Headline Growth Of 0.3% GDP Masks The Pressures Many Businesses Face Says NTIA

The UK economy grew at a faster rate than expected in the second quarter, according to official figures, despite a slowdown from a strong start to the year amid pressure from tax hikes and inflation.

Figures from the Office for National Statistics (ONS) showed growth in gross domestic product slowed to 0.3% in the three months to the end of June, down from a rate of 0.7% in the first quarter.

Liz McKeown, an ONS director of economic statistics, said:
“Growth slowed in the second quarter after a strong start to the year. The economy was weak across April and May, with some activity having been brought forward to February and March ahead of stamp duty and tariff changes, but then recovered strongly in June.”

Michael Kill, CEO of the Night Time Industries Association:
“The UK’s 0.3% GDP growth in Q2 2025 is better than expected, but marks a slowdown from the 0.7% recorded in Q1. While services and construction delivered gains, the production sector contracted and business investment fell sharply – signs of underlying fragility.

For the night-time economy, which contributes over £153.9 billion annually, these figures are a reminder that headline growth masks the pressures many businesses face. Rising energy, labour, and supply costs, coupled with higher taxation, continue to erode margins. Consumer spending remains volatile, and many venues are operating week-to-week.

Our latest data shows slowing growth – just 2.5% last year – and declining employment across pubs, clubs, and cultural spaces. Without intervention, this slowdown risks deepening, putting local economies and community life under strain.

We need targeted government support: business rates reform, VAT alignment for hospitality, and sustained engagement with our sector to drive recovery and growth. The night-time economy is a vital economic and cultural engine, creating jobs, driving tourism, and fostering social cohesion.

As the wider economy navigates uncertainty, we must ensure the businesses that power our evenings and nightlife are not left behind.”