent.

Economic growth is our chief focus but as well as that, all the student finance related info, stock market and companies data and general personal finance news you could want is coming your way.