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.

Tories, Reform, fossil fuel industry and some in his party lined up against decarbonisation target as energy secretary

“Whenever the Labour party feels a bit sad,” according to one close observer of the current government, speaking some months ago, “they wheel out Ed Miliband to talk about rooftop solar.”

It might not have been literally true, but it often felt during Keir Starmer’s premiership as if energy secretary Miliband brought the sun. Unfailingly upbeat, with a simple message that was understandable to voters, he had a clear mission – to decarbonise the UK’s power sector by 2030 – that was seen to be progressing fast.

John Healey has resigned as defence secretary over Sir Keir Starmer’s defence investment plan, accusing the Prime Minister of failing to "meet the moment" over his long-delayed proposals to boost military spending.

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