Britain’s economy has experienced a slower expansion than initially thought in the second quarter, according to revised data released by the Office for National Statistics. The gross domestic product growth was revised downward to 0.2 percent in the April-June period, compared to the previous estimate of 0.3 percent. This downward revision deals a fresh blow to the Labour government, which has been struggling to revive the country’s sluggish economy.

The growth in the third quarter remained unchanged at 0.1 percent, indicating a sustained slowdown from the 0.7 percent expansion recorded in the first quarter of the year. This slowdown has raised concerns about the economy’s momentum heading into 2026. According to Alex Kerr, a UK economist at Capital Economics, “the economy is still pretty weak and is heading into 2026 with very little momentum.”

Prime Minister Keir Starmer has been facing challenges in reviving the economy since his Labour Party took power in July 2024. The government’s efforts to boost growth have been hindered by weak economic indicators and rising unemployment. Finance Minister Rachel Reeves’ decision to raise taxes on businesses in her inaugural budget last year has been widely criticized for contributing to the country’s economic woes.

In her November budget, Reeves introduced fresh tax hikes aimed at reducing government debt, but this time targeting workers. The move has sparked concerns about the impact on consumer spending and economic growth. The Bank of England recently cut its key interest rate to 3.75 percent, citing easing inflation and a weakening economy.

The revised economic data highlights the challenges facing the UK economy and the need for effective policies to stimulate growth. As the country heads into 2026, the government will need to reassess its economic strategy to address the ongoing slowdown and rising unemployment. With the economy still struggling to gain momentum, the coming year is likely to be crucial in determining the country’s economic trajectory.