UK economy slumped in April in headache for Rachel Reeves

The economy shrunk by 0.3% in April amid a perfect storm of business tax changes and US tariffs

Chancellor Rachel Reeves outside 11 Downing Street
News of April's GDP drop comes just one day after the chancellor unveiled cash injections for several departments as part of her Spending Review
(Image credit: Photo by Rasid Necati Aslim/Anadolu via Getty Images)

The UK economy unexpectedly slumped by 0.3% in April, having grown by 0.2% the month before. It is the biggest monthly drop since October 2023. Analysts polled by Reuters had been expecting a smaller drop of 0.1%. Chancellor Rachel Reeves said the figures were “clearly disappointing”.

Tax changes and global trade disruption may have been behind the slowdown, with businesses citing both as concerns.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.