GDP up 0.7%: Britain defies hit from Trump’s Iran war to grow economy, says Andy Burnham

Detailed summary

Economy growing at fastest rate since start of 2024, says ONS

The UK’s economy grew by 0.7% in the three months to September, according to official figures.

The sharp rise in GDP was the fastest quarterly rate since the start of 2024 following a boost from tech services and AI.

Real GDP per head is estimated to have increased by 0.7% in the third quarter of 2026 and is up by 1.7% compared with the same quarter a year ago, the Office for National Statistics said.

The GDP rise was “almost entirely” fuelled by strength in the UK’s services sector, particularly computer programming, which grew at the fastest rate in three years.

The ONS also pointed to evidence that businesses linked to AI adoption were boosting the sector.

Welcoming the economic figures, Andy Burnham said: “Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future.

"Our job now is to keep focused on what matters to people: bringing down bills, creating good jobs, helping high streets thrive, and backing businesses to grow.”

Muniya Barua, BusinessLDN’s Deputy Chief Executive, stressed: “The economy has proven resilient in the face of significant headwinds as the war in Iran pushes up inflation and the cost of borrowing.

“But the Government can't take this for granted and should act now to prevent growth stalling in the coming months as energy prices jump for households and businesses.”

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