The United Kingdom is now the fastest-growing economy among the G7 nations in the first half of 2026, after official data revised second-quarter growth up to 0.5 per cent from 0.4 per cent. The figures were released on September 30.

The services sector expanded by 0.6 per cent and construction output rose 0.8 per cent in the April-to-June quarter. Business investment grew 1.8 per cent, standing 5.2 per cent higher than a year earlier, helped by the artificial intelligence boom.

Real household disposable income per head rose 1.0 per cent, and the household saving ratio ticked up to 8.8 per cent. But inflation hit a five-month high of 3.1 per cent ahead of Bank of England decisions.

Economists urged Chancellor John Healey to use the stronger figures to ease the tax burden on business ahead of his budget at the end of October. Healey has promised to meet Labour’s fiscal rules and not raise income tax, VAT or national insurance.