BUDGET DOOM
Gloomy pre-Budget warnings led to stalled growth in Labour’s first three months in power, figures show
Chancellor Rachel Reeves yesterday tried to play down the figures, only saying she was 'not satisfied'
GLOOMY pre-Budget warnings led to stalled growth in Labour’s first three months in power, figures show.
The economy grew just 0.1 per cent between July and September amid low business confidence.
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It is an even bigger slowdown than expected from the 0.5 per cent in April to June.
The UK now has the second worst growth among the G7 of largest developed economies — despite PM Sir Keir Starmer pledging to make the nation the G7’s fastest-growing.
Chancellor Rachel Reeves yesterday tried to play down the figures, only saying she was “not satisfied”.
Her Tory counterpart Mel Stride blamed Labour for talking down the economy after its July election win, and said it was “reaping, to a degree, what they’ve done”.
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CBI lead economist Ben Jones said: “Uncertainty ahead of October’s Budget probably played a big part, with firms widely reporting a slowdown in decision-making. Hopefully this will prove a blip.”
Simon Pittaway, at think- tank the Resolution Foundation, added: “After bouncing back from recession earlier this year, the recovery is already running out of steam.”
Growth was subdued across most industries.
The service industry, one of the hardest-hit by the Chancellor’s tax raid, saw 0.1 per cent growth.
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Kate Nicholls, of UK Hospitality, said: “These lacklustre figures make it clear the economy is in a fragile place.”
Labour's new 'Red Queen' Rachel Reeves dropped a £40billion tax bomb on Britain as she blamed Tories
She said the potential for growth remained “if the Government rethinks changes to National Insurance Contributions and takes a High Street-first approach to growth”.
Downing Street said the Government was focused on supporting long-term growth to ensure everyone benefits from prosperity.
Rachel’s economy CV edit
By MARTINA BET
THE Chancellor is under fire for quietly editing her CV regarding her career as an “economist”.
Rachel Reeves had said on social media site LinkedIn she worked in the role at the Bank of Scotland from 2006.
Political gossip website Guido Fawkes claimed her job actually involved admin, IT and planning.
Ms Reeves has updated her profile, changing her role to “retail banking”. Treasury sources insist she was still an economist.
But Shadow Justice Secretary Robert Jenrick said: “Turns out she’s just economical with the truth.”
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