UK economy shrunk in April

12 Jun 2025

The UK economy contracted by 0.3% in April as tax increases kicked in and exporters faced uncertainty over US trade tariffs.

Figures from the Office for National Statistics (ONS) showed the economy went into reverse after growing by 0.2% in March and 0.5% in February.

In April, employers' National Insurance contributions (NICs) rose while energy, water and council tax bills increased for households.

Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: 'With 0.7% growth in the 3 months to April, the UK economy enjoyed a strong start to the year as firms increased trade ahead of the volatility of tariff announcements.

'However, a larger than expected fall in UK GDP for April suggests the UK is now turning more squarely into headwinds.

'The UK's partial trade deal with the US has offered some relief, but the lowering of tariffs on steel, aluminium and automotives is not yet fully assured.

'This continued uncertainty will inevitably hamper firms' investment decisions and long-term growth prospects.'