April GDP figures + Responses

GDP monthly estimate, UK: April 2026

Chancellor of the Exchequer Rachel Reeves said:

Before the conflict in the Middle East, growth was higher than expected and inflation was falling. This is not a war we wanted or joined, but one that will have an impact at home. 

Our economic plan is the right one, with both the IMF and OECD upgrading their forecasts for growth recently. The choices I have made as Chancellor mean our economy is in a stronger position to deal with the costs of the war, and we are getting on with the job of building a stronger and more secure economy. 

Conservative response to April GDP figures

Sir Mel Stride, Shadow Chancellor of the Exchequer, said:

Today's GDP figures show the economy shrank in April.

Cabinet Ministers have said that Labour's economic plan doesn't give you confidence' and that all Labour MPs do is ask who can we tax in order to pay for benefits' - and now Labour's Defence Secretary has resigned because Keir Starmer and Rachel Reeves cannot make hard choices.

Putting Benefits Street first leaves the economy weaker. Only the Conservatives have a plan to get Britain working again.

ENDS

Notes to Editors:

• Keir Starmer's cabinet have said Labour's economic plan doesn't give you confidence' and their economic policy is what the unions want' while all Labour MPs do is ask who can we tax in order to pay for benefits'. Darren Jones texted Peter Mandelson saying Reeves, Rayner and Reynolds overseeing the economy doesn't fill you with confidence', and Labour's industrial policy is what the unions want'. While Pad McFadden told the disgraced peer Every meeting I have [with Labour MPs] is who can we tax in order to pay benefits to others' (The Spectator, 6 June 2026, link).

• John Healey has resigned and criticised Keir Starmer and Rachel Reeves for being unwilling to commit the resources that the nation needs to defend the country'. HEALEY: This new era for defence required further investment through the Defence Investment Plan. The excellent and extensive cross-government work that completed in January overseen by you, me and the Chancellor confirmed the scale of the challenge and the rising demands on defence. Since then, you have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats' (John Healey, Twitter, 11 June 2026, link).

CBI

Ben Jones, CBI Senior Lead Economist, said:

GDP growth of 0.7% in the three months to April confirms a strong start to the year, but today's figures continue to reflect the unusually robust performance seen in preceding months. With the economic fallout from the Middle East conflict now feeding through to the economy, this pace of growth is unlikely to be sustained.

Our business surveys report that underlying momentum remains subdued across much of the private sector as global shocks compound domestic headwinds, with businesses facing growing pressure from elevated costs and uncertainty.

In a world of elevated uncertainty, the UK's growth prospects will depend increasingly on the strength of its domestic fundamentals. Businesses have shown resilience through recent economic shocks, but many are now facing costs that are becoming increasingly difficult to absorb. That makes it all the more important for government to deliver a business-led growth agenda by cutting energy costs, unlocking infrastructure delivery through robust private sector partnerships, and finding workable landing zones on employment rights reform that support hiring and job creation.

British Chambers of Commerce

Responding to the latest GDP data published by the Office for National Statistics, Stuart Morrison, Research Manager at the British Chambers of Commerce, said: 

Growth of 0.7% in the three months to April shows the UK economy maintained good momentum from the start of the year, as businesses again proved resilient.  

But the fall of 0.1% for the month may be the first sign of the impacts of the Iran conflict. While monthly figures can be volatile, this is a signal that will need to be closely monitored.  

Businesses have already told us about the direct impacts they are facing from the conflict. Our research shows that energy costs, shipping disruption and raw material prices are all rising.  

Much depends on the length of the conflict. While our forecast has already downgraded growth expectations to 0.9% for the year, inflation is not expected to hit the same levels as the 2022 crisis. But this could all change if the conflict deepens. 

Against this backdrop, it is vital that the UK remains a stable and supportive environment for business. Firms are not looking for quick fixes, they want certainty to make long-term decisions on investment, hiring and expansion. 

To unlock growth, government and business must work in partnership to help firms trade more, invest in new technology and develop a skilled workforce for the future. 

TUC

Commenting on ONS figures showing monthly GDP growing by 0.7% in the three months to April 2026, but contracting by 0.1% into April 2026, TUC General Secretary Paul Nowak said:  

Before Trump's illegal war the economy was starting to get back on track.

But global events are having a knock-on effect on living standards and growth. Families and businesses are still battling against an unending cost of living crisis, with rising petrol, energy and mortgage costs heaping pressure on budgets.

Working families are on the brink. Many will be fearing the weeks ahead, when the new price cap will send energy bills spiralling again. And challenges look set to continue this autumn as more businesses come off fixed energy deals and food prices rise.  

The government must get ahead and do everything in its power to shield families through this crisis. That's why we are calling for an emergency social tariff which will cut bills for two thirds of households funded by an increase in windfall tax on banks. The tariff would reduce inflation and put more money back in people's pockets.

IoD

Commenting on ONS data that showed GDP shrinking by 0.1% in April 2026, Anna Leach, Chief Economist at the Institute of Directors, said:

April's decline in GDP shows impacts from the Middle East spreading across the economy. Manufacturers, wholesalers and those in transport, accommodation and travel are all reporting lower turnover arising from the conflict.  Meanwhile the prices of crude oil inputs are up 75% on the year. These impacts will only deepen and spread as time passes, with higher inflation eroding consumer incomes and spending. For businesses, sharply rising fuel, transport and input costs, slowing decision-making and declining confidence are combining with a turbulent and costly domestic policy environment, creating strong headwinds to growth. As the UK continues to navigate these challenges, the careful management of policy trade-offs matters more now than ever. The removal of barriers to growth, from tax and regulation and the delivery of a predictable policy environment, must remain the focus of government policy action.