GDP reading ties in with some surveys suggesting UK plc has kept up momentum despite rising fuel costs

The UK economy unexpectedly grew during the first full month of the Iran war, according to official figures, suggesting the Middle East conflict has not yet affected growth as much as feared.

Figures from the Office for National Statistics (ONS) showed growth of 0.3% in gross domestic product (GDP) in March, from a revised 0.4% rise in February and 0% growth in January. The ONS had originally estimated that the economy grew 0.5% in February and 0.1% in January.

Latest ONS figures also suggest lower population growth in coming decades than previously expected

Deaths are projected to outnumber births in the UK every year from 2026 and the population is expected to grow at a slower rate over the next few decades than previously reported, according to the Office for National Statistics (ONS).

About 1.7 million people are projected to join the population between 2024 and 2034, pushing the total up 2.5% from 69.3 million to 71 million, before it starts to decrease in the mid-2050s.

But Iran war likely to blow hole in Rachel Reeves’s carefully crafted fiscal ‘headroom’ in coming months

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The UK government budget came in below its annual borrowing target by £700m, official figures show – but the Iran war is likely to blow a hole in Rachel Reeves’s carefully calculated fiscal “headroom” over the coming months.

The government borrowed a net total of £132bn for the financial year ending in March, the Office for National Statistics (ONS) said. This slightly undershot the £132.7bn that the Office for Budget Responsibility (OBR) had forecast just last month.

Annual March rate shows impact of Iran war, which also pushed up cost of food and air fares

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UK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years.

In the first official snapshot of the damage to living standards in Britain from the US-Israeli war on Iran, the Office for National Statistics (ONS) said the consumer prices index increased last month from a rate of 3% in February. The rise matched the forecasts by City economists.