Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout

The UK economy grew in July as the rapid expansion of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey.

Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June. City economists had forecast zero growth.

National Audit Office says failure to implement £70bn modernisation would also hold back economic growth

• The ‘great grid upgrade’ is off track – ministers should spell out the risks for bills

Consumers will pay higher energy bills unless the UK government speeds up work on a vast programme of upgrades to the electricity grid to enable the switch to renewables, the public spending watchdog has warned.

The National Audit Office (NAO) said that without faster action the extra costs associated with managing the ageing power network, which are ultimately passed on to the public, could reach £7.8bn a year by 2030.

US government adviser Paul Christiano warns of risks to AI industry as he joins OpenAI’s non-profit foundation

OpenAI is not on track to reduce the risk of “catastrophic” loss of control to an acceptable level, a member of its non-profit board has said, amid spreading public and political concern that super-advanced AIs could one day wipe out humanity.

Paul Christiano, a US government technology adviser, said: “There is a meaningful risk that rapid acceleration in AI capabilities leads to catastrophic and irreversible loss of control in the very near term.”

Climate catastrophe is on our doorstep – yet Labour’s impending approval of further drilling will bring more pain for negligible gains

Pinch yourself, it’s happening again. Here is a Labour government spending a vast amount of political capital to earn tiny material gains while risking huge political losses. It occurred repeatedly under Keir Starmer, and now – with the impending decision to approve further gas and oil drilling in the North Sea – it is happening under Andy Burnham. You rack your brains to explain it, but no rational explanation comes.

Burnham is studiously cryptic about his reasons. His clearest statement to date goes as follows: “There is a resource there. When people are struggling, we can’t ignore that.” Does he mean that oil and gas workers are struggling? If so, this decision will be of little use to them. The Jackdaw gasfield, likely to be approved this week, will generate a grand total of 27 direct full-time jobs. The Rosebank oilfield, whose approval is likely to follow soon, will support 450 UK-based jobs during its lifetime. Yet the UK’s net zero economy directly employs 300,000 people, and a further 400,000 jobs are planned. The rest of the green economy employs more than 600,000. A just transition for fossil fuel workers, securing jobs in the green economy, is better for everyone.

George Monbiot is a Guardian columnist