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Business owners slam Reeves' description of GDP data as "positive"

ended 14. August 2025

BUSINESS owners have responded to Rachel Reeves' official reaction to this morning's GDP data, which showed the economy grew by 0.3% in the second quarter, less than half of the growth (0.7%) in the first quarter.

Some lambasted the Chancellor's reading of the data as “positive”, with one saying it is “delusional”, another that “you have to wonder what planet she’s currently on”, but some cut the Chancellor some slack as growth was better than expected.

In a post on X, Rachel Reeves said: “Today’s economic figures are positive with a strong start to the year and continued growth in the second quarter. But I know there is more to do to deliver an economy that works for working people - and rewards working people.”

Michelle Lawson, Director at Fareham-based Lawson Financial, was excoriating in her response: “Delusional, desperate and done. The idea here is keep being positive and eventually the public will believe you. Most people know the economic situation is dire and far from where it needs to be, almost at a point that it is irrecoverable. Good and otherwise viable businesses are closing and people are struggling. The daily slog and grind is wearing people down. Action is needed and fast, but so is honesty.”

David Belle, Founder at Fink Money, said the writing is on the wall for the economy: “Our employment situation is deteriorating fast and the writing is on the wall for where we are likely to end up by the year end because of this Government's policies. Fewer people working with more people on benefits, including 600,000 graduates, doesn't reflect an economy that is growing. What concerns me here is that Reeves is still under the illusion that we have seen the full hit of the increased Employers' National Insurance contributions increase. We have not, and this will still come to feed through when we reach firms' decisions on what their budgets look like for 2026.”

Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, also said the Chancellor's verdict is out of sync with a reality where businesses are being strangled: "Small businesses are closing their doors while Rachel Reeves insists she is building an economy for working people. You do not reward working people by wrecking the businesses that pay their wages. A 0.3% rise is not momentum. Until small businesses can breathe again, this economy will keep coughing and spluttering, no matter how much spin the Chancellor puts on it."

Rohit Kohli, Director at Romsey-based The Mortgage Stop, wondered what planet the Chancellor is on: “This slowdown in growth, because that's what it is, is no surprise. Higher business taxes are biting, and the impact is clear in the real economy. While Rachel Reeves claims these figures are “positive,” you have to wonder what planet she’s currently on because it's not earth.

"It’s a slowdown and one that is being driven by this government’s own policies. Growth needs investment, and investment needs headroom. Instead, recent tax hikes have squeezed that room out of many businesses. In Westminster, it’s easy to spin a story, but on the ground the reality is obvious: the incentives to invest simply aren’t there.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, said working people are far from feeling rewarded: “Rachel Reeves is acting like this is an economic renaissance, meanwhile Joe Public has to deal with a continued cost of living crisis, higher mortgage costs and increased unemployment figures. I'm not sure this is what rewarding working people looks like.”

Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, was philosophical: “That the economy has still grown despite the greater tax burden on business, is very welcome. The greatest positive is the uptick in construction activity, which could lead to future growth.”

Also relatively upbeat was Philip Dragoumis, Director at London-based Thera Wealth Management commented: “The numbers will probably be subject to revision, and lots of revision, but Q2 GDP was at least stronger than expected." 

John Woolfitt, Director at Truro-based Atlantic Capital Markets, said: “A slowdown from the first quarter to the second doesn’t necessarily mean trouble ahead, but it does mean the strong start and current policies aren’t working as well as expected.

"On the messaging side, it's standard political framing describing it as “continued growth” rather than “slower growth,” along with the “I know there is more to do” line. Again this is standard covering, acknowledging that people might not feel better off yet, while signalling that policy work continues. But however it's framed, the current plan of tax everything that moves simply isn't working.”

9 responses from the Newspage community

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John Woolfitt
Director at Atlantic Capital Markets
Reading between the lines, Reeves is trying to reassure the public that the government is steering things in the right direction, without drawing attention to the fact that the second quarter's growth rate is less than half of that of the first. A slowdown from Q1 to Q2 doesn’t necessarily mean trouble ahead, but it does mean the strong start and current policies aren’t working as well as expected. On the messaging side, it's standard political framing describing it as “continued growth” rather than “slower growth,” along with the “I know there is more to do” line. Againthis is standard covering, acknowledging that people might not feel better off yet, while signalling that policy work continues. But however it's framed, the current plan of tax everything that moves simply isn't working.
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Patricia McGirr
Founder at Repossession Rescue Network
Small businesses are closing their doors while Rachel Reeves insists she is building an economy for working people. You do not reward working people by wrecking the businesses that pay their wages. A 0.3% rise is not momentum. Until small businesses can breathe again, this economy will keep coughing and spluttering no matter how much spin the Chancellor puts on it.
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Scott Gallacher
Director at Rowley Turton
Unfortunately Reeves post is more political spin than a truly accurate account of the numbers.

Yes, we had positive growth, but that growth has fallen and business investment has disappeared. So it's a bit of a stretch to say these figures are positive. If you read between the lines, you see she has to include the first quarter to support her case. And even then she has acknowledged 'there is more to do'.

For Reeves these figures are some relief but the economy is a million miles away from where she needs it to be to plug the Government's £41bn black hole.
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Rohit Kohli
Director at The Mortgage Stop
This slowdown in growth, because that's what it is, is no surprise. Higher business taxes are biting, and the impact is clear in the real economy. While Rachel Reeves claims these figures are “positive,” you have to wonder what planet she’s currently on because it's not earth. It’s a slowdown and one that is being driven by this government’s own policies. Growth needs investment, and investment needs headroom. Instead, recent tax hikes have squeezed that room out of many businesses. In Westminster, it’s easy to spin a story, but on the ground the reality is obvious: the incentives to invest simply aren’t there
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Editor
Michelle Lawson
Director at Lawson Financial
Delusional, desperate and done. The idea here is keep being positive and eventually the public will believe you. Most people know the economic situation is dire and far from where it needs to be, almost at a point that it is irrecoverable. Good, otherwise viable, businesses are closing and people are struggling. The daily slog and grind is wearing people down. Action is needed and fast, but so is honesty.
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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
Rachel Reeves is acting like this is an economic renaissance, meanwhile Joe Public has to deal with a continued cost of living crisis, higher mortgage costs and increased unemployment figures. I'm not sure this is what rewarding working people looks like.
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Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
That the economy has still grown despite the greater tax burden on business, is very welcome. The greatest positive is the uptick in construction activity, which could lead to future growth. Housing and infrastructure are badly needed so construction is a metric I'm keeping a close eye on.
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David Belle
Founder and Trader at Fink Money
Our employment situation is deteriorating fast and the writing is on the wall for where we are likely to end up by the year end because of this Government's policies. Fewer people working with more people on benefits, including 600,000 graduates, doesn't reflect an economy that is growing. Construction was a green shoot at 1.4% for Q2, but production was down 0.3%. What concerns me here is that Reeves is still under the illusion that we have seen the full hit of the increased Employers' National Insurance contributions increase. We have not, and this will still come to feed through when we reach firms' decisions on what their budgets look like for 2026.
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Philip Dragoumis
Director and Owner at Thera Wealth Management
The numbers will probably be subject to revision (and lots of revision) but Q2 GDP was stronger than expected. This confounds the insistent negative narrative from most of the press .