Based on Healey says surprise UK growth is 'sign of resilience' ahead of Budget · BBC News, Oct 15, 2026, 05:29 ET
Explain the Big Deal: The Budget in two weeks will show whether the government turns this stronger growth into tax, spending or borrowing decisions.
What happened?
The UK economy grew by 0.1% in August, instead of shrinking as analysts expected. The Office for National Statistics also revised June growth up to 0.4% and said the economy expanded by 0.7% over the three months to August. The growth was helped by stronger production, while services were flat and construction fell.
Who is involved and why does it matter?
Chancellor John Healey said the figures were a sign of resilience and said he wanted to give households and businesses some breathing space from cost pressures. He is due to deliver his first Budget in two weeks, but he did not set out what measures he will announce. Conservative shadow chancellor Andrew Griffith said the figures hid weakness in construction and called for tax cuts and less red tape, while Liberal Democrat Treasury spokesperson Daisy Cooper said the economy was still barely moving.
What is the broader context?
The numbers come after the IMF upgraded its forecast for the UK earlier this week and praised plans to cut debt. Healey said Britain was facing global shocks, including conflicts in the Middle East and Europe, and argued the government must keep fiscal discipline by making sure new plans are affordable. The ONS said computer programming was the biggest contributor to three-month growth, while production and construction shrank over that period.
What happens next?
The Budget will be the next major test, with Healey expected to set out how the government plans to support growth while controlling spending. Economists say inflation could still weigh on activity, even after the surprise August rise. The article does not say which taxes or spending plans may change, only that the government says it will act where it can and pay for it within the Budget.
Written by the Explain the Big Deal template from the article above and checked by a person before publishing. An AI summary: read the full story at the source.
Watch the Morning news, Oct 15, 2026, 07:00 ET video · Run the same questions on any article with SoWhatify for Chrome, free.