GROWTH in Britain’s economy slowed in the second quarter amid tariff uncertainty and tax increases, official figures revealed today.

The Office for National Statistics (ONS) said gross domestic product (GDP) rose by 0.3 per cent between April and June, down from 0.7 per cent growth in the first quarter.

The figure was stronger than the 0.1 per cent expansion widely forecast by economists, reflecting a rebound in June and revised data from earlier in the quarter.

Chancellor Rachel Reeves called the data “positive” but admitted “there is more to do to deliver an economy that works for working people.”

The economy grew by 0.4 per cent in June after shrinking by 0.1 per cent in both April and May.

June was boosted by a “strong” performance for scientific research and development, engineering and car sales, the ONS said.

Within the production sector, there was a strong growth in the manufacturing of electronics.

The slowdown could increase the likelihood of interest rate cuts by the Bank of England.

But it also poses a challenge for Ms Reeves, who is counting on faster growth to fund government spending plans.

TUC general secretary Paul Nowak said that mounting global pressures, US President Donald Trump’s tariffs and high household costs have all been holding back growth, adding: “But it is welcome to see the economy strengthening over June.

“This government is on the right track with its investment in public services and infrastructure — but after over a decade of Tory failure, it must now stay the course.

“Turning things around, particularly in the face of global headwinds, will continue to take time.

“That’s why we need to see investment sustained in the years ahead.”

Mr Nowak said the Bank of England “has a role to play” by “going further and faster on interest rates.”

“More rate cuts will give families and businesses the breathing room they need to spend and invest,” he said.

Unite general secretary Sharon Graham said that with GDP growth slowing again, “it is clear the chancellor’s fiscal rules are shackling the economy.”

She said: “Workers can’t wait forever for investment in our public services and industry.

“We need real improvements in wages and living standards now.”